65-407 Public Utilities Commission - General

Chapter 25 Coin-Operated Telephone Service

Code Me. R. 65-407 Ch. 25 Coin-Operated Telephone Service {#sec-65-407-ch.-25 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 25}

SUMMARY: This rule, adopted pursuant to 35-A M.R.S.A. §§ 104, 111, 301, 307, 704, 1301, 1306-1308, 2101, 2102, 2105, 2110, 7101, 7301, and 7503, establishes the minimum requirements for the provision of public and semi-public Customer-Owned Coin-Operated Telephone (COCOT) service and Local Exchange Carrier Coin-Operated Telephone (LECCOT) service. Because the Commission finds that the existence of competition in the pay telephone market furthers the public convenience and necessity, the rule streamlines the COCOT certification process. The rule also provides the procedural requirements for disconnection or termination of COCOT service.

1. Definitions.

A. COCOT. A COCOT is a customer-owned coin-operated telephone. For the purposes of this Chapter, a COCOT also means a customer-owned credit card-operated telephone.

B. LECCOT. A LECCOT is a local exchange carrier coin-operated telephone. For the purposes of this Chapter a LECCOT also means a local exchange carrier credit card-operated telephone.

C. Public Location. A public location is one on public property or a thoroughfare or one to which entry by members of the public is generally not monitored or restricted. The COCOT or LECCOT instrument shall be available for general use of a primarily transient nature. Some examples include transportation terminals, schools, common areas of shopping centers, and lobbies of multiple unit office or apartment buildings. LECCOT service at a public location is offered at the initiative or option of the local exchange carrier, subject to the requirements of section 3(D).

D. Semi-Public Location. A semi-public location is one inside a single business or establishment, or on private property, to which access by the public may be restricted. Access is by the consent of and under the control of the property owner or his agent. The primary use of a COCOT or LECCOT in a semi-public location is intended to be by the customer, the customer's employees, and patrons or guests, with any transient public use occupying a secondary role. Some examples include bars, restaurants, movie theaters, service stations, retail stores, and other business establishments. Semi-public LECCOT service is provided at the request of the customer.

E. Central Office Implemented Service. Central office implemented service, or coin service, is that service which requires the use of TSPS (Traffic Service Position System) or TOPS (Traffic Operator Position System) equipment or operators on local exchange carrier premises in conjunction with a terminal device that provides coin insert tones and engages in an electrical protocol exchange with central office equipment to control coin deposits.

F. Instrument Implemented Service. Instrument implemented service is that service which utilizes devices that contain all the circuitry required to execute coin acceptance and other coin-related and/or credit card-related functions within the telephone instrument itself, without central office involvement, without line polarity reversal, and without TSPS or TOPS equipment or operator intervention. This equipment connects to regular subscriber Public Access Line services, rather than to central office implemented service lines.

G. Local Service. Local service is that service provided within the local calling area of the serving exchange, plus the calling area within the serving exchange's extended area service (EAS), if any has been established by tariff.

2. General Requirements for COCOTs and LECCOTs

A. All COCOTs in both public and semi-public locations shall provide instrument implemented service, and shall be connected to the telephone network through a tariffed Public Access Line. LECCOTs in public and semi-public locations may provide either central office implemented service or instrument implemented service.

B. All COCOTs and LECCOTs in both public and semi-public locations shall be required to be registered under Part 68 of the Rules and Regulations of the Federal Communications Commission (47 C.F.R. § 68). In lieu of this a COCOT provider may connect a COCOT instrument to the network through an FCC-registered coupler.

C. All COCOT and LECCOT instruments shall be hearing aid compatible.

D. All COCOTs and LECCOTs shall be installed in compliance with the NARUC generally-accepted telecommunications industry standards, applicable local codes, and the current National Electric Code and National Electric Safety Code.

E. All COCOT instruments, and all LECCOT instruments in exchanges served by electronic switching equipment, shall provide emergency access to a local exchange company operator and 911 service (where available), free of charge and without use of a coin or credit card.

F. All COCOT and LECCOT sites shall provide either a legible, current local exchange directory, or free directory assistance. However, at sites where the local calling area includes out-of-state points, current directories covering the entire local calling area shall be provided.

G. All coin-operated COCOT and pre-pay LECCOT instruments shall possess the capability of returning, and shall return, deposited coins for uncompleted calls.

H. All coin-operated COCOT AND LECCOT instruments shall accept coins of various denominations.

I. All COCOTs in public and semi-public locations shall be posted with the name and a local or toll-free telephone number of the COCOT service provider. All LECCOTs in public and semi-public locations shall be posted with the name and a local or toll-free telephone number of the local exchange carrier.

J. All COCOTs and LECCOTs shall be posted with operating instructions, the applicable rates, call time limits where applicable, and the particular instrument's Public Access line number.

K. All COCOT and LECCOT instruments shall be posted with the method for reporting complaints and obtaining refunds in a cost-free manner. The office or individual hearing such complaints shall attempt to resolve them. If no resolution is achieved, the complainant shall be informed of the right to seek resolution of the dispute with the Public Utilities Commission's Consumer Assistance Division, and shall be provided that Division's toll-free number.

L. When not in working order, all COCOT and LECCOT instruments shall be capable of giving an out-of-order message, or such a notice shall be posted at the COCOT or LECCOT location.

M. All COCOTs and LECCOTs must bear a notice indicating whether the instrument is capable of receiving incoming calls.

N. Except as specifically authorized by the Commission, a COCOT or LECCOT user shall not be charged for uncompleted calls.

O. No extension(s) shall be connected to the COCOT or the COCOT Public Access Line which would enable third party access to conversations. However, one additional telephone without a coin collecting device may be installed in connection with LECCOT semi-public service when the station is essential to efficient use of the service; the terms of this semi-public extension telephone service must be set by tariff.

P. All COCOT and LECCOT instruments shall comply with all applicable federal and state requirements as to accessibility to handicapped persons, including, without limitation, 25 M.R.S.A. § 2701(10) and 35-A M.R.S.A. § 7503.

3. LECCOT Service.

A. Providers of LECCOT service shall be local exchange carriers under the regulatory jurisdiction of the Maine Public Utilities Commission.

B. LECCOT instruments may be connected to a central office line furnished by the local exchange carrier franchised in the area in which the LECCOT instrument is located.

C. LECCOTs in public locations shall conform to the requirements of sections 2 and 5 of this Chapter. LECCOTs in semi-public locations shall conform to the requirements of sections 2 and 6 of this Chapter.

D. Every local exchange carrier in Maine shall provide at least one LECCOT in the area served by each central office, unless this requirement is waived by the Commission pursuant to section 8 of this Chapter.

E. A notice shall be placed on or near each LECCOT informing the user that credit card service offering lower toll call charges may be available even if the user does not subscribe to individual telephone service.

4. COCOT Service.

A. Prospective providers of COCOT service shall be required to undergo a Certification process as outlined in subsection H of this section.

B. COCOT instruments may be connected only to a Public Access Line furnished by the local exchange carrier franchised in the area in which the COCOT instrument is to be located. However, upon request by a prospective COCOT provider to furnish a Public Access Line in a Public Location, the local exchange carrier may, at its discretion, choose to install a central office implemented public pay telephone in lieu of a Public Access Line; provided that installation of such telephone be completed within thirty (30) days from local exchange carrier's receipt of the COCOT/Public Access Line application.

C. COCOTs in Public Locations shall conform to requirements of sections 2 and 5 of this Chapter. COCOTs in Semi-Public Locations shall conform to requirements of sections 2 and 6 of this Chapter.

D. All COCOTs shall be connected to the network under a tariffs one-party uncapped COCOT Public Access Line measured service rate if measured service is available in that area. If unavailable, COCOTs may be connected under a tariffs Public Access Line one-party message rate if available; otherwise, COCOTs may be connected under a tariffs COCOT Public Access Line flat rate until measured service becomes available.

E. Each local exchange carrier in the State shall file COCOT Public Access Line (PAL) tariffs within fourteen (14) days of receipt of Commission notification that an application for COCOT PAL service has been received for that telephone company's service territory. COCOT PAL tariffs currently approved and in effect shall remain effective.

F. Any and all costs for construction of outside plant necessitated by the introduction of COCOT service shall be borne by the COCOT service provider.

G. All charges incurred by the COCOT line shall be the responsibility of the COCOT service provider. Screening services shall be available to COCOT service providers as an option offered by the local exchange company.

H. Certification. Because the Public Utilities Commission finds that the existence of COCOTs serves the public convenience and necessity, the certification process shall be streamlined as follows:

1. Providers of COCOT service must abide by applicable tariffs of the local exchange carrier, the applicable rules and regulations of the Public Utilities Commission, and Maine Public utility laws. Toward that end, authorization to provide COCOT service and a proposal for a change in rates pursuant to section 7 of this Chapter will depend on completion of application form by the COCOT provider.

2. The application form shall be that appended to this Chapter, subject to modification by the Commission as necessary, and shall include:

a. All information requested on the application form; and

b. For COCOTs in semi-public locations, a description of the basis of those rates and how they relate to the cost of providing service, if service provided is proposed to be at rates which vary from those authorized for COCOTs in public locations.

3. Two (2) copies of the application form for each installation shall be submitted to the Public Utilities Commission by the COCOT applicant after completion of all information required by Section (H)(1) and (2). The Commission, through the Technical Analysis Division, shall either approve or reject the application and shall return one (1) date-stamped copy to the COCOT service provider. If the application is approved, the applicant shall present this date-stamped copy to the local exchange carrier from which service is to be provided. If the local exchange carrier chooses to install a location, the carrier shall promptly notify the COCOT applicant and the Public Utilities Commission. If a Public Access Line is to be furnished as requested, the carrier shall then add to the application:

a. The telephone number of the Public Access Line assigned to the COCOT instrument; and

b. The central office and type of location in which the COCOT instrument is to be located; and shall forward the completed certificate to the Public Utilities Commission. This paragraph shall not apply to certificate filings for the amendment of rates. A revised certificate must be prepared and submitted to the Public Utilities Commission in the event of a change in any of the information contained in the certificate.

I. Disconnection Procedures for COCOT Service.

1. All COCOTs are subject to applicable tariffs of the local exchange carrier, and the rules of the Public Utilities Commission. Failure to comply with applicable tariffs or rules shall be grounds for disconnection.

2. If the Public Utilities Commission finds that a provider of COCOT service is in non-compliance, it shall notify the local exchange company and request that such service be disconnected. Upon Commission request, or the local exchange company's own finding that its tariffs are being violated, the local exchange company shall mail to the COCOT provider a disconnection notice pursuant to paragraph 3 which indicates that unless the reason for non-compliance is removed within fifteen (15) days from the date of the notice, service to the COCOT location will be terminated unless the COCOT provider files a written protest with the Public Utilities Commission prior to such date. However, such notification requirements do not apply if continuation of the COCOT service would cause damage to the company's switched network, in which case the carrier may immediately disconnect to the extent necessary to protect the network. If the disconnection is due to nonpayment, such disconnection shall be made in accordance with the requirements of Chapter 86 of the Commission's Rules.

3. The following constitute the minimum requirements of a disconnection notice to providers of COCOT service, where such notice is required by this Rule:

a. The date on which the disconnection will occur.

b. The exact reason(s) for the disconnection and methods by which the disconnection can be avoided ( e.g ., necessary modifications to bring such COCOTs in to compliance), and/or other information provided by the Commission.

c. The necessary procedures for handling disputes, including:

(1) The address and telephone number of the local office of the telephone company that the COCOT provider may contact in reference to his or her account; and

(2) Notice that the provider may, if not satisfied with the resolution of the dispute proposed in the disconnection notice, file a complaint with, or seek mediation of the dispute from the Consumer Assistance Division of the Public Utilities Commission. The toll free telephone number of the Commission's Consumer Assistance Division (800-452-4699) shall be provided.

J. Discontinuance of Service

No COCOT provider shall discontinue service at an approved location unless it has informed the Commission at least thirty (3) days in advance of such discontinuance.

K. A certificate to provide COCOT service will become invalid six (6) months after the date of issuance if the COCOT installation has not been accomplished by then. Reapplication for approval to operate will be necessary if the installation will occur after that time.

5. Requirements for COCOT and LECCOT Service in Public L ocations.

A. All COCOT and LECCOT instruments in public locations shall be capable of receiving incoming calls and shall be equipped with a working ringer or audible signaling device, unless the owner of the premises specifically states he will not accept an instrument which receives incoming calls.

B. All COCOT and LECCOT instruments in public locations shall provide access to all locally accessible long distance common carriers. This requirement may be satisfied by placement of instructions posted on the telephone to inform users how to reach the various available interstate long distance common carriers. If a locally accessible long distance carrier is accessible only through use of a toll-free number, the COCOT or LECCOT must provide such access.

6. Requirements for COCOT and LECCOT Service in Semi-Public Locations

A. COCOT and LECCOT instruments in semi-public locations may, at the option of the owner, provide either local only, or both local and long distance service.

B. If only local service is provided, notice of such calling limitation must be prominently displayed at or near the COCOT and LECCOT location.

C. For COCOT instruments in semi-public locations, if the rates proposed to be charged for either local or toll service vary from those authorized for COCOTs in public locations, thirty (30) days' advance notice must be provided to the Public Utilities Commission of those rates. If the rates are not unreasonable and no suspension action is taken by the Commission, then those rates may become effective thirty (30) days after receipt by the Commission.

7. Charges.

A. Charges for local calls from a COCOT:

1. The charge for a local call from a COCOT in a public location, connected by a flat-rate Public Access Line, shall be the same as the charge for a local call from a local exchange carrier-provided pay telephone in that central office.

2. The initial charge for a local call from a COCOT in a public location, connected by a measured Public Access Line, shall be the same as the charge for a local call from a local exchange carrier-provided pay telephone in that central office. However, an initial durational limit of five (5) minutes may be imposed, so long as a notice is given thirty seconds before the termination of such initial period, after which the COCOT user may be charged for each additional minute at the rate authorized.

B. For toll calls placed from a COCOT in a public location, the toll rate shall be the same as the charge assessed by the long distance carrier handling the call, to include all surcharges assessed by that carrier. However, the COCOT provider may charge a premium for access not to exceed the charge for unmeasured use or initial charge for measured use for a local call made from a COCOT. Carrier service charges which are not assessed to a COCOT provider may not be passed through to COCOT users.

C. Because of the requirement of 35-A M.R.S.A. § 7301, each local exchange carrier shall charge for local calls from all LECCOTs throughout its service territory according to one of the following arrangements:

1. Flat rate. The charge for a local call shall be a single unlimited-duration charge, set by tariff.

2. Measured rate. The initial charge for a local call shall be for a durational limit of five (5) minutes, so long as a notice is given thirty (30) seconds before the termination of such initial period, after which the LECCOT user will be charged for each additional minute. Both the initial charge and the rate for additional minutes shall be set by tariff.

D. For toll calls placed from a LECCOT the toll rate shall be the intrastate Message Telecommunications Service rate approved by the Commission, or the same as that of the interstate long distance common carrier handling the call, plus any approved service charge. Charges for toll calls placed at a LECCOT which uses instrument implemented service shall not include public (coin) station-to-station service charges.

8. Waiver.

Any local exchange carrier or COCOT provider may request that the Commission waive some of the requirements of this Chapter. The request may be granted if good cause is shown, and granting of the waiver would not be inconsistent with the intent of this Chapter.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §§ 104, 111, 301, 307, 704, 1301, 1306-1308, 2101, 2102, 2105, 2110, 7101, 7301 and 7503.
• EFFECTIVE DATE: This Rule was approved by the Secretary of State on February 5, 1988 and will be effective on February 10, 1988.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• CONVERTED TO MS WORD: May 16, 2005
• CONVERTED TO MS WORD: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 35 Accounting Treatment for Area Lighting

Code Me. R. 65-407 Ch. 35 Accounting Treatment for Area Lighting {#sec-65-407-ch.-35 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 35}

SUMMARY: This rule establishes specific accounting procedures for area lighting.

1. Costs.

Area lighting fixtures and installation costs shall be charged to property account 357, Street Lighting and Signal Systems. The costs are to be charged in this manner regardless of whether the installations are on private property or on poles in the public right-of-way. Utility owned poles, wire, and other equipment charges are to be made to the appropriate plant accounts.

2. Revenue.

The revenue from area lighting shall be credited to a subdivision of account 503 to be designated as Account 503-A, Area Lighting, and reported on line 11 of page 304 of the Annual Report, columns (b) and (c). The utility will keep records of estimated kilowatt-hour consumption, columns (d) and (e), and numbers of customers, columns (f) and (g).

3. Operating Expenses.

Operating expenses incurred in area lighting shall be charged to account 671, Operation of Street Lighting and Signal Systems.

4. Maintenance Expenses.

Maintenance expenses incurred in area lighting shall be charged to account 687, Maintenance of Street Lighting and Signal Systems.

EFFECTIVE DATE: June 21, 1979

PLACED IN MICROSOFT WORD FOR WINDOWS 2.0 FORMAT: April 7, 1998

65-407 Chapter 35 page 1

Chapter 62 Service Standards for Water Utilities

Code Me. R. 65-407 Ch. 62 Service Standards for Water Utilities {#sec-65-407-ch.-62 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 62}

SUMMARY: This rule sets forth comprehensive regulations for water utilities, including rules applicable to jobbing, conditions of service, seasonal service, low and high pressure areas, limited service contracts, and metering.

1. Definitions

A. Corporation. A body created and authorized by law to act and be treated as a single legal entity with an identity distinct from that of its individual members. This definition includes, private companies, municipal and quasi-municipal corporations.

B. Customer. A person, firm, government or government division which has applied for an is granted service or which is responsible for payment of the service.

C. Establishment. A location at which water service is sought or is being rendered.

D. Limited Service Contract. A written agreement, approved by the Commission, under which a water company agrees to provide and the customer agrees to accept a substandard level of service described in the contract.

E. Person. An individual, partnership, or voluntary association.

F. Private Line. (1) A water line constructed prior to May 7, 1986 across private property to serve one or more customers and not considered by the utility to be a main; (2) except as provided under section 2(C) "of Chapter 65", a water line constructed after May 7, 1986 across private property to serve a single customer, a single multi-unit dwelling complex or a single commercial or industrial development upon which no other person has an easement or other right of access for water line purposes. All other water lines shall be considered mains.

G. Service Pipe. The pipe running from the water main to the customer's establishment.

H. Temporary Establishment. An establishment that a water company reasonably believes to be a temporary nature after giving due consideration to the location, setting, structures, and use of the establishment. The absence of a cellar or permanent foundation shall not be the sole criterion used by the water company in determining that an establishment is of a temporary nature.

I. Water Company. A corporation, person, or the lessee, trustee, of a corporation or person, owning, controlling, operating, or managing any water works for compensation within this State.

J. Water Main. A water pipe, other than a service pipe, which is owned, operated, and maintained by a water company, and used for the transmission or distribution of water.

2. General Provisions

A. Applications for Service. An application for service may be made by either owner or occupant of the establishment to be served. If a new service connection or other work on the owner's premise is required, the owner must authorize the water company to enter the premises to do the necessary work.

B. Advance Payment for Utility Jobbing. Whenever a water company agrees to do work outside the scope of regulated utility service for a customer at the customer's expense, the utility may require an advance payment equal to the utility's estimated cost of the work. At the completion of the work, any excess over the actual bill for services will be returned, and any amount due in excess of the advance payment will be payable.

C. Service Pipe

i. A water company shall install, own and maintain the service drop portion of the service pipe, as described in and subject to the payment and other requirements of Chapter 65. The water company shall determine the size and location of its portion of the service pipe. The customer shall pay for, install, own and maintain the customer's portion of the service pipe. If a public way must be crossed by the customer's portion of the public way must be crossed by the customer's portion of the service pipe, the crossing must be approved by the company.

ii. When a water company is requested by a customer to thaw a frozen service pipe and it cannot be determined whether it was frozen on the water company's portion of the pipe or the customer's portion, one half of the cost of thawing the pipe shall be borne by the water company.

D. Temporary Service

i. If it is impractical for a water company to provide service directly to a customer, water may be furnished temporarily from an adjacent service if the water company and the owner of the adjacent service approve. The temporary service shall be at the expense of the customer requesting the service.

ii. A water company shall have no obligation to make an investment to serve a temporary establishment. If however, service is installed at the customer's expense and water service is taken for the following five consecutive years after the initial provision of service, or if the factors causing the water company to believe that the establishment was temporary are removed, the establishment shall be considered permanent and the water company shall refund to the customer any expenses borne by him which would otherwise have been borne by the water company with interest compounded annually at a rate of 9.5% for private companies and 6% for quasi-municipal and municipal corporations.

E. Summer Service Pipes and Maine. A water company shall be required to serve customers through summer service pipes and mains from May 1 to October 1. The water company may, however, elect to render service before May 1 or after October 1.

F. Joint Use of Pipe Trench. A water company shall not place water mains or service pipe in the same trench with facilities of other utilities. If possible, a water utility shall provide a horizontal separation of ten feet between water mains or service pipe and facilities of other utilities.

G. Abatement. If an establishment is to be vacated for a period of thirty days or more, a water company shall abate water charges if the customer notifies the utility in writing in advance of the vacancy and requests the utility to shut off service. If two or more customers are supplied by a single service, seals shall be placed upon the stop and waste valve or fixtures of the vacant establishment. The water company may file a tariff establishing a reasonable charge, based on its costs, for each resumption of customers subject to seasonal rates, or for partial vacancy or multiple units served through a single meter with a normal minimal charge for that size meter.

H. If a customer so requests, a water company shall make a pro-rata reduction in the customer's rates if service is interrupted for longer than forty-eight hours if the interruption is not the customer's fault. The reduction shall be applied only to the minimum bill. The water company may make this adjustment on the next bill. Notice of any planned shut off shall be given to customers affected at least twenty-four hours in advance of the interruption of service. Notice of unplanned shut offs shall be given when practicable.

I. Low Pressure Areas. A water company shall not extend its mains or render service to new customers in areas where substantially uniform system pressure at the connection of the water service to the main may be expected to fall below 20 p.s.i.g., except for periods of fire flow or system maintenance, unless a limited service contract is executed between the customer and the water company and approved by the Commission. If a customer within a utility's franchise area is willing to enter into a limited service contract, then the utility must provide service to him unless the Commission orders otherwise. The water company shall ensure that the limited service contract shall specify the materials and minimum size for the customer's portion of the service pipe. The limited service contract shall be made expressly subject to the authority of the Commission to require better service when, upon investigation, the Commission concludes that service should be improved.

If the number of customers taking service under limited service contract exceeds one per cent of a water utility's total number of customers, the utility shall file a report with the Commission disclosing the number of limited service customers, their locations, and the reasons limited service for these customers appears warranted. The report shall also contain estimates of the cost of increasing pressures to these customers above 20 p.s.i.g. The Commission will review the report and may determine, after hearing, that either improved service or discounts for limited service should be ordered.

K. Conservation. A water company shall take all reasonable steps to prevent unnecessary waste of water. A water company shall not supply water at flat rates for any continuous flow device. If a company concludes that a customer charged at flat rates is unnecessarily wasting water, the water company may convert the customer's service to a metered basis. When necessary to conserve the water supply, a water company may restrict or prohibit the use of hoses or sprinklers for both flat rate and metered customers.

3. Meters

A. Application. A customer may receive water through a meter upon written application to the water company serving him. The water company shall determine the size of the meter, which shall be reasonable in view of the nature of the water service provided.

B. Conversion from Metered Rates. A water company shall not convert an establishment served at metered rates to flat rates without the written approval of the Commission.

C. Meter Setting. All meters shall be set as close as possible to the point of entrance of the service pipe to the building. The water company shall require the customer to provide a warm, dry, and accessible location for the meter. The cost of the meter and installation shall be borne by the water company. The location of the meter, once set, may be changed at the request and expense of the customer, but the change may be made only by an agent of the company. For new installations of meters one and one-half inches and larger in nominal size, the piping arrangement shall be in accordance with the requirements of the water company.

D. Remote Reading Registers

i. If a water company installs a remote meter reading register at the request of a customer for his convenience, the register and installation shall be paid for by the customer but the equipment shall be owned and maintained by the water company.

ii. If a remote reading register is installed by the water company to expedite its meter reading and billing procedures, the installation shall be at the water company's expense.

E. Meter Vaults. If a customer does not furnish a suitable location for a meter inside his building, or if for other reasons it is necessary to locate the meter outside the building, a water company may require the customer to provide and maintain a suitable underground vault. Installation may be performed by the water company on a jobbing basis.

F. Repairs. Meter repairs and replacements necessitated by ordinary wear will be paid for by the water company. Those caused by freezing, hot water, or by other causes within the control of the customer may be charged to the customer, including the cost of removing and replacing the damaged meter.

G. Testing. A water company furnishing water on a metered basis shall provide and maintain suitable equipment and facilities for testing its meters in a manner acceptable to this Commission, except that upon written request from a water company having a small number of meters and limited personnel, the Commission may waive this requirement if satisfactory arrangements are made with another water company or qualified firm properly equipped to test meters.

Portable test meters and equipment may be used to test meters in the field. Test meters and equipment shall be tested and recalibrated to insure accuracy at least once a year. The equipment shall include a device to regulate the flow of water through the meter during the test.

Meters placed in service shall be tested by the manufacturer, with proper certification of such testing furnished to the water company, or by the water company before installation. Thereafter, meters shall be tested periodically in accordance with this subsection or more frequently if requested by the customer. Tests made at the request of a customer shall be made in the presence of the customer or his representative if he desires, and a complete report of the test results shall be furnished to the customer in writing.

All tests shall be at the expense of the water company unless the customer requests more than one test in eighteen (18) months, in which case the water company may require the customer to make a reasonable deposit, if authorized by the water company's tariffs, to cover the cost of the test. If a meter tested at the request of a customer does not conform to the standards below, the customer's deposit will be refunded. If the meter conforms to the standards below, the customer's deposit may be retained by the water company, and the meter may be continued in use at the same location.

To determine the accuracy of meters, the following standard specifications of the American Water Works Association shall be used for all testing of positive displacement cold water meters.

FLOW IN G.P.M.

Nominal Meter Size Minimum Intermediate Maximum

5/8" 0.25 2 15

3/4" 0.50 3 25

1" 0.75 4 40

1 1/2" 1.50 8 80

2" 2.00 15 120

3" 4.00 20 250

4" 7.00 40 350

6" 12.00 60 700

No meter shall be placed or continued in service if it registers more than 2% above or below the intermediate or maximum flows or below 90% of the minimum flow.

Unless permitted otherwise a water company shall adopt the schedule shown below for routine testing of meters:

Nom. Size of Meter Maximum Interval Bet. Test

Years Cubic Feet

5/8" 8 100,000

3/4" 8 150,000

1" 8 300,000

1 1/2" 6 -

2" 6 -

3" 4 Field -

4" 2 Field -

6" & Larger 1 Field -

H. Rate Adjustment

i. For purposes of computing rate adjustments, the accuracy of a meter in service shall be determined by adding the intermediate and maximum flow error and dividing this amount by two.

ii. Adjustment. If a meter error as determined under Section (H)(i) is greater than 10%, the water company shall estimate the customer's water consumption for the applicable portion of the current billing period and the most recent full billing period based on that customer's average consumption, adjusted for known charges. The rate charged to the customer shall be computed according to this estimate. The water company shall refund to the customer any excess amount paid and may recover any deficiency from the customer.

If meter error as computed under Section (H)(i) is determined to be from 2% to 10%, a proportional adjustment shall be made in the rate charged to the customer for the applicable portion of the current billing period and the most recent full billing period. The water company shall refund to the customer any excess amount paid and may recover any deficiency from the customer.

iii. If a test indicates that a meter malfunctioned by providing readings below the actual level of usage, the water company may elect not to make the rate adjustments set forth in subsections (H)(i) and (H)(ii) above.

4. Conditions of Service

A. Entry. A water company shall reserve, as a condition of service, the right of reasonable access to all premises which it serves, at reasonable hours, to permit the inspection of plumbing and fixtures, to set, remove, or read meters, and to ascertain the amount of water used.

B. Stop and Waste Valve. A water company shall require, as a condition of service, that every establishment be equipped with an operable stop and waste valve located inside the building near the service entrance, easily accessible, and protected from freezing. The water company shall also require that all piping be arranged to prevent back-siphonage and to permit draining whenever necessary.

C. Pressure Fluctuation. A water company shall adopt reasonable regulations to prohibit or limit the use of water consumption equipment which will affect the utility's pressure or operating conditions and interfere with the service of other customers. If a customer fails to comply with these regulations, the water company may disconnect service pursuant to Chapter 81 of the Commission's rules.

D. Safeguarding Direct Pressure , Water Devices, and Systems Supplied by Automatic Feed Valves. A water company shall require, as a condition of service, that customers install vacuum, temperature, and pressure relief valves or cutouts to prevent damage to a direct pressure water device or secondary system supplied by an automatic feed valve.

E. Cross Connections. A water company shall adopt regulations to limit or prohibit any cross connection between the public water supply system and any other supply unless it is properly protected by measures which comply with rules of the Department of Human Services. In addition, the water company shall prohibit any connection that will cause back flow between the public water supply system and any plumbing fixtures, device or appliance, or between any waste outlet or pipe having direct connection to waste drains. If the owner of such a connection fails or refuses to break or properly protect the connection within a time limit specified by the utility or department, the utility shall seek to discontinue service pursuant to Chapter 81.

5. Appeal to the Commission

The Public Utilities Commission will, upon motion of the water company or customer, interpret the meaning and effect of the provisions of this Chapter and may, for good cause shown, grant exceptions to these provisions to prevent undue hardship or injustice, or injury to health.

6. Inconsistent Tariff Provisions

This Chapter supersedes any inconsistent tariff provision of a water company. All water companies shall revise their regulations to be consistent with this chapter and file their revised regulations by January 1, 1984.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §3
• EFFECTIVE DATE: July 30, 1983 – filing 83-195
• AMENDED: Filing 87-36: this rule was approved by the Secretary of State January 27, 1987 and became effective February 1, 1987.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• CONVERTED TO MS WORD: May 17, 2005
• AMENDED: September 21, 2021 – filing 2021-190 (EMERGENCY)
• EMERGENCY PERIOD EXPIRED, REVERTED TO 1987 VERSION: December 20, 2021
• EMERGENCY PERIOD EXPIRED, REVERTED TO 1987 VERSION: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 63 Major Construction Projects for Water Companies

Code Me. R. 65-407 Ch. 63 Major Construction Projects of Water Utilities {#sec-65-407-ch.-63 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 63}

SUMMARY: This regulation requires water utilities to inform the Commission of construction projects which exceed the lesser of 5% of the utility's fixed capital investment, or $1,000,000.

1. Definitions

A. Major construction projects - Any new water system or any addition or alteration of an existing water system which is estimated to cost in excess of 5% of the utility's fixed capital investment or $1,000,000; whichever is smaller.

2. Reporting Required

No municipality, water district or water company providing or proposing to provide public water service shall commence a major construction project without submitting a written report to the Commission at least 30 days before bids for the project are requested or 45 days prior to the start of construction in the event bids are not required.

3. Report Content

A. Each report shall include the following information:

1. a description of the project;

2. the need for the project;

3. the purpose of the project;

4. construction plans and specifications along with any data providing the basis for the engineering design;

5. estimated costs and evidence that the most economical methods have been chosen;

6. proposed method(s) of financing to include source of funds, interest rates and proposed terms of borrowing;

7. such other information as the Commission may deem necessary.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 111, 301, 1301 and 6102.
• EFFECTIVE DATE: July 3, 1979
• AMENDED: This Rule was approved by the Secretary of State on April 1, 1988 and will be effective on April 6, 1988.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 63 page 1

Chapter 65 Water Main Extension and Service Line Rule

Code Me. R. 65-407 Ch. 65 Water Main Extension and Service Line Rule {#sec-65-407-ch.-65 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 65}

SUMMARY: This rule establishes standards and conditions for the extension of water utility services.

Page

1. DEFINITIONS 1

A. Customer 1

B. Customer Contribution 1

C. Alternative Calculation of Customer Contribution 2

D. Development 2

E. Establishment 2

F. Investment Amount 2

G. Limited Service Contract 5

H. Main and Main Extension 5

I. Person 5

J. Public Way 5

K. Private Line 5

L. Service Line 6

M. Temporary Establishment 6

2. GENERAL PROVISIONS 6

A. Utility Ownership and Responsibility 6

B. Temporary Establishment 6

C. Main Extensions and Private Lines 7

D. Public and Private Ways 8

E. Public Authority 8

F. Fire Service 8

G. Utility Specifications; Related Distribution Capacity Additions 8

H. Length of Extensions 9

I. Low Pressure Areas 9

J. Inspection and Testing 9

3. EXTENSIONS TO SERVE INDIVIDUALS 9

A. Cost Estimate, Advances and Deposits 9

B. Utility Requirement 10

C. Customer Contribution to Main Extension and Other Requirements; Cost of Service Lines; Advances and Deposits; Contracts 10

D. Distribution of Additional Investment Amounts and Reallocation of Customer Contributions 11

E. Further Extension to Serve New Customer 11

4. EXTENSIONS TO SERVE DEVELOPMENTS 11

A. Developer Requirements 11

B. Utility Investment 12

C. Developer Contribution; Cost of Service Lines; Advances and Deposits; Contracts 12

D. Customer Contributions by Customers Outside Development 13

5. INVESTMENT REDUCED OR NOT REQUIRED FOR HIGH-COST UTILITY; INCREASED FOR LOW-COST UTILITY 14

A. High-Cost Utility; Election by Utility 14

B. Low-Cost Utility; Election by Utility 14

C. Prima Facie Evidence of High-Cost Utility 14

D. Definition of Service Installation and Equivalent Service 15

E. Continued Investment Requirement for Utility with System Development Charge 15

6. MISCELLANEOUS PROVISIONS 16

A. Contribution in Aid of Construction 16

B. Utility Investment in Deep Extensions to Serve Areas Previous Served by Surface Mains 16

C. Surface Mains 16

D. Resolution of Disputes and Commission Review 16

E. Exemptions 16

F. Application of Old Investment Amount to Existing Main Extensions for Two-Year Period; Application of New Investment Amount Thereafter; Exception 16

G. Notice to Commission by Utility Choosing Not to Invest 17

H. Form Contracts 17

65-407 PUBLIC UTILITIES COMMISSION

Chapter 65: WATER MAIN EXTENSION AND SERVICE LINE RULE

SUMMARY: This rule establishes standards and conditions for the extension of water utility services.

1. DEFINITIONS

A. Customer. A person taking or proposing to take water service at an establishment.

B. Customer Contribution. The amount which a new customer on a water main extension must contribute to a water main extension. The amount of the customer contribution shall be the customer's share of the length of the extension up to the point of service minus the investment amount. The customer's share shall be: (1) the length of the main extension, if any, which serves that customer exclusively plus, (2) for each segment of extension serving 2 or more customers, the length of that segment divided by the number of customers served by it. In calculating the customer contributions the utility shall use the average cost per foot of the entire water main extension, including the fire protection allocation described in sections 3(A) and 4(A). The total contribution shall also include the net federal and state income tax liability resulting from the contribution, as calculated pursuant to section 3(C) and 4(C). The cost allocated among customers shall not include the cost of service lines.

EXAMPLE

Customer A is located at 200 feet on an extension.

Customer B is located at 120 feet.

Investment amount ($ amount to be invested by utility per customer) = $600

Cost of extension = $6000

Average cost of extension per foot = $30

1. Customer A pays for all of extension beyond 120 feet, i.e . , 200 - 120 = 80 feet, and pays for half of first 120 feet, i.e . , 120/2 = 60 feet. Customer A pays for 140 feet (80 + 60) of the 200 feet (70%).

2. Customer B pays for half of first 120 feet (30%) of the extension = 60 feet.

3. Customer A's share is 140 feet x $30 per foot = $4200 (70%). After deduction of utility's investment amount of $600, Customer A pays $3600.

4. Customer B's share is 60 feet x $30 per foot = $1800 (30%). After deduction of utility's investment amount of $600, Customer B pays $1,200.

If, after deduction of the investment amount for any customer, the contribution required from that customer is a negative amount, the customer shall make no contribution, but the utility shall make an investment on behalf of that customer equal only to that customer's share calculated as described above.

C. Alternative Calculation of Customer Contribution. As an alternative to the allocation of the customer contribution described in subsection B, where an extension is to serve an area which has lots of approximately equal size, the utility may require customers served by the extension to provide a customer contribution in equal shares of the total construction cost, after deduction of the utility's investment amount for each customer. The utility shall divide the total required customer contributions, after deduction of the total investment, equally among all customers each time a new customer is added.

D. Development. A water main extension shall be considered as serving a development, for purposes of section 4 of this rule, if a single person or business entity or a single association of persons or entities applying for a main extension to serve property owned or under the control of the single person, entity or association has offered two or more parcels for sale or it is reasonable to expect that two or more parcels will be offered for sale.

E. Establishment. A location at which water service is desired or is being rendered.

F. Investment Amount. The amount which a utility must invest in a water main extension for each customer. The investment amount is 75% of the amount of utility investment that will be supported by revenues from a new customer which are associated with fixed investment, provided that the utility shall invest no more than 50% of the cost of a line extension. The investment amount (LA) is established by multiplying the investment factor (IF) by the average annual customer revenue for the applicable customer classes, adjusted for public fire protection, as of the time the first customer was connected. For industrial, commercial and multi-unit residential customers, the average customer revenue shall be that of customers in the same class and same meter size subclass. The investment factor is determined (1) by dividing fixed costs by total operating revenues and other income in order to establish the percentage of costs related to embedded investment; and (2) then dividing this result by the sum of the applicable cost of capital plus capital recovery costs (.013 depreciation) based on a 75-year write-off (expressed decimally as .013) plus, for a non-investor owned utility, the principal payment percentage per year. The entire calculation is multiplied by .75.

In the formulas stated below the account numbers listed are from the Uniform System of Accounts for water utilities, contained in Chapter 61 of these rules (65‑407 C.M.R. 61).

The basic formula for determining the investment amount (IA) is:

IA = IF x ACR

The formula for determining the investment fact (IF) for a non-investor owned utility is:

_{IF = .75} D + A + I X 1 1

R + T C + P + .013

The formula for determining the investment factor (IF) for an investor owned utility is:

_{IF = .75}D + A + I _x 1

^{R + T} _{CD +} ^CE _{+ .013}

1 - (FIT – (FIT x SIT) + SIT)

Where

ACR = Average Annual Customer Revenue per customer for the applicable class or meter size subclass, divided by the difference of 1 minus the percentage determined in the most recent rate case, expressed decimally, of the utility's revenue requirement paid for fire protection by the municipality in which the main extension is located. If a utility is not able to determine average revenue for a particular class or meter size subclass because of insufficient experience, it shall use an estimated average revenue, based on average usage amounts from other water utilities and approved by the Director Technical Analysis of the Commission.

D = Depreciation Expense from Account 403.

A = Amortization Expense from Account 407.

I = For non-investor-owned utilities, total Income Deductions from Accounts 427, 428, 429 and contractual appropriations of income included in Account 436. For investor-owned utilities, the weighted cost of debt times the rate base allowed in the utility's last rate case, unless a different amount is approved or set by the Commission or the Director of Finance.

R = Operating Revenues from Accounts 460 to 474 inclusive.

T= Total Non-operating Income from Accounts 415 to 421 inclusive and Account 426.

C = Overall cost of capital for non-investor owned utilities, expressed as a decimal. Unless otherwise approved or set by the Director of Finance or the Commission, the cost of capital shall be the average interest rate for the first 15 years of the most recent issues of the Maine Bond Bank for a serial bond, assuming equal annual principal payments.

CD = Cost of debt for an investor-owned utility, weighted by the debt ratio, expressed as a decimal. Unless otherwise approved or set by the Director of Finance or the Commission, the cost of debt and the debt ratio shall be those approved in the utility's most recent rate case.

CE = Cost of equity, weighted by the equity ratio, expressed as a decimal. Unless otherwise approved or set by the Director of Finance or the Commission, the cost of equity and the equity ratio shall be those approved in the utility's most recent rate case.

FIT = The utility's marginal federal income tax rate allowed in its most recent rate case, expressed as a decimal, unless a different tax rate is approved or set by the Director of Finance or the Commission.

P = Principal payment percentage annually, expressed as a decimal. Unless a different amount is approved or set by the Director of Finance or the Commission, the amount shall be .067 (15 years).

SIT = The utility's marginal state income tax rate allowed in its most recent rate case, expressed as a decimal, unless a different tax rate is approved or set by the Director of Finance or the Commission.

The investment amount shall be calculated each year on or before July 1. With the approval of the Commission, a utility may apply an adjustment to both the numerator and denominator of the fraction which determines the ratio of investment costs to total income in order to correct for past overinvestment in line extensions under the former investment factor contained in this chapter prior to its amendments effective May 7, 1986.

G. Limited Service Contract. A written agreement approved by the Commission pursuant to chapter 62, under which the company agrees to provide and the customer agrees to accept a level of pressure estimated in the contract. This agreement must be made on a form supplied by the utility.

H. Main and Main Extension. A main is a water line in a public way owned by the utility to serve one or more customer, multi-unit dwelling complex, or commercial or industrial development; or a water line owned by the utility on private property to serve more than one customer, multi-unit dwelling complex, or commercial or industrial development or to serve a single customer, multi-unit dwelling complex or commercial or industrial development if another person or entity has an easement or other right of access for water line purposes. A new main shall be a main extension for the 10 years following connection of the first customer. Pursuant to a decision by a utility under section 2(C), a new water line on private property to serve a single customer, multi-unit dwelling complex development shall be a main extension.

I. Person. An individual, partnership, company, public or private corporation, political subdivision or agency of the State, department, agency or instrumentality of the United States, or any other legal entity.

J. Public Way. A street or public right-of-way which has been accepted and is owned or controlled by a town, city, county, state or the federal government.

K. Private Line. (1) A water line constructed prior to May 7, 1986 across private property to serve one or more customers and not considered by the utility to be a main; (2) except as provided under section 2(C), a water line constructed after May 7, 1986 across private property to serve a single customer, a single multi-unit dwelling complex or a single commercial or industrial development upon which no other person has an easement or other right of access for water line purposes. All other water lines shall be considered mains.

L. Service Line. A water line installed at the customer's expense extending from a main to serve a single customer, a single multi-unit dwelling building or complex of a single commercial or industrial development. The service drop portion of the service line shall be owned by the utility and shall extend from the main to the curb stop (shut-off valve). The curb stop shall ordinarily be at the edge of the right of way.

M. Temporary Establishment. An establishment that the utility reasonably believes to be of a temporary nature after giving due consideration to the location, setting, structures and use of the structures and/or establishment. The absence of a cellar or a permanent foundation shall not be the sole criterion used by the utility in determining that an establishment is of a temporary nature.

2. GENERAL PROVISIONS

A. Utility Ownership and Responsibility. All water main extensions, appurtenances and service drops constructed pursuant to this rule shall be owned, maintained and, except as provided below, replace by the utility. The actual construction shall be done by the utility or by an agency acceptable to it under the utility's supervision. If replacement is required because of an increase in demand by a new or existing customer or customers and not because the main should be or must be retired, the customers presenting the increased demand shall pay for a reasonable portion of the replacement pursuant to section 3 as if the replacement were a new main extension or service drop, but the utility shall invest an additional amount based on the difference in average customer revenues for the old and new meter sizes. A reasonable portion of the replacement facilities shall be determined in the same manner as provided in section 2(G).

B. Temporary Establishment. The utility shall have no obligation to make an investment to extend its water service to a temporary establishment. If, however, service is installed at the customer's expense and water service is taken for a period of five consecutive years, or if the factors causing the utility to believe the establishment is of a temporary nature are removed, the establishment shall be considered as permanent and the utility shall make investments as provided in these rules, providing that no investments shall be made after 10 years following connection of the first customer.

C. Main extensions and private lines. A private line shall be installed, owned and maintained by and at the expense of the customer which it serves. Main extensions, wherever located, are subject to the provisions of this chapter. Upon application for service through a water line to be constructed after May 7, 1986, which is otherwise defined by section 1(K) as a private line, the utility may require a main extension if it decides that the private line will be detrimental to the proper development of the water system.

If, after May 7, 1986, a customer served by a private line permits another customer, premises or person to be served from the private line, the line shall be subject to the water main provisions of this rule. If the utility determines that this line must be modified or replaced in order to meet its specifications or to provide adequate capacity for reasonably anticipated future growth, the utility shall invest in the line, unless it has chosen to make no investments pursuant to 35 M.R.S.A. §72-A, and the customers served by the line shall provide a contribution as required by section 3 or 4. Any private line which will continue to be used as a main shall be conveyed to the utility without charge. All mains shall be owned and maintained and replaced by the utility as provided in section 2(A) and the utility shall be provided all necessary easements. Refusal or failure to comply with the requirements stated herein or failure of the unauthorized connecting person to voluntarily disconnect shall be grounds for disconnection pursuant to chapter 81, §2(A)(3), provided that the utility shall give 60 days notice prior to the proposed disconnection and payment of contributions shall be subject to payment arrangements under section 5 of Chapter 81, not to exceed one year in length. A person who disagrees with the utility about the proper size of any main or the need to modify or replace a private line may refer the matter to the Commission staff and Commission pursuant to Section 6(D).

If a utility under this rule, before or after its amendments effective May 7, 1986, has allowed a private line to be constructed when it prudently should have required a main extension, or, if after May 7, 1986, it has authorized connection of a second or subsequent customer to a private line constructed at any time, and if a main extension is built subsequently, customers connecting to the main extension shall be required to make customer contributions only in the amount that would be required if the customers served by the private line were required to connect and contribute to the extension. The utility shall pay the customer contribution of and investment amount for the customers who continue to be served by the private line unless those customers connect to the main extension.

D. Public and Private Ways. Extensions shall normally be made in the municipally accepted public way. The utility may make extensions across private property provided that adequate easements are obtained. It shall be the responsibility of the applicant for a water main extension to provide the utility with such easements as the utility deems necessary.

If a utility reasonably believes that the lines and grades of a private street may not be approved by a municipality or other public authority it may refuse to invest in the water main extensions in the private streets until lines and grades have been established by the public authority and the street has met those standards, as determined by the utility or the public authority. Upon compliance with those standards, as well as the utility's construction standards, the utility shall make investments for each customer previously connected for a period of ten years following connection of the first customer.

E. Public Authority. Where an extension must comply with an ordinance, regulation or specification or a public authority, the estimated and final cost of said extension shall be based upon the costs to comply therewith.

F. Fire Service. Extensions made solely for either public or private fire protection service shall not be subject to these rules.

G. Utility Specifications; Related Distribution Capacity Additions. The utility shall specify the size and type of pipe to be installed, and it shall be the responsibility of the utility to provide mains of adequate size to allow for normal domestic and fire protection growth. In the event that the utility desires to install pipes for its future benefit which are larger than required in the extension area, appropriate adjustments will be made.

If the demand for water expected from the customers to be served by the extension requires existing mains leading to the extension to be replaced or supplemented by parallel mains, or requires booster pumps or other appurtenances in order to satisfy the demand or to maintain adequate pressure along the extension or along the main leading to the extension, a reasonable portion of these costs shall be included in the price of the water main extension. In determining a reasonable portion the utility shall consider whether the need for new replacement or parallel facilities is caused entirely by the customers to be served by the main extension; the age of existing facilities and the need for replacement for other reasons; the marginal cost of providing the additional capacity if existing facilities need present replacement or replacement in the near future; any increases in the quality of service to other customers by the addition or replacement facilities; and, in the case of a review pursuant to section 6(D), the prudence of the utility in determining the amount of existing capacity.

H. Length of Extension. In arriving at the length of a water main extension necessary to render service at any point, the distance from such point to the nearest existing water main normally shall be traced along the line which, according to established trade standards and utility practice, marks the proper construction of the extension in the street, road or right-of-way on which the building or lot fronts. The point at which the extension ends and the service line commences shall normally be at the intersection of this line and another line, perpendicular thereto, which passes through the center of the building to be served.

I. Low Pressure Areas. The utility shall not extend its mains or render service to new customers in areas where substantially uniform system pressure at the connection of the water service to the main may be expected to fall below 20 p.s.i.g., except for periods of fire flow or system maintenance, unless a limited service contract is executed between the utility and the customer and approved by the Commission. The utility shall insure that the limited service contract is recorded in the Registry of Deeds. The limited service contract shall specify the materials and minimum size for the customer's portion of the service pipe. The execution of a limited service contract shall not prevent the Commission from requiring better service when, upon investigation, the Commission concludes that service should be improved.

J. Inspection and Testing. The utility shall insure that any and all facilities, installed or accepted under an agreement, comply with the utility's standards for materials and installation and are adequate and safe for the purpose of the utility. The utility shall not be required to accept a main extension, pipeline or related appurtenances until after they have been inspected and tested and meet the utility's standards. Any inspections or test shall be at the expense of the person requesting service or acceptance.

3. EXTENSIONS TO SERVE INDIVIDUALS

A. Cost Estimate , Advances and Deposits. Upon request of a potential customer or customers for a main extension, the utility shall prepare, without charge, a preliminary sketch, general specifications such as size and type of pipe, an estimate of the cost of the proposed water main extension and separate estimates of the cost of service lines to serve the customers requesting the main extension. If a water utility provides public fire protection the estimate and final cost for each foot of the extension shall include the average current per foot cost for the utility of providing hydrants. Averages shall be determined by dividing current installation costs by the spacing in feet between hydrants for areas of the same density and character.

The main extension estimate shall serve as a basis for determination of any required customer contribution. The costs of the main extension and the service lines shall be kept separate in order to allow reallocation among customers of the cost of the main extension alone pursuant to subsection D. For the purposes of these rules, actual costs shall be reasonable and shall not exceed costs recorded in conformity with accepted water utility accounting practice as defined in the Uniform System of Accounts for Water Utilities prescribed by this Commission.

B. Utility Requirement. Unless a non-investor owned utility has chosen to make no investment in main extensions pursuant to 35 M.R.S.A. §72-A(1), the utility shall invest in the extension of its water mains the investment amount multiplied by the number of customers served by the main extension. Each time a permanent customer is connected to the line extension during the 10 years following connection of the first customer, the utility shall invest an additional investment amount, except that it shall not invest in more than one-half of the original cost of construction. The investment amount shall be the amount calculated as of the time the first customer was connected.

C. Customer Contribution to Maine Extension and Other Requirements; Cost of Service lines; Advances and Deposits; Contracts. Applicants either for a new water main extension, or for service from an existing water main extension, during the period of 10 years following connection of the first customer (on extensions to which the first customer was connected after May 7, 1986), shall, subject section 2(G), be responsible for customer contributions of all costs of construction of the main extension including the fire protection allocation, less the amount which the utility must invest. All applicants for service from a main, whenever constructed, shall be responsible for the cost of both portions of the service line that will serve each customer. Applicants for either a main extension or the utility's portion of the service line from an investor-owned utility shall also be responsible for the net federal and state income tax liability resulting from the contribution in aid of construction. The total amount which the applicant must pay shall be determined by (1) determining the amount of contribution before taxes (construction cost allocated pursuant to section 3(D) minus investment amount); (2) determining the amount of depreciation for tax purposes for each year over the tax depreciable life of the asset; (3) determining the amount of tax reduction resulting from tax depreciation over each year of the tax depreciable life of the asset, using the utility's expected marginal federal and state tax rates; (4) determining the present value of the amounts established by step 3, using as a discount rate the weighted cost of debt plus the pre-tax weighted cost of equity as determined in the investment factor formula; (5) deducting the total amount established by step 4 from the amount of the contribution established by step 1; (6) grossing up the amount established by step 5 for federal and state taxes pursuant to the following formula:

_{TC =} C

1 - [FIT - (FIT x SIT) = SIT]

Where

TC = Total contribution including taxes

C = Contribution after deduction of present value of tax reductions resulting from tax depreciation (step 5)

FIT = Federal Income Tax marginal rate

SIT = State Income Tax marginal rate

The applicant(s) shall be required to advance the customer contribution, if applicable, and the cost of the service drop to the utility no more than two weeks prior to the start of construction, of a utility no more than two weeks prior to the start of construction, of a new main or connection to an existing main extension or main. The utility may require a deposit of the cost of materials and supplies and detailed engineering design, or some portion thereof, two months prior to the commencement of construction of a main extension. Any portion of the deposit actually spent for detailed engineering design or for materials and supplies which cannot readily be used for other projects by the utility shall not be refundable. Within 60 days following receipt by the utility of the final bills for the extension, adjustment shall be made for any differences between the estimates and actual costs of the extension and service line or lines.

No construction of a main extension or service drop shall be commenced until the utility and the customer have executed a written contract. The contract shall incorporate this rule by reference, shall state that in the case of a conflict between the contract and the rule, the rule shall govern, and shall state that the provisions of the contract are subject to alteration by Public Utilities Commission decision or rule.

When new customers are added to an extension, customer contributions to the line extension for existing and new customers shall be recalculated as provided in Paragraph D.

D. Distribution of additional Investment Amounts and Reallocation of Customer Contributions. When additional customers are connected to an extension within the ten years following connection of the first customer, the utility shall make payments without interest to the existing customers of (1) the additional amount, if any, which the utility must invest in the main extension; and (2) the additional customer contribution to the main extension. The amounts to be paid to customers shall be determined by recomputation of the contribution by each customer (after deduction of the new total utility investment amount) pursuant to section 1(B) or 1(C), as applicable, as if all customers had been connected simultaneously. If the utility has ceased investing because it has invested an amount equal to one-half of the original cost of the extension, customer contributions and reallocations among customers shall nevertheless continue until the expiration of the 10-year period.

E. Further Extension to Serve New Customer. All further extensions to serve other customers shall be separate and customers served by further extensions shall not be required to contribute to any prior extension.

4. EXTENSIONS TO SERVE DEVELOPMENTS

A. Developer Requirements. Upon request, an applicant for a main extension to serve a development shall furnish all reasonable information concerning the development, including an approved recorded plan which will show the line and grade of any roadways and an easement giving the utility prior rights in the public right-of-way. The utility shall prepare the cost estimate. If a water utility includes public fire protection the estimate and the final cost for each foot of the extension shall include the average current per foot cost of providing hydrants. Averages shall be determined by dividing current installation cost by the spacing in feet between hydrants for areas of the same density and character.

B. Utility Investment. Unless a non-investor owned utility has chosen to make no investment in water main extensions pursuant to 35 M.R.S.A. §72-A(1), during the period of 10 years following connection of the first customer, the utility shall make an investment in a water main extension in the form of a payment to the developer each time a permanent customer is connected to the extension. The amount of the investment per customer shall be determined pursuant to section 1(F) at the time the first customer was connected shall remain unchanged over the 10 year period. The total amount of investment shall equal the investment amount multiplied by the number of additional customers served by the main extension, but shall not exceed one-half of the original cost of the extension. Additional service drops constructed at any time after the construction of the main extension shall be paid for in advance of construction by the developer or customer to be served.

C. Developer Contribution; Cost of Service Lines; Advances and Deposits; Contracts. The developer shall advance to the utility, no more than two weeks prior to the commencement of construction, the total estimated cost of the line extension including the fire protection allocation and, subject to section 2(G), and the total estimated cost of service drops to all lots or locations where future service may reasonably be anticipated. Developers shall also be responsible for the net federal and state income tax liability of an investor-owned utility resulting from the contribution in aid of construction. The total amount which the applicant must pay shall be determined by (1) determining the amount of contribution before taxes (construction cost minus investment amount); (2) determining the amount of depreciation for tax purposes for each year over the tax depreciable life of the asset; (3) determining the amount of tax reduction resulting from tax depreciation over each year of the tax depreciation life of the asset, using the utility's expected marginal federal and state tax rates; (4) determining the present value of the amounts established by step 3, using as a discount rate the weighted cost of debt plus the weighted pre-tax cost of equity as determined in the investment amount formula; (5) deducting the total amount established by step 4 from the amount of the contributions established by step 1; (6) grossing up the amount established by step 5 for federal and state taxes pursuant to the following formula:

_{TC =} C

1 - [FIT - (FIT x SIT) = SIT]

Where

TC = Total contribution including taxes

C = Contribution after deduction of present value of tax reductions resulting from tax depreciation (step 5)

FIT = Federal Income Tax marginal rate

SIT = State Income Tax marginal rate

The utility may require a deposit of the cost of materials and supplies or detailed engineering design, or some portion thereof, two months prior to the commencement of construction. Any portion of the deposit actually spent for detailed engineering design or for materials and supplies which cannot readily be used for other projects by the utility shall not be refundable.

No construction of a main extension or service drop shall be commenced until the utility and the developer have executed a written contract. The contract shall incorporate this rule by reference, shall state that in the case of a conflict between the contract and the rule, the rule shall govern, and shall state that the provisions of the contract are subject to alteration by Public Utilities Commission decision or rule.

Within 60 days following receipt by the utility of the final bills for the extension, the charge to the developer shall be adjusted to make up for any difference between the estimated and actual costs of the lines. For the purposes of these rules, actual cost shall be reasonable and shall not exceed costs recorded in conformity with accepted water utility accounting practice as defined in the Uniform System of Accounts for Water Utilities prescribed by the Commission.

D. Customer Contributions by Customers Outside Development. If a main extension must cross property other than that within the development prior to reaching the development, and customers located on the property outside the development are connected to the main extension within ten years following connection of the first customer at any location on contribution. The total cost of the main extension shall be allocated between the development and the area outside the development on the basis of the number of feet within the development and the number of feet outside the development. After determining the total cost of the portion of the main extension outside the development on the basis of this allocation, customers outside the development should be required to make a contribution, less an investment amount per customer if applicable, as provided pursuant to section 1(B) or 1(C). For the purpose of determining the contribution or reallocating contributions when subsequent customers outside the development are connected, the developer shall be considered the equivalent of the number of customers within the development or the number of services constructed pursuant to subsection C of this section, whichever is greater, as if all those customers or services were located at the termination of the portion of the extension located outside the development. If a development is master-metered, the number of customers within the development, for purposes of this subsection, shall be considered as the number of residential, commercial or industrial units or establishments.

5. INVESTMENT REDUCED OR NOT REQUIRED FOR HIGH-COST UTILITY; INCREASED FOR LOW-COST UTILITY

A. High-Cost Utility; Election by Utility. A water utility may, with the approval of the Commission, be exempted from investing in a water main extension or may invest less than the amount otherwise required by Sections 3 or 4 if it is a high-cost utility, as defined in this subsection. A utility has high costs if the additional annual investment and operating revenue required to serve additional customers exceeds the amount of revenue which those customers will supply. If a utility has received approval to eliminate or reduce its investments pursuant to this section, individuals or developers requesting the construction of a water main extension, or service from an existing water main extension during the 10 years following connection of the first customer shall be responsible for the entire construction cost of the water main extension or all amounts in excess of any reduced investment amount through developer or customer contributions. The original customer contribution(s) and recalculation of customer contributions when additional customers are connected shall be in accordance with section 1(B) or 1(C), as applicable, but only the required investment amount shall be deducted.

B. Low-Cost Utility; Election by Utility. If a water utility is a low-cost utility as defined in this subsection, it may choose to invest in the utility's portion of service lines, whether from a main extension or not; and, with the approval of the Commission, it may invest a greater amount in main extensions than the amount set by section 1(F). A water utility has low costs if additional revenue which new customers provide exceeds the additional annual investment and operating costs to serve those customers. A utility is presumed to meet this test if it has excess capacity in the commonly used facilities of the water system, including reservoirs, standpipes, treatment systems, pumping facilities and transmission mains and low customer growth.

C. Prima Facie Evidence of High-Cost Utility. There shall be a presumption that a utility is a high-growth utility if it has undertaken reasonable conservation and load-management efforts and:

1. It has experienced:

(a) an increase in service installations in excess of an average of 1.5% compounded for the previous three years (4.57% for the three-year period); and

(b) Because of that growth in service installations, it is necessary to undertake a construction program of commonly used facilities of the water system, including reservoirs, standpipes, treatment systems, pumping facilities and transmission mains; and the program requires additional investment-related revenue of 15% or more. The percentage of investment-related revenue shall be determined pursuant to the first fraction of the investment factor formula state in section 1(F), i.e . , (D + A + I)/(R + T).

D. Definition of Service Installation and Equivalent Service. For purposes of subsection C(1) and (2) of this section, each residential dwelling, including apartment units, shall be considered one service installation unit; each motel or hotel unit shall be considered a half unit. The number of equivalent units for all other commercial and industrial service connections shall be based on the equivalent cross-section area of the service as follows:

Size of Service Equivalent number of units

3/4" 1.0

1" 1.8

1 1/4" 2.8

1 1/2" 4.0

2" 7.1

3" 16.0

4" 28.4

6" 64.0

8" 113.8

10" 177.8

12" 256.0

16" 455.1

E. Continued Investment Requirement for Utility with System Development Charge. If a utility is permitted to impose a system development charge for the purpose of financing future capacity in commonly-used facilities required as a result of customer growth, the utility shall not be permitted to eliminate or reduce its investment in a water main extension pursuant to this section.

6. MISCELLANEOUS PROVISIONS

A. Contribution in Aid of Construction. Nothing herein contained shall prevent a utility from accepting non-refundable donations or contributions for extensions either in cash or construction participation.

B. Utility Investment in Deep Extensions to Serve Areas Previously Served by Surface Mains. The Utility shall invest in a "deep" main extension replacing a surface main in the manner provided by this rule. However, the utility's depreciated investment in the surface main shall be deducted from the investment in the "deep" main otherwise required.

C. Surface Mains. A utility shall not be required to make an investment to further extend a surface main.

D. Resolution of Disputes and Commission Review. In the case of any disagreement or dispute regarding the application of any provision of this rules, any person may refer the matter to the Commission for resolution. The matter will be treated as an informal complaint submitted for staff resolution under section 8(B) of Chapter 11 of the Commission's Rules, Rules of Practice and Procedure, 65-407 C.M.R. 11, §8(B). If a party is not satisfied with the staff's resolution, it must file a written request for Commission review within 5 business days following the issuance of the resolution by the staff. Failure to file a timely request for review of the Staff's resolution shall constitute acceptance of the resolution and waiver of further opportunity to be heard with respect to the matter.

A receipt of a request for review shall be treated as a request for investigation pursuant to 35 M.R.S.A. §296. A summary investigation shall be conducted, after which the Commission shall determine whether a formal investigation is warranted. If it decides to commence a formal investigation, the Commission shall determine the mater de novo and may affirm, reverse or modify the staff decision. If the Commission decides not to commence a formal investigation, failure to act in accordance with the staff resolution shall constitute grounds to commence a formal investigation pursuant to §296 and the initiation of a proceeding to issue a temporary order pursuant to 35 M.R.S.A. §293.

E. Exemptions. A utility or any person affected by this rule may apply to the Commission for exemption from any provision of this chapter for good cause. The request shall contain a complete explanation and justification for the exemption.

F. Application of Old Investment Amount to Existing Main Extensions for Two-Year Period; Application of New Investment Amount Thereafter; Exception. The investment amount as calculated pursuant to this rule, as amended May 7, 1986 or as further amended January 8, 1987, shall apply (1) to all investments made in those line extensions for which a main extension contract was executed on or after May 7, 1986; and (2), except as provided below, to all investments which the utility incurs the obligation to make on or after May 7, 1988 in all main extensions, including main extensions for which a main extension contract was incorporating the former rule to the contrary. The obligation to make an investment is incurred at the time a permanent customer is connected.

If, on a line extension for which a main extension contract was executed prior to May 7, 1986, an individual or developer sold a piece of property or contracted to sell a piece of property prior to that date and a customer is connected subsequently, the rebate (investment) amount shall be calculated as provided in this rule prior to the May 7, 1986 amendments.

No investments or rebates made or owed prior to the amendments effective May 7, 1986 shall be adjusted.

G. Notice to Commission by Utility Choosing Not to Invest. If, pursuant to 35 M.R.S.A. §72-A(1), a non- investor owned utility has chosen to make no investment in water main extensions, it shall notify the Commission in writing of the date of that decision and shall include the minutes or other record thereof, including any endorsement required by 35 M.R.S.A. §72-A(4).

H. Form Contracts. The forms for contacts between water utilities and individuals and water utilities and developers for water main extensions and service lines, attached to this rule as Forms A and B, may be used for contracts required by this chapter and may be adapted for other circumstances arising under this chapter. A utility may use contracts with wording different from that provided herein, provided that the wording complies with the specific requirements for contracts required by this rule and is otherwise consistent with the rule.

(APA Office Note: please contact the Public Utilities Commissions for applicable forms.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §3
• EFFECTIVE DATE: February 2, 1987, or such subsequent date as the Secretary of State approves.
• AMENDED: This rule was approved by the Secretary of State January 27, 1987 and became effective on February 1, 1987.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• CONVERTED TO MS WORD: May 17, 2005
• NON-SUBSTANTIVE CORRECTION: November 14, 2011 – “waste line” corrected to “water line”
• NON-SUBSTANTIVE CORRECTION: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 68 Water Utilities Depreciation Rates

Code Me. R. 65-407 Ch. 68 Water Utilities Depreciation Rates {#sec-65-407-ch.-68 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 68}

SUMMARY: This rule governs the essential information and procedures for estimating the depreciation rates for the plant of water utilities.

1. Definitions.

A. Service Life - The average length of time a unit of equipment will remain in service taking into account factors such as the effect of normal wear and tear, economic and technological obsolescence and public requirements.

B. Net Salvage Price - The price that the sale of a unit of equipment will bring upon the end of its useful service life to a utility, less the estimated cost of removal involved in retiring such property.

C. Depreciation Rate - This rate is derived by using the following formula:

100% - Net Salvage Price as

Annual Depreciation Rate = percent of original cost

Service life (in years)

2. Except as provided in Section 3 the following are the maximum depreciation rates which will be allowed by the Commission for ratemaking and accounting purposes.

MAXIMUM DEPRECIATION RATES

WATER UTILITIES

%

STRUCTURES

Brick, Concrete 2

Frame 3

IMPOUNDING DAMS & RESERVOIRS 1.3

SPRINGS & WELLS 2

INTAKES & SUCTION MAINS 1.5

PURIFICATION SYSTEM

Filters (Mfg. in Place) 3

Filters (Package Plant) 3

Chlorinators 10

Chemical Feeders 10

Test Equipment 10

Other Related Equip. 5

PUMPING EQUIPMENT

Electric 5

Gas & Oil 5

Hydraulic 5

TRANSMISSION MAINS 1.3

SUBMARINE MAINS 5

DISTRIBUTION MAINS

6" & Larger 1.3

4" & Smaller (Buried & Surface) 3

DISTRIBUTION RESERVOIRS 1

Floating Covers 2

STANDPIPES & TANKS

Above Ground (Conc. & Steel) 1.7

Below Ground (Conc.) 1.3

SERVICES

Copper 3

C.I. & D.I. (Large) 1.3

Plastic 3

METERS 4

Remote Readers 7.5

HYDRANTS 2

FOUNTAINS & TROUGHS 1

GENERAL EQUIPMENT

Office-Electronic 12

Office Furniture 5

Shop 7

Stores 5

TRANSPORTATION

Trucks 10

Cars & Pickups 20

Telephone 10

Radio 10

Laboratory 10

Misc. Construction 10

Garage 7

Utilities may continue to use rates previously allowed by the Commission until their next rate case after the effective date of this rule.

3. The Commission may allow a utility to use alternative depreciation rates which may be justified using on e or more of the methods described in two manuals published by the National Association of Regulatory Utility Commissioners, Public Utility Depreciation Practices (1968) and Depreciation Practices for Small Water Utilities (1979). Requests to use alternative depreciation rates may be ruled upon by the Director of the Technical Analysis Division, in consultation with the Director of the Finance Division whose decision shall be contained in a written order. This delegation of authority shall not affect the Commission's authority to rule upon requests or review the decision of the Director of Technical Analysis.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §53-57
• EFFECTIVE DATE: This rule was approved by the Secretary of State January 15, 1986 and will be effective January 20, 1986.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: November 9, 1999 - minor spelling and formatting.
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 68 page 3

Chapter 69 Determination of Fire Protection Revenues for Water Utilities

Code Me. R. 65-407 Ch. 69 Determination of Fire Protection Revenues for Water Utilities {#sec-65-407-ch.-69 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 69}

SUMMARY: This rule establishes a formula for determining for ratemaking purposes the percentage of gross revenues that water utilities should derive from fire protection charges.

1. Definitions.

A. "Fire Protection Allocation Curve" means the curve established from studies done by the Maine Water Utilities Association, as described in its Journal of March 1961, and attached to this Rule.

B. "Peak Flow" means the peak hourly flow in gallons per minute for the utility's system. In cases where the peak hourly flow cannot be readily determined, it shall be estimated on the basis of 2 1/2 times the average daily flow in gallons per minute.

C. "Required Fire Flow" shall be determined by the National Board of Fire Underwriters (N.B.F.U.) formula 1020 x (1-.01 x) in gallons per minute, where X is the population in thousands served by the utility.

D. "Standard Allocation Method" is the method of determining the percentage of a utility's gross revenue to be derived from public fire protection charges as determined by Section 2 of this Rule.

2. Determination of Percentage of Gross Revenue for Fire Protection Charge.

To determine the percentage of gross revenue that a water utility shall allocate to public fire protection charges, it shall first determine the fraction in which Peak Flow is the numerator and Required Fire Flow is the denominator. This fraction shall then be plotted on the Fire Protection Allocation Curve, attached as Appendix A. The applicable percentage is read at the point where the fraction determined above, as plotted on the horizontal axis of the Fire Protection Allocation Curve, intersects the vertical axis of the curve.

The allocation shall be as determined by the curve, except as follows:

A. In no event shall the percentage at gross revenue allocated to fire protection charges be more than 30%, or less than 6%, of gross revenue, unless either (1) the utility proves to the Commission, by such studies as the Commission may require, that such extraordinary percentages are reasonable and necessary; or (2) that an allocation factor of more than 30% has been accepted by the municipality and approved by the Commission and conditions have not materially changed.

B. The Commission finds, on the basis of evidence presented to it, which may include the allocation factor approved by the Commission in the utility's last rate case, that a different allocation factor should be used because of an inadequate fire flow or other good cause.

3. Full Allocation Studies.

A. As an alternative to using the Standard Allocation Method, a utility may prepare and present to the Commission for its consideration a full allocation study of its own system. Utilities are encouraged to prepare and present such studies when there are conditions on their system, such as extensive treatment facilities, that would make the application of the Standard Allocation Method unreasonable or inappropriate.

B. The Commission may order a utility to prepare and present to it for its consideration a full allocation study of the utility's system when it determines that application of the Standard Allocation Method would be unreasonable or inappropriate.

4. Charges for Public Fire Protection for New Extension.

Until the date of completion of its next general rate case proceeding, a utility, other than a utility that has chosen to make no new investments in new extensions pursuant to 35-A M.R.S.A. § 6106, following the effective date of its decision not to invest pursuant to that section, may bill to the municipality, or the public authority, the charge for public fire protection on a new main extension constructed in a municipally accepted public way after the effective date of the rule to which extension the first customer was connected after February 1, 1987, pursuant to the following formula:

TACR x FP

Where

TACR = Total average annual customer revenue for all customers connected directly to the extension, including public fire protection, as defined in Chapter 65, §1(F).

FP = Percentage of utility's revenue requirement for fire protection determined pursuant to Section 2, above, or as otherwise ordered by the Commission.

Hydrants on a public way shall be installed at the spacing or locations agreed upon by the utility and the municipality when the extension is constructed, but the charges shall apply whether or not any hydrants are located on the main extension.

Until such time as the way on which a hydrant is located is accepted by a municipality or the municipality accepts responsibility for a hydrant as a public hydrant, the hydrant shall be considered private fire protection and shall be billed accordingly.

Any tariff provision that conflicts with this rule shall be null and void.

5. Charges for new public hydrants on mains to which the first customer was connected on or before February 1, 1987.

Until the date of completion of its next general rate proceeding, a utility may bill to the municipality, or other public authority, the charge for public fire protection for new hydrants installed on mains to which the first customer was connected on or before February 1, 1987, pursuant to the following formula:

The formula for determining the annual charge (AC) for a non-investor owned utility is:

AC = CH x [C + P + .02]

The formula for determining the annual charge (AC) for an investor-owned utility is:

AC = CH x [CD + CE + .02]

1 - (FIT - (FIT x SIT) + SIT

Where:

AC = Annual charge for a new hydrant on a main to which the first customer was connected on or before February 1, 1987.

C = Overall cost of capital for non-investor owner utilities, expressed as a decimal. Unless otherwise approved or set by the Director of Finance or the Commission, the cost of capital shall be the average interest rate for the first 15 years of the most recent issues of the Maine Bond Bank for a serial bond, assuming equal annual principal payments.

CH = cost of the hydrant.

CD = Cost of debt for an investor-owned utility, weighted by the debt ratio, expressed as a decimal. Unless otherwise approved or set by the Director of Finance or the Commission, the cost of debt and the debt ratio shall be those approved in the utility's most recent rate case.

CE = Cost of equity, weighted by the equity ratio, expressed as a decimal. Unless otherwise approved or set by the Director of Finance of the commission, the cost of equity and the equity ratio shall be those approved in the utility's most recent rate case.

FIT = The utility's marginal federal income tax rate allowed in its most recent rate case, expressed as decimal, unless a different tax rate is approved or set by the Director of Finance or the Commission.

P = Principal payment percentage annually, expressed as a decimal. Unless a different amount is approved or set by the Director of Finance or the Commission, the amount shall be .067 (15 years).

SIT = The utility's marginal state income tax rate allowed in its most recent rate case, expressed as a decimal, unless a different tax rate is approved or set by the Director of Finance or the Commission.

Until such time as the way on which a hydrant is located is accepted by a municipality or the municipality accepts responsibility for the hydrant as a public hydrant, the hydrant shall be considered private fire protection and shall be billed accordingly.

Any tariff provision that conflicts with this rule shall be null and void.

6. Application.

A. This rule will govern the rate design of all rate filings made by water utilities after the effective date of the rule, whether filed pursuant to 35-A M.R.S.A. §§307 and 309 or §§307 and 6104. Utilities will not be required by reason of this rule to file for a change of rates existing on the effective date of this rule, unless required by Commission order under 35-A M.R.S.A. §1306 after a §1303 investigation.

B. Rates filed pursuant to 35-A M.R.S.A. §§307 and 6104 after the effective date of the rule that do not conform with the provisions of the rule shall be considered unreasonable and not take effect, unless substantiated by an acceptable allocation study for the utility's system. The Technical Analysis Division of the Commission will review all §6104 rate filings to determine compliance with this rule and shall notify the utility if there is non-compliance with the rule. After receipt of this notice, the utility shall not charge its new rates until new rates have been filed pursuant to §§307 and 6104 that are in compliance with this rule, or the Commission, after a hearing requested by the utility, finds that they are in compliance with this rule.

C. In cases where a utility serves more than one municipality, it may allocate to each municipality served a percentage of the total public fire protection revenues that it is entitled to collect on the basis of that municipality's percentage of the total number of hydrants served by the utility.

7. The Commission, for good cause shown may waive the application of any provisions of this rule.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§111, 301, 502, 104 and 1301.
• EFFECTIVE DATE: August 10, 1987
• AMENDED: This rule was approved by the Secretary of State on December 14, 1987 and will be effective on December 19, 1987.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: November 9, 1999 - removal of duplicate words in Summary.
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 69 page 5

Chapter 83 Political Activities, Institutional/Promotional Advertising, Allowances by Public Utilities

Code Me. R. 65-407 Ch. 83 Political Activities, Institutional Advertising, Promotional Advertising, and Promotional Allowances by Public Utilities {#sec-65-407-ch.-83 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 83}

Summary: This rule requires all public utilities to file annual reports describing their political activities, institutional advertising, promotional advertising, and promotional allowances; requires detailed and separate accounting for expenses associated with political activities, institutional advertising, promotional advertising, and promotional allowances; prohibits any electric or gas utility from providing promotional allowances without prior Commission approval; and establishes Commission policy and ratemaking treatment for expenses associated with political activities, institutional advertising, promotional advertising, and promotional allowances.

1. Definitions.

A. Advertising. The term "Advertising" means the use of any media, including radio, television, periodicals, newspapers, billboards, car cards, exhibits, bill inserts, handbills, brochures, and other printed matter, in order to communicate a message to the general public, to a portion of the general public, or to a public utility's customers.

B. Political Activities. Political activities by utilities are acts, expenditures and advertising conducted by the utility or by an organization of which the utility is a member for the purpose of influencing federal, state, or local ordinances, legislation or legislative resolutions, campaigns for political office, referenda, initiatives, constitutional amendments or state and municipal bond issues. Without limitation, and by way of example only, political activities shall include: 1) activities before executive or administrative agencies or officials, or the general public, for the purpose of advocating a specific position with respect to a campaign as defined in 21-A M.R.S.A. §1032(1); 2) activities before or communications with legislative or executive officials for the purpose of influencing legislative actions or political appointments, or for the purpose of advocating initiation of legislative actions, including activities which must be reported in the Secretary of State's lobbyist disclosure report under 3 M.R.S.A. §317; 3) contributions, gifts, or non-monetary donations to political candidates, political parties, political or legislative committees or to any committees or organizations working to influence referendum petitions or elections, pursuant to 35 M.R.S.A. §51-A. Without limitations, and by way of example only, the following do not constitute political activities: 1) proceedings before local, state, or federal executive or administrative agencies to secure licenses, permits, easements, variances, or similar authority; 2) rulemaking proceedings before state or federal agencies, unless the utility advocates a position with respect to a campaign; 3) services rendered by utility employees on behalf of government agencies, boards, commissions, or ad hoc committees created by public bodies to examine particular issues, or; 4) responding to informational requests from legislators or legislative committees where the utility is not involved in attempting to influence legislative action.

C. Institutional Advertising. The term "Institutional Advertising" means any advertising conducted for the purpose of promoting the corporate image or goodwill of a public utility or the utility industry.

D. Promotional Advertising. The term "Promotional Advertising" means any advertising conducted for the purpose of encouraging any person to select or use the service or increase usage of the service of a public utility, to select, purchase, install, or use any appliance or equipment designed to use such utility's service, or to use any other particular service of the utility.

E. Promotional Allowance. The term "Promotional Allowance" means any reduction in rates or charges or any rebate or credit granted by a public utility to a customer for the purpose of encouraging any person to select or use the service or increase usage of the service of a utility, to select, purchase, install, or use any appliance or equipment designed to use such utility's service, or to use any other particular service of such utility.

F. Exceptions. For purposes of sections 3 and 5 of this rule, the terms "Political Activities," "Institutional Advertising," "Promotional Advertising," and "Promotional Allowance" do not include acts, practices, expenditures, or advertising which:

1. Inform customers how they can conserve energy, reduce peak demand for a utility's service, or otherwise reduce consumption of the utility's service.

2. Inform customers about energy-efficient appliances, equipment, or services, or about practices which reduce the cost of utility service.

3. Are required by federal or state law or regulation or are required or permitted by Commission order.

4. Concern connection, disconnection, conditions of service, billing procedures, service interruptions, safety measures, or emergency conditions.

5. Concern employment opportunities with the public utility.

6. Explain existing rate schedules or provide notification of proposed rate schedules and of hearings and proceedings concerning the public utility.

7. Reports Required.

A. Annual Reports for Advertising, Political Activities, Institutional or Promotional Advertising, or Promotional Allowances.

Each public utility engaging in any advertising, political activities, institutional advertising, promotional advertising, or the making or promotional allowances shall file a report annually with the Commission containing a written description of such activities, advertising, and allowances, whether conducted by the utility itself or by another corporation, organization, association, or individual on the utility's behalf. The report shall be included with the utility's annual report to the Commission and shall include the expanses associated with such activities, advertising or allowances, as well as total expenditures on all such activities, advertising methods used by the utility to collect and account for such information and the methods used to inform its employees and agents of the requirements of this rule and how to report such information to the utility for inclusion in the report required by this section and the accounts required by section 3 of this rule. The Commission may review and require alteration of any reporting or accounting methods and procedures to ensure that the policies of this rule are implemented uniformly. In addition, each public utility shall keep copies of all its institutional and promotional advertising on file for inspection by the Commission.

Furthermore, with respect to political activities, the report shall include: 1) the number and titles of each utility employee involved; 2) the hours spent by these employees each quarter; 3) the expenditures, salary, and associated overheads of each employee while engaged in political activities. Political activities expenditures on major issues shall be separated and reported by specific issue or activity whenever aggregate spending for a particular issue or activity exceeds $50,000 or 10% of the total of all political activities expenditures over the most recent twelve-month period or are estimated to exceed 10% of the political expenditures for that calendar year.

B. Quarterly Summary Reports for Utilities Engaged in Political Activities.

Each utility engaged in political activities shall file a quarterly summary report listing the major political activities and associated expenditures, as defined above. In addition, this summary report shall include the total expenditures on political activities, separated by expenditures incurred internally and externally.

3. Accounting.

Each public utility shall keep a record of all expenditures, contributions, expenses and costs directly or indirectly associated with, or incurred entirely or in part with respect to, political activities, institutional advertising, promotional advertising, and promotional allowances. Such records shall identify, to the extent reasonably possible in accordance with applicable standards of accounting practice, all contributions, dues, fees, and other amounts paid directly or indirectly, or through license, service, or management contracts or arrangements or otherwise, to another corporation, organization, association, or individual, to the extent used to conduct such activities on the utility's behalf.

All direct and indirect expenditures associated with political activities by all utilities and associated with institutional advertising, promotional advertising, and promotional allowances by electric and gas utilities shall be accounted for by recording the same in separate subdivisions of the appropriate non-operating account listed below entitled "Miscellaneous Deductions from Income" and shall reflect the total of such expenditures as a footnote to the income statement in the annual report to the Commission.

Electric Utilities Account No. 449

Water Utilities Account No. 448

Telephone Utilities

Small Independents Account No. 423

NET&T and Class A

Independents Account No. 323

Gas Utilities Account No. 426

4. Prior Approval Required for Promotional Allowance.

No electric or gas utility shall provide any promotional allowance or engage in a promotional allowance program without the prior express written approval of the Commission, upon a finding that such allowance or program is just, reasonable, and in accord with applicable statutes, rules, and regulations.

5. Ratemaking Treatment.

A. Political Activities. It is the policy of the Commission and it adopts the standard that no pubic utility shall recover from any person other than its shareholders or other owners for any expenditures, contributions, expenses, or costs of such utility incurred with respect to political activities. This subsection applies to all direct or indirect expenditures, contributions, expenses, and costs incurred by a public utility with respect to political activities, or through another corporation, organization, association, or individual which engages in political activities on behalf of the utility.

Each public utility which files with the Commission for a change in rates shall account separately for all expenditures, contributions, expenses, and costs associated with political activities, in accordance with the provisions of section 3 of this rule, and shall not include such expenditures, contributions, expenses, and costs as an operating expense for ratemaking purposes. Any request for allowance of such expenditures, contributions, expenses, or costs as an operating expense for ratemaking purposes shall be made in the form of an adjustment to test period operating expenses, which adjustment must be supported by adequate evidence and documentation. The Commission may allow or disallow the adjustment, or any part thereof, on the basis of the policy expressed in this rule and the justness and reasonableness of the expenditure, contribution, expense, or cost in the particular case.

B. Political Contributions under 35 M.R.S.A. §51-A. Notwithstanding any other provision of this rule, pursuant to 35 M.R.S.A. §51-A (1978), contributions or gifts to political candidates, political parties, political or legislative committees, or to any committees or organizations working to influence referendum petitions or elections, whether paid directly or indirectly, through reimbursement or otherwise, incurred by a public utility, shall not be included or incorporated in operating expenses.

C. Institutional Advertising, Promotional Advertising, and Promotional Allowances by Electric and Gas Utilities. It is the policy of the Commission and it adopts the standard that no electric or gas utility shall recover from any person other than its shareholders or other owners for any expenditures, contributions, expenses, or costs of such utility incurred with respect to institutional advertising, promotional advertising, or promotional allowances. This subsection applies to all direct or indirect expenditures, contributions, expenses, or costs incurred by a public utility with respect to institutional advertising, promotional advertising, or promotional allowances, or through another corporation, organization, association, or individual which engages in institutional advertising, promotional advertising, or promotional allowances, or through another corporation, organization, association, or individual which engages in institutional advertising, promotional advertising, or promotional allowances on behalf of the utility.

Each electric or gas utility which files with the Commission for a change in rates shall account separately for all expenditures, contributions, expenses, and costs associated with institutional advertising, promotional advertising, and promotional allowances, in accordance with the provisions of section 3 of this rule, and shall not include such expenditures, contributions, expenses, and costs as an operating expense for ratemaking purposes. Any request for allowance of such expenditures, contributions, expenses, or costs as an operating expense for ratemaking purposes shall be made in the form of an adjustment to test period operating expenses, which adjustment must be supported by adequate evidence and documentation. The Commission may allow or disallow the adjustment, or any part thereof, on the basis of the policy expressed in this rule and the justness and reasonableness of the expenditure, contribution, expense, or cost in the particular case.

D. Other Expenses. The inclusion or exclusion of any provision in this rule shall not restrict or limit, nor be construed to restrict or limit, the Commission's power in any rate case involving any public utility to disallow, in whole or in part, any expense which the Commission finds to be unjust, unreasonable, excessive, or unwarranted.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §§3, 4, 5, 6, 7, 296 and 313
• EFFECTIVE DATE: August 1, 1979
• AMENDED: November 19, 1986, or such subsequent date as the Secretary of State approves. This Rule was approved by the Secretary of State on November 19, 1986 and will be effective on November 24, 1986.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTIONS: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 89 Confidentiality of Customer Records]

Code Me. R. 65-407 Ch. 89 Confidentiality of Customer Records {#sec-65-407-ch.-89 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 89}

SUMMARY: This rule, adopted pursuant to 35 M.R.S.A. §§3, 4, 5, 6, 105, 296, 313, and 314 reiterates that records of a customer's credit history that are in the possession of a utility may be inspected by the Commission. It also clarifies that such records which are provided to the Commission are confidential and therefore not available for public inspection. Finally, though such records are considered confidential, the rule provides that any good faith disclosure shall not be considered a violation of 35 M.R.S.A. §5.

1. Inspection

Upon the request of the Commission, a utility must provide all written information within the utility's possession about the credit history of any customer.

2. Information furnished to the Commission pursuant to Section 1 of this Chapter, or pursuant to Chapter 81 of the Commission's Rules, is confidential under 35 M.R.S.A. §5 and is therefore not an accessible public record pursuant to 1 M.R.S.A. §402(3)(A). The Commission, at its discretion, may disclose the records or the information in the records to the customer, the customer's representative, and other public agencies which agree to keep such information confidential. Disclosure to any other person which is made in good faith and without malice shall not constitute a violation of 35 M.R.S.A. §5 and shall not subject the Commission or its employees to any penalties included in §5.

3. Delegation to Consumer Assistance Division

The Consumer Assistance Division may act on behalf of the Commission for purposes of this rule.

History

• STATUTORY AUTHORITY: 35 M.R.S.A. §3, 4, 5, 6, 105, 296, 313, and 314.
• EFFECTIVE DATE: September 21, 1985.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 89 page 1

Chapter 110 Rules of Practice and Procedure

Code Me. R. 65-407 Ch. 110 Rules of Practice and Procedure {#sec-65-407-ch.-110 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 110}

SUMMARY: This Rule establishes rules of practice and procedure before the Maine Public Utilities Commission.

TABLE OF CONTENTS Page

§1 APPLICABILITY 1

A. Applicability 1

B. Liberal Construction 1

C. Deviation or Waiver from Rules 1

D. Conflict with Statute or Constitution 1

§2 DEFINITIONS 2

A. "Adjudicatory Proceeding" 2

B. "Administrative Director" 2

C. "Advisory Staff" 2

D. "Commission" 2

E. "Complainant" 2

F. “General Rate Case” 2

G. "Holiday" 2

H. "Inquiry" 2

I. "Intervenor" 2

J. "Lead Complainant" 2

K. “Party” 2

L. "Person" 3

M. "Petitioner" 3

N. "Presiding Officer" 3

O. "Regular Business Day" 3

P. "Respondent" 3

Q. "Rule" 3

R. "Staff" 3

§3 PUBLIC UTILITIES COMMISSION 4

A. Meetings, Public Proceedings, and Deliberations 4

B. Commission Record of Proceeding 4

1. Decisions 4

2. Deliberative Sessions 4

C. Practice before Commission 4

1. Attorneys 4

2. Non-Attorneys 4

D. Alternative Dispute Resolution 5

§4 COMMENCEMENT OF PROCEEDING, SERVICE,AND FILINGS 5

A. Commencement of Proceeding 5

B. Service and Filing of Pleadings and Other Communications 5

1. Service 5

2. Method of Filing 5

C. Time 5

D. Copies of Commission Documents 5

§ 5 PETITIONS AND MOTIONS 6

A. Form 6

B. Requirements; Procedure 6

§ 6 RULEMAKING 6

A. Governing Procedure 6

B. Petition for Adoption or Modification of Rule 7

§ 7 ADVISORY RULINGS AND OPINIONS 7

A. Advisory Ruling Requests 7

1. Petition 8

2. Additional Information 8

3. Decision 8

4. Advisory Ruling not Binding 8

B. Opinion of General Counsel 8

C. Consumer Assistance Bulletin 9

§8 ADJUDICATORY PROCEEDINGS: GENERAL PROVISIONS 9

A. Notices 9

1. Notice of Proceeding 9

2. Notice of Hearings 10

3. Notice Following Decision 10

B. Participation in Proceeding 10

1. Mandatory Intervention 10

2. Discretionary Intervention 10

3. Petition to Intervene 10

4. Participation Limited or Denied 11

5. Consolidation of Presentations 11

6. Public Witness Participation 11

C. Subpoenas 12

1. Authority 12

2. Issuance 12

D. Termination or Limitation of Proceedings by Stipulation 12

1. Participation of Parties 13

2. Participation of Commission’s Advisory Staff 13

3. Participation of Staff Advocates 13

4. Information Accompanying all Stipulations 13

a. Cover letter 13

b. Memorandum 14

5. Consideration of Uncontested Stipulations 14

6. Consideration of Contested Stipulations 14

7. Approval of Either a Contested or Uncontested Stipulation 14

E. Withdrawal or Dismissal 15

1. Voluntary Withdrawal or Dismissal 15

2. Involuntary Dismissal 15

3. Issues Limited 15

F. Presiding Officer 15

1. Powers of Presiding Officer 15

2. Presiding Officer to Conduct Hearing; Substitute Officer 16

3. Use of Advisory Staff and Consultants 16

4. Report of Presiding Officer 17

5. Bias of Presiding Officer, Advisory Staff or Commission Member 17

G. Ex Parte Communications 17

1. Ex Parte Communications Prohibited 17

2. Prohibited Communications after Issuance of Presiding Officer's Report 18

3. Communication Permitted 18

4. Proposed Findings or Decisions 19

H. Record 19

1. Contents of Record 19

2. Hearings Recorded 19

3. Availability of Record 19

4. Decision Based on the Record 19

5. Documentary Evidence 20

6. Specialized Agency Knowledge 20

§ 9 ADJUDICATORY PROCEEDINGS; PREHEARING PRACTICE 20

A. Prehearing Conferences 20

1. Prehearing Memoranda 20

2. Prehearing Order 20

B. Discovery 21

1. Discovery by Commission and Staff 21

2. Data Requests by Parties 21

3. Technical Conferences 21

4. Oral Data Requests 21

5. Use of Discovery 22

6. Sanctions 22

§ 10 ADJUDICATORY PROCEEDINGS; HEARINGS AND EVIDENCE 22

A. Hearings 22

1. Right to Hearing 22

2. Order of Procedure 22

3. Examination 22

4. Witnesses 22

B. Rules of Evidence 23

1. Hearsay 23

C. Admission into Evidence of Oral Data Requests by Commission, Presiding Officer or Advisory Staff Member 23

D. Late-Filed Exhibits 23

E. Official Notice 23

F. Protective Orders 24

G. Prefiled Testimony and Exhibits 24

1. Direct Case of Petitioner 24

2. Form of Testimony 24

3. Other Testimony 24

4. Corrections/Supplements 24

5. Oral Direct Testimony 25

§ 11 ADJUDICATORY PROCEEDINGS; POSTHEARING PRACTICE AND PROCEDURE 25

A. Briefs and Exceptions 25

B. Oral Argument 25

C. Decisions 25

D. Rehearing, Reopening, Reconsideration and Clarification 26

§ 12 COMPLAINTS 26

A. Formal Complaints under 35‑A MRSA §1302(1) 26

B. Informal Complaints 27

§ 13 INQUIRIES 27

A. Initiation of Inquiry 27

B. Notice 27

C. Presiding Officer 27

D. Hearings 28

E. Subpoenas and Discovery 28

F. Termination of Inquiry 28

§ 14 DELEGATIONS 28

A. Applicability 28

B. Waiver of Applicability of Chapter 110 28

C. Compliance 29

D. Suspension, Reorganization, Affiliated Interest, Contract, Transmission 29

E. Additional Delegations 29

65-407 PUBLIC UTILITIES COMMISSION

Chapter 110: RULES OF PRACTICE AND PROCEDURE

SUMMARY: This Rule establishes rules of practice and procedure before the Maine Public Utilities Commission.

§ 1 APPLICABILITY

A. Applicability

These rules shall govern all practice and procedure before the Commission under applicable laws of the State of Maine, unless otherwise directed by the Commission. Procedures not specifically addressed by these rules shall be governed by the Maine Rules of Civil Procedure and the procedural requirements of 5 MRSA §8001, et seq . and Title 35‑A of the Maine Revised Statutes.

B. Liberal Construction

These rules shall be liberally construed to secure just, speedy and economic determination of all issues presented to the Commission.

C. Deviation or Waiver from Rules

To the extent permitted by law, where good cause appears, the Commission may permit deviation or waiver from this Chapter, the procedural requirements or deadlines of any other rule or order and the substantive requirements of any rule. It may permit deviation from procedural requirements insofar as it may find compliance therewith to be impracticable, inexpedient or unnecessary. To the extent possible, any request for a procedural deviation or waiver should be made in writing. In the case of a request for a substantive deviation from the requirements of another chapter of these rules, the request shall be in writing. The Commission may grant a request for a substantive deviation or waiver upon a finding of good cause or that compliance would be unduly burdensome and a finding that the deviation or waiver is not inconsistent with the purposes of the chapter or applicable statute from which the deviation or waiver is sought. This subsection shall not apply to any other rule where a conflicting waiver or modification procedure is provided.

D. Conflict with Statute or Constitution

These rules shall be construed, wherever possible, consistently with applicable statutory and constitutional authority. Where a conflict exists, statutory or constitutional authority shall prevail over these rules.

§ 2 Definitions

A. "Adjudicatory Proceeding" means any proceeding before the Commission in which the legal rights, duties or privileges of a specific person or persons are required by constitutional law or statute to be determined after an opportunity for hearing.

B. "Administrative Director" means the Administrative Director of the Maine Public Utilities Commission, the Assistant Administrative Director or any Commission employee specifically designated by the Administrative Director to perform an act described in these rules.

C. "Advisory Staff" means those particular individuals on the Staff or their consultants who are specifically assigned to advise the Commission with respect to issues of law, facts or procedure arising in an adjudicatory proceeding.

D. "Commission" means the Maine Public Utilities Commission.

E. "Complainant" means a person who complains to the Commission of any act or of any person.

F. “General rate case” has the same meaning as 35-A M.R.S.A. §307.

G. "Holiday" means any day on which either of the following is lawfully ordered or required to be closed:

1. the Public Utilities Commission, in accordance with the procedure and schedules established for State agencies generally; or

2. the United States Postal Service.

H. "Inquiry" means a non-adjudicatory and non-rulemaking proceeding initiated by the Commission to obtain information and comment for the purpose of determining whether a rulemaking or adjudicatory proceeding ought to be initiated or exploring policy issues and forming preliminary policies not intended to be enforceable.

I. "Intervenor" means a person who is permitted to intervene in a proceeding as provided for in these rules.

J "Lead Complainant" means, with respect to complaints under 35‑A M.R.S.A. §1302(1), the complainant designated as the agent for all other complainants. In absence of such a designation by the complainants, the person who submitted the complaint or the first complainant's name appearing on the complaint will be considered the lead complainant. The Administrative Director shall identify the lead complainant upon receipt of the complaint.

K. "Party" means: 1) any person granted intervenor status in an adjudicatory proceeding pursuant to Section 8(b)(1) and (2) of this Rule, or 2) the lead complainant in a Commission investigation if the Commission determines a petition filed pursuant to 35-A M.R.S.A. §1302 has merit; and (3) the specific person whose legal rights, duties or privileges are being determined in the proceeding.

L. "Person" means an individual, partnership, corporation, governmental entity, association or public or private organization of any character, except for the Maine Public Utilities Commission.

M. "Petitioner" means any person, other than a complainant, who seeks any relief or order from the Commission or who seeks to commence an action that the Maine Revised Statutes require to be instituted by petition or application.

N. "Presiding Officer" means the person designated to preside over a Commission proceeding, with the duties and powers set forth in section 8(G), or a substitute officer as provided in section 8(G)(2). The presiding officer may be a Commissioner or any Commission employee. The presiding officer in an adjudicatory proceeding shall be referred to as the Hearing Examiner.

O. "Regular Business Day" means a day that is not a Saturday, a Sunday or a Holiday.

P. "Respondent" means a person against whom any complaint is filed or investigation initiated.

Q. "Rule" means the whole or any part of any regulation, standard, code, statement of policy or other statement of general applicability, including the amendment, suspension or repeal of any prior rule, that is or is intended to be judicially enforceable and implements, interprets or makes specific the laws administered by the Commission or describes the procedures or practices of the Commission.

The term "Rule" does not include:

1. policies or memoranda concerning only the internal management of the Commission which are not judicially enforceable;

2. advisory rulings issued under Section 7;

3. decisions issued in adjudicatory proceedings;

4. any form, instruction or explanatory statement of policy which in itself is not judicially enforceable, and which is intended solely as advice to assist persons in determining, exercising or complying with their legal rights, duties or privileges.

R. "Staff" means the employees of the Public Utilities Commission and any consultants and other contractors retained by the Commission for the purpose of assisting the Commission and its employees in providing advice or information, or for the purpose of supplementing the work of the Commission and its employees.

§ 3 PUBLIC UTILITIES COMMISSION

A. Meetings, Public Proceedings and Deliberations

Except for matters which may be the subject of executive session as provided in 1 M.R.S.A. §405, all meetings, public proceedings and deliberative sessions of the Commission shall be open to the public. Public notice shall be provided as required by 1 M.R.S.A. §406 and 35-A M.R.S.A. §108-A.

B. Commission Record of Proceedings

1. Decisions

Every decision of the Commission shall be in writing. A copy of each decision shall be maintained by the Commission.

2. Deliberative Sessions

The Administrative Director shall ensure that a record is kept of the date, time and place of each deliberative session, the Commissioners in attendance, and all votes. This may be done through the maintenance of an audio, video or other electronic recording.

C. Practice before Commission

1. Attorneys

Any attorney duly admitted to practice as an attorney in the State of Maine, any attorney admitted to practice in another state who has entered a limited appearance as authorized by the Commission, any party acting pro se , and any authorized officer, employee or representative of a party in any hearing, action or proceeding is authorized to appear on behalf of parties before the Commission. In order to facilitate the efficient processing of any proceeding, the presiding officer may require the appearance of counsel on behalf of any party.

2. Non-Attorneys

All authorized officers, employees or other representatives of parties who are not duly admitted to practice as attorneys in the State of Maine are expected, as a condition of representation, to be familiar with this Chapter, the Maine Rules of Civil Procedure where applicable, the Maine Rules of Evidence where applicable, and to abide by Maine Rules of Professional Conduct for attorneys 3.1, 3.2, 3.3, 3.4, 3.5 and 3.7. Failure of a non-attorney representative to abide by these rules may result in appropriate sanctions including temporary or permanent bar from appearing in a representative capacity before the Commission.

D. Alternative Dispute Resolution

In any adjudicatory proceeding, a party or parties may request that some or all the issues in dispute in the proceeding be resolved through the use of alternative dispute resolution, including the use of neutral facilitators, mediators or arbitrators. The request shall explain

why the party or parties believe such alternative means would be appropriate and the timing of such attempt at resolution. The Commission shall consider such requests and issue an order either granting a request or denying it after all parties have had an opportunity to file their position.

§ 4 COMMENCEMENT OF PROCEEDING, SERVICE, and FILINGS

A. Commencement of Proceeding

Except as otherwise provided in this Chapter or another Commission rule or by statute, a proceeding is commenced upon filing, unless the Administrative Director or presiding officer finds that the filing fails to include all of the information required by statute or Commission rule.

B. Service and Filing of Pleadings and Other Communications

1. Service

All filings shall be served on all other parties to a proceeding. The Commission may provide an electronic filing system to facilitate such service. If such electronic filing system automatically generates a notice of any filing to all parties to a proceeding, this shall meet a party’s service obligation.

2. Method of Filing

All documents shall be filed pursuant to the Commission requirements for electronic filing, unless the presiding officer or the Commission allows otherwise.

C. Time

In computing any period of time prescribed or allowed by these rules, by order of the Commission, or by the applicable statute, the day of the act, event or default after which the designated period of time begins to run is not to be included. The last day of the period so computed is to be included unless it is not a regular business day, in which event the period runs until the end of the next day which is a regular business day. When the period of time prescribed or allowed is less than 7 days, intermediate Saturdays, Sundays and Holidays shall be excluded from the computation.

D. Copies of Commission Documents

Copies of all documents filed with or by the Commission shall be available through the Commission’s electronic filing system. Presiding officers shall ensure that parties who represent that they are unable to access documents through the electronic system receive service of documents through the regular mail.

§ 5 PETITIONS AND MOTIONS

Form

Other than petitions required by statutes or other Commission rules, every request for Commission action shall be made by motion. Documents which do not on their face purport to be a petition or motion but which request Commission action shall be treated as a petition or motion in accordance with the applicable statutes and this rule. Every petition or motion shall be in writing, except that a motion may be made on the record during a hearing to which the request or motion is related.

B. Requirements; Procedure

Any person filing a motion shall proceed in accordance with this section.

1. The motion shall be filed with the Commission.

2. Each motion shall include or be accompanied by a clear and detailed statement of the facts and law supporting the action sought including citations to all supporting authorities relied upon.

3. Any party opposing a motion shall file a statement in opposition to the motion, including citations to all supporting authorities, within 7 days after service of the motion, unless some other period is established by the presiding officer. Any party may file a reply to a statement in opposition to a motion within 3 days of the filing of the statement unless some other period is established by the presiding officer.

4. Oral hearings on motions shall be held at the discretion of the presiding officer. A request for oral hearing shall be included in the statements in support of or opposition to the motion, with a statement of the reasons that such a hearing is required or desired. If statements in opposition give rise to new reasons for requesting an oral hearing, the moving party may file a supplemental request for an oral hearing within 3 days of the service of the statement in opposition.

5. If the presiding officer decides to schedule an oral hearing, he or she will either give notice thereof to all parties or will direct the moving party to do so.

§ 6 RULEMAKING

A. Governing Procedure

The Commission may initiate a rulemaking proceeding on its own motion or in response to a petition filed in accordance with 5 M.R.S.A. §8055. Rulemaking proceedings shall be governed by subchapter II of the Maine Administrative Procedure Act, 5 M.R.S.A. §§ 8051‑8074 and by the additional procedures set forth in this part.

B. Petition for Adoption or Modification of Rule

1. Any person may petition the Commission for the adoption or modification of any rule.

2. A petition filed under this section shall be in writing and shall include the following:

a. the complete text of the proposed rule, if adoption of a new rule is requested, or a clear specification of the exact text of all proposed amendments to an existing rule, showing additions and deletions;

b. a detailed statement of the legal, factual and policy basis of the proposed rule or amendments;

c. the signatures of all persons joining in the petition;

d. the printed names and full mailing addresses of each person signing the petition; and

e. the name, address and telephone number of either one person or an organization with an established office and address designated as the person with whom the Commission may communicate on all matters affecting the proposed rule or modification.

3. Within 60 days of filing of a petition, the Commission shall either notify the petitioner in writing of its denial, stating the reasons therefore, or initiate a rulemaking proceeding; provided, however, that a rulemaking proceeding shall be initiated if the petition is signed by 150 or more registered voters, whose signatures had been verified and certified in accordance with 21‑A M.R.S.A. §354(7), prior to the filing of the petition.

4. When the Commission gives notice of a rulemaking proceeding that has been initiated by petition, such notice shall include a statement that the proposed rule or amendment is being proposed by a petitioner or group of petitioners and it shall state the name of the person or organization designated on the petition pursuant to paragraph (b)(5) above.

§7 ADVISORY RULINGS AND OPINIONS

A. Advisory Ruling Requests

Upon written request of any interested person, the Commission may make an advisory ruling with respect to the applicability of any statute or rule administered by the Commission to the person's property or to acts or events in which the person has a substantial interest.

1. Petition

a. Petitions for advisory rulings shall be in writing and shall include:

i. the name, address and telephone number of the person requesting the ruling;

ii. the statute or rule for which an interpretation is requested;

iii. all known facts which relate to the advisory ruling;

iv. all assumptions or hypotheses which relate to the advisory ruling;

v. a memorandum setting forth legal research and theories which would assist the Commission in reaching a decision; and

vi. a statement that to the petitioner's knowledge, the issue upon which an advisory ruling is sought is not the subject of a pending Commission proceeding.

2. Additional Information

The Commission may seek additional information or comments from the person requesting the opinion or persons likely affected by the request.

3. Decision

The Commission shall either issue a written advisory ruling or notify the petitioner in writing of the reasons that an advisory opinion will not be rendered within 60 days of the request.

4. Advisory Ruling not Binding

No advisory ruling shall constitute res judicata or legal precedent with respect to the issues raised before the Commission. In any subsequent enforcement action initiated by the Commission, however, any person's justifiable reliance upon the ruling shall be considered in mitigation of any penalty sought to be assessed.

B. Opinion of General Counsel

Any person may informally inquire of the Commission's General Counsel with respect to the applicability of any statute or rule administered by the Commission. In addition, any request for an advisory ruling may at the discretion of the Commission be treated as a request for an opinion of the General Counsel. The General Counsel may decline to respond to a request because the facts are not sufficiently complete or detailed to form the basis of an opinion, because resources or time are not available to the General Counsel for the purposes of preparing an opinion, or because the matter should properly be the subject of an advisory ruling of the Commission. The General Counsel may require that the request be put in writing. Any opinion provided by the General Counsel under this section shall not constitute res judicata or legal precedent in any subsequent proceeding nor shall it be binding on any party. In any subsequent enforcement action initiated by the Commission, however, any person's justifiable reliance upon the opinion may be considered in mitigation of any penalty sought to be assessed.

C. Consumer Assistance Bulletin

The Division of Consumer Assistance may from time to time issue bulletins to assist utilities, ratepayers and other interested persons in interpreting and applying provisions of the Commission's rules. Any Consumer Assistance Bulletin shall not constitute res judicata or legal precedent in any subsequent proceeding, nor shall it be binding on any party. In any subsequent enforcement action initiated by the Commission, however, any person's justifiable reliance upon the bulletin may be considered in mitigation of any penalty sought to be assessed.

§ 8 ADJUDICATORY PROCEEDINGS: GENERAL PROVISIONS

A. Notices

1. Notice of Proceeding

Upon commencement of an adjudicatory proceeding, notice shall be given as follows:

a. in investigations pursuant to Chapter 13 of Title 35‑A of the Maine Revised Statutes and in other proceedings in which the legal rights, duties or privileges of persons are at issue, to those persons, within 15 days after commencement of the proceeding, unless another period is required by statute or rule;

b. in any proceeding found by the Commission to involve the determination of issues of substantial public interest, to the public sufficiently in advance of the anticipated time of the decision to afford interested persons an adequate opportunity to prepare and submit evidence and argument, to petition for intervention, to request notification of hearings and to request a hearing if so desired;

c. in any proceeding initiated by a public utility, with the proposed effect of increasing rates by more than 1%, or pursuant to Commission order in any other adjudicatory proceeding in which a utility is a party, by the utility, to each of its ratepayers affected by the proceeding and to each party to the utility's last general rate case proceeding or general rate design proceeding. Notice by this provision shall be given, not later than 15 days after, nor earlier than 90 days before the commencement of the general rate case or general rate design proceeding or such other time as the Commission may order. Additionally, the Commission may require a public utility to give notice to its ratepayers if, during the course of a proceeding, it appears that one or more parties has proposed a change in rates or rate design which could have a significant impact on ratepayers if accepted. Before preparing its notice, the public utility shall inquire of the Administrative Director whether a deadline for intervention has been set, in order that the date may be included in the notice.

2. Notice of Hearings

Notice of hearings shall be given as required in 5 M.R.S.A. §9052.

3. Notice Following Decision

Upon termination of a proceeding by Commission order, within 45 days following expiration of applicable appeals periods, the utility or utilities that increase rates by more than 1% shall provide notice to each of its ratepayers or other utilities affected by the order or decision. The notice shall include the following:

a. a prominent statement setting forth the total amount of any rate increase or decrease and the percent by which the rates ordered differ from existing rates for each existing customer class or class of service; and

b. a statement of the effective date of each rate change for each customer class or class of service.

B. Participation in Proceeding

1. Mandatory Intervention

Upon the filing of a timely petition to intervene according to section 8(B)(3),(a) any person that is or may be, or that is a member of a class which is or may be substantially and directly affected by the proceeding and (b) any agency of federal, state or local government, shall be allowed to intervene as a party to the proceeding. A person joined as a necessary party pursuant to the provisions of Maine Rule of Civil Procedure 19 shall be treated as an intervenor pursuant to this section.

2. Discretionary Intervention

Any interested person not entitled to intervene pursuant to section 1 may in the discretion of the Commission be allowed to intervene and participate as a full or limited party to the proceeding. This provision shall not be construed to limit public participation in the proceeding in any other capacity.

3. Petition to Intervene

a. A petition to intervene pursuant to either section 1 or section 2 above must be filed within the time allowed by the Commission notice. All such petitions must state the name, address, email address and telephone number of the person desiring to intervene and the manner in which that person is affected by or interested in the proceeding.

b. Petitions to intervene, other than from an agency of government under section 8(B)(1), must also include a short and plain statement of the nature and extent of the participation sought, and a statement of the nature of the evidence or argument that the petitioner intends to submit.

c. Parties may respond to the petition within the time allowed by the Commission or within seven days if no specific time is designated. Failure to respond shall be held to constitute consent to the petition.

4. Participation Limited or Denied

a. The Commission may deny intervention of any person filing a timely petition for mandatory intervention on the grounds that the petitioner failed to show a direct and substantial interest in the proceeding. The Commission may deny or limit intervention of any person filing an untimely petition for mandatory intervention. The Commission may deny or limit intervention of any person petitioning for discretionary intervention for any reason, including, but not limited to, considerations of the petitioner's likely contribution to the development of relevant issues, the petitioner's participation in previous cases, and the timeliness of the petition.

b. The Commission may limit the participation of any person petitioning for mandatory intervention when a petitioner for intervention is found by the Commission to have a right to intervene only with respect to a portion of the subject matter of a case.

c. When participation of any person is limited or denied the Commission shall include in the record an entry to that effect and the reasons therefore.

5. Consolidation of Presentations

Where appropriate, the Commission or presiding officer may require consolidation of discovery, presentation of evidence and argument by members of a class entitled to intervene under section 8(B)(1) or by persons allowed to intervene under section 8(B)(2). In determining that any party shall be required to consolidate its discovery, presentation or arguments, the Commission or the presiding officer shall consider the number of parties, the interests of each party, whether they propose to offer testimony or participate only by cross‑examination, the nature and extent of their proposed testimony, and, if applicable, whether they are in the same or in separate rate classifications, either existing or proposed. No party shall be required to consolidate its presentation or arguments where it is clear that the party will, as a consequence of such consolidation, be unable to make an adequate presentation of that party's position.

6. Public Witness Participation

Persons desiring to present their own testimony or argument in an adjudicatory proceeding may, in the discretion of the Commission or presiding officer, be allowed to testify or argue without appearing as a party to the proceeding. Such

public witnesses may give sworn testimony or may present argument without being sworn. The Commission or presiding officer may (a) designate a particular time and place for the hearing of such persons and (b) limit the length of time that each public witness may speak.

C. Subpoenas

1. Authority

In any adjudicatory proceeding, any party upon application shall be entitled as of right to the issuance of subpoenas in the name of the Commission to require the attendance and testimony of witnesses and the production of any evidence relating to any issue of fact in the proceeding. Such subpoenas may be signed and issued in blank by any member of the Commission, the Administrative Director or a presiding officer. Subpoenas shall be issued in a form prescribed by the Commission.

2. Issuance

Subpoenas may be issued by the Commission in accordance with the following provisions:

a. Witnesses shall be subpoenaed only within the territorial limits and in the same manner as witnesses in civil cases before the courts, unless another territory or manner is provided by law. Witnesses subpoenaed shall be paid the fees for attendance and travel as set forth in 16 M.R.S.A. §251, except as otherwise provided by 35‑A M.R.S.A. §1312. Such fees shall be paid by the party requesting the subpoena.

b. Any subpoena issued shall show on its face the name, address and telephone number of the party who requested that it be issued.

c. Any witness subpoenaed may petition the Commission to vacate or modify a subpoena issued in its name. After prompt notice to the party who requested issuance of the subpoena and such investigation as the Commission considers appropriate, it may grant the petition in whole or in part upon a finding that the testimony or the evidence whose production is required does not relate with reasonable directness to the proceeding, or that a subpoena for the attendance of a witness or the production of evidence is unreasonable or oppressive or has not been issued reasonably in advance of the time when the evidence is requested.

d. Failure to comply with a subpoena lawfully issued in the name of the Commission and not revoked or modified as provided in subsection (c) shall be punishable as for contempt of court.

D. Termination or Limitation of Proceedings by Stipulation

The Commission may dispose of all or part of any adjudicatory proceeding by approving a stipulation of one or more issues entered into between two or more parties in accordance with the provisions of sections 1 through 7 below.

1. Participation of Parties

All parties shall be given an opportunity to participate in stipulation discussions. Accordingly, persons initiating such discussions should provide reasonable notice of discussions to all other parties where feasible, hold discussions at the office of the Public Utilities Commission where practicable and defer execution of comprehensive stipulations until the deadline for petitions to intervene, if any, has passed. In addition, all parties and proposed intervenors must be provided sufficient opportunity to review any executed stipulation in order to allow reasonable opportunity to object to the stipulation.

2. Participation of Commission’s Advisory Staff

a. Agreement of Parties. Where parties request participation of advisory staff in settlement discussions, all parties must either affirmatively agree to the participation of advisory staff or be given an opportunity to object by a date certain. The agreement or result of the opportunity to object must be documented in a procedural order.

b. Staff participation during negotiations. The advisory staff will only participate in negotiations/discussions that have been noticed to all parties with an opportunity for all parties to attend. If for any reason parties wish to have discussions with staff with less than all parties, all parties must agree to this or be given an opportunity to object and the circumstances described in a procedural order prior to discussions taking place.

c. Sharing of Negotiation Documents. Any documents provided by advisory staff or parties must be shared with all parties attending settlement discussions unless all parties have agreed to another arrangement or been given an opportunity to object to the arrangement. Any such arrangement must be documented in a procedural order.

3. Participation of Staff Advocates

The Commission may assign one or more staff members to serve as advocates to facilitate negotiated settlements. If the Commission receives a written request from all of the parties in an adjudicatory proceeding that staff advocates be appointed to facilitate negotiations, the Commission shall grant the request or issue a written order explaining the reasons why the Commission denies the request.

4. Information Accompanying all Stipulations

To facilitate the review process for all stipulations, stipulations should be accompanied by a cover letter and memorandum containing the following information.

a. Cover letter

i. the names of the parties joining in the stipulation, those opposing and those neither for nor against;

ii. a description of the process leading to the stipulation (e.g., number of negotiating sessions, who was involved, etc.); and

iii. whether the parties have agreed to allow the Commission staff to make a recommendation to the Commissioners concerning the stipulation without a hearing examiner’s report, thereby agreeing to waive 5 M.R.S.A. §9062 and Chapter 110 §8(F)(4).

b. Memorandum

i. the major provisions agreed upon;

ii. why the provisions are in the public interest; and

iii. the statutory authority for the Commission to adopt the stipulation provisions and a description of any departures from Commission precedent contained in the stipulation.

5. Consideration of Uncontested Stipulations

The Commission may accept an uncontested stipulation in any proceeding if it determines the stipulation meets the criteria set forth in 8(D)(7) below. The Commission may require that an uncontested stipulation be accepted only following notice to the parties and/or a hearing on the stipulation. If the Commission rejects the stipulation, the adjudicatory proceeding shall be resumed.

6. Consideration of Contested Stipulations

a. In the event that fewer than all of the parties to a proceeding have entered into a stipulation, the Commission shall provide an opportunity to be heard to all non-signatory parties. The Commission may accept a contested stipulation in any proceeding if it determines the stipulation meets the criteria set forth in 8(D)(7) below. The Commission may require that an contested stipulation be accepted only following notice to the parties and/or a hearing on the stipulation. If the Commission rejects the Stipulation, the adjudicatory proceeding shall be resumed.

b. In proceedings where portions of a stipulation are contested and remaining portions are uncontested, the Commission may rule upon uncontested provisions pursuant to section 8(D)(5). Contested portions shall be treated as described in 6(a) above.

7. Approval of Either a Contested or Uncontested Stipulation

In deciding whether to approve a stipulation, the Commission will consider the following criteria:

a. Whether the parties joining the stipulation represent a sufficiently broad spectrum of interests that the Commission can be sure that there is no appearance or reality of disenfranchisement;

b. Whether the process that led to the stipulation was fair to all parties;

c. Whether the stipulated result is reasonable and is not contrary to legislative mandate; and

d. Whether the overall stipulated result is in the public interest.

E. Withdrawal or Dismissal

1. Voluntary Withdrawal or Dismissal

Except for petitions brought pursuant to 35‑A M.R.S.A. §1302(1), proceedings may be dismissed by the petitioner without order of the Commission by filing a notice of dismissal A petition filed under 35-A M.R.S.A §1302(1) may be dismissed upon a representation by the lead complainant that the cause of the complaint no longer exists.. Unless otherwise specified by the commission, an order, dismissing a complaint shall be without prejudice.

2. Involuntary Dismissal

a. The Commission, on its own motion, after notice to the parties, and in the absence of a showing of good cause to the contrary, may dismiss an action for want of prosecution at any time more than two years after the last docket entry showing any action taken therein.

b. The Commission may dismiss any proceeding for failure of the party initiating the proceeding to comply with these rules, other required action or any order of the Commission, provided that notice has been given that failure to take the required action may result in dismissal. Any such dismissal may be set aside by the Commission for good cause shown.

F. Presiding Officer

1. Powers of Presiding Officer

Presiding officers may:

a. administer oaths and affirmations;

b. rule on the admissibility of evidence, and admit into the record material relied upon by the Commission pursuant to section 8(I)4, provided that the presiding officer is either authorized to practice before the Maine Supreme Judicial Court or a Commissioner;

c. regulate the course of the proceeding, set the time and place for hearings and fix the time for filing of evidence, briefs and other written submissions;

d. examine witnesses;

e. issue subpoenas;

f. require the production of books, accounts, papers, documents and testimony;

g. rule on motions or petitions made pursuant to the Maine Rules of Civil Procedure or this Chapter, except that rulings on motions to dismiss, motions for summary judgment or denials of petitions to intervene shall be made by the Commission;

h. prepare written reports with the assistance of the advisory staff, as set forth in section 8(G)4; and

i. perform such other duties as may be assigned to them.

2. Presiding Officer to Conduct Hearing; Substitute Officer

One or more presiding officers may be designated to preside over a hearing. Whenever a presiding officer is disqualified or it becomes impracticable for him or her to preside over a hearing, another presiding officer may be assigned to preside, provided that, if it is shown that substantial prejudice to any party will thereby result, the substitute officer shall commence the hearing anew.

3. Use of Advisory Staff and Consultants

a. If an advisory staff member or consultant relies upon facts not otherwise in the record or presents to the Commission any independent financial or technical analysis not otherwise in the record, the staff member or consultant:

i. shall place any such information into the record;

ii. is subject to discovery; and

iii. must be available to answer questions regarding those facts or analysis, in the same manner as witnesses in the proceeding, at a time sufficient to permit parties to respond.

b. This paragraph does not apply to reviews, evaluations or examinations of information, data, studies, analyses or computer modeling placed into the record by other parties or other aid or advice provided by advisory staff members or consultants. Compliance with this paragraph does not render the advisory staff member or consultant an advocate under the Maine Administrative Procedure Act.

4. Report of Presiding Officer

a. In the event that the presiding officer prepares any report or proposed findings for the agency, the report or findings shall be in writing. For purposes of this section a report includes recommended decisions, conclusions of law and discretionary policy determinations. A report does not include the oral recounting of evidence, the furnishing of materials which will aid in finding, interpreting or evaluating evidence, providing the Commission with legal advice or other aid or advice of the presiding officer an advisor or other staff member or consultant.

b. A copy of the report or findings shall be provided to each party, and an opportunity shall be provided for response or exceptions to be filed by each party. The presiding office shall set the time within which exceptions may be filed.

c. When a report has been prepared and time for filing of exceptions has elapsed the presiding officer, other advisors, other members of the staff or consultants may, upon request of the Commission, comment upon the proceeding, the presiding officer's report, and the exceptions thereto.

5. Bias of Presiding Officer, Advisory Staff or Commission Member

Proceedings shall be conducted in an impartial manner. Upon the filing in good faith by a party of a timely charge of bias or of personal or financial interest, direct or indirect, of a presiding officer, advisory staff member, or Commissioner in the proceeding, requesting that the person disqualify him or herself, the person whose disqualification is sought shall determine the matter as a part of the record.

G. Ex Parte Communications

1. Ex Parte Communications Prohibited

a. Throughout any adjudicatory proceeding:

i. no commissioner, presiding officer, or other advisory staff member in a proceeding shall communicate, directly or indirectly with any party, including a proposed intervenor, or any other person legally interested in the outcome of the proceeding; and

ii. no party, including a proposed intervenor or person legally interested in the outcome of a proceeding shall communicate, directly or indirectly, with any commissioner, presiding officer, or other advisory staff member in connection with any potential decision in the case or any issue of fact, law or

procedure, except upon notice and opportunity for all parties to participate as provided in these rules or pursuant to order of the presiding officer.

b. Any Commissioner, presiding officer, other advisory staff member, party or representative of a party making or receiving an ex parte communication prohibited by this section shall, within 48 hours after first having reason to believe the communication was prohibited, disclose the substance of such communication to all parties to the proceeding.

2. Prohibited Communications after Issuance of Presiding Officer's Report

a. In an adjudicatory proceeding, after the issuance of the presiding officer's report or proposed findings, no person shall make any direct or indirect communication to any commissioner, presiding officer, or other advisory staff member in connection with any potential or proposed decision in the proceeding or any issue of fact, law or procedure, except for the filing by a party of a response or exceptions to the report or proposed findings as permitted by section 752(b), or except as permitted by order or prior approval of the Commission or presiding officer, or except as by motion pursuant to section 1004. In the event any of the above receive such a communication it should be disclosed as required in Section F(A)(2) above.

b. In the event that the Commission receives a communication that violates the prohibition contained in subsection (a), the communication shall be disclosed as required in (G)(1)(b) above.

c. No party in a proceeding shall request, encourage, suggest, or provide any assistance to any other person to make a communication that would violate subsection (a) of this section.

3. Communications Permitted

This section shall not prohibit:

a. Any commissioner or presiding officer from communicating in any respect with commissioners or presiding officers; or

b. Any commissioner or presiding officer from having the aid or advice of those members of the Commission staff, counsel or consultants retained by the Commission who have not participated and will not participate in the Commission proceeding in an advocate capacity; or

c. Inquiry by a party, a commissioner, a presiding officer, or other advisory staff member concerning the status of any event contained in the procedural schedule, any filing, or any order.

d. Individual communications between any party and members of the Commission's advocacy staff or between any party and any staff members in a non-adjudicatory proceeding.

4. Proposed Findings or Decisions

No party or representative of any party shall prepare and forward proposed or draft findings or final decisions of any matter pending before the Commission to any Commissioner, presiding officer or advisory staff member unless such party or representative has been requested to do so by the Commissioner or presiding officer. Any party making a procedural motion to the Commission or presiding officer may append a proposed procedural order to the motion.

H. Record

1. Contents of Record

In an adjudicatory proceeding, the Administrative Director shall maintain and preserve a record which shall consist of:

a. all applications, pleadings, motions and preliminary and interlocutory rulings and orders;

b. evidence received or considered ;

c. a statement of facts officially noticed;

d. offers of proof, objections and ruling thereon;

e. presiding officer's report or reports, if any;

f. exceptions, if any, to report or reports;

g. the decision of the Commission; and

h. all briefs and other memoranda submitted to the Commission or presiding officer by parties.

2. Hearings Recorded

The Commission shall record all adjudicatory hearings in a form capable of transcription.

3. Availability of Record

The transcript of adjudicatory hearings shall be available through the Commission’s electronic filing system.

4. Decision Based on the Record

All material, including records, reports and documents in the possession of the Commission, that it desires to use in making a decision, shall be offered and made a part of the record as evidence. Factual information shall be considered in rendering a decision only if such information is in the record as evidence.

5. Documentary Evidence

Documentary evidence may be incorporated into the record by reference when the materials so incorporated are made available for examination by the parties before being received into evidence.

6. Specialized Agency Knowledge

The Commission may use its experience, technical competence and specialized knowledge, including that of the members of its advisory staff, in the decision‑ making process, for the purpose of evaluating the evidence presented to it.

§ 9 ADJUDICATORY PROCEEDINGS; PREHEARING PRACTICE

A. Prehearing Conferences

The presiding officer may, upon written notice to all parties and proposed intervenors, hold a prehearing conference before or upon completion of discovery, for the purposes of ruling on pending motions and petitions for intervention, setting procedures and timetables for discovery, scheduling hearings and other proceedings, considering motions, limiting the amount of additional discovery and addressing other discovery issues, formulating or simplifying the issues, obtaining admissions of fact and of documents which will avoid unnecessary proof, arranging for the exchange of proposed exhibits or prepared expert testimony, limiting the number of witnesses and consolidating the examination of witnesses, setting forth the scope of recross and redirect examination, providing for the procedure to be followed at the hearing, identifying proposed witnesses, discussing the status of stipulation negotiations, if any, and for any other purposes that may expedite the orderly conduct and disposition of the proceeding.

1. Prehearing Memoranda

The presiding officer may require the parties to file prehearing memoranda and to serve a copy of the memoranda on all parties of record.

2. Prehearing Order

The presiding officer may issue an order based upon the prehearing conference or the prehearing memoranda which will control the course of subsequent proceedings. Modification of the order may be allowed at the hearing by the presiding officer for good cause or to avoid significant prejudice.

B. Discovery

The Maine Rules of Civil Procedure and this subpart shall govern the parties' rights to discovery before the Commission.

1. Discovery by Commission and Staff

In addition to the discovery rights contained in the Maine Rules of Civil Procedure, the Commission shall have all the rights granted by statute to obtain all necessary information to enable it to perform its duties.

2. Data Requests by Parties

In addition to the discovery rights provided by the Maine Rules of Civil Procedure, all parties shall have the right to serve data requests upon any other party. The following procedures shall be observed in filing data requests and responses:

a. A copy of each such request and data response shall be filed with the Commission.

b. Data requests shall not be unduly repetitious, shall be relevant to the subject matter involved in the proceeding, and shall be in writing specifically directed to a party or parties, unless requested on the record during a hearing. It is not ground for objection that the information sought will be inadmissible at hearing if the information sought appears reasonably calculated to lead to the discovery of admissible evidence.

c. The response to each item shall begin in a separate page and shall include the text of the request, the date, the name of the author of the data response and the identity of the witness responsible for the response.

d. Unless another time is fixed by the presiding officer, responses to data requests shall be served within one month from receipt by the responding parties. Objections to data requests shall be served within one week from receipt unless otherwise ordered by the presiding officer.

3. Technical Conferences

In lieu of, or in addition to, data requests, the presiding officer may schedule technical conferences during which oral discovery will take place. A transcript may be made of such conferences and all or part of the transcript may be entered into the record in the same manner as data responses.

4. Oral Data Requests

If during the course of examination of a witness, the witness states that he or she cannot testify to a matter from memory or following a review of readily available documents, the examining party, subject to objection by the party whose witness is being examined, may make an oral data request for the information. The presiding officer shall assign a number to each oral data request.

5. Use of Discovery

Any discovery obtained by any party pursuant to this subpart may be used during the proceeding to the extent permitted by the Maine Rules of Evidence.

6. Sanctions

Any and all of the sanctions for failure to respond to discovery requests provided in Rule 37 of the Maine Rules of Civil Procedure are available to the Commission or presiding officer, except that dismissal for failure to respond to discovery a request shall be ordered only by the Commission.

§ 10 ADJUDICATORY PROCEEDINGS; HEARINGS AND EVIDENCE

A. Hearings

1. Right to Hearing

Public hearings will be held whenever required by law or requested by a party entitled to a hearing, and otherwise as may determined by the Commission or presiding officer.

2. Order of Procedure

The presiding officer will open the hearing and may make a concise statement of its scope and purposes. Appearances shall be entered on the record. The presiding officer at the initial hearing or at the prehearing conference, if any, shall inform the public of the manner in which an appeal of any decision resulting from the proceeding may be taken.

3. Examination

Unless limited by stipulation, by order under section 8(B)4 or unless otherwise limited by the Commission or presiding officer to prevent repetition or unreasonable delay in proceedings, every party shall have the right to present evidence and arguments on all issues, to call and examine witnesses at hearings and to make oral cross-examination of any person present and testifying.

4. Witnesses

All witnesses shall swear that their testimony is wholly truthful or shall make a solemn affirmation to that effect in lieu thereof.

B. Rules of Evidence

The Maine Rules of Evidence shall be followed in Commission adjudicatory proceedings except as provided below.

1. Hearsay. The Commission may allow testimony that would be considered hearsay under the Rules of Evidence if it has equivalent circumstantial guarantees of trustworthiness to other hearsay exceptions, if the presiding officer determines that:

a. The statement is offered as evidence of a material fact and does not constitute unduly repetitious evidence;

b. The statement is the kind of evidence upon which reasonable persons are accustomed to rely in the conduct of serious affairs; and

c. The general purposes of the rules of evidence and the interests of justice are best served by admission of the statement into evidence.

C. Admission into Evidence of Oral Data Requests by Commission, Presiding Officer or Advisory Staff Member

If, during the course of the hearing, the Commission, presiding officer or advisory staff member makes an oral data request of any witness, the response to the data request shall be made part of the record 10 days following receipt by the Commission, unless an objection to introduction of the response is filed or made orally at the time of the request. The presiding officer shall rule on any such objection within 10 days following filing of the objection.

D. Late-Filed Exhibits

1. The presiding officer may in his or her discretion allow documentary evidence not in existence or otherwise not readily available at the time of hearing to be identified as a late‑filed exhibit and offered as evidence after the close of hearing if the evidence proposed to be submitted is described at the hearing with sufficient particularity to apprise all parties of its content and purpose. The presiding officer shall establish a process for filing, objecting to, and admitting such exhibits.

E. Official Notice

The Commission or the presiding officer may take official notice of any facts of which judicial notice could be taken and, in addition, may take official notice of general, technical and scientific matters within their specialized knowledge, and of statutes, regulations and non-confidential agency records. Parties shall he notified of the material proposed to be so noticed, and they shall be afforded an opportunity to contest the substance or materiality of the facts noticed. Facts officially noticed shall be included and indicated as such in the record.

F. Protective Orders

The presiding officer may issue protective orders as provided for in 35-A M.R.S.A. §§ 1311-A and 1311-B.

G. Prefiled Testimony and Exhibits

Unless the presiding officer specifies that testimony will be taken orally, the direct and rebuttal cases of all parties shall be presented in accordance with this subpart.

1. Direct Case of Petitioner

Unless the presiding officer orders another date, the petitioner shall file the direct testimony and exhibits of each witness which it proposes to present in support of its direct case no later than 14 days prior to the first hearing. A utility filing a general rate case shall include the testimony and exhibits at the time of filing its case.

2. Form of Testimony

Prefiled testimony shall be in writing, double spaced with each line numbered on each page and indicate the sponsoring witness. If the prefiled testimony standing alone does not satisfy the party's evidentiary burden, that party's case may be dismissed upon motion of a party. Prefiled written testimony shall be double spaced and shall include the line number of each line, in the left‑hand margin, except as otherwise permitted by the presiding officer. If the testimony is greater than 20 pages in length, a Table of Contents specifying each issue in the testimony shall be included. Each party may file with its prefiled testimony and exhibits an opening statement containing a narrative summary of the testimony and exhibits.

3. Other Testimony

Testimony of the parties other than the petitioners and any rebuttal testimony shall be filed pursuant to the schedule established by the Presiding Officer.

4. Corrections/Supplements

A witness must correct errors in his or her prefiled testimony and exhibits and, with consent of the presiding officer, may supplement prefiled testimony if further facts become available following the original filing, by filing amendments thereto through corrective or supplemental prefiled testimony as soon as possible after the receipt of correct or additional information. Copies of corrected or supplemental prefiled testimony shall be filed with the Commission and served on other parties in the same manner as original testimony. With the consent of the presiding officer, and if it is impractical to file corrective prefiled testimony, a witness may be permitted to make minor corrections to prefiled testimony on the witness stand. The prefiled testimony, sponsored by the witness under oath and subject to cross‑examination, may be offered as an exhibit with the same effect as if such testimony had been given orally. Redirect examination will be conducted orally and will be limited to matters raised during cross‑examination. Testimony and exhibits may be offered either following the witness's adoption of the prefiled testimony or identification of exhibit or at close of examination of the witness. Objection to prefiled testimony or exhibits may be made at the time the testimony or exhibits are offered or prior thereto.

5. Oral Direct Testimony

Whenever prefiled written testimony appears unnecessary or impracticable, the presiding officer may order that direct testimony or supplementation of prefiled direct testimony will be received orally at the time set for hearing.

§ 11 ADJUDICATORY PROCEEDINGS; POSTHEARING PRACTICE AND PROCEDURE

A. Briefs and Exceptions

Parties shall file exceptions or responses to the report of the presiding officer pursuant to the times established by the presiding officer briefs and Exceptions or responses which contain a statement of evidence or facts shall include a reference to the specific portion of the record in which such evidence or facts may be found. When the transcript of the hearing is available, reference to oral testimony shall be by page number.

B. Oral Argument

The presiding officer may allow or require oral argument in lieu of or in addition to allowing briefs. Oral argument may be given at the conclusion of the evidence, or at a time and place to be fixed by the presiding officer.

C. Decisions

1. Every Commission decision made at the conclusion of an adjudicatory proceeding shall be in writing or stated in the record and shall include findings of fact sufficient to apprise the parties and any interested member of the public of the basis for the decision. A copy of the decision shall be sent to each party to the proceeding or its attorney or representative of record. Written notice of the party's rights to obtain review of the decision within the Commission or to appeal to the Supreme Judicial Court, as the case may be, and of the action required and the time within which such action must be taken in order to exercise the right to review or appeal, shall be given to each party with the decision. Such notice shall not constitute an opinion by the Commission as to whether the party is entitled to such review or appeal. Unless otherwise provided, the order shall be effective on the date it is issued by the Administrative Director. Any period for reconsideration and, pursuant to decision of the Law Court, appeal shall commence as of that date.

2. In extraordinary circumstances, including those in which a deadline imposed by rule or statute requires the issuance of a decision by a specific date, the Commission may issue its decision in two or more parts. The first part shall plainly state the result of the decision, specify the orders made by the Commission and summarize the factual conclusions reached. The second part shall contain the full statements or findings of fact and shall be issued as soon as possible. In the case of proceedings with a deadline imposed by rule or statute, the second part shall be issued prior to the expiration of the deadline. The Commission may also issue supplemental orders approving compliance filings or other actions on the part of the petitioner required as a result of the Commission's decision.

3. The Administrative Director shall maintain a record of the vote of each member of the Commission with respect to the Commission's decision as reflected on each decision issued.

D. Rehearing, Reopening, Reconsideration and Clarification

Petitions to change, modify, rescind, clarify, reconsider or vacate any decision or order of the Commission or presiding officer must be filed by any party in the case of an adjudicatory proceeding or any participant in a non-adjudicatory proceeding with the Commission within 20 days after entry of the determination or order to which the petition relates or at any time within the 20 days following entry of the Commission's final decision or order. A petition for rehearing, reopening or reconsideration shall set forth specifically all grounds supporting the petition and the relief requested. Any petition for rehearing, reopening or reconsideration not granted within 20 days from the date of filing is denied. The time for appeal of a final Commission order does not begin to run until the motion for reopening, rehearing or reconsideration is acted upon or presumed to be denied.

§ 12 COMPLAINTS

A. Formal Complaints under 35‑A M.R.S.A. §1302(1)

1. A complaint filed under 35‑A M.R.S.A. §1302(1) shall:

a. state the full names and post office addresses of the complainants and identify the lead complainant including the email address of the lead complainant;

b. state the full name of the utility complained against;

c. state fully, clearly and with reasonable certainty the act or thing done or omitted to be done, of which complaint is made, with a reference, where practicable, to the law, order or rule and the section or sections thereof of which a violation is claimed;

d. state such other matters or facts, if any, as may be necessary to acquaint the Commission fully with the details of the matter complained of; and

e. be signed by least 10 aggrieved persons.

2. The utility must file an answer within 10 days of service. If the utility desires to satisfy the complaint, it may submit to the Commission a written statement of the relief which it is willing to give and an answer to all matters complained of. Upon the acceptance by the Commission of any satisfaction offered, no further proceedings need be taken.

3. If the Commission does not accept the utility's offer of satisfaction, if any, it may conduct such inquiry, under Section 13 of these rules, as needed to determine whether the complaint has merit. After receipt of the answer and any additional inquiry, the Commission may dismiss the complaint as without merit or may open an adjudicatory proceeding to investigate formally the matters to which the complaint relates. The Commission shall issue the decision within 9 months after the complaint's filing.

B. Informal Complaints

An informal complaint may be made by any person. The complainant shall provide a statement of the facts involved, name, address of each complainant and of the party complained against. In addition, the following procedures shall apply:

1. consumer complaints shall be resolved by the Consumer Assistance Division;

2. other informal complaints may be assigned to one or more Commission staff members for resolution; and

3. following investigation of informal complaints the Commission may open an inquiry pursuant to Section 13, may institute an adjudicatory investigation or may decline to take action.

§13 INQUIRIES

A. Initiation of Inquiry

The Commission may initiate an inquiry at any time for the purposes set forth in section 2(H) above.

B. Notice

The Commission in its discretion may provide notice of the initiation of any inquiry to any utility which it reasonably believes may be affected by the inquiry or to other persons that it believes may be interested in the proceeding. .

C. Presiding Officer

The Commission may appoint a presiding officer whose duties may include those set forth in section 8(G) of this Chapter.

D. Hearings

If a hearing is held, examination of persons testifying orally at any inquiry hearing shall be limited to questions from the Commission, the presiding officer and members of the Commission Staff, unless otherwise permitted by the Commission or presiding office.

E. Subpoenas and Discovery

In order to carry out its inquiry, the Commission and its Staff shall have all powers of discovery in connection with the subject matter of the inquiry and may require production of books, accounts, papers, records or verified copies of them by order or subpoena in accordance with the provisions of 35‑A M.R.S.A. §112(4)(A).

F. Termination of Inquiry

Upon the termination of the Commission's inquiry, the Commission may:

1. initiate an adjudicatory investigation;

2. initiate a rulemaking pursuant to section 6 of this Chapter;

3. make findings of fact or issue a preliminary statement of policy which is not intended to be enforceable but which is intended as a basis for implementing a proceeding pursuant to subsections 1. or 2. above or as advice to assist persons in determining, exercising or complying with their legal rights, duties or privileges; or

4. terminate the inquiry with no action taken.

§ 14 DELEGATIONS

A. Applicability

The Commission's delegations under this Section are in addition to delegations of authority contained in other chapters of the Commission's Rules and Regulations, and any other orders issued by it which do not conflict with the delegations granted herein. The Commission may rescind any of the delegations granted in this Part without notice or hearing.

B. Waiver of Applicability of Chapter 110

The Commission delegates its authority to permit deviations from the procedural requirements and deadlines of its rules and statutes which allow deviations to the Administrative Director or to the presiding officer assigned to a particular case. The Commission may make further delegations of its authority to permit such deviations by written order.

C. Compliance

Unless otherwise ordered, the Directors of the Telephone and Water Utility Industries and Electric and Gas Utility Industries or his or her designee are hereby delegated the authority to approve schedules which are filed solely in compliance with Commission orders or rules.

D. Suspension, Reorganization, Affiliated Interest, Contract, Transmission

The Administrative Director is hereby delegated the following authority:

1. to suspend schedule and contract filings pursuant to 35‑A M.R.S.A. §310(2);

2. to suspend the effective date of a contract pursuant to 35‑A M.R.S.A. §707(3)(A); and

3. to extend the effective date of a reorganization pursuant to 35‑A M.R.S.A. §708(2)(A).

E. Additional Delegations

The Commission may delegate its authority through additional delegation orders issued from time to time. Copies of all delegation orders which apply to more than a single proceeding shall be indexed and maintained by the Administrative Director and shall be made available in the same manner as all other Commission Orders.

History

• STATUTORY AUTHORITY: 5 M.R.S.A. §§ 8001-9063 and 35‑A M.R.S.A. §§ 108-A, 111, 112, 1302, 1304, 1305, 1311, 1312, 1313, 1318
• EFFECTIVE DATE: This rule was approved by the Secretary of State on March 21, 1990 and became effective on March 26, 1990.
• AMENDED: February 10, 1996
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• CONVERTED TO MS WORD: May 18, 2005
• AMENDED: This rule was approved by the Secretary of State on November 21, 2012 and became effective on November 26, 2012 (filing 2012-331).
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 120 Filing Requirements for Schedule of Rates, Terms and Conditions

Code Me. R. 65-407 Ch. 120 Filing Requirements for Schedules of Rates, Terms and Conditions {#sec-65-407-ch.-120 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 120}

SECTION TITLE PAGE

1 PURPOSE AND EFFECT 1

A. Purpose 1

B. Minimum Requirements 1

C. Burden of Proof 1

D. Applicability of Rule Sections 1

1. General Provisions 1

2. Form and Content of Filings 1

3. Content of General Rate Cases 1

4. Major Utility Rate Cases 2

5. Consumer-Owned Water Utilities 2

6. Consumer-Owned Electric Utilities 2

2 DEFINITIONS 2

A. "Commission" 2

B. "Defective filing" 2

C. "Effective date" 2

D. "Filing" 2

E. "General rate case" 2

F. "Major utility" 3

G. "Rate filing" 3

H. "Rates 3

I. "Schedule" 3

J. "Significant changes in rate design" 3

K. "Terms and conditions" 3

L. "Test year" 3

3 FORM AND CONTENT OF SCHEDULES 3

A. Generally 3

B. Cover letter required 3

C. Form of Schedules 4

1. Generally 4

a. Table of Contents or Index 4

b. Change Symbols 4

2. Each page 5

a. Identification of utility 5

b. Signature 5

c. Effective date 5

d. Page number 5

e. Revision number 5

D. Content of Schedules 6

1. Rates 6

2. Terms and Conditions 6

E. Effective Date 7

F. Refiling of Existing Schedules 7

G. Copy of Schedules to Utilities 7

H. Conflict with Commission Order 7

4 FILING REQUIREMENTS FOR COMPLIANCE SCHEDULES 7

A. Applicability 7

B. Cover letter 7

C. Effective date 7

D. Format 7

5 CONTENT OF GENERAL RATE CASES 8

A. Generally 8

B. Order and Numbering 8

C. Particular Contents of Each Filing 8

1. Cover sheet 8

2. Schedules 8

3. Test year 8

4. Adjustments to Test Year 9

5. Regulatory Proceeding Expenses 9

6. Comparative Revenue Statement 9

7. Computation of Rate of Return 9

a. Rate of Return 9

b. Proposed Revenue Requirements 9

8. Attrition and Elasticity Adjustments 9

9. Rate Design Changes 10

10. Policy statement 10

11. Significant Changes in Operation 10

12. Notice to Customers 10

13. Additional Contents Required by Prior Orders 10

D. Basis for Omissions 10

6 MAJOR UTILITIES: NOTIFICATION AND FILING OF DIRECT CASE 11

A. Applicability 11

B. Notification Required 11

C. Filing of Direct Case 11

7 REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITY RATE

FILINGS UNDER 35-A M.R.S.A. § 6104 11

A. General Provisions 11

1. Purpose 11

2. Applicability 11

3. Default Provision 11

4. Compliance with Fire Protection Revenue Determination Procedure 12

B. Procedure 12

1. Notice 12

a. Newspaper Publication 12

b. Individual Notice 12

c. Notice to Commission 12

d. Content of Notice 12

2. Supporting Materials 13

3. Public Hearing 13

a. Purpose of Hearing 13

b. Information Required 13

c. Summary Required 13

4. Filing 14

a. Time for Filing 14

b. Form 14

c. Proposed Effective Date 14

5. Correction 14

6. Petition for Investigation 14

a. Time for Petition 14

b. Number of Petitioners 14

c. Filing 14

d. Suspension 14

e. Challenge by Utility 14

8 REQUIREMENTS FOR CONSUMER-OWNED ELECTRIC UTILITY RATE FILINGS

UNDER 35-A M.R.S.A. § 3502 15

A. General Provisions 15

1. Purpose 15

2. Applicability 15

3. Default Provision 15

4. Frequency of Filings 15

5. Penalty for Non-Compliance 15

B. Procedure 16

1. Notice 16

a. Notice to Commission and Public Advocate 16

b. Newspaper Publication 16

c. Individual Notices 16

2. Public Hearing 17

a. Purpose of Hearing 17

b. Customer Rights 17

c. Summary Required 18

3. Filing 18

a. Time for Filing 18

b. Form and Content 18

c. Proposed Effective Date 18

4. Correction 18

5. Petition for Investigation 18

a. Time for Petition 18

b. Number of Petitioners 18

c. Filing 19

d. Suspension 19

e. Challenge by Utility 19

9 WAIVER 19

10 EFFECT OF FAILURE TO COMPLY 20

A. Defective Filing 20

B. Filing Date 20

C. Further Review of Sufficiency 20

11 DELEGATION OF AUTHORITY 20

A. Review 20

B. Suspension 20

C. Waiver 20

65-407 PUBLIC UTILITIES COMMISSION

Chapter 120: FILING REQUIREMENTS FOR SCHEDULES OF RATES, TERMS AND CONDITIONS

SUMMARY: This Rule establishes requirements for the form, content, and organization of all filings of schedules of rates and terms and conditions by public utilities with the Public Utilities Commission, and specifies additional information to be submitted in connection with general rate cases. A two-month advance notification of general rate cases is required for major utilities. The Rule also describes the requirements for water utility rate filings under 35-A M.R.S.A. § 6104 and consumer-owned electric utility rate filings under 35-A M.R.S.A. § 3502. The rule allows the Commission to waive any requirement for good cause, and establishes procedures for the handling of defective filings. The Administrative Director and Assistant Administrative Director are delegated authority to review and suspend filings, waive requirements, and order corrections of schedules.

1. PURPOSE AND EFFECT

A. Purpose. The purpose of this Rule is to specify the Commission's requirements for the form, content, and advance notice filings of schedules of rates and terms and conditions.

B. Minimum Requirements. Nothing in this Rule prohibits the submission of additional data with any filing, nor does this Rule in any way limit the Commission's authority to require submission of additional information.

C. Burden of Proof. Compliance with this Rule shall not discharge the burden of proof placed upon a public utility pursuant to 35-A M.R.S.A. §§ 310(1) and 1314.

D. Applicability of Rule Sections.

1. General Provisions. Sections 1, 2, 9, 10, and 11 apply to all public utilities except for those COCOT providers that are public utilities due only to their provision of COCOT services under Chapter 250 of the Commission's Rules (65-407 C.M.R. 250).

2. Form and Content of Filings. Sections 3 and 4 apply to all schedules filed by any public utility. COCOT providers that are public utilities due only to their provision of COCOT services under Chapter 250 of the Commission's Rules (65-407 C.M.R. 250) are not subject to these provisions but instead must comply with filing requirements contained in Chapter 250.

3. Content of General Rate Cases. Section 5 applies to any general rate case, as defined in Section 2(E), filed by a public utility pursuant to 35-A M.R.S.A. § 307, except any rate filing by:

a. A consumer-owned water utility pursuant to 35-A M.R.S.A. § 6104, unless the filing is suspended pursuant to Section 7(A)(3) of this Rule;

b. A consumer-owned electric utility pursuant to 35-A M.R.S.A. § 3502, unless the filing is suspended pursuant to Section 8(A)(3) of this Rule;

c. The Casco Bay Island Transit District or any other ferry in Casco Bay subject to the Commission's jurisdiction pursuant to 35-A M.R.S.A. § 5101 et seq., which must comply with Chapter 560 of the Commission's Rules (65-407 C.M.R. 560);

d. A radio common carrier or cellular service provider as defined in Chapter 240 of the Commission's Rules (65-407 C.M.R. 240), which must comply with Section IV(A) thereof; or,

e. A coin-operated telephone service as defined in Chapter 250 of the Commission's Rules (65-407 C.M.R. 250), which must comply with Section 4(H) thereof.

4. Major Utility Rate Cases. Section 6 applies to any major utility as defined by Section 2(F) of this Rule.

5. Consumer-Owned Water Utilities. Section 7 applies to rate filings made by consumer-owned water utilities pursuant to 35-A M.R.S.A. § 6104.

6. Consumer-Owned Electric Utilities. Section 8 applies to rate filings made by consumer-owned electric utilities pursuant to 35-A M.R.S.A. § 3502.

2. DEFINITIONS

A. Commission. "Commission" means the Maine Public Utilities Commission. Where appropriate delegation authority exists, "Commission" includes the member of the Staff of the Commission to whom the authority is delegated.

B. Defective filing. A "defective filing" is a filing which does not meet the formal or procedural requirements of this Rule or of another applicable rule.

C. Effective date. An "effective date" is the date on which a schedule actually takes legal effect.

D. Filing. A "filing" consists of the schedules and other materials accompanying a schedule submitted to the Commission. For example, a proposed schedule of rates, cover letter and revised table of contents would together be referred to as a "filing".

E. General rate case. A "general rate case" is any rate filing by a public utility, not specifically exempted in section 1(D)(3), which, upon taking effect, would increase the annual gross intrastate operating revenues of the public utility by more than two percent (2%), exclusive of sales for resale, fuel cost revenues, energy conservation adjustment revenues, or cost of gas adjustment revenues.

F. Major utility. A "major utility" is any public utility having annual intrastate operating revenues of over $5,000,000 in the twelve months immediately preceding a general rate case.

G. Rate filing. A "rate filing" is the act of filing by a public utility with the Commission pursuant to 35-A M.R.S.A. § 307 any schedule which directly affects the rates charged by the utility.

H. Rates. "Rates" are a public utility's charges to its customers for the provision of utility services.

I. Schedule. A "schedule" is one of the written sheets filed by a public utility with the Commission which show the utility's rates for different customer classes or categories of service, or the terms and conditions upon which utility service will be provided. For purposes of this Rule, the term "schedule" is equivalent to the word "tariff".

J. Significant changes in rate design. A "significant change in rate design" is any change in rate design that allocates the change in general rates among rate classes in substantially different percentages.

K. Terms and conditions. "Terms and conditions" are the provisions filed by a public utility with the Commission which show the basis on which various utility services will be provided to customers, or which in any manner affect the rates charged for any service. 35-A M.R.S.A. § 304 requires that public utility schedules which were formerly designated as "rules" shall be designated as "terms and conditions".

L. Test year. A "test year" is a 12-month period used by a utility to serve as a basis for comparison of revenues, expenses, and investment in order to determine revenue requirements in a general rate case. A test year may be a calendar year or any other period of twelve (12) consecutive months.

3. FORM AND CONTENT OF SCHEDULES

A. Generally.

1. All schedules of rates and terms and conditions submitted to the Commission pursuant to this Rule must be in typewritten form on 8 1/2" by 11" paper.

2. All filings must consist of an original and six (6) copies, except that major utilities, as defined in section 2(F), must file thirteen (13) copies of filings made in a general rate case.

B. Cover letter required. Each filing with the Commission must be accompanied by a cover letter which contains:

1. A statement describing the purpose and effect of the filing;

2. The anticipated revenue effects, if any, of the schedules;

3. Any significant change in rate design which is anticipated to result from the filing; and

4. A reference to the statutory section, rule, or Commission order under which the filing is made.

A cover letter accompanying any schedules filed in compliance with a Commission order must comply with the provisions of Section 4(B) of this Rule.

C. Form of Schedules.

1. Generally. Any set of schedules filed by a public utility with the Commission must contain the following:

a. Table of Contents or Index. A table of contents or index describing each section of the schedules in sufficient detail that a particular rate, policy, type of equipment, or other good or service can be readily located. This requirement does not apply to any set of schedules consisting of five (5) pages or less. A separate table of contents or index may be filed for schedule of rates and for terms and conditions sections. The table of contents or index should be updated and filed along with any proposed rate schedule or term and condition that affects the table or index.

b. Change Symbols. A system of symbols or markings showing all changes or revisions which are made to the schedule by the current filing. Change symbols must appear in the margin of the schedule opposite any proposed change or revision. A public utility must mark changes to its schedule with one or more of the following standard change symbols:

C Change in rate schedule or term or condition

D Discontinued rate or term or condition

I Increased rate

M Moved text (give page moved from); no change in rate or term or condition

N New rate or term or condition

R Reduced rate

T Change in text; no change in rate or term or condition

Additional symbols may be used as long as an explanation of the symbol is provided. The Administrative Director or Assistant Administrative Director may return or suspend any filing which lacks appropriate change symbols.

2. Each page. Each page must contain at a minimum:

a. Identification of utility. At the upper left-hand corner of the page, the utility's name.

b. Signature. At the lower right-hand corner of the page, the signature, or a facsimile thereof, of an officer or other representative of the public utility authorized to act on the utility's behalf.

c. Effective date. At the lower left-hand corner of the page, the proposed effective date of the schedule, followed below by a blank line for the actual effective date which will be filled in by the Commission. For revisions, the proposed effective date of the changes must be at least 30 days from the date on which the filing is received by the Commission, unless the filing is accompanied by a request that the schedule be given effect on less than 30 days statutory notice. Where a schedule is proposed to take effect on less than 30 days notice, the utility must show good cause for the request.

d. Page number. At the upper right-hand corner of the page, a page number which fits the page in sequence with other pages already on file. For instance, new pages between existing pages 34 and 35 would be numbered 34.1, 34.2 etc.

e. Revision number. At the upper right-hand corner of the page, below the page number, a revision number listing the most current version of the page. The first filing of a page must be listed as "Original," and each subsequent filing of the page must be labeled with the next higher revision number, replacing the existing effective page.

(i) Amendments to Schedules Being Considered. If a utility files an amendment or new or corrected draft of a pending schedule revision before the revision takes effect, the new draft must be labeled with the same revision number as the pending schedule. The designation "Draft" and a draft number must be added to the revision number, e.g., "Second Draft of Third Revision." The amendment or new or corrected draft must be accompanied by a cover letter which describes the purpose of the filing and identifies the docket number of the case in which the revision is being considered. Upon approval of a particular draft, the Commission will remove the draft designation from the schedule sheet. An amendment or new or corrected draft of a pending revision is not considered a new filing for purposes of the effective date provisions of this Rule, unless the Commission determines that the amendment or new or corrected draft should be considered a separate revision.

(ii) Compliance Filings. If the Commission disallows a revision and orders the filing of a revised schedule, the compliance filing must bear a new revision number, replacing the page which is currently in effect. For example, if the Commission disallows the Fifth Revision, Replacing Fourth Revision, the compliance schedule shall be designated Sixth Revision, Replacing Fourth Revision.

D. Content of Schedules. All schedules must contain, where applicable, the following information:

1. Rates. The rates charged by the public utility to its customers for any utility services, including:

a. Any minimum charges to customers for a utility service, and any additional charges for particular services;

b. Any rates associated with any special program, including a description of the program;

c. Any joint rates with other utilities pursuant to 35-A M.R.S.A. § 306;

d. Any other charge to customers for which the utility is required to file schedules; and

e. Any further information necessary to identify the utility's rates.

2. Terms and Conditions. The terms and conditions upon which utility services will be provided to customers, including:

a. The availability of service to different customer classes;

b. The character of the utility service to be provided, including any technical information necessary to differentiate such service from other utility services;

c. Any standards or conditions which must be met by customers in order to receive utility service, including copies of any specifications furnished to customers;

d. Where applicable, the utility's various service and rate areas;

e. The utility's terms and conditions for each of its demand side energy management programs as defined in Chapter 380 of the Commission's Rules (65-407 C.M.R. 380).

f. The utility's terms and conditions relating to line or service extensions, including contributions in aid of construction; and

g. Any further information necessary to identify the terms and conditions of utility service.

E. Effective Date. Unless the Commission orders otherwise, schedules become effective thirty (30) days after the date the Commission receives the schedules, pursuant to 35-A M.R.S.A. § 307, or on the proposed effective date, whichever is later. Any request by the utility that a schedule take effect on less than statutory notice must be included in the cover letter accompanying the schedule, and must state the reason why the Commission should find that good cause exists to allow the schedule to take effect on less than statutory notice. If the Commission does not allow the schedule to take effect on less that statutory notice, or if a schedule incorrectly bears no effective date or schedule, the Commission, its Administrative Director, or its Assistant Administrative Director may assign the schedule an effective date 30 days from the date the schedule was received by the Commission, or may return the schedule to the utility. If a schedule is suspended, and later allowed to take effect, its effective date is the date specified in the Commission order lifting the suspension, or, if the order does not specify a date, the date the order is issued.

F. Refiling of Existing Schedules. The Commission or its Administrative Director or Assistant Administrative Director may require a utility to revise and refile its schedules to comply with this Rule.

G. Copy of Schedule to Utilities. When a schedule takes effect, the Commission, its Administrative Director, or its Assistant Administrative Director will provide the utility with a copy of each sheet which contains the actual effective date of the schedule and the pertinent docket number.

H. Conflict with Commission Order. Any Commission order that prescribes a different content or method for filing a rate schedule or terms and conditions supersedes the provisions of this rule.

4. FILING REQUIREMENTS FOR COMPLIANCE SCHEDULES

A. Applicability. This section applies only to schedules filed by a utility in compliance with a Commission order. Schedules filed to comply with a Commission rule are not subject to this section and instead are subject to section 3 above, including suspension and effective date provisions, unless the rule or order adopting the rule provide otherwise.

B. Cover letter. Any compliance schedule must be accompanied by a cover letter explaining that the schedule is being filed in compliance with a Commission order, and giving the docket number of the Commission order.

C. Effective date. A utility filing a compliance schedule must not include a proposed effective date. The effective date of a compliance schedule is the date of the supplemental Commission order approving the compliance schedule, or other date as ordered by the Commission.

D. Format. The form of compliance filings must otherwise be in accordance with Section 3 of this Rule except to the extent that the Commission order which requires the filing specifies otherwise.

5. CONTENT OF GENERAL RATE CASES

A. Generally. Every public utility filing a general rate case must provide the information specified in this section. Information previously filed with Commission may be incorporated in the filing by reference.

B. Order and Numbering. All information required to be filed for a general rate case must be organized and numbered as described in this Section.

C. Particular Contents of Each Filing. Every general rate case must contain the following:

1. Cover sheet. A cover sheet showing:

a. The name of the public utility;

b. The proposed effective date of the new rates;

c. The adjusted gross revenue subject to Commission jurisdiction for the test year;

d. The amount of the increase or decrease in gross revenues subject to Commission jurisdiction; and

e. The percent change in gross revenues subject to Commission jurisdiction.

2. Schedules. The schedule pages implementing the new rates, which must be in accordance with Section 3 of this Rule.

3. Test year.

a. A statement of the test year to be used;

b. An annual report for the test year, or the equivalent compilation in the same form and detail if the test year is a period other than a calendar year;

c. Expenses, revenues, and rate base during the test year, itemized by account number or functional grouping;

d. Uncollectible revenues for the test year, including bad debt expense, gross write-offs, and recoveries of prior write-offs;

e. Number of units of service billed for each rate element of service; and

f. For telecommunications utilities:

(1) Local Service revenues for the test year;

(2) Inter-LATA and intra-LATA toll service revenues for the test year; and

(3) Miscellaneous revenues for the test year.

4. Adjustments to Test Year.

a. Proposed adjustments to test year expenses, revenues, and rate base; and

b. Statements, exhibits, or work papers showing the basis for each adjustment.

5. Regulatory Proceeding Expenses. For those utilities seeking recovery of regulatory proceeding expenses, a detailed description and accounting of those expenses, including identification of the proceeding(s), hours spent and fees charged pursuant to Chapter 850 of the Commission's Rules and Regulations (65-407 C.M.R. 850).

6. Comparative Revenue Statement. A Comparative revenue statement showing operating results for the test year and for the test year as adjusted.

7. Computation of Rate of Return.

a. Rate of Return.

(i) An exhibit showing the proposed rate of return and the capitalization ratios for each component of the capital structure; and

(ii) An exhibit showing the computation of the return requested on rate base.

b. Proposed Revenue Requirements. An exhibit showing the computation of the total proposed revenue requirements of the public utility.

8. Attrition and Elasticity Adjustments.

a. Any adjustment proposed by the utility to compensate for attrition or erosion of earnings, and exhibits showing the basis for the adjustment.

b. Any adjustments proposed by the public utility to compensate for the effects of elasticity of demand, and exhibits showing the basis for the adjustment.

9. Rate Design Changes.

a. A description of any significant changes in rate design, and exhibits showing the basis for the changes.

b. An exhibit showing the effect of the proposed rate changes on the various classes of customers and categories of service provided by the public utility, including:

(1) the total annual revenue change for each class of customers and category of service, expressed in dollars and as a percentage; and

(2) the change in typical bills for each class and category, expended in dollars and as a percentage.

10. Policy statement. A concise statement of any positions, proposals, and adjustments to be offered in support of the rate filing which are known or believed by the public utility to be:

a. Contrary to the established policy of the Commission;

b. Matters as to which various decisions of the Commission are in conflict; or

c. Matters not previously resolved by Commission decisions.

11. Significant Changes in Operations. A brief description of any significant changes in the operations of the public utility since the time of its last general rate case.

12. Notice to Customers. Copies of any notices sent or to be sent to the customers of the public utility in connection with the proposed general rate case pursuant to Chapter 110(6)(B)(1)(b) of the Commission's Rules (65-407 C.M.R. 110(6)(B)(1)(b)), with a description of the classes or groups of customers receiving each notice.

13. Additional Contents Required by Prior Orders. Any information which the Commission has specifically ordered a particular public utility to provide for use in its next general rate case.

D. Basis for Omissions. If the public utility submitting the general rate case contends that any of the information required by this section is not applicable, the public utility must state the basis for that contention. Failure to supply an adequate basis for any omission shall cause the filing to be treated as a defective filing.

6. MAJOR UTILITIES: NOTIFICATION AND FILING OF DIRECT CASE

A. Applicability. This section applies only to major utilities as defined in section 2(F).

B. Notification Required. A major utility shall notify the Commission at least two months prior to filing a general rate case. The notification must be in writing and contain the following information:

1. That the general rate case is planned;

2. The anticipated date of filing;

3. The approximate annual revenue change that would result;

4. Any major issues anticipated to arise in conjunction with the general rate case;

5. Any significant change in rate design to be proposed in conjunction with the general rate case; and

6. The approximate rate of return on rate base, as a whole and on common equity, that the utility will propose in conjunction with the general rate case.

C. Filing of Direct Case. Any major utility must include in any general rate case all testimony and exhibits which it would offer at a public hearing as its direct case in support of its proposed rates. Testimony and Commission's Rules of Practice and Procedure (65-407 C.M.R. 110(6)(I). The information specified in Section 4 of this Rule may be made part of such testimony and exhibits.

7. REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITY RATE FILINGS UNDER 35-A M.R.S.A. § 6104

A. General Provisions

1. Purpose. The purpose of this section is to describe the requirements for the form, content, and notice of consumer-owned water utility rate filings pursuant to 35-A M.R.S.A. § 6104. Nothing in this section prohibits a consumer-owned water utility from filing a general rate case rather than using the procedure set forth in this section

2. Applicability. This section is applicable to consumer-owned water utilities as defined in 35-A M.R.S.A. § 6101(1-A).

3. Default Provision. Whenever a filing under this section fails to comply with the requirements of 35-A M.R.S.A. § 6104 or this section, it may be suspended for investigation. If the filing is so suspended, or is suspended upon a petition from utility customers, the filing may become a general rate case subject to the requirements of Section 5 of this Rule and the notice requirements of Chapter 110, Section 6(B)(1)(b) and (c) of the Commission's Rules (65-407 C.M.R. 110 (6)(B)(1)(b) and (c), unless these provisions are waived upon a showing of a good cause.

4. Compliance with Fire Protection Revenue Determination Procedure. All consumer-owned water utility rate filings under this section must comply with the Commission's public fire protection revenue determination procedure as set forth in Chapter 690 of the Commission's Rules (65-407 C.M.R. 690) unless the utility has received a waiver from the rule's requirements. If the filing fails to comply with Chapter 690, the Commission will not allow the proposed rates to take effect unless they are substantiated by an acceptable allocation study for the utility's system. If the rates are already suspended as provided in section 7(A)(3), the issue will be addressed in that rate proceeding. If the rates are not otherwise suspended, and the water utility wishes to pursue its original filing, the rates will be suspended pending review.

B. Procedure

1. Notice. A consumer-owned water utility filing rates under this section must provide the notices described below.

a. Newspaper Publication. At least fourteen (14) days before holding a public hearing on the rate filing, the utility must publish a notice of the rate filing in a newspaper of general circulation in the area served by the utility.

b. Individual Notice. At least fourteen (14) days before the public hearing, the utility must furnish individual notices of the rate filing to each of its customers by the same means it uses to distribute its customer bills.

c. Notice to Commission. The utility must furnish the Commission with copies of the published notice and of the notice sent to customers at least fourteen (14) days before the public hearing.

d. Content of Notice. Each notice must contain:

(i) the amount of the rate change;

(ii) the percentage rate change for each customer class;

(iii) the customer's right to request information relating to the present and proposed rates;

(iv) the customer's right to an open and fair hearing and to further hearings before the Commission;

(v) the availability of assistance from the Public Advocate; and

(vi) the date, time, place and purpose of the public hearing.

2. Supporting Materials.

a. At least thirty (30) days before the public hearing on the rate filing, the utility must file a copy of all relevant materials supporting the rate filing with the Commission and the Public Advocate. The materials must include:

(i) the proposed annual revenue change;

(ii) the proposed new rate sheets; and

(iii) any calculations, exhibits, statements, or work papers showing that the proposed rate filing will produce the necessary revenues.

b. The utility must make a copy of all relevant material supporting the rate filing available for examination by customers at its offices for at least thirty (30) days prior to the hearing.

c. The utility must promptly provide, upon request by a customer, the Commission, or the Public Advocate, any information or relevant additional material which is readily available.

3. Public Hearing. A consumer-owned water utility filing rates under this section must hold a public hearing prior to filing the proposed rates with the Commission.

a. Purpose of Hearing. At the public hearing, the Public Advocate and any customer may testify, and may question the officials of the utility regarding the proposed rate filing. The utility must answer questions, provide supporting materials for inspection, and accept statements.

b. Information Required. At the commencement of the hearing, the utility must inform those present that the rate filing may be investigated by the Commission in accordance with 35-A M.R.S.A. § 6104.

c. Summary required. The utility must submit a summary of the public hearing to the Commission when filing its proposed rates. The summary must include:

(i) a copy of the newspaper notice as published, showing the date of publication; and

(ii) a summary of the comments received at the public hearing and the utility's responses to the issues raised by the comments. If the utility changes the proposed rate filing in response to customer comments, the summary must include an explanation of any such changes.

4. Filing.

a. Time for Filing. The utility must submit its rate filing to the Commission not sooner than 10 days, and not later than 30 days, after the public hearing.

b. Form. Except as otherwise specified in this section, the form and content of all schedules filed under this section must comply with Section 3 of this Rule.

c. Proposed Effective Date. A consumer-owned water utility submitting a rate filing under this section must include a proposed effective date. The proposed effective date must be a least one month, but no more than nine (9) months, from the date on which the Commission receives the filing.

5. Correction. The Commission, Administrative Director or Assistance Administrative Director may order the utility to correct any mathematical or clerical errors in the filing.

6. Petition for Investigation.

a. Time for Petition. Any petition for Commission investigation of a consumer-owned water utility rate filing under this section must be filed within thirty (30) days of the public hearing.

b. Number of petitioners. Any petition for Commission investigation of a consumer-owned water utility rate filing under this section must be signed by either fifteen percent (15%) of the utility's customers or by on thousand (1000) customers, whichever is less. For purposes of this section, "customer" means, in the case of residential accounts, any one adult residing in a household where the utility's service is provided, and in the case of non-residential accounts, any one corporate officer, partner, or proprietor. No one person may sign a petition under this section on behalf of more than one account, unless that person receives service at the account.

c. Filing. Any petition under this section must be filed both with the Commission and with the treasurer of the consumer-owned water utility proposing the rate filing.

d. Suspension. Upon receiving a petition for investigation of a consumer-owned water utility rate filing, the Commission may suspend the filing. The Commission must notify the consumer-owned water utility of the suspension.

e. Challenge by Utility.

(i) Deadline. A consumer-owned water utility must notify the Commission within ten (10) days of receiving notice of the suspension if it intends to challenge any aspect of the validity of a petition.

(ii) Hearing. Within thirty (30) days of a utility's notice that it intends to challenge the validity of a petition, the Commission must hold a public hearing on the validity of the petition and issue a decision on the validity of the petition.

(iii) Relief from Suspension. If the Commission finds a petition to be invalid, it must lift the suspension of the rate filing. If a suspension is lifted under this section, the rates shall take effect on the original effective date, unless the Commission orders a different effective date.

8. REQUIREMENTS FOR CONSUMER-OWNED ELECTRIC UTILITY RATE FILINGS UNDER 35-A M.R.S.A. § 3502

A. General Provisions.

1. Purpose. The purpose of this section is to describe the requirements for the form, content, and notice of consumer-owned electric utility rate filings pursuant to 35-A M.R.S.A. § 3502. Nothing in this section prohibits a consumer-owned electric utility from filing a general rate case rather than using the procedure set forth in this section.

2. Applicability. This section is applicable to consumer-owned electric utilities, as defined in 35-A M.R.S.A. § 3501, which propose to change rates by not more than 15% of the utility's annual operating revenues. This section does not apply to any fuel cost adjustment.

3. Default Provision. Whenever a filing under this section fails to comply with the requirements of 35-A M.R.S.A. § 3502 or this section, it may be suspended for investigation. If the filing is so suspended, or is suspended upon a petition from utility customers, the filing may become a general rate case subject to the requirements of section 5 of this Rule and the notice requirements of Chapter 110, sections 6(B)(1)(b) and (c) of the Commission's Rules (65-407 C.M.R. 110 (6)(B)(1)(b) and (c), unless these provisions are waived upon a showing of good cause.

4. Frequency of Filings. No consumer-owned electric utility may initiate a rate filing under this section which would increase its annual operating revenues by more than one percent (1%) within one year of the date it notified its customers of its most recent previous rate filing under this section.

5. Penalty for Non-Compliance. If the Commission finds that a consumer-owned electric utility's rate filing under this section substantially violates the procedural requirements set forth in this section, the Commission may prohibit the utility from filing rates pursuant to this section in its next rate case.

B. Procedure.

1. Notice. A consumer-owned electric utility filing rates under this section must provide the notices described below.

a. Notice to Commission and Public Advocate.

(i) At least sixty (60) days before holding a public hearing on the rate filing, the utility must notify the Commission and the Public Advocate of its intent to submit the rate filing.

(ii) At least thirty (30) days before the public hearing on the rate filing, the utility must file a copy of all relevant materials supporting the rate filing with the Commission and the Public Advocate. The materials must include:

(a) the proposed annual revenue change;

(b) the proposed new rate sheets; and

(c) any calculations, exhibits, statements, or work papers showing that the proposed rate filing will produce the necessary revenues.

b. Newspaper Publication.

(i) A consumer-owned electric utility filing rates under this section must publish a notice of the public hearing on the rate filing.

(ii) The notice must be published twice, in a newspaper of general circulation in the area served by the utility.

(iii) The second notice must be published at least thirty (30) days before the date of the public hearing.

(iv) The newspaper notice must contain:

(a) the amount of the rate change;

(b) the percentage rate change for each customer class; and

(c) the date, time, place, and purpose of the hearing.

c. Individual Notices.

(i) A consumer-owned electric utility filing rates under this section must furnish individual notices of the rate filing to each of its customers by the same means it uses to distribute its customer bills.

(ii) Individual notices of the rate filing must be furnished to customers at least thirty (30) days before the public hearing.

(iii) The Individual notices must contain:

(a) the amount of the proposed rate change;

(b) the percentage rate change for each customer class;

(c) the customer's right to request information relating to the present and proposed rates;

(d) the customer's right to an open and fair hearing and to further hearings before the Commission;

(e) the availability of assistance from the Public Advocate, and

(f) the date, time, and place of the hearing.

(iv) The utility must make a copy of all relevant material supporting the rate filing available for examination by customers at its offices for at least thirty (30) days prior to the hearing.

2. Public Hearing. A consumer-owned electric utility filing rates under this section must hold a public hearing prior to filing the proposed rates with the Commission.

a. Purpose of Hearing. At the public hearing, the Public Advocate and any customer of the consumer-owned electric utility may present testimony, and may question the officials of the utility regarding the proposed rate filing.

b. Customer Rights. At the commencement of the hearing, the utility must inform those present:

(i) of customers' right to request information relating to the present and proposed rates;

(ii) of customers' right to an open and fair hearing, and to further hearings before the Commission;

(iii) of the availability of assistance from the Public Advocate; and

(iv) that the rate filing may be investigated by the Commission in accordance with 35-A M.R.S.A. § 3502.

At the public hearing, the utility must answer questions, provide supporting materials for inspection, and accept statements. The Public Advocate may participate in the hearing.

c. Summary Required. The utility must submit a written summary of the public hearing to the Commission when filing its proposed rates. The summary must include:

(i) copies of the newspaper notices as published, showing the date of publication;

(ii) a copy of the individual notice sent to customers;

(iii) the substance of the questions, answers, and statements presented at the hearing;

(iv) the means of those actively participating in the hearing; and

(v) the approximate number of persons attending the hearing.

If the utility changes the proposed rate filing in response to comments at the public hearing, the summary must include an explanation of any such changes.

3. Filing.

a. Time for Filing. The utility must submit its rate filing not sooner than 10 days, and not later than 30 days, after the public hearing.

b. Form and Content. Except as otherwise specified in this section, the form and content of all schedules filed under this section must comply with Section 3 of this Rule.

c. Proposed Effective Date. A consumer-owned electric utility submitting a rate filing under this section must include a proposed effective date. The proposed effective date must be at least one month, but no more than nine (9) months, from the date on which the Commission receives the filing.

4. Correction. The Commission, Administrative Director or Assistant Administrative Director may order the utility to correct any mathematical or clerical errors in the filing.

5. Petition for Investigation.

a. Time for Petition. Any petition for Commission investigation of a consumer-owned electric utility rate filing under this section must be filed within thirty (30) days of the public hearing.

b. Number of Petitioners. Any petition for Commission investigation of a consumer-owned electric utility rate filing under this section must be signed by either ten percent (10%) of the utility's customers or seven hundred fifty (750) customers, whichever is less. For purposes of this section, "customer" means, in the case of residential accounts, any one adult residing in a household where the utility's electric service is provided, and in the case of all other accounts where the utility's electric service is provided, any one corporate officer, partner, or proprietor. No one person may sign a petition under this section on behalf of more than one account, unless that person receives service at the account.

c. Filing. Any petition under this section must be filed both with the Commission and with the consumer-owned electric utility proposing the rate filing.

d. Suspension. Upon receiving a petition for investigation of a consumer-owned electric utility rate filing, the Commission may suspend the filing. The Commission must notify the utility of the suspension. No suspension under this section is effective for more than nine (9) months from the date the rate filing was submitted.

e. Challenge by Utility.

(i) Deadline. A consumer-owned electric utility must notify the Commission within ten (10) days of receiving notice of the suspension if it intends to challenge any aspect of the validity of the petition.

(ii) Hearing. Within thirty (30) days of a utility's notice that it intends to challenge the validity of a petition, the Commission must hold a public hearing on the validity of the petition and issue a decision on the validity of the petition.

(iii) Relief from Suspension. If the Commission finds a petition to be invalid, it must lift the suspension of the rate filing. If a suspension is lifted under this section, the rates shall take effect on the original effective date, unless the Commission orders a different effective date.

9. WAIVER

Where good cause exists, the Commission , its Administrative Director, its Assistant Administrative Director, or the Hearing Examiner assigned to the proceeding may waive any requirement of this Rule.

10. EFFECT OF FAILURE TO COMPLY

A. Defective Filing. Any filing, including a notification of intent to file a general rate case, which is not in compliance with the requirements of this Rule or is not accompanied by the information required by this Rule is a defective filing. Within fifteen (15) days after receiving a defective filing, the Administrative Director or the Assistant Administrative Director must notify the public utility of the defect or defects and whether the filing is nevertheless in substantial compliance with the requirements of this Rule.

B. Filing Date.

1. The filing date of a filing which is in compliance with this Rule is the date the filing is received by the Commission.

2. The filing date of a defective filing which the Administrative Director or Assistant Administrative Director determines to be in substantial compliance with this Rule is the date the filing was originally received by the Commission, if the public utility cures the defects within fifteen (15) days of the notification.

3. The filing date of any other defective filing is the date the last document is received by the Commission which removes the defect or makes the filing complete.

C. Further Review of Sufficiency. A determination by the Commission, the Administrative Director, or the Assistant Administrative Director that a filing is in compliance with the requirements of this Rule shall not prevent the Commission from subsequently finding, on its own motion or the motion of any party, that the filing is defective or in need of revision.

11. DELEGATION OF AUTHORITY

The Commission delegates authority to its Administrative Director or Assistant Administrative Director:

A. Review. To review filings under this Rule, to determine whether or not any filing is in compliance with the requirements of this Rule, and to notify the public utility of the deficiency or substantial compliance of the filing pursuant to Section 10 of this Rule; and

B. Suspension. To issue suspension orders pursuant to the Commission's power to suspend under 35-A M.R.S.A. § 310(2).

C. Waiver. To waive, for good cause, any of the requirements of this Rule.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 301, 304-311, 1301, 1304-1306, 1321, 1702, 1708, 3502, and 6104.
• EFFECTIVE DATE: This rule was approved by the Secretary of State on February 16, 1989 and became effective on March 1, 1989.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• CONVERTED TO MS WORD: May 18, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 130 Safety and Accident Reporting Requirements

Code Me. R. 65-407 Ch. 130 Safety and Accident Reporting Requirements {#sec-65-407-ch.-130 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 130}

Summary: This rule, adopted pursuant to 35-A M.R.S.A. §§ 104, 111, 112, 115, 710, 4702, and 5102, establishes reporting and investigation requirements for utility-related accidents. The rule clarifies the scope of the privilege against discovery, use as evidence, and disclosure under the Freedom of Access Law.

§ 1. SCOPE 2

§ 2. DEFINITIONS 2

1. Serious accident. 2

2. Electric contact. 2

§ 3. REPORTING 2

1. Immediate Notice. 2

2. Written Report. 3

3. Electric Contact. 4

4. Annual Reports. 5

5. Procedure. 5

§ 4. INVESTIGATION 5

1. Investigation of Fatal Accidents. 5

2. Investigation of Other Serious Accidents. 5

§ 5. RESERVATION; WAIVER; DELEGATION; PENALTIES 5

1. Reservation. 5

2. Waiver. 6

3. Delegation. 6

4. Penalties. 6

§ 6. CONFIDENTIALITY OF ACCIDENT INVESTIGATION INFORMATION 6

1. In General. 6

2. Admission in Evidence. 6

3. Disclosure of Utility Accident Reports. 6

4. Disclosure of Commission Orders and Recommendations. 7

5. Disclosure of Other Accident Investigation Information. 7

6. Disclosure Delegation. 7

§ 7. RETENTION AND AVAILABILITY OF RECORDS AND REPORTS 8

HISTORY AND STATUTORY AUTHORITY 10

§ 1. SCOPE

This rule requires all gas, natural gas pipeline, electric, telephone, water, and public heating utilities to report to the Public Utilities Commission all serious accidents occurring upon their premises or directly or indirectly arising from or connected with the maintenance or operation of their physical facilities or equipment.

§ 2. DEFINITIONS

1. Serious accident.

"Serious accident" means any accident occurring upon the premises of any public utility or directly or indirectly arising from or connected with the maintenance or operation of a utility's physical facilities or equipment that results in the loss of human life, personal injury requiring in-patient hospital admission, more than seven days' lost work time of a utility employee or independent contractor employed by a utility, or property damage of $50,000 or more, including the cost of lost gas in the case of gas and natural gas pipeline utilities.

2. Electric contact.

"Electric contact" means any release of electricity from a utility's equipment or facilities that results in the loss of human life or personal injury requiring in-patient hospital admission to a member of the public, a utility employee, or an independent contractor employed by a utility. Electric contact does not include a slight feeling of electric sensation that does not lead to in-patient hospital admission.

§ 3. REPORTING

1. Immediate Notice.

A utility shall provide immediate notice of any serious accident involving the loss of human life, and any event occurring upon its premises or directly or indirectly arising from or connected with the maintenance or operation of its physical facilities or equipment that requires evacuation of the general public, or that results in, or is likely to result in, disruption of utility service to more than 500 customers or 1% of a utility's customers, whichever is greater, or to critical facilities identified by other public utilities for a period of longer than 30 minutes. The notice shall be made to the appropriate lead or alternate technical Staff as provided in Section below, where such information has not already been reported pursuant to another Commission rule. The notice shall include:

A. Name of company and person reporting;

B. A brief description of the accident, including the extent of known fatalities, injuries, and damages;

C. Date and time of accident;

D. Location of accident;

E. Identification of utility facilities involved;

F. Other utilities involved; and

G. The possible root causes of the accident.

NOTE: If information required by this section is not available to the utility at the time of the immediate notice, the utility shall make the report with whatever information it has available. The utility shall supply missing information in an amended report to the Commission as soon as it becomes available.

2. Written Report.

A utility shall file with the Director of Technical Analysis a written report of any serious accident within 30 days. The utility shall address the report to the Director of Technical Analysis, and shall provide a copy to the appropriate designated lead technical Staff as provided in Section below. Written reports shall include the following information:

A. Identification of facilities involved;

B. Date and approximate time of the accident;

C. Weather conditions at the time of the accident;

D. Location of the accident;

E. Brief description of the accident;

F. Estimated property damage, if any;

G. Description of utility facility or equipment involved in the accident;

H. Identification of facility or equipment ownership and responsibility for maintenance;

I. Any complaints received regarding the facility or equipment involved in the accident, and any actions, if any, taken to resolve those complaints;

J. Identification of any utility employee who witnessed the accident;

K. Identification of utility employees arriving at the accident site after the accident, including time of arrival;

L. A description of the extent of damage to utility facilities and equipment;

M. Identification of utility employees performing repair work on the facilities or equipment damaged in the accident, including a description of the work performed;

N. A chronological description of events that took place resulting in the accident, including diagrams, photographs (other than of accident victims), and other pertinent graphic information;

O. Identification (but not copies) of all standards, specifications, plans, regulations, and codes that concern this accident;

P. Identification of other known persons who witnessed the accident;

Q. Identification of all persons interviewed by the utility in its investigation of the accident, including a summary of the information obtained from each interviewee;

R. Any corrective measures taken or planned at the accident site;

S. Any preventive measures that can be taken to ensure non-recurrence of a similar accident;

T. Identification of personnel attached to other agencies (federal, state, county, municipal, or private) and utilities that conducted an investigation at the accident site or issued a report of the accident;

U. Any reports prepared by other agencies and utilities that conducted an investigation at the accident site or issued a report of the accident; if any of these reports are not available to the utility when the written report is submitted, the utility shall include in the written report the identification of agencies or other utilities that are known to be preparing such reports, and shall supply such reports as soon as they become available;

V. Any reports of the accident or circumstances surrounding the accident prepared for or submitted to other agencies; if any of these reports are not available when the written report is submitted, the utility shall include in the written report identification of such reports that are being prepared, and shall supply such reports as soon as they become available; and

W. Any other information pertinent to the accident and its investigation;

3. Electric Contact.

When a serious accident involves electric contact, the utility shall additionally include the following information in its written report submitted pursuant to Section above:

A. A drawing and photograph(s) of the specific configuration of the electric facilities involved in the electric contact, including measurements of all pertinent dimensions with comparison to applicable requirements of the National Electrical Safety Code; and

B. A statement as to whether the electric facilities involved in the electric contact meet requirements of the National Electrical Safety Code edition that was in effect when those facilities were installed or modified, or the latest edition, whichever is applicable.

4. Annual Reports.

As part of its annual report to the Commission, each utility shall provide the number of known accidents in which motor vehicles struck and damaged or destroyed utility facilities or equipment, such as poles, guys, equipment cabinets, pedestals, pumping stations, and hydrants.

5. Procedure.

The Director of the Technical Analysis Division shall designate lead and alternate technical Staff members for each utility discipline and appropriate contact information. He or she shall review the contact information at least annually to ensure that it is correct, and shall ensure that all public utilities to which this rule applies are provided current contact information. Utilities shall address all reports submitted pursuant to Sections 3.1 and 3.2 above to the Director of Technical Analysis, and shall provide a copy to the appropriate designated lead technical Staff.

§ 4. INVESTIGATION

1. Investigation of Fatal Accidents.

Pursuant to 35-A M.R.S.A. § 710(1), the Director of the Technical Analysis Division shall immediately initiate an investigation of any accident that results in the loss of human life. The investigation shall be conducted in compliance with 35-A M.R.S.A. § 710(3).

2. Investigation of Other Serious Accidents.

The Director of the Technical Analysis Division may initiate an investigation of other serious accidents if in his or her judgment the public interest requires it.

§ 5. RESERVATION; WAIVER; DELEGATION; PENALTIES

1. Reservation.

The Commission reserves the right to require the utility to produce any information that the Commission or the Director of Technical Analysis believes is necessary to ensure a complete investigation.

2. Waiver.

The Commission or the Director of Technical Analysis may waive any of the reporting requirements of this rule upon a finding that the information received from the utility is or will be sufficient to enable the Commission to satisfy its responsibilities under 35-A M.R.S.A §§ 115 and 710.

3. Delegation.

Pursuant to 35-A M.R.S.A. § 107(4), the Commission delegates to the Director of the Technical Analysis Division the authority to conduct any investigation authorized or required by 35-A M.R.S.A. § 710. The Director of the Technical Analysis Division may delegate specified responsibilities under this rule to designated technical Staff within the Technical Analysis Division. Nothing in this delegation shall limit the Commission's right to conduct its own summary or formal investigation and issue an order pursuant to 35-A M.R.S.A. § 710 or § 1303.

4. Penalties.

Any utility that does not comply fully with the notice or reporting requirements of this rule shall be subject to any of the penalties provided by 35-A M.R.S.A. §§ 112(4) and 1501-1509.

§ 6. CONFIDENTIALITY OF ACCIDENT INVESTIGATION INFORMATION

1. In General.

The combined effect of 35-A M.R.S.A. § 710(5), M. R. Civ. P. 26(b), M. R. Evid. 501, 1 M.R.S.A. § 402(3)(A)&(B), and Moffett v. City of Portland, 400 A.2d 340 (Me. 1979), results in the extension of a privilege of confidentiality to certain information related to utility accident investigations.

2. Admission in Evidence.

Accident reports submitted by utilities pursuant to Sections 3.1 and 3.2 of this rule, and resulting Commission orders and recommendations, are not admissible in any civil action for damages arising out of such accidents.

3. Disclosure of Utility Accident Reports.

Oral and written accident reports submitted pursuant to Sections 3.1 and 3.2 of this rule are privileged from disclosure from discovery and under the Freedom of Access Law, upon objection to disclosure by the utility.

4. Disclosure of Commission Orders and Recommendations.

The Commission's final orders and recommendations will routinely be made available to the public with no prerequisite showing required.

5. Disclosure of Other Accident Investigation Information.

All other accident investigation information will initially be protected from disclosure until notice and opportunity to be heard have been provided to the utility. The Commission will generally disclose any staff-generated documents that do not contain a recitation of information in a protected accident report or other protected documents. The Commission may disclose all or part of any other documents or information obtained by the Staff from a utility, that would otherwise be discoverable under the rules of civil procedure. The Commission will give due consideration to the standards for protection of trial preparation materials, as provided in Rule 26(b)(3), M. R. Civ. P.

6. Disclosure Delegation.

The Commission hereby delegates its authority to allow or prohibit disclosure of accident investigation information subject to the guidelines in this section to the General Counsel or the Hearing Examiner, if one has been assigned. This delegation in no way limits the Commission's authority to review the decision of the General Counsel or Hearing Examiner or to consider requests for disclosure directly. The General Counsel or Hearing Examiner shall issue all decisions on disclosure in writing, and shall place the original in the accident investigation file and shall forward copies to all interested parties.

§ 7. RETENTION AND AVAILABILITY OF RECORDS AND REPORTS

Utilities shall keep all records and reports related to safety and accident reporting under this rule, including interview reports, studies, records and reports connected with a particular event for which immediate notification or written reporting is required pursuant to this rule, within the state at an office of the utility and shall open those records and reports for examination by the Commission or its representatives upon reasonable notice at all reasonable hours. Utilities shall carefully preserve all such records for at least ten years.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 112, 115, 710, 4702, and 5102.
• EFFECTIVE DATE: This rule was approved by the Secretary of State on June 30, 1989 and will be effective on July 5, 1989.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: February 23, 1997
• NON-SUBSTANTIVE CORRECTIONS: March 3, 1997 - restored missing references to 3.1 and 3.2 in several places.
• CONVERTED TO MS WORD: May 18, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 140 Utility Service Area and Infrastructure Maps

Code Me. R. 65-407 Ch. 140 Utility Service Area and Infrastructure Maps {#sec-65-407-ch.-140 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 140}

SUMMARY – This Rule requires certain public utilities to develop, maintain, and file with the Commission maps of their service area and key infrastructure. This Rule further establishes standards for the content and format of those maps.

§ 1 GENERAL PROVISIONS 4

A. Applicability of Rule 4

B. Definitions 4

1. Distribution Infrastructure 4

2. Key Infrastructure 4

3. Key Infrastructure Attributes 5

C. Paper Copy Maps 6

D. Electronic Copy Maps 6

E. Additional Technical Specifications 6

F. Utility Responsibility 6

§ 2 SERVICE AREA, EXCHANGE, AND WIRE CENTER BOUNDARY MAPS 7

A. Requirement to File Service Area Maps 7

1. Effective Date 7

2. Terms and Conditions 7

3. Specific Requirements for Electric Transmission and Distribution

Utilities, Gas Utilities, and Water Utilities 7

4. Specific Requirements for Local Exchange Carriers 8

5. Exception for Competitive Local Exchange Carriers 8

B. Changes to Services Areas When Commission Approval is Required 9

1. Joint Filings 9

C. Changes to Service Areas When Commission Approval is Not Required 9

D. Changes to Telephone Exchange Boundaries 9

E. Other Changes to Service Area Maps 9

F. Required Filings; Number of Copies 10

G. Filing Schedule; Transitional Requirements 10

1. Phase I 10

2. Phase II 10

3. Phase III 10

4. Phase IV 10

5. Phase V 10

6. Customer Accounts 11

§ 3 INFRASTRUCTURE MAPS 11

A. Requirement to File Infrastructure Maps 11

B. Single-Line Diagrams 11

C. Required Filings; Number of Copies 11

D. Inter-Utility Interconnection 11

E. Public Availability 11

F. Filing Schedule; Transitional Requirements 12

1. Phase I 12

2. Phase II 12

3. Phase III 12

4. Phase IV 13

5. Phase V 13

6. Customer Accounts 13

G. No Changes to Infrastructure 13

H. Changes in Infrastructure 13

§ 4 WAIVER 13

§ 1 GENERAL PROVISIONS

A. Applicability of Rule. This Chapter applies to all gas utilities, electric transmission and distribution (T&D) utilities, water utilities, incumbent local exchange carriers (ILECs), competitive local exchange carrier (CLEC) telephone utilities that are designated as eligible telecommunications carriers (ETCs) by the Commission pursuant to 47 U.S.C. § 214(e), and interexchange carriers (IXCs) with facilities in Maine. The requirements of § 2 (Service Area Exchange, and Wire Center Boundary Maps) do not apply to IXCs. The requirements of § 3 (Infrastructure Maps) do not apply to T&D utilities that provide service only on offshore islands.

B. Definitions

1. “Distribution Infrastructure” for electric transmission and distribution (T&D) utilities means infrastructure that meets the seven indicators of local distribution determined by the Federal Energy Regulatory Commission, Order No. 888, 75 FERC ¶ 61,080 (Apr. 24, 1996) at 230:

a. Local distribution facilities are normally in close proximity to retail customers.

b. Local distribution facilities are primarily radial in character.

c. Power flows into local distribution systems; it rarely, if ever, flows out.

d. When power enters a local distribution system, it is not reconsigned or transported on to some other market.

e. Power entering a local distribution system is consumed in a comparatively restricted geographical area.

f. Meters are based at the transmission/local distribution interface to measure flows into the local distribution system.

g. Local distribution systems will be of reduced voltage.

The above indicators apply as further defined by the Commission for individual utilities in Maine Public Utilities Commission Investigation of Retail Electric Transmission Services and Jurisdictional Issue, Docket No. 99-185.

2. “Key Infrastructure” means:

a. for electric transmission and distribution (T&D) utilities: transmission lines, switching substations, static var compensators, primary local distribution circuits, and system operation dispatch facilities.

b. for gas utilities: mains, valves for which annual safety inspections are required pursuant to federal rules in 49 CFR 192.745 and 192.747, service taps, meter stations, regulator stations, propane-air plants, LNG plants, and compressor stations.

c. for telephone utilities: tandem and local switching offices including remote switches, interoffice and host-remote umbilical facilities, digital line carrier field equipment, SONET nodes, presence of TSP or TESP circuits, IXC POPs and facilities, key SS7 elements (i.e., links, SC and STP locations), operator centers, and E-911 PSAPs.

d. for water utilities: water mains, groundwater wells, surface water intake structures, treatment facilities, treated water storage facilities, hydrants, and pumping stations.

3. “Key Infrastructure Attributes” means:

a. for all utilities: Maine standard geocode data to at least Minor Civil Division (five digit) levels.

b. for electric transmission and distribution (T&D) utilities: infrastructure type, street address or physical location, route or line identification, voltage, phasing, and year placed in service.

c. for gas utilities: infrastructure type, street address or physical location, equipment name or number identifier, size, material, maximum allowable operating pressure, and year placed in service.

d. for telephone utilities: infrastructure type including any tandem functionality, street address or physical location, circuit capacity (low, medium, or high capacity, with medium capacity being 1.5 Mbps to 45 Mbps), the percentage of interoffice network capacity leased from or to another LEC or IXC on each interoffice route (identifying each such carrier), CLLI code and V&H coordinates if they have been assigned, backup power capability, and year placed in service.

e. for water utilities: infrastructure type, street address or physical location, size, material, static operating pressure, backup power capability, and year placed in service.

C. Paper Copy Maps. Paper copy maps required by this Chapter must be prepared using base data with locational accuracy of at least 1:24,000 that shows features within ±40’ (±12.2m) of their actual location on the ground. If necessary for clarity, certain of key infrastructure attributes may be shown on separate pages. The name of the utility, a description of the information shown on the map, the date on which the map was prepared, and the scale of the information shown on the map, must be clearly shown at the bottom right corner of the map. Paper copy maps must bear the file name and date of any companion electronic copy maps. Paper copy maps must be prepared at a size of 24”x36” unless a utility determines a different size is necessary to adequately show required information, but must not be smaller than 11”x17” nor larger than 30”x40”. Notwithstanding the requirements stated above, gas utility maps of their local distribution infrastructure must provide detail at a scale of no less than 1:12,000 with features within ±20’ (±6.1m) of their actual location on the ground.

D. Electronic Copy Maps. Electronic copy maps required by this Chapter must be prepared using base data with locational accuracy of at least 1:24,000 that shows features within ±40’ (±12.2m) of their actual location on the ground. Electronic copy maps must be prepared using standard georeferenced interexchange formats: .E00 Arc/Info Export format (preferred), shape files, or .DXF format. Electronic copy maps must be prepared in a projected coordinate system, preferably UTM Zone 19 meters, and referenced to the North American Datum of 1983, unless a utility determines a different projection is necessary because of its software limitations, in which case a State Plane projection may be used, with the zone clearly specified. A metadata file conforming to the Federal Geographic Data Committee Metadata Standard (FGDC-STD-001-1998) must be submitted with each electronic copy map. Notwithstanding the requirements stated above, gas utility maps of their local distribution infrastructure must provide detail at a scale of no less than 1:12,000 with features within ±20’ (±6.1m) of their actual location on the ground.

E. Additional Technical Specifications. Except as otherwise established by this Chapter, the Commission delegates to the Director of the Technical Analysis Division the responsibility to establish additional technical specifications for maps filed with the Commission pursuant to this Chapter. Before establishing or changing such specifications, the Director must consult with the Maine Office of GIS, the Maine Department of Transportation, and the Maine Drinking Water Program, about those specifications. The Director must provide notice of proposed additional or changed specifications to all utilities 30 days prior to their effective date. The notice must state that utilities may provide comments to the Director of Technical Analysis no later than 10 days prior to the effective date.

F. Utility Responsibility. All utilities subject to this Chapter must create and maintain reasonably accurate records, maps, and data required by this Chapter. Any utility that becomes aware of an error in data on file with the Commission must correct all such known errors in a timely manner and provide corrected information to the Commission.

§ 2 SERVICE AREA, EXCHANGE, AND WIRE CENTER BOUNDARY MAPS

A. Requirement to File Service Area Maps. All utilities subject to the requirements of this Chapter (except IXCs) must develop and maintain current service area maps of the areas in which they are authorized to provide service, including any operating or administrative districts, and local telephone service exchange and wire center boundaries for exchanges with more than one wire center. Service area maps must clearly show the complete boundary of the subject area of the map, and minor civil division boundaries and all major geographic features such as roads and water bodies that will aid in determining the location of the boundaries and customers. Maps must be filed in both paper and electronic (GIS) form as provided in § 2(F) below.

1. Effective Date

All service area maps filed with the Commission must state the effective date and the Commission Docket, if any, of the most recent proceeding in which the map was updated, or any law amending a utility’s charter, and the Administrative Director must add the effective date of the current map and the Commission Docket of the proceeding, if any, that approves the map. In the event of a conflict between a service area map and a utility’s charter or Commission order, the charter or order will govern.

2. Terms and Conditions

The service areas and telephone exchange and wire center boundaries shown on the maps required by §§ 2(B), 2(C), and 2(D) below must be part of a utility’s terms and conditions. The maps must be publicly available as required by 35-A M.R.S.A. § 305, but may be kept separate from the main body of a utility’s terms and conditions.

3. Specific Requirements for Electric Transmission and Distribution Utilities, Gas Utilities, and Water Utilities

a. For any minor civil division in which the boundaries of the authorized service area of an electric transmission and distribution utility, a gas utility, or a water utility, or other boundaries described above, are not coincident with the minor civil division boundaries, the utility must file maps of that service area meeting requirements of §§ 1(C) and 1(D) above. No later than the date that a utility must file distribution infrastructure maps pursuant to § 3(F) below, that utility’s service area maps must additionally show the area in which utility actually provides service, as determined by the farthest extent of its distribution facilities that are or that can be used to provide service to consumers.

b. For minor civil divisions where the boundaries of the authorized service area of the utility are coterminous with the minor civil division boundaries or includes the entire minor civil division, the utility may list those minor civil divisions in its terms and conditions in lieu of filing a map. The utility must state whether it actually provides service in each of the minor civil divisions listed, as determined by the farthest extent of its distribution facilities that are or that can be used to provide service to consumers.

c. For minor civil divisions in which other boundaries described above are coterminous with the minor civil division boundaries or includes the entire minor civil division, the utility may provide a list of those minor civil divisions with its service area maps in lieu of filing a map. The utility must state whether it actually provides service in each of the minor civil divisions listed, as determined by the farthest extent of its distribution facilities that are or that can be used to provide service to consumers.

4. Specific Requirements for Local Exchange Carriers. Except as provided in § 2(A)(5) below, local exchange utilities must file a map or set of maps that show the boundaries of each utility’s local exchanges and, if an exchange contains more than one wire center, the wire center boundaries. It is not necessary for local exchange carriers to file a separate map or maps that show the utility’s overall service area. No later than the date that a utility must file distribution infrastructure maps pursuant to § 3(F) below, that utility’s service area maps must additionally show the area in which utility actually provides service, as determined by the farthest extent of its distribution facilities that are or that can be used to provide service to consumers, as determined by the farthest extent of its distribution facilities that are or that can be used to provide service to consumers.

5. Exception for Competitive Local Exchange Carriers. A local exchange telephone utility that is not an incumbent local exchange carrier as defined in 47 U.S.C. § 251(h) is not required to file the maps required by § 2(A)(4) above, but must instead file a description in its terms and conditions:

a. for any service area authorized by the Commission for either facilities-based or resale service that is statewide or that is defined by the service area(s) or exchange boundaries of one or more incumbent local exchange carrier(s); or

b. of any exchange whose boundaries are defined in its terms and conditions as coterminous with the boundaries of specified telephone exchange(s) or wire center(s) of an incumbent local exchange carrier.

B. Changes to Service Areas When Commission Approval is Required. If a utility must obtain approval from the Commission to change its service area pursuant to 35-A M.R.S.A. §§ 1104, 1321, 2102, 2103, or 2104 or for any other reason, it must file an application for approval of the change pursuant to the applicable section. Upon ordering the approval of the service area change, the Commission must either approve the service area map filed with the application as being in compliance with its order and as a change to the utility’s terms and conditions or, if the map requires corrections, order the utility to file a corrected map. The Commission delegates to the Director of Technical Analysis the authority to approve any corrected map filed in compliance with the Commission order.

1. Joint Filings

If a proposed change to a boundary between the service areas of two or more different utilities is the result of an agreement between the affected utilities, the utilities must make a joint filing. If § 2(A) above (subject to the transitional timing provisions of § 2(G) below) requires any utility making the filing to have on file a map for the area that is the subject of the application, each such applicant must also file a proposed map or change to the existing service area map with the application, but the Administrative Director of the Commission will not separately docket the map as a proposed change to the utility’s terms and conditions pursuant to 35-A M.R.S.A. § 307.

C. Changes to Service Areas When Commission Approval is Not Required. If a utility does not need to obtain Commission approval pursuant to 35-A M.R.S.A. § 2102, 2103, or 2104 to change its service area because no utility is providing similar service or has authority to do so, it must file a proposed change to its terms and conditions pursuant to 35-A M.R.S.A. § 307. The proposed changes must be shown on the utility’s service area map(s) or in its written terms and conditions as required by § 2(A) above.

D. Changes to Telephone Exchange Boundaries. If a local exchange carrier proposes a change to a telephone exchange boundary that will not result in a change to the utility’s overall service area, it must file a proposed change to its terms and conditions pursuant to 35-A M.R.S.A. § 307. Except as provided in § 2(A)(5) above, the proposed changes must be shown on a map that complies with the requirements of § 2(A)(4) above.

E. Other Changes to Service Area Maps. All changes to service area maps other than those described in §§ 2(B), 2(C), and 2(D) above, including changes to administrative districts and telephone wire center boundaries where the changes do not affect an exchange boundary, are not changes to a utility’s terms and conditions. Those changes must take effect 10 days after they are filed with the Commission unless, within that period, the Director of Technical Analysis notifies the utility that the Commission staff has questions about a proposed change or believes the proposed change may contain mistaken information. When such notice is given, the Commission delegates to the Director of Technical Analysis the authority to approve either the changes that the utility proposed originally or in a revised submission.

F. Required Filings; Number of Copies. Each utility subject to the requirements of this section must file two copies of its service area map with the Commission. Utilities must also file two copies of the maps in electronic form unless waived in advance by the Director of Technical Analysis for good cause shown.

G. Filing Schedule; Transitional Requirements

1. Phase I. Investor-owned T&D utilities, gas utilities, and water utilities that serve over 5,000 customer accounts in Maine must file service area maps or descriptions permitted by § 2(A)(3) above by July 1, 2002 or at any time thereafter if the utility subject to this subsection obtains authorization after that date.

Each ILEC must confirm that its paper copy exchange boundary maps currently on file with the Commission as part of its schedules of terms and conditions are correct and current, and must file a statement with the Commission stating that such maps are correct, or must file corrected paper copy maps (with a statement describing the corrections), by July 1, 2002. An ILEC map already on file that is correct and current and is so certified by the ILEC does not need to meet the scale requirements of § 1(C) above until such map is changed. ILECs must file electronic copy maps meeting requirements of § 1(D) by July 1, 2002.

2. Phase II. Consumer-owned T&D utilities, CLECs designated as ETCs, and water utilities that serve over 3,000 customer accounts in Maine but are not included in Phase I above, must file service area maps or descriptions permitted by §§ 2(A)(3) and 2(A)(5) above by April 1, 2004. CLECs designated as ETCs whose service area is identical with an underlying ILEC may file a statement to that effect in lieu of maps.

3. Phase III. Water utilities that serve over 1,000 customer accounts in Maine but are not included in Phases I or II above must file service area maps or descriptions permitted by §§ 2(A)(3) above by April 1, 2007.

4. Phase IV. Water utilities that serve over 250 customer accounts in Maine but are not included in Phases I, II, or III above must file service area maps or descriptions permitted by §§ 2(A)(3) above by April 1, 2010.

5. Phase V. All water utilities not included in Phases I, II, III, or IV above must file service area maps or descriptions permitted by §§ 2(A)(3) above by April 1, 2013.

6. Customer Accounts. For the purposes of this section, the number of a utility’s customer accounts will be the number that exists as of December 31 of the calendar year prior to the date on which a filing is required.

§ 3 INFRASTRUCTURE MAPS

A. Requirement to File Infrastructure Maps. All utilities subject to the requirements of this Chapter (except T&D utilities that provide service only on offshore islands) with facilities in Maine must develop and maintain current maps showing the key infrastructure used or available for use by the utility for the production, transport, transmission, and distribution of services in Maine. Infrastructure maps must incorporate key infrastructure attributes defined in this Chapter. Utilities must prepare as many infrastructure maps as needed to include their entire service area in Maine. Maps must be filed in both paper and electronic (GIS) form as provided in § 3(C) below.

B. Single-Line Diagrams. If a utility does not have geographically-located data for certain infrastructure lines, it may file a map that shows the lines between its geographically-located midpoints and endpoints as representational point-to-point lines, in lieu of geographically-located lines.

C. Required Filings; Number of Copies. Utilities must file two copies of infrastructure maps with the Commission for informational purposes by April 1 of each year (subject to initial filing requirements in § 3(F) below), to reflect infrastructure in place as of December 31 of the previous year. Utilities must also file two copies of the maps in electronic form unless waived in advance by the Director of Technical Analysis for good cause shown. If no changes to the information reflected in the last maps filed with the Commission have been made during the quarter, utilities may file a statement to that effect in lieu of maps.

D. Inter-Utility Interconnection. Infrastructure maps must clearly identify and show the locations of all service interconnections with other similar utilities and with wholesale and interstate suppliers and carriers, including competitive suppliers and Internet service providers.

E. Public Availability. Infrastructure maps and data filed pursuant to this Chapter will initially be treated as “confidential” pursuant to 35-A M.R.S.A. § 1311-B. The Commission will subsequently determine what information should continue to be treated as confidential under § 1311-B. To be protected from release, all confidential infrastructure maps and data must plainly be designated as “CONFIDENTIAL MATERIAL PURSUANT TO MPUC RULES, CH. 140” in a filing cover letter, clearly marked on all paper copy maps and other information sheets filed, and on electronic media labels. Upon filing any confidential material in electronic form, the utility filing such information shall provide a separate list of each filename included in the filing that the utility considers confidential.

Utilities filing infrastructure information must provide redacted versions that reflect such information that the utility believes can be publicly released without compromise to the security of its facilities. Such non-confidential versions must be clearly marked as REDACTED. The Commission may release the redacted information to the public on request.

Pursuant to 35-A M.R.S.A. § 1311-B(1), the Commission may on its own motion determine that certain infrastructure information is confidential for security reasons. Upon such a determination, the Commission will mark the affected information accordingly.

F. Filing Schedule; Transitional Requirements

1. Phase I. Investor-owned T&D utilities, ILECs, IXCs, gas utilities, and water utilities that serve over 5,000 customer accounts in Maine must file:

a. transmission infrastructure maps beginning July 1, 2002 and by April 1 of each year thereafter, and

b. distribution infrastructure maps and key infrastructure attributes by April 1, 2004 and by April 1 of each year thereafter, except that gas utilities must file distribution infrastructure maps and key infrastructure attributes by July 1, 2002 and by April 1 of each year thereafter.

2. Phase II. Consumer-owned T&D utilities except T&D utilities serving only on offshore islands, CLECs designated as ETCs, and water utilities that serve over 3,000 customer accounts in Maine but are not included in Phase I above, must file by April 1 of each year:

a. transmission infrastructure maps beginning April 1, 2006, and

b. distribution infrastructure maps and key infrastructure attributes beginning April 1, 2009.

3. Phase III. Water utilities that serve over 1,000 customer accounts in Maine but are not included in Phases I or II above must file by April 1 of each year:

a. transmission infrastructure maps beginning April 1, 2009, and

b. distribution infrastructure maps and key infrastructure attributes beginning April 1, 2012.

4. Phase IV. Water utilities that serve over 250 customer accounts in Maine but are not included in Phases I, II, or III above must file by April 1 of each year:

a. transmission infrastructure maps beginning April 1, 2012, and

b. distribution infrastructure maps and key infrastructure attributes beginning April 1, 2015.

5. Phase V. All water utilities not included in Phases I, II, III, or IV above must file by April 1 of each year:

a. transmission infrastructure maps beginning April 1, 2015.

b. distribution infrastructure maps and key infrastructure attributes beginning April 1, 2018.

6. Customer Accounts. For the purposes of this section, the number of a utility’s customer accounts will be the number that exists as of December 31 of the calendar year prior to the date on which a filing is required.

G. No Changes to Infrastructure. After the initial filings prescribed in § 3(F) above, any utility that has not made any changes that would reflect in changes to the infrastructure maps and key infrastructure attributes previously filed may file a letter to that effect in lieu of annual filings of maps and attributes.

H. Changes to Infrastructure. Notwithstanding any initial implementation dates prescribed in § 3(F) above, as of January 1, 2002, any utility subject to this Chapter that conducts any major construction project for improvement, replacement, or expansion, with a project infrastructure of more than $500,000 during any calendar year, must collect georeferenced data about that new or improved infrastructure and provide applicable infrastructure maps and key infrastructure attributes on April 1 of the following year and each subsequent year.

§ 4 WAIVER

Upon the request of any person subject to the provisions of this Chapter for good cause shown, or upon its own motion, the Commission may waive any of the requirements of this Chapter. Where good cause exists, the Commission, the Administrative Director, the Director of Technical Analysis, the Hearing Examiner, or Presiding Officer assigned to a proceeding related to this Chapter may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Title 35-A.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Statement of Factual and Policy Basis and Order Adopting Rule, Commission Docket No. 2001-284, issued on October 19, 2001. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 112, 301, 307, 1311-A, 1311-B, 2102-2105, and 2110.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 24, 2001. It was filed with the Secretary of State on October 24, 2001 and will be effective on October 29, 2001.
• EFFECTIVE DATE: 65-407 Chapter 140 - Utility Service Area and Infrastructure Maps page 14

Chapter 200 Telecommunications Carrier Outage Reporting

Code Me. R. 65-407 Ch. 200 Telecommunications Carrier Outage Reporting {#sec-65-407-ch.-200 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 200}

SUMMARY: This Chapter contains the reporting requirements for telecommunications carrier’s service outages.

§1 DEFINITIONS

A. Contact Protocol. “Contact Protocol” means the most recent version of the notice procedure and contact list periodically updated and issued by the Director of the Commission’s Technical Analysis Division pursuant to Chapter 130 §3(5).

B. DS3 Minutes. “DS3 Minutes” means the mathematical result of multiplying the duration of an outage, expressed in minutes, by the number of operating DS3 circuits that are affected by an outage.

C. Outage. An “outage” is any significant degradation in the ability of an end user to establish and maintain a channel of communications as a result of failure or degradation in the performance of a telecommunications carrier’s network or equipment.

D. Telecommunications Carrier. A "telecommunications carrier" is any person, association, corporation, or other entity that provides intrastate telecommunications services, whether or not that entity is a public utility. Telecommunications carrier includes all interexchange carriers (IXCs) and all local exchange carriers (LECs).

E. User Minutes. “User minutes” means the mathematical result of multiplying the duration of an outage, expressed in minutes, by the number of working telephone numbers potentially affected by the outage.

F. Working Telephone Number. A “working telephone number” is the number of telephone numbers, including DID numbers, or numbers behind a PBX or Centrex service, working immediately prior to an outage.

§2 REPORTING REQUIRED

A. Scheduled Outages

Notice of scheduled outages shall be provided as follows:

1. Initial Notice to the Commission

Each telecommunications carrier shall notify the Commission electronically, pursuant to the Contact Protocol, ten business days prior to any scheduled outage that is expected to exceed 30 minutes of duration and 90,000 user minutes or 1,350 DS3 minutes. If a telecommunications carrier determines that exigencies exist which necessitate that an outage be scheduled sooner than would permit such notice, the telecommunications carrier shall notify the Commission within 120 minutes after it makes such a determination. The notification required by this subsection shall include the information required by Section 3.

2. Final Notice to the Commission

Upon request by the Director of Technical Analysis or his/her designee, within 30 days after such request the telecommunications carrier shall submit, pursuant to the Contact Protocol, a Final Outage Report. The Final Outage Report shall contain the information required by Section 3.

B. Unscheduled Outages

Notice of unscheduled outages shall be provided as follows:

1. Initial Notice to the Commission

Each telecommunications carrier shall notify the Commission, as provided by the Contact Protocol, within 120 minutes of discovering that it has experienced, with respect to any facility that it owns, operates, leases, or otherwise utilizes, an outage of at least 30 minutes duration that potentially affects at least 90,000 user minutes or 1,350 DS3 minutes. The notification required by this subsection shall include the information required by Section 3.

Final Notice to the Commission

Upon request by the Director of Technical Analysis or his/her designee, within 30 days after such request the telecommunications carrier shall submit, pursuant to the Contact Protocol, a Final Outage Report. The Final Outage Report shall contain the information required by Section 3.

C. Service Restoration

1. Notice to the Commission

Within 120 minutes after service is restored from an outage, the telecommunications carriers shall so notify the Commission pursuant to the Contact Protocol.

2. Notice Concerning E9-1-1

Immediately after service is restored following an outage that affected the transmission of E9-1-1 and other emergency calls, the telecommunications carrier shall conduct testing to ensure that E9-1-1 calls can be completed successfully from each affected wire center. Notice of the successful completion of such E9-1-1 tests at each wire center shall be provided to the Commission within one hour of the restoration of service and shall comply with all provisions of the Contact Protocol.

§3 CONTENT OF NOTICE

A. Initial Notice to the Commission

The Initial Notice required to be provided to the Commission shall include the following information:

1. the name of the telecommunications carrier;

2. the date of the notice;

3. the name, position, and 24x7 contact information of the person completing the notice or other responsible persons familiar with the situation;

4. the date and time of onset of outage;

5. a brief description of the problem;

6. the particular services affected; and

7. the geographic area affected by the outage.

B. Final Notice to the Commission

Any Final Notice provided to the Commission shall include all of the information from the Initial Notice, and the following information:

1. all information that was not contained in, or has changed from that provided in the Initial Notice; and

2. a description of the actions taken by the telecommunications carrier to correct the cause of the outage and to prevent its recurrence.

Delegation

The Commission delegates to the Director of the Technical Analysis Division the responsibility to establish the form and format of the notices required to be filed with the Commission pursuant to this Chapter.

§4 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, and 112
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 1, 2008. It was filed with the Secretary of State on April 3, 2008 and became effective on April 8, 2008. It replaces Chapter 20, “Reporting Requirements for Local Exchange Carriers,”
• EFFECTIVE DATE: 65-407 Chapter 200 page 2

Chapter 201 Provider of Last Resort Service Quality

Code Me. R. 65-407 Ch. 201 Provider of Last Resort Service Quality {#sec-65-407-ch.-201 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 201}

SUMMARY: This Chapter establishes the service quality indicators and standards for providers of Provider of Last Resort (POLR) service. It also describes the requirements and procedures governing Commission investigations regarding failures to meet the service quality standards and penalties, rebates or rate reductions.

§ 1 PURPOSE AND APPLICABILITY

A. Purpose 3

B. Applicability 3

C. Effective Date 3

§ 2 DEFINITIONS 3

§ 3 INFORMATION FOR QUARTERLY REPORTS FOR NON-PRICE CAP ILECS 3

§ 4 SERVICE QUALITY INDICATORS (METRICS) AND SERVICE QUALITY STANDARDS (BENCHMARKS) FOR NON-PRICE CAP ILECS 4

A. Adjustment of Benchmarks 4

B. Service Provider Performance 4

C. Description of Service Quality Metrics and Required Benchmarks 4

§ 5 NON-PRICE CAP ILEC QUARTERLY REPORT FILINGS TO THE COMMISSION 5

Content 5

Filing Quarterly 5

Additional Content Required For Failure to Meet the Benchmark(s) 5

§ 6 COMMISSION INVESTIGATION OF NON-PRICE CAP ILECS 6

§ 7 PENALTIES, REBATES OR RATE REDUCTIONS FOR NON-PRICE CAP ILECS 6

Amount 6

Considerations Regarding the Amount 6

§ 8 INFORMATION FOR QUARTERLY REPORTS FOR PRICE CAP ILECS 6

§ 9 SERVICE QUALITY INDICATORS (METRICS) AND SERVICE QUALITY

STANDARDS (BENCHMARKS) FOR PRICE CAP ILECS 7

A. Service Provider Performance 7

B. Descriptions of Service Quality Metrics and Required Benchmarks 7

§ 10 PRICE CAP ILEC QUARTERLY REPORT FILINGS TO THE COMMISSION 8

A. Content 8

B. Filing Quarterly 8

§ 11 WAIVER OR EXEMPTION 8

§1 PURPOSE AND APPLICABILITY

A. Purpose. The purpose of this Chapter is to establish the service quality indicators and standards for providers of Provider of Last Resort (POLR) service. This Chapter also describes the requirements and procedures governing Commission investigations regarding failures to meet the service quality standards and the penalties, rebates or rate reductions that the Commission may impose for failure to meet the service quality standards.

B. Applicability. This Chapter applies to all POLR service providers in Maine.

§2 DEFINITIONS

A. Incumbent Local Exchange Carrier. “Incumbent Local Exchange Carrier” has the same meaning as in 47 U.S.C. section 251, subsection h.

B. Investigable Failure. "Investigable Failure" means the failure of a Price Cap ILEC Service Provider to meet the same service quality metric for any two consecutive quarters.

C. Non-Price Cap ILEC. "Non-Price Cap ILEC is an Incumbent Local Exchange Carrier that is not a Price Cap Incumbent Local Exchange Carrier.

D. Price Cap ILEC. "Price Cap ILEC" has the same meaning as "Price Cap Incumbent Local Exchange Carrier" in 35-A M.R.S., section 7102, subsection 6-A.

E. Provider of Last Resort Service or POLR Service. “Provider of Last Resort Service:” or "POLR Service" has the same meaning as in Title 35-A, M.R.S. section 7201, subsection 7.

F. Service Provider. “Service Provider” has the same meaning as in Title 35-A, M.R.S. section 7201, subsection 8.

G. Service Quality Indicators. “Service Quality Indicators,” also referred to as service quality metrics, means areas of service quality that may be measured.

H. Service Quality Standards. “Service Quality Standards,” also referred to as service quality benchmarks, means service goal baselines that must be met by POLR service providers.

§3 INFORMATION FOR QUARTERLY REPORTS FOR NON-PRICE CAP ILECS

Service quality reports required pursuant to Section 5 of this Chapter shall be based on service to all voice customers who receive service from the Non-Price Cap ILEC Service Provider.

§4 SERVICE QUALITY INDICATORS (METRICS) AND SERVICE QUALITY STANDARDS (BENCHMARKS) FOR NON-PRICE CAP ILECS

Non-Price Cap ILEC Service Providers shall report to the Commission on the five service quality metrics established in Section 4(C) of this Chapter. The benchmarks represent a reasonable and adequate level of service quality for customers.

A. Adjustment of Benchmarks. The Commission may adjust the Service Quality Standards for Non-Price Cap ILEC Service Providers in a future rule-making.

B. Service Provider Performance. Non-Price Cap ILEC Service Providers' actual reported performance for each metric must be equal to or better than the benchmark. Actual performance is considered equal to or better than the benchmark if the reported result is less than or equal to the benchmark. If performance fails to meet the benchmark, the Commission may open an investigation and may impose a penalty, rebate or rate reduction pursuant to Sections 6 and 7 below.

C. Description of Service Quality Metrics and Required Benchmarks. The following service quality metrics and corresponding benchmarks are applicable to Non-Price Cap ILEC Service Providers:

1. Percentage of Installation Appointments Not Met (Company Reasons)

a. Metric Description. This metric measures the percent of total completed orders for which the service provider did not meet the committed due date because of Non-Price Cap ILEC Service Provider reasons. The actual result is calculated by dividing the number of service appointments for which the due date was not met by the total number of scheduled appointments. When an appointment is not met due to other than Non-Price Cap ILEC Service Provider reasons, including a rescheduling of the appointment at the request of the customer, the appointment is not considered a miss for the purposes of service quality reporting.

b. Benchmark:.975%

2. Average Delay Days for Missed Appointments

a. Metric Description. This metric measures the average number of business days between the order due date and work completion date for orders missed due to Non-Price Cap ILEC Service Provider reasons. The result for this metric is calculated by summing the number of business delay days between the appointment due date and the completion date, and then dividing that sum by the number of missed appointments.

b. Benchmark: 8.91 days

3. Network Trouble Report Rate

a. Metric Description. This metric measures the number of customer reported network troubles per 100 lines within the calendar month. The result is calculated by dividing the number of customer trouble reports to the Non-Price Cap ILEC Service Provider by the number of the Non-Price Cap ILEC's access lines divided by 100. Troubles that are not network related are not included.

b. Benchmark: 1.52%

4. Percentage of Network Troubles Not Resolved Within 24 Hours

a. Metric Description. This metric measures the percentage of network-related service troubles reported to the Non-Price Cap ILEC Service Provider that were not cleared within 24 hours. The metric is calculated by dividing the number of customer trouble reports that are not resolved within 24 hours by the total number of network-related customer trouble reports.

b. Benchmark: 12.35%

5. Service Outages

a. Metric Description. This metric measures service outages of at least 500 access lines caused by the same occurrence that are out of service over five minutes. This metric is calculated by summing all of the occurrences where at least 500 customers are out of service for at least five minutes. The actual reported result is the cumulative number of outages over the most recent twelve month reporting period.

b. Benchmark: 234

§5 NON-PRICE CAP ILEC QUARTERLY REPORT FILINGS TO THE COMMISSION

Content. Non-Price Cap ILEC Service Providers shall track the service quality metrics established in Section 4(C) of this Chapter on a monthly basis. Each quarterly report shall include the results for each month of the quarter, the quarterly average result, the quarterly results for each of the three prior quarters, and the rolling four-quarter average.

Filing Quarterly. Non-Price Cap ILEC Service Providers shall file reports quarterly with the Commission, reporting the numerator and denominator necessary to calculate the results for those metrics that are rates, percentages or averages for each of the three months. For the metric that is a cumulative measurement, the Non-Price Cap ILEC Service Provider shall report the number of outages for each month of the quarter. Quarterly reports shall be due within 28 days of the end of a calendar quarter.

Additional Content Required For Failure to Meet the Benchmark(s). Within ten business days from the filing of a quarterly report any Non-Price Cap ILEC Service Provider that fails to meet one or more of the service quality benchmarks established in Section 4(C) of this Chapter shall file with the Commission an explanation of why it failed to meet the benchmark(s). With its explanatory filing, the Non-Price Cap ILEC Service Provider may also include any reasons and/or mitigating circumstances for why the Commission should not open an investigation into the failure to meet the service quality benchmark(s) pursuant to Section 6 of this Chapter.

§ 6 COMMISSION INVESTIGATION OF NON-PRICE CAP ILECS

Upon reviewing the reports and any other information filed pursuant to Section 5 of this Chapter, the Commission may open an adjudicatory investigation into the failure by a Non-Price Cap ILEC Service Provider to meet any of the service quality benchmarks established in Section 4(C) of this Chapter.

§ 7 PENALTIES, REBATES OR RATE REDUCTIONS FOR NON-PRICE CAP ILECS

The Commission may impose penalties or require a Non-Price Cap ILEC Service Provider to provide rebates or rate reductions if the Commission finds, after an investigation pursuant to Section 6 of this Chapter, that a Non-Price Cap ILEC Service Provider has failed to meet the service quality benchmarks established in Section 4(C) of this Chapter. The penalty provisions of 35-A M.R.S. section 1508-A shall apply as described below.

A. Amount. The amount assessed after any individual investigation shall not exceed amounts authorized pursuant to 35-A M.R.S. section 1508-A(1).

B. Considerations Regarding the Amount. In determining the amount of a penalty, rebate or rate reduction the Commission shall take into account the following factors:

the severity of the Non-Price Cap ILEC Service Provider's failure to meet the service quality benchmark, including the intent of the Non-Price Cap ILEC Service Provider and the nature, circumstances, extent, and gravity of the failure;

the Non-Price Cap ILEC Service Provider's history including the number of quarters that the Non-Price Cap ILEC Service Provider successfully met or failed to meet the service quality benchmark;

the amount necessary to deter future failures to meet the benchmark, taking into consideration the size of the Non-Price Cap ILEC Service Provider, as measured by its revenues, assets or number of customers;

the amount necessary to adequately compensate customers of the Non-Price Cap ILEC Service Provider for any degradation of service;

the Non-Price Cap ILEC Service Provider's good faith attempts to comply with the benchmark;

steps the Non-Price Cap ILEC Service Provider has taken to ensure future compliance with the benchmark; and

such other matters as justice requires.

§ 8 INFORMATION FOR QUARTERLY REPORTS FOR PRICE CAP ILECS

Service quality reports required pursuant to Section 10 of this Chapter shall be based on rolling four-quarter averages, in the areas in which the Price Cap ILEC is the Service Provider.

§ 9 SERVICE QUALITY INDICATORS (METRICS) AND SERVICE QUALITY STANDARDS (BENCHMARKS) FOR PRICE CAP ILECS

Price Cap ILEC Service Providers shall report to the Commission on the four service quality metrics in Section 9(B) of this Chapter. Reports submitted to the Commission by Price Cap ILEC Service Providers are confidential and not public records under 1 M.R.S. section 402(3) and may not be disclosed to any person outside the Commission, except as provided in Section 9(A) of this Chapter.

A. Service Provider Performance. Price Cap ILEC Service Providers’ actual reported performance for each metric must be equal to or better than the benchmark. Actual performance is considered equal to or better than the benchmark if the reported result is less than or equal to the benchmark. The failure of a Price Cap ILEC Service Provider to meet the same service quality metric for any two consecutive quarters constitutes an "Investigable Failure," and the results for this service quality metric for the two consecutive quarters are no longer confidential and become public records. The Commission shall investigate all Investigable Failures by a Price-Cap ILEC Service Provider. If the Commission concludes after investigation that the failure to meet a service quality metric is due to factors within the control of the Price Cap ILEC Service Provider, the Commission shall, by Order, direct the Price Cap ILEC Service Provider to take such steps as the Commission determines necessary to meet the metric. If the Price Cap ILEC Service Provider fails to comply with the Commission's Order, the Commission shall impose a penalty in accordance with 35-A M.R.S. section 1508-A(1)(A) in an amount sufficient to ensure compliance with that Order.

B. Description of Service Quality Metrics and Required Benchmarks. The following service quality metrics and corresponding benchmarks are applicable to Price Cap ILEC Service Providers:

1. Percentage of Installation Appointments Not Met (Company Reasons)

a. Metric Description. This metric measures the percent of total completed orders for which the service provider did not meet the committed due date because of Price Cap ILEC Service Provider reasons. The actual result is calculated by dividing the number of service appointments for which the due date was not met by the total number of scheduled appointments. When an appointment is not met due to other than Price Cap ILEC Service Provider reasons, including a rescheduling of the appointment at the request of the customer, the appointment is not considered a miss for the purposes of service quality reporting.

b. Benchmark: 12%

2. Average Delay Days for Missed Appointments

a. Metric Description. This metric measures the average number of business days between the order due date and work completion date for orders missed due to Price Cap ILEC Service Provider reasons. The result for this metric is calculated by summing the number of business delay days between the appointment due date and the completion date, and then dividing that sum by the number of missed appointments.

b. Benchmark: 9 days

3. Network Trouble Report Rate

a. Metric Description. This metric measures the number of customer reported network troubles per 100 lines within the calendar month. The result is calculated by dividing the number of customer trouble reports to the Price Cap ILEC Service Provider by the number of the Price Cap ILEC Service Provider's access lines divided by 100. Troubles that are not network related are not included.

b. Benchmark: 3%

4. Percentage of Network Troubles Not Resolved Within 48 Hours

a. Metric Description. This metric measures the percentage of network-related service troubles reported to the Price Cap ILEC Service Provider that were not cleared within 48 hours. The metric is calculated by dividing the number of customer trouble reports that are not resolved within 48 hours by the total number of network-related customer trouble reports.

b. Benchmark: 20%

§ 10 PRICE CAP ILEC QUARTERLY REPORT FILINGS TO THE COMMISSION

A. Content. Price Cap ILEC Service Providers shall track the service quality metrics established in Section 9(B) of this Chapter on a monthly basis. Each quarterly report shall include the results for each month of the quarter, the quarterly average result, the quarterly results for each of the three prior quarters, and the rolling four-quarter average.

B. Filing Quarterly. Price Cap ILEC Service Providers shall file reports quarterly with the Commission, reporting the numerator and denominator necessary to calculate the results for each of the three months. Quarterly reports shall be due within 28 days of the end of a calendar quarter.

§ 11 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utilities, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 101, 111, 7225, and 7225-A
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 27, 2014. It was filed with the Secretary of State on June 27, 2014 and became effective on July 27, 2014 (filing 2014-132).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on November 18, 2016. It was filed with the Secretary of State on November 21, 2016, and became effective on November 26, 2016 (filing 2016-200).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 202 Requirements for Audiotext (Pay-Per-Call) Service

Code Me. R. 65-407 Ch. 202 Requirements for Audiotext (pay-Per-Call) Services {#sec-65-407-ch.-202 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 202}

SUMMARY: This rule, applicable to all telephone utilities that offer basic local exchange service, establishes rules for the billing and collection of audiotext or pay-per-call services. The rule requires a minimum bill format and describes the minimum content of customer education materials that must be issued by telephone utilities.

1. DEFINITIONS

For the purposes of this rule the following terms shall have the meaning set forth below unless the context clearly indicates a different meaning:

A. Audiotext services. "Audiotext services" means informational or other services for which, in addition to any message telecommunications service charge, a fee is charged on a per-call or per-minute basis or some combination thereof by a provider that leases telephone lines from an interexchange carrier or a telephone utility. This term includes informational or other services provided for a charge, in addition to any message telecommunications services charges, by means of prerecorded messages or interactive recordings, as well as similar services provided for a charge by means of a collect telephone call to consumers. Audiotext services are accessed by the customer by using dialing codes 900, 976, 940 or 550.

B. Basic telephone service. "Basic telephone service" provides the user with the ability to make and receive calls within a local telephone exchange, and to make and receive both intra- and inter-LATA toll calls.

C. Commission. "Commission" means the Public Utilities Commission.

D. Provider. "Provider" means the person or organization providing audiotext services to consumers for a charge.

E. Telephone Utility. "Telephone utility" means a telephone utility as defined in 35-A M.R.S.A. § 102(19) that provides local exchange service to Maine customers and that bills and collects for audiotext services.

2. DISCONNECTION PROHIBITED.

A. A telephone utility shall not disconnect or threaten to disconnect a customer's basic telephone service because of the customer's failure to pay an audiotext service charge. A telephone utility must treat audiotext service charges as "non-basic utility service" as that term is defined in Chapter 810 of the Commission's rules.

B. A telephone utility may seek to disconnect or block a customer's ability to make calls to audiotext service providers if a customer has repeatedly failed to pay undisputed charges for audiotext services. The term "repeatedly" means that the customer has failed to pay for undisputed audiotext charges in excess of $50.00 after the issuance of at least two monthly bills. Prior to disconnection of a customer's ability to make calls to audiotext service providers, the telephone utility shall issue a disconnection notice that informs the customer that the notice does not threaten the customer's basic telephone service and contains a disclosure of: the overdue amount for audiotext services; the disconnection date; a statement of the customer's right to dispute the action by first attempting to resolve the dispute with the utility and then, if not satisfied, appeal the dispute to the Consumer Assistance Division; the title and telephone number of the utility representative to contact; and any reconnection charge. The disconnection notice shall, at a minimum, contain a due date at least three (3) business days after the postmark or mail date of the notice.

3. BLOCKING SERVICES.

A. Comprehensive blocking. Comprehensive blocking is a customer-initiated block of all audiotext services. A telephone utility must offer all one-party residential and single-line business customers an initial opportunity to block and also to unblock access to all audiotext services at no extra charge. Thereafter, the maximum charge for either blocking or unblocking access to audiotext service providers shall not exceed $5.00.

B. Selective blocking. Selective blocking is a customer-initiated request to block one or more individual audiotext service numbers. A telephone utility may offer any class of customers the opportunity to block individual audiotext service numbers at a charge not to exceed $5.00 per request.

C. Presumptive blocking. Presumptive blocking is a telephone utility-initiated block of one or more classes or types of audiotext services. A telephone utility may provide blocking of all customers to one or more classes or types of audiotext services on a presumptive basis, after a 30-day notice to all customers. When this service is provided, the telephone utility must offer customers the opportunity to unblock access to all or any class or type of audiotext services at no charge when technical facilities exist. Thereafter, the charge for blocking or unblocking shall not exceed $5.00. Presumptive blocking may be provided only upon a finding by the Commission that it is in the public interest.

D. A telephone utility must offer the blocking services described in subsections A, and may offer the services described in subsections B or C, above, in every central office that is capable of offering a blocking service.

E. A telephone utility that has not complied with or cannot comply with this section by the effective date of this rule may apply to the Commission for an extension for good cause. The request must be in writing and contain facts demonstrating that compliance with this section will work a hardship on the utility. The application must contain:

1. The reason why the deadline cannot be met;

2. When the utility proposes to comply; and

3. The cost of complying with the deadline and the savings incurred if the delay is granted.

4. BILL FORMAT.

A. A telephone utility must individually highlight or identify the charges for audiotext services that appear on a bill for basic telephone service. A telephone utility can comply with this requirement by one or more of the following methods:

1. Print the telephone number, length of call and charges for the audiotext service charge in a different color ink, or a distinctively different type font or type size;

2. Highlight the entire line item for the audiotext service charge by using a lighter or darker shade of color than the printed text;

3. Provide a symbol that is conspicuously displayed by different color ink, or the use of the largest type size or darkest ink color in use on the bill, at the beginning of the line item for each audiotext service charge or in a separate column or field adjacent to the charges for the audiotext call; or

4. Separately list and subtotal audiotext service charges that appear on the bill, either by individual telephone utility or interexchange carrier or for all audiotext service charges.

B. In the case of the options described in paragraphs 1 through 3, above, the bill must contain a legend at the bottom of each bill page that informs the customer that the method chosen identifies "PAY-PER-CALL CHARGES".

C. A telephone utility must comply with this section no later than September 30, 1992 and may apply for a waiver from the provisions of this section in the same manner and for the same reason set forth in Section 3(E), above.

5. CUSTOMER EDUCATION.

A. A telephone utility must inform all customers at least four times each calendar year of their rights and responsibilities concerning the provision of audiotext services. This information may be provided with a monthly bill or in a separate mailing.

B. At a minimum, the customer education material must include the following information:

1. A definition of audiotext services;

2. How audiotext service charges are identified on the customer's bill;

3. How a customer can dispute audiotext service charges;

4. How a customer can block audiotext service calls from their telephone and at what charge; and

5. A statement that informs the customer that their basic telephone service is not at risk for failure to pay for audiotext service charges.

6. DISPUTE PROCEDURES.

A. A telephone utility must follow the minimum dispute resolution provisions of Chapter 810 and Chapter 860 of the Commission's rules when the customer disputes an audiotext service charge.

B. Upon receipt of the customer's dispute, the telephone utility must either delete that audiotext service charge from the customer's bill for basic telephone service or investigate and attempt in good faith to resolve the dispute. Any investigation must, at a minimum, include a demonstration that the audiotext service provider has complied with the applicable rules of the Federal Communications Commission and any applicable rules adopted by the Attorney General pursuant to the Maine Unfair Trade Practices Act.

C. A telephone utility may refer a customer's dispute concerning an interstate audiotext service to the long distance company that bills for the audiotext service. However, the telephone utility must either remove the charge from the customer's bill or identify the charges on customer bills as subject to dispute while the dispute is pending at the long distance company. In the event a long distance company does its own customer dispute resolution, and does not rely on the telephone utility to provide dispute resolution for audiotext service charges, the long distance company shall either remove the charge from the customer's bill or identify the specific charges in dispute on the bill while the dispute is pending.

History

• STATUTORY AUTHORITY: Title 35-A, §§ 104, 111, 301 and 801-808.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 27, 1992. It was filed with the Secretary of State on March 27, 1992 and will be effective on April 1, 1992.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 202 page 1

Chapter 204 Basic Service Calling Areas

Code Me. R. 65-407 Ch. 204 Basic Service Calling Areas {#sec-65-407-ch.-204 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 204}

SUMMARY: This Chapter establishes the criteria and the procedures that the Commission and Local Exchange Carriers designated as Eligible Telecommunications Carriers will follow to establish and change basic service calling areas.

SECTION 1: PURPOSE AND APPLICABILITY 3

A. Purpose 3

B. Applicability 3

SECTION 2: DEFINITIONS 3

SECTION 3: BASIC SERVICE CALLING AREA OPTIONS 5

A. Customer Options for Basic Service Calling Areas 5

1. Options Available Following Additions to BSCA 5

2. Options Available After Additions to BSCA If Home Exchange Had Only

Premium Option 5

B. Selection by Customers 6

C. Unavailability of Options When Options Identical 6

D. Municipal Calling 6

SECTION 4: IMPLEMENTATION OF BSCA OPTIONS 6

A. Filing of Rate Schedules and Terms and Conditions 6

B. Customer Notice 6

C. Directory Notice 7

D. Implementation Dates Basic Service Calling Area Options 7

E. Telephone Directories 7

SECTION 5: RATES FOR BASIC-SERVICE CALLING AREA OPTIONS 7

A. Rates for BSCA Options 7

1. Exchanges 7

2. Options 8

B. Per Minute Rates for BSCA Exchanges Outside the Flat-Rate Calling Area 8

C. Tracking Account and Filing Requirements for New or Revised Options;

Subsequent Rate Adjustments 8

1. Tracking Account 8

2. Reporting Requirements; Rate Adjustments 8

SECTION 6: REQUESTS FOR CHANGES TO BSCAS AND CALLING OPTIONS 9

A. Requests by Local Exchange Carriers 9

B. Requests by Customers 9

C. Standards Applicable to Requests for Modification 10

1. Calling Volumes 10

2. Other Considerations 10

SECTION 7: WAIVERS 10

Section 1. Purpose and Applicability

A. Purpose. The purpose of this Chapter is to create a statewide system for establishing basic service calling areas (BSCAs) and calling options within those BSCAs that permit customers to select calling rates and rate structures suited to their calling patterns.

B. Applicability. This Chapter applies to all local exchange carriers that are subject to the Commission's jurisdiction and that the Commission has designated as “Eligible Telecommunications Carriers.”

Section 2. Definitions

A. Basic-Service Calling Area. "Basic-Service Calling Area” (BSCA) is the local (non-interexchange) calling area of the “home exchange” of a customer of a “local exchange carrier,” as defined in this section. The BSCA includes all exchanges that were in the BSCA prior to the amendments effective in December 2002 plus all exchanges that are contiguous to the home exchange that were not included prior to the December 2002 amendments. Within a BSCA, there may be Economy and Premium calling options with flat-rate and per-minute pricing as specified in the definitions of those options and in Section 5. For all options, the BSCA includes all of the exchanges that are included in the calling option with the largest flat-rate calling area.

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Contiguous Exchange. An exchange is “contiguous” to another exchange if any portions of the exchange boundaries of the two exchanges touch each other. If the boundaries touch each other only in a body of water, the two exchanges shall not be considered contiguous for the purpose of this Chapter unless a bridge or causeway capable of carrying motor vehicle traffic crosses the body of water and connects land portions of the two exchanges.

D. Customer. For the purpose of this chapter, a "Customer" is a person who has an account for basic local exchange telephone service in Maine from a local exchange carrier.

E. December 2002 Amendments. “December 2002 amendments” refers to the amendments to Chapter 204 effective in December 2002, pursuant to the rulemaking proceeding in Docket Number 2001-865.

F. Economy Calling Option. The "Economy Calling Option” is a basic-service calling area option that has a flat monthly rate for unlimited calling within the home exchange and, unless otherwise ordered by the Commission, all exchanges that were included in the home exchange's Economy calling area immediately before the December 2002 amendments, and a per-minute charge for calls to other exchanges within the BSCA. If an exchange is served by more than one central office or wire center and its Premium calling area includes more than 50,000 access lines, the Economy calling area is the home exchange.

G. Eligible Telecommunications Carrier (ETC). An “Eligible telecommunications carrier” is a local exchange carrier designated by the Commission pursuant to 47 U.S.C. § 214(e) as an eligible telecommunications carrier for the purpose of receiving universal service funding pursuant to 47 U.S.C. § 254.

H. Exchange. "Exchange" is a specific geographic area with boundaries established by a Telephone Utility’s service area maps on file with the Commission as part of the Utility’s Terms and Conditions. An exchange may include one or more wire centers or central offices.

I. Home Exchange. The "Home exchange” is the exchange in which the customer's telephone line is located and from which the customer receives local exchange service. For the purpose of this Chapter, if a customer subscribes to foreign exchange service, the “foreign” exchange shall be considered a "home" exchange for that customer. All customers of a “home” exchange may choose one of the basic-service calling area options available in that exchangeif more than one is available..

J. Local Exchange Carrier (LEC). For the purpose of this Chapter, "Local exchange carrier" or “LEC” means a telephone utility, as defined by 35-A M.S.R.A. § 102 (19), that provides local exchange service and is designated by the Commission as an “eligible telecommunications carrier.” A local exchange carrier provides loop and local switching services, to customers in an exchange, either directly or through resale.

K. Municipal Calling. "Municipal Calling" is provided to all customers of a local exchange carrier as part of basic local exchange service and allows a customer to call all other customers located in the municipal civil division in which the calling customer receives telephone service without incurring additional charges, regardless of the exchange that serves the telephone lines of the other customers.

L. Premium Option. The "Premium Option” is a Basic Service Calling Area option that has a flat monthly rate for unlimited calling from the Home Exchange to the all of the exchanges within the BSCA. Exchanges in which the Premium and the Economy options are identical are classified as having only a Premium calling area.

M. Rate Group. A “rate group” is a rate classification for local exchange service contained in the terms and conditions of a local exchange carrier. A rate group typically classifies rates for the home exchange according to the number of lines that may be called within the BSCA of the home exchange.

N. Residential Customer. A "residential customer” is a customer who has telephone service at a dwelling and the service is used primarily for domestic or social purposes. All other customers are non-residential customers.

O. School Administrative Unit. “School Administrative Unit” is defined in 20-A M.R.S.A. § 1(26). For the purpose of this Chapter, a School Administrative Unit includes School Administrative Districts (SADs), as defined in 20-A M.R.S.A. § 1(25) and Community School Districts,as defined in 20-A M.R.S.A. §§ 1(5) and 1601(1).

P. Service Center. A “Service Center” is a town or city designated by the Maine State Planning Office (SPO) as a regional service center in Chapter 220 of its rules, Methodology For Identification of Regional Service Centers.

Q. Single Exchange BSCA. A “single exchange BSCA” is a Basic-Service Calling Area that includes only the home exchange.

Section 3. Basic Service Calling Area Options

A. Customer Options for Basic Service Calling Areas.

1. Options Available Following Additions to BSCA.

a. General Rule. When additional exchanges are added to a BSCA (including pursuant to the December 2002 amendment to this Chapter that requires the inclusion of all contiguous exchanges), flat-rate unlimited calling to those exchanges shall be included in the exchange’s Premium calling option rather than the Economy option.

b. Proposal for Exception. The Commission may grant an exception to the general rule contained in sub-paragraph (a) if it concludes that the inclusion of flat-rate unlimited calling to the new exchanges in the Premium option, rather than in the Economy option, is likely to result in a rate for the Premium Option that is so high that it is likely to deter customers from subscribing to the option. If a LEC proposes this exception, it shall first establish that it cannot address the matter through the rate design for the two options pursuant to Section 5(A). Pursuant to this exception, the Commission may order that flat-rate unlimited calling to some or all of the additional exchanges be added to the Economy option.

2. Options Available After Additions to BSCA If Home Exchange Had Only Premium Option.

a. General Rule. If, prior to the addition of a new exchange to a BSCA, the home exchange had only a Premium option, the revised Premium option will provide flat-rated unlimited calling to the entire BSCA, and the previous Premium option will become the flat-rated unlimited calling area of the Economy option.

b. Proposal for Exception. At the request of a LEC or other person, the Commission may order that the LEC continue to provide only the premium option if, under the two options, there would be only a minimal difference between the number of exchanges and access lines available on a flat-rate unlimited calling basis.

B. Selection by Customers. A customer of a local exchange carrier may choose from the following options if both are available in the customer’s home exchange:

1. Premium Option, priced at a flat monthly rate for unlimited calling to all of the exchanges included in the BSCA; and

2. Economy Calling Area Option, priced at a flat monthly rate for unlimited calling within the exchanges included in the flat-rated portion of the Economy option and at a per-minute rate for calls made to all other exchanges within the BSCA.

C. Unavailability of Options When Options Identical. If, in a home exchange, both options as defined in Section 2 are identical, the option in that exchange will be classified as Premium.

D. Municipal Calling. Subscribers to all calling options shall receive municipal calling without incurring interexchange toll charges or per-minute charges established pursuant to Section 5(B) of this Chapter.

Section 4. Implementation of BSCA Options

A. Filing of Rate Schedules and Terms and Conditions. Within 56 days (8 weeks) following the establishment of any new or changed BSCA, or any additional calling option within a BSCA, each LEC shall file any necessary change to its rate schedules and terms and conditions.

B. Customer Notice. Within 56 days (8 weeks) following Commission approval of any changes in rates or terms and conditions filed pursuant to Section 4(A), Local Exchange Carriers shall send a notice to each customer served by a home exchange in which a change to a BSCA or to a calling option will take place. The LEC shall provide a copy of the notice to the Commission. The notice will provide the following information:

1. A description of the Economy and Premium options, a list of the exchanges included in each option, and the rates for each option, including the flat rates under each option for unlimited calling to the exchanges for which the flat rates apply, and the per-minute rate for calls to the exchanges in the Economy option for which per-minute rates apply;

2. A statement that the customer is entitled to receive municipal calling regardless of which option the customer chooses; and information about:

a. How to obtain municipal calling if the customer is presubscribed to interexchange service other than that provided by or through the local exchange carrier; and

b. How to obtain municipal calling or corrections to bills if the customer is presubscribed to interexchange service provided by or through the local exchange carrier and interexchange toll or per-minute BSCA charges for calls within the customer’s municipality incorrectly appear on the customer’s bill;

3. A statement that sets a deadline of 56 days (8 weeks) from the mailing of the notice and that advises customers that they may select the Economy or the Premium option prior to the deadline and informs customers of the default option if they do not select. Unless otherwise ordered by the Commission, whenever there is a change in the BSCA options in a home exchange, the default option for customers who have subscribed to an option at the time of change is the option to which a customer is then subscribed.

C. Directory Notice. The information contained in §§4(B)(1) and (2) will appear in the introductory pages of all LEC telephone directories.

D. Implementation Date. Companies will implement Economy and Premium options within 35 days following the deadline for customers to choose a BSCA option under Section 4(B).

E. Telephone Directories. LECs must distribute annually to each customer, at no charge, a telephone directory or directories that include(s) the "white" alphabetical listings for each exchange in the customer's BSCA.

Section 5. RATES FOR BASIC SERVICE CALLING AREA OPTIONS

A. Rates for BSCA Options

When a LEC implements new or modified BSCAs, it may propose monthly Economy and Premium option rates for the recovery of additional equipment and administrative costs and revenue losses resulting from the provision of the new or modified BSCA calling options. The Commission shall review and approve the rates. Beyond any rate increase that may occur as a result of a change in a home exchange’s rate group, rate increases shall apply to a specific exchange or to several exchanges and to each option as follows:

1. Exchanges. When the BSCA of a home exchange is increased, the LEC may propose:

a. Rates for the home exchange that will recover the costs and revenue losses that occur as a result of the change in the BSCA; or

b. Rates for other exchanges that, in combination with rate increases for the home exchange, will recover some of the costs and revenue losses if the rates for the home exchange under sub-paragraph a would be substantially higher than rates for other exchanges served by the LEC that have equivalent calling areas; or

c. Rates for all or most of the LEC’s exchanges that will recover the costs and revenue losses associated with the change in BSCA when it applies generally to all or most of the LEC’s exchanges, as when a change in this Chapter requires a systematic change in the definition of BSCAs or calling options.

2. Options. Generally, when the number of exchanges in a BSCA increases, the rates of the option that receives the greater change in flat-rate unlimited calling should increase by a relatively greater amount than the rates for the other option. A LEC may propose a different balance if:

a. Increasing the rates for the economy option would result in rates for the two options that are too similar; or

b. The rates for the premium option would be so high that they would be likely to deter customers from subscribing to that option.

B. Per-Minute Rates for BSCA Exchanges Outside the Flat-Rate Calling Area. Calls made from the home exchange to exchanges that are within the BSCA but not included in the flat-rate unlimited-calling portion of the Economy option shall be priced at five cents per minute for customers who subscribe to the Economy option unless the call is to the same municipality. Once each year, the Commission, after reviewing competitive interexchange market conditions, may adjust the rate.

C. Tracking Account and Filing Requirements for New or Revised Options; Subsequent Rate Adjustments.

1. Tracking Account. Each LEC must maintain a tracking account, by exchange, that records the revenue effects of the BSCA options for the first 12 months after any changes to the BSCA or after BSCA options have been implemented or updated.

2. Reporting Requirements; Rate Adjustments. Within 56 days (8 weeks) after the 12-month tracking period, the Company must file a written report with the Commission that shows the revenue effects of the BSCA options for the first 12 months after a change to the BSCA or after a BSCA calling option has been added or changed. If the tracking account has a positive balance, the LEC must file a proposal to return the excess to customers and to lower prospective rates with its report. If the tracking account has a negative balance, the LEC may file proposed rates for Commission review to recover the shortfall that occurred during the 12-month deferral period and for the period following the 12-month deferral period but prior to the effective date of any revised rates, and to adjust prospective rates to avoid a similar revenue shortfall in the future. Following review, the Commission, as provided in 35-A M.R.S.A. § 1306(1), may approve or disapprove the proposed rates or may substitute other rates that it finds are just and reasonable.

Section 6. Requests for Changes to BSCAs and Calling Options

A. Requests by Local Exchange Carrier. A LEC may ask the Commission to modify the BSCA for an exchange or any calling option for that exchange, notwithstanding any other provision of this Chapter.

1. Contents of Request. The LEC must make the request in writing. The request must explain and justify why the Commission should grant the request, must propose a reasonable alternative to any requirement of the Rule that the LEC has proposed should not apply, and must describe how granting the request would be consistent with the purpose of this Rule. The LEC must send a copy of the request to the Public Advocate.

2. Consideration by Commission. The Commission will determine whether and how to solicit comments from interested persons. The Commission, at its discretion, may hold a hearing. The Commission will consider the LEC's written request, any comments or testimony, or other evidence, and the standards contained in subsection C, in determining whether to grant, deny, or modify the request.

B. Requests by Customers. Customers may request the Commission to modify the BSCA for an exchange or any calling option for that exchange, notwithstanding any other provision of this Chapter. Customers must first ask the LEC to attempt to resolve their concerns. If the LEC is unable or unwilling to resolve the customers' concerns, the customers may request the Commission to change the BSCA of a home exchange or the calling options available in that exchange as follows:

1. Form of Request. Fifty customers in the same exchange may request a modification to the BSCA for that exchange or to calling options for that BSCA. The customers must make the request in writing, and must include the names, addresses, telephone numbers, and signatures of each customer of the exchange who is making the request. The request must identify the lead customer, who will serve as the principal point of contact for the petitioners. The request should set forth the circumstances justifying the request, including any efforts made by the petitioners to obtain relief from the LEC.

2. Procedure for Requests from Customers in a Single Exchange BSCA. For requests from customer in a single exchange BSCA, the Commission will open a proceeding to investigate expanding the BSCA that is the subject of the request and will hold at least one public hearing. Within six (6) months of the filing of the written petition, the Commission will issue an order that either expands the BSCA or states the Commission’s reasons for declining to expand the basic service calling area. In making its determination, the Commission will consider the customers' written request, and any comments, testimony, or other evidence, and the standards contained in subsection C.

3. Procedure for Requests from Customers in Other Exchanges. For requests from customers from an exchange that is not a single exchange BSCA, the Commission will determine whether and how to solicit comments from interested persons. The Commission, at its discretion, may hold a hearing. The Commission will consider the customers' written request, any comments, testimony or other evidence, and the standards contained in subsection C, in determining whether to grant, deny, or modify the request.

C. Standards Applicable to Requests for Expansion.

1. Calling Volumes. The Commission may require the affected LEC(s) to conduct a study of residential customer calling volumes to any exchange that the LEC or customers have requested be included in a BSCA option. If, in a representative month, residential customers in the home exchange makean average of three calls a month, and 40% of those customers make two or more calls a month to the requested exchange, the Commission shall grant the request for the change in the BSCA unless it finds good cause to deny the request.

2. Other Considerations. The Commission shall apply the following standards to requests submitted under this Section. The Commission may grant a request for the expansion of the BSCA or for the addition of exchanges on a flat-rate unlimited-calling basis to one of the calling options for the BSCA if it determines that a sufficient community of interest exists between the community or communities located in the customers’ home exchange and the community or communities located in the exchanges that the customers propose to add to the basic-service calling area or to a calling option, and if the Commission determines that the benefits are not outweighed by other factors. In determining whether a sufficient community of interest exists, the Commission will consider both social and economic factors including, but not limited to, the extent of the relationship between the two communities, employment patterns, the location of medical service providers, the location of regional service centers, the location of schools, the municipalities and other areas that are included in school administrative units, the percentage of people from the exchange requesting the modification, the seasonality of calling patterns, the level of community sentiment, whether the exchange is a “skipped-over” exchange, and the level of disparity between customers making a large number of calls to the proposed community and customers making no calls to that community. Other factors the Commission may consider in deciding whether to grant a customer request include, but are not limited to, the availability of optional toll calling plans and the number of subscribers to those plans, the number of lines currently served, the cost, revenue and rate impacts of expanding the calling area, and the availability of alternatives to traditional telephone services.

Section 7. WAIVERS

The Commission, on its own motion or on the request of any person, may waive any provision of this rule that is not addressed by the provisions of Section 6.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 301, 7303-A
• EFFECTIVE DATE: The Attorney General approved the form and legality of this Rule on June 20, 1994. It was filed with the Secretary of State on June 20, 1994 and is effective on June 25, 1994.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDMENTS: The Attorney General approved the form and legality of this Rule as amended on October 9, 2001. It was filed with the Secretary of State on October 9, 2001 and became effective on October 14, 2001.
• AMENDMENTS: The Attorney General approved the form and legality of this Rule as further amended on December 11,, 2002. It was filed with the Secretary of State on December 12, 2002 and became effective on December 17, 2002.
• AMENDMENTS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 206 Standards for Designating and Certifying Eligible Telecommunications Carriers Qualified to Receive Federal Universal Service Fund Support

Code Me. R. 65-407 Ch. 206 Standards for Designating and Certifying Eligible Telecommunications Carriers Qualified to Receive Federal Universal Service Fund Support {#sec-65-407-ch.-206 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 206}

SUMMARY: This Chapter establishes standards for designating and annual certification of Eligible Telecommunications Carriers (ETCs) in Maine.

§ 1 PURPOSE 2

§ 2 DEFINITIONS 2

§ 3 HIGH-COST ETCS 3

§ 4 LIFELINE-ONLY ETCs 9

§ 5 COMMISSION APPROVAL OF PETITIONS 14

§ 6 WAIVER 14

§ 1 PURPOSE

The purpose of this Chapter is to set forth the standards that the Commission will apply in designating a Telecommunications Provider as an "Eligible Telecommunications Carrier" pursuant to 47 U.S.C § 214(e) and annually certifying ETCs pursuant to 47 C.F.R. § 54.314.

§ 2 DEFINITIONS

A. Applicant. "Applicant" is any Telecommunications Provider that petitions the Commission to be designated, pursuant to 47 U.S.C. § 214(e), as an Eligible Telecommunications Carrier for the purpose of seeking federal universal service fund support pursuant to 47 C.F.R. §§ 54.307, 54.313, or 54.314.

B. Eligible Telecommunications Carrier. "Eligible Telecommunications Carrier" or "ETC" is a provider designated by the Commission to receive support from federal universal service mechanisms in exchange for providing services supported by federal universal service mechanisms, pursuant to Section 254 of the Telecommunications Act of 1996, 47 U.S.C. § 151 et seq.

C. Facilities. "Facilities" means, for the purpose of Section 3 of this Chapter, any components of the telecommunications network that are used in provision of services that are supported by federal universal service mechanisms.

D. High-Cost ETC. “High-Cost ETC” is an Eligible Telecommunications Carrier that receives federal high-cost universal service fund support.

E. Incumbent Local Exchange Carrier. "Incumbent Local Exchange Carrier" or "ILEC" is a local exchange carrier or its successor that provided local exchange service in a defined service territory in Maine on February 8, 1996, or that is designated as an ILEC pursuant to 47 U.S.C. § 251(h)(2).

F. Lifeline. “Lifeline” is as defined in Section 4(A) of this Chapter.

G. Lifeline-Only ETC. “Lifeline-Only ETC” is an Eligible Telecommunications Carrier that receives federal universal service fund support solely for the purpose of offering Lifeline.

H. .shp format. ".shp format" means the format used for creating and storing digital maps composed of shape files capable of being opened by the computer application ArcGIS.

I. Telecommunications Provider. A "Telecommunications Provider" or "Provider" is any provider of communications transmission by telephone, whether the communications are accomplished with or without the use of transmission wires regardless of the equipment, facilities or technology used.

§ 3 HIGH COST ETCs

A. Petitions

A petition from a High-Cost ETC Applicant that is not an ILEC for designation as an ETC must contain the following information:

1. Service Area

a. A description of the area or areas for which designation is sought; and

b. A statement that the Applicant will offer the services supported by high cost federal universal service support mechanisms throughout the area for which it seeks designation, either using its own facilities or a combination of its own facilities and resale of another carrier's services (including the services offered by another ETC).

2. Timeframes for Provision of Supported Service

A statement that the Applicant will:

a. Provide service on a timely basis to requesting customers within the Applicant's service area where the Applicant's network already passes the potential customer's premises; and

b. Provide service within a reasonable period of time, if the potential customer is within the Applicant's service area but outside its existing network coverage, if service can be provided at reasonable cost by:

i. Modifying or replacing the requesting customer's equipment;

ii. Deploying a roof-mounted antenna or other equipment;

iii. Adjusting the nearest cell tower;

iv. Adjusting network or customer facilities;

v. Reselling services from another carrier's facilities to provide service; or

vi. Employing, leasing or constructing an additional cell site, cell extender, repeater, or other similar equipment.

3. Benefit to Consumers and Investment Plan

A substantive plan of the investments to be made with initial federal support during the first five years in which support is received and a substantive description of how those expenditures will benefit customers.

a. The plan shall describe with specificity, for the first two years, the proposed improvements or upgrades to the Applicant's network throughout its proposed designated service area, and shall demonstrate how signal quality, coverage or capacity will improve due to the receipt of high-cost support; the projected start date and completion date for each improvement and the estimated amount of investment for each project that is funded by high-cost support; the specific geographic areas where the improvements will be made; and the estimated population that will be served as a result of the improvements.

b. If the Applicant seeks confidential protection from public release for any components of its plan submitted pursuant to subsection 3(C)(1), the Applicant shall clearly mark such information as confidential on all paper and electronic copies and shall file a petition seeking such protection. A petition for confidential protection shall include a redacted copy of the filing for which protection is sought and any additional information and legal argument demonstrating that the information should be treated as confidential pursuant to the standards of 35-A M.R.S. § 1311-A or § 1311-B. Upon a finding that the information is confidential, the Commission shall issue a protective order pursuant to the terms of § 1311-A and/or § 1311-B.

c. The plan shall include, for the last three years of the five-year planning period, as complete a description of the Applicant’s anticipated buildout and network improvement plan and strategy as currently exists for corporate planning purposes.

4. Service Area Maps

For wireless Applicants:

a. a map of the State of Maine in .shp format, showing existing and planned locations of cell sites and shading to indicate where the carrier provides and plans to provide commercial mobile radio service signals, and with an indication of signal strength of each such cell site shown through shading or as a depiction of coverage at -95 dB and -85 dB in the manner specified in Chapter 101 of the ConnectME Authority’s rules. If the Applicant seeks confidential protection from public release for any portion of the map submitted pursuant to this subsection, the Applicant shall clearly mark such information as confidential on all paper and electronic copies and shall file a petition seeking such protection. A petition for confidential protection shall include a redacted copy of the filing for which protection is sought and any additional information and legal argument demonstrating that the information should be treated as confidential pursuant to the standards of 35-A M.R.S. §1311-A or §1311-B. Upon a finding that the information is confidential, the Commission shall issue a protective order pursuant to the terms of § 1311-A and/or § 1311-B; and

b. a map or maps created pursuant to standards incorporated into the Cellular Telecommunications and Internet Association’s (CTIA) Consumer Code for Wireless Service, showing the coverage in Maine provided to the Applicant’s customers by the Applicant’s own system and, to the extent practicable, the coverage provided to the Applicant’s customers by its roaming partners. The Applicant shall use reasonable efforts to obtain from its roaming partners the information required for this subsection.

For Satellite Applicants:

c. a map of the State of Maine in .shp format, showing the extent of the geographic area where planned service will be available. If the Applicant seeks confidential protection from public release for any portion of the map submitted pursuant to this subsection, the Applicant shall clearly mark such information as confidential on all paper and electronic copies and shall file a petition seeking such protection. A petition for confidential protection shall include a redacted copy of the filing for which protection is sought and any additional information and legal argument demonstrating that the information should be treated as confidential pursuant to the standards of 35-A M.R.S. § 1311-A or § 1311-B. Upon a finding that the information is confidential, the Commission shall issue a protective order pursuant to the terms of § 1311-A and/or § 1311-B;

5. Emergencies

Information that demonstrates its ability to remain functional in an emergency including a demonstration that it has a reasonable amount of back-up power to ensure functionality without an external power source, is able to reroute traffic around damaged facilities, and is capable of managing traffic spikes resulting from emergency situations. This information shall include a demonstration that the Applicant is able to comply with all specific back-up requirements that have been adopted by the FCC and the Commission at the time of the Applicant’s submittal and a commitment to comply with such back-up requirements as the FCC or the Commission may adopt from time to time.

6. Consumer Protection

a. For an Applicant that is not a wireless carrier, a certification that it will comply with the consumer standards set forth as applicable for ILECs in Chapter 290 of the Commission’s rules.

b. For an Applicant that is a wireless carrier, a certification that it will comply with the Cellular Telecommunications and Internet Association’s (CTIA) Consumer Code for Wireless Service.

7. Local Usage Plan

For an Applicant that is a wireless carrier, information demonstrating that it offers a local usage plan that is comparable to the one offered by the ILEC in the service areas for which designation as an ETC is sought.

a. Burden of Proof. The burden of establishing that the qualifying local usage plan is comparable to the one offered by the ILEC rests with the Applicant, and the Applicant must submit competent evidence of such comparability with its application for designation as an ETC.

b. Safe Harbor. Notwithstanding subsection (1), above, an Applicant that is a wireless carrier shall be relieved of its obligation to demonstrate that it offers and advertises a qualifying local usage plan that is comparable to the one offered by the ILEC if it certifies that it offers and advertises a plan providing an unlimited number of minutes of calling in the carrier’s calling area at a monthly cost of not more than $35.00. The safe harbor plan must allow customers to terminate their service at any time with no penalty or, if a termination fee is included, must provide the customer with a handset for a fee that does not exceed $35.

8. Equal Access

A statement that the Applicant acknowledges that it may be required to provide equal access to long distance carriers in the event that no other ETC is providing equal access within the service area.

9. Additional Information

The Commission may require an Applicant to provide additional information to show that it meets the requirements of this Chapter.

B. Annual Certification

1. Annual Filing

Each high-cost ETC seeking continued certification for the use of federal high cost universal service fund support pursuant to 47 C.F.R. §§ 54.307, 54.313, or 54.314 must request continued certification by July 31 and must certify that it will use federal high cost universal service funds only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. Each high-cost ETC seeking continued certification must also file by July 31 the annual report and certifications required pursuant to Section 3 of this Chapter.

2. Commission Consideration

The Commission will approve continued certification of a high-cost ETC if the high-cost ETC meets the requirements of this Chapter and has, to the greatest extent possible, carried out its investment plan filed pursuant to Sections 3(A)(3) and 3(C)(8) of this Chapter. The Commission may also consider whether continued designation as an ETC will advance some or all of the purposes of universal service found in 47 U.S.C. § 254, and the designation is in the public interest.

3. Commission Consideration of ETCs that are ILECs

The Commission shall determine whether each ILEC uses federal Universal Service Funds in a manner consistent with the requirements of 47 U.S.C. § 214(e). Upon making such a determination, the Commission shall approve continued certification of the ILEC as an ETC. The Commission may require an ILEC to provide additional information to show that it meets the federal requirements.

4. Relinquishment of ETC Designation

A high-cost ETC seeking to relinquish its designation as an ETC for an area served by more than one ETC must file a petition with the Commission not less than 9 months prior to the date of the proposed relinquishment.

C. Annual Reports

Not later than July 31 of each year, each high-cost ETC that is not an ILEC must certify and/or report as described in this section. The certifications and reports are for activity related to the State of Maine in the period January 1 through December 31 of the previous year. A company officer must sign and submit the certifications and reports.

1. Report on Use of Federal Funds and Benefits to Customers

A high-cost ETC must provide a description of investments made and expenses paid with support from the federal high-cost fund.

2. Report on Failure to Provide Service

A high-cost ETC must report the number of requests for service from applicants within its designated service areas that were unfulfilled for the reporting period. The high-cost ETC must also describe in detail why the requests could not be fulfilled and how it attempted to provide service to those applicants.

3. Report on Complaints

A high-cost ETC must report the number of complaints made to the FCC and to the Commission’s Consumer Assistance and Safety Division. The report must also generally describe the nature of the complaints and outcome of the carrier's efforts to resolve the complaints. For the purposes of this subsection, a complaint to the Commission means a contact that is designated as a complaint by the Commission’s Consumer Assistance and Safety Division.

4. Certification of Compliance With Applicable Consumer Standards

A high-cost ETC must certify that it met the requirements of Section 3(A)(6) of this Chapter.

5. Certification of Ability to Function in Emergency Situations

A high-cost ETC must certify that it had the ability to function in emergency situations based on continued adherence to the standards found in Section 3(A)(5) of this Chapter.

6. Report and Certification of Qualifying Wireless or Satellite Plan

A high-cost ETC that is a wireless or satellite carrier is required to report the total number of subscribers to its qualifying local usage plan(s) offered pursuant to the requirements of Section 3(A)(7) of this Chapter, describe all advertisements for that plan, and certify that, in light of current market conditions, the qualifying local usage plan remains comparable to the one offered by the ILEC in the service areas in the ETC’s designated service area.

7. Annual Plan for Universal Service Support Expenditures

Every high-cost ETC that receives federal support from any category in the federal high-cost fund must report to the Commission the planned investment and expenses related to the State of Maine that the high-cost ETC expects to use as the basis to request federal support from any category in the federal high-cost fund.

8. Updated Five-Year Plan

The annual report required by this section must include an updated five-year plan containing all information required pursuant to Section 3(A)(3) of this Chapter.

9. Updated Buildout and Coverage Maps

The annual report required by this section must, in the case of a wireless or satellite carrier, include an update of the maps required pursuant to Section 3(A)(4) of this Chapter.

10. Additional Information

The Commission may require a high-cost ETC to provide additional information to show that it meets the requirements of this Chapter.

§ 4 LIFELINE-ONLY ETCs

A. Lifeline Defined

1. As used in this Chapter, Lifeline means a non-transferable retail service offering provided directly to qualifying low-income consumers:

a. For which qualifying low-income consumers pay reduced charges as a result of application of the Lifeline support amount described in 47 C.F.R. § 54.403; and

b. That provides qualifying low-income consumers with voice telephony service or broadband Internet access service as defined in 47 C.F.R. § 54.400. Toll limitation service does not need to be offered for any Lifeline service that does not distinguish between toll and non-toll calls in the pricing of the service. If an ETC charges Lifeline subscribers a fee for toll calls that is in addition to the per month or per billing cycle price of the subscribers' Lifeline service, the carrier must offer toll limitation service at no charge to its subscribers as part of its Lifeline service offering.

2. Lifeline-Only ETCs may allow qualifying low-income consumers to apply Lifeline discounts to any residential service plan with the minimum service levels set forth in this Chapter that includes fixed or mobile voice telephony service, broadband Internet access service, or a bundle of broadband Internet access service and fixed or mobile voice telephony service; and plans that include optional calling features such as, but not limited to, caller identification, call waiting, voicemail, and three- way calling.

a. Lifeline-Only ETCs may permit qualifying low-income consumers to apply their Lifeline discount to family shared data plans.

b. Lifeline-Only ETCs must meet the minimum service standards as set forth in 47 C.F.R. § 54.408 as may from time to time be amended.

3. Lifeline-Only ETCs may not collect a service deposit in order to initiate service.

B. Petitions

Petitions for certification as a Lifeline-Only ETC must include the following, as applicable:

1. Evidence that the Applicant is authorized to conduct business in the State of Maine.

2. A sworn affirmation that the Applicant will provide voice and/or broadband services that meet the service standards set forth in Section 4(A)(2)(b) of this Chapter

3. For facilities-based Applicants, a sworn affirmation that the Applicant will offer services supported by federal universal service support mechanisms using its own facilities.

4. Evidence of, and a sworn affirmation that, the Applicant is capable of complying with the E911 access set forth in 47 C.F.R. § 54.101(a).

5. For reseller Applicants, an attested to copy of the Applicant’s approved FCC Lifeline compliance plan.

6. Evidence of, and a sworn affirmation that, the Applicant is financially and technically capable of providing the supported Lifeline service.

7. A copy of the Applicant’s Lifeline service offering for every state in which the Provider provides Lifeline service.

8. A copy of the Applicant’s proposed marketing materials in a form that complies with 47 C.F.R § 54.405.

9. A copy of all marketing materials currently in use by the Applicant for a Lifeline-Only or similar product in any other jurisdiction in the United States or Canada.

10. A sworn certification that the Applicant will comply with FCC enrollment rules, including the use of National Verifier, and that the applicant utilizes National Verifier enrollment forms.

11. A sworn certification that the Applicant will comply with FCC recertification rules, including cooperation with National Verifier.

12. A list of all regulatory enforcement or criminal actions in the United States or Canada to which the Applicant has been a party within the last 10 years that has resulted in a final order, judgment, or settlement. The list must list the applicable jurisdiction and include all applicable proceeding or docket numbers or identifiers.

13. A copy of any final federal (United States or Canada), state, or provincial regulatory or criminal order, settlement, or judgment adverse to the Applicant within the past 10 years.

C. Reporting

1. Each Lifeline-Only ETC must, prior to commencing service, inform the Commission of the date upon which the ETC will commence providing service as an ETC by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation.

2. Each Lifeline-Only ETC must, within 60 calendar days of designation or 60 calendar days prior to offering Lifeline service, whichever occurs sooner, submit to the Commission by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation:

copies of all advertising and marketing materials that the Lifeline-Only will use in Maine, including but not limited to print, audio, video, Internet (including e-mail, web, and social networking media), and outdoor signage;

the Lifeline-Only ETC’s policy regarding the privacy of customer information in accordance with applicable federal and state laws;

the rates, terms, and conditions of its Lifeline service offering(s) in Maine; and

d. contact information for the Lifeline-Only ETC’s customer service designee.

3. Annually, by March 1 of each year, each Lifeline-Only ETC must submit to the Commission, in machine-readable format, the following from the previous calendar year by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation:

the number of subscribers enrolled by the Lifeline-Only ETC in Maine, by month, for the Lifeline Program based on the status of subscribers as of the first day of the following month;

the number of subscribers de-enrolled in Maine by the Lifeline-Only ETC, by month, for the Lifeline Program based on the status of subscribers as of the first day of the following month; and

c. a report of the number of complaints received by the Lifeline-Only ETC from Maine subscribers, by category, related to the Lifeline program per 1,000 Lifeline subscribers in Maine. Such categories must include: (i) equipment, (ii) eligibility, (iii) network issues, (iv) complaints not resolved within 45 calendar days, and (iv) other.

4. Each Lifeline-Only ETC must notify the Commission of the following events within 90 calendar days (or within such other time as otherwise provided in this subsection) of the event’s occurrence by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation:

the Lifeline-Only ETC’s ETC designation or the ETC designation of any of the Lifeline-Only ETC’s affiliates has been suspended, revoked, or in any way involuntarily withdrawn or removed in any jurisdiction or as the result of an enforcement action or related settlement;

the Lifeline-Only ETC’s petition for ETC designation, or that of one of its affiliates, has been denied in any jurisdiction, with notification to the Commission within 30 calendar days of the denial;

the commencement of any criminal investigation of the Lifeline-Only ETC or its executive(s) by the FCC, any state utility commission, or any state or federal government agency, or law enforcement agency, and the final resolution of any investigation opened by the FCC, any state utility commission, or any state or federal government agency, or law enforcement agency, into the Lifeline-Only ETC or its executive(s), or any civil court proceeding into the Lifeline-Only ETC, if the investigation results in a settlement, findings of wrongdoing, an injunction, consent decree, money judgment, criminal conviction, or plea agreement;

any change(s) to the Lifeline-Only ETC’s underlying carrier, where applicable; and

e. any change(s) to the Lifeline-Only ETC’s Lifeline compliance plan filed with the FCC.

5. A Lifeline-Only ETC that applies to the FCC for transfer of control regarding its corporate ownership structure, shall notify the Commission within 5 business days of application by making a filing in the Docket in which the Lifeline-Only applied for Lifeline-Only ETC designation. The Lifeline-Only ETC must maintain its ETC status in Maine under its prior designation, unless otherwise ordered by the Commission.

6. Each Lifeline-Only ETC must notify its Lifeline subscribers and the Commission of any material change to the terms or conditions of the Lifeline-Only ETC’s Lifeline service in Maine at least 10 calendar days prior to the implementation of the change, with notification to the Commission to be made by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation.

7. Each Lifeline-Only ETC must notify its Lifeline subscribers and the Commission of any rate change to the Lifeline-Only ETC’s Lifeline service in Maine at least 30 calendar days prior to the implementation of the change, with notification to the Commission to be made by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation.

8. Each Lifeline-Only ETC that enters into an insolvency, receivership, or bankruptcy proceeding must notify the Commission within 3 business days of entering into such proceeding by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation; however, each Lifeline-Only ETC anticipating entering into such proceeding is, as feasible, requested to provide advance notice to the Commission by making a filing in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation.

D. Relinquishment of Lifeline-Only ETC Designation

A Lifeline-Only ETC seeking to voluntarily relinquish its designation as an ETC for an area served by more than one ETC must file a petition with the Commission in the Docket in which the Lifeline-Only ETC applied for Lifeline-Only ETC designation not less than 60 days prior to the date of the proposed relinquishment. The Lifeline-Only ETC petitioning the Commission for relinquishment must also notify its customers of the pending relinquishment no later than five business days following the filing of its petition.

§ 5 COMMISSION APPROVAL OF PETITIONS

A The Commission may approve an application for designation as an ETC if the petition meets the requirements of this Chapter, the designation will advance some or all of the purposes of universal service found in 47 U.S.C. § 254, and the designation is in the public interest.

B. In determining whether the designation is in the public interest, the Commission may:

1. consider the benefits of increased consumer choice, and the unique advantages and disadvantages of the Applicant's service offering, and

2. in instances where an Applicant seeks designation below the study area level of a rural telephone company, the Commission may conduct an analysis to determine whether the Applicant is seeking to use federal universal service fund support to expand service in a manner that favors its low-cost areas. The Commission will conduct this analysis by comparing the population density of each wire center in which the Applicant seeks designation against that of the wire centers in the study area in which the Applicant does not seek designation.

C. The Commission may also consider other factors that it considers necessary or useful.

§ 6 WAIVER

Upon the request of any person subject to this Rule or upon its own motion, the Commission, the Administrative Director, the Director of Telephone and Water Utility Industries, or a Presiding Officer assigned to a proceeding related to this Chapter may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35‑A.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Commission Docket No. 2026-00020, issued on July 30, 2026. Copies of this Order and Statement have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, and 7104.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on November 28, 2007. It was filed with the Secretary of State on November 29, 2007 (filing 2007-505) and became effective on December 4, 2007.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 24, 2013. It was filed with the Secretary of State on June 26, 2013 (filing 2013-151) and became effective on July 1, 2013.
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on August 5, 2026. It was filed with the Secretary of State on August 6, 2026 (filing 2026-182) and became effective on August 11, 2026.

Chapter 210 Uniform System of Accounts for Telephone Utilities

Code Me. R. 65-407 Ch. 210 Uniform System of Accounts-Telephone Utilities {#sec-65-407-ch.-210 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 210}

SUMMARY: This rule establishes a uniform system of accounting for all telephone utilities.

1. Accounting Systems

A. Except as provided in B, C and D, below, and in sections 4, 5 and 6, every telephone utility as defined in 35-A M.R.S.A. § 102 shall maintain its books of account according to the manner and form prescribed by the Federal Communications Commission (FCC) Part 32 Uniform System of Accounts for Telecommunications Companies (USOA) 47 C.F.R. 32, adopted May 1, 1986; provided that each telephone utility shall adhere to the system of accounts specified for Class A companies as modified by the accounting conventions and procedures contained in Section 8 of this Rule; and each telephone utility shall comply with all of the other applicable requirements of section 8, unless waived pursuant to section 6.

B. Any telephone utility which has total intrastate revenues under $10 million dollars may, at its option, maintain its books of accounts according to the FCC Part 32 USOA for Class B companies; provided that each such utility shall maintain its Telecommunications Plant In Service detail accounts and corresponding accumulated depreciation subsidiary records according to the Class A system.

C. Every Radio Common Carrier, As defined in Chapter 24 of the Commission's Rules and Regulations, shall maintain its books of account in the manner prescribed in the Uniform System of Accounts for Radio Common Carriers, July 1987, as promulgated by the National Association of Regulatory Utility Commissioner.

D. Every Cellular Service provider, as defined in Chapter 24 of the Commission's Rules and Regulations, shall maintain its books of account in the manner prescribed in the Uniform System of Accounts for prescribed in the Uniform System of Accounts for Cellular Communications Licensees, July 1985, as promulgated by the National Association of Regulatory Utility Commissioners. All cellular providers who have implemented the 1987 RCC USOA prior to the effective date of this revision may continue to use the July 1987 RCC USOA as promulgated by NARUC.

E. Every telephone utility which uses a cost of service methodology for either interstate or intrastate toll revenue settlements must use the accounting system prescribed in paragraphs A and B effective January 1, 1988.

Any telephone utility which does not use a cost of service methodology for either interstate or intrastate toll revenue settlements must use the accounting system prescribed in paragraphs A and B on or before January 1, 1990.

2. Accounts closed

All accounts shall be closed annually on the 31st day of December unless otherwise specifically authorized by the Commission.

3. Reporting

A. Filing of Annual Report.

Within 90 days of the closing of the annual accounts, each telephone utility shall file a report verified by an officer or owner of the utility, containing such information as the Commission may prescribe, provided, however, that to the extent such information includes investments in or income or loss from unregulated activities, such information relating to unregulated activities shall be contained in a separate report which shall satisfy all of the other requirements of this rule.

B. Filing of Audit Report.

All accounts shall be audited in accordance with Chapter 710 of the Rules of the Maine Public Utilities Commission (65-407 C.M.R. 710). A copy of the auditor's report, accompanied by the audited financial statements, shall be filed with the Commission not later than the first day of the fourth month following the 12-month period for which the audit was conducted, except that audit reports based on a fiscal year ending December 31 must be filed by the following July 1. The utility shall file with the audited financial statements a cover sheet describing any discrepancies between the audited financial statements and the annual report or reports filed by the utility under section 3(A).

4. Exemption for Utilities Operating a Radio Paging Service

Any public utility which operates a radio paging service shall maintain a separate set of books of accounts or establish a separate subsidiary for its paging operations, unless exempted by the Commission pursuant to 35-A M.R.S.A. § 8501 for good cause shown. If a separate set of books is used, the requirements contained in Part 32 shall apply.

5. COCOT Exemption

Any public utility which is a utility, as defined in 35-A M.R.S.A. § 102(13), only because of its operation of a Customer Owned Coin Operated Telephone (COCOT) as defined in Chapter 25(1)(A) of the Commission's Rules (650407 C.M.R. Ch. 25) shall be exempt from the accounting requirements of this Rule as set forth in section 1.A.

6. Waivers

For good cause shown, the Commission may waive any of the requirements of this Rule, provided such waiver does not unduly undermine the purposes of this Rule and is permitted by statute. The Commission may also subsequently rescind, alter, or amend any such waiver for good cause. The Commission delegates to the Director of Finance the authority to issue, rescind, alter, or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Director of Finance or to issue, rescind, alter, or amend a waiver directly.

7. Confidential Information

A. Any other provision of this Chapter notwithstanding, any separate report containing information on unregulated activities which is filed as a separate report pursuant to the provision clause in Section 3(A) shall be considered and treated by the Commission and by all other persons to whom access thereto may be accorded pursuant to the terms of this section as confidential ("Confidential Information").

B. The Commission shall physically segregate all such Confidential Information in its possession and shall keep the same in separate located facilities.

C. Access to Confidential Information shall be limited to the Commission's members, employees and agents (including, without limitation, its consultants, experts and counsel). No other person shall be granted access except by order of the Commission or by a Hearing Examiner in a proceeding before the Commission.

D. Only such copies of Confidential Information as are necessary to the efficient functioning of the Commission shall be made and all such copies shall themselves be deemed and treated as Confidential Information.

E. In the event that the Commission receives a request from any person other than those specified in Paragraph C under the Freedom of Access Law (1 M.R.S.A. §§ 401 et seq.) or otherwise to inspect or copy such Confidential Information, it shall promptly notify the affected telephone utility of the request. It shall also provide prompt notification to the affected utility of any judicial action filed against the Commission for disclosure.

F. In deciding whether to issue an order permitting access to Confidential Information, the Commission or Hearing Examiner shall take into account the utility's need for confidentiality and the person's need for the information. If access is granted, appropriate provisions shall be made for the protection of confidential information from unwarranted public disclosure.

G. A notice in the following form shall be posted at the locked facilities in which confidential information is located:

NOTICE

The information in this file is designated confidential by Chapter 210 of the Rules of the Maine Public Utilities Commission. Disclosure of any such Confidential Information to any person other than Commission members, employees, or agents is prohibited, unless permitted by order of the Commission or a Hearing Examiner.

8. Part 32 Implementation Requirements

This Section establishes the accounting and implementation requirements.

A. Initial Notice of Intent -

No later than 4 months after the effective date of this rule, all telephone utilities shall file an Initial Notice of Intent (Initial Notice) with the Commission concerning the implementation of the Part 32 USOA. the change in USOA shall automatically take effect according to the information contained in the Initial notice. The Initial Notice shall contain a statement concerning the following information and practices:

(1) The effective date of implementation of Part 32 for intrastate purposes (see section 1.E.) and the class of company (see sections 1.A. and 1.B.).

(2) The accounting methods adhered to when GAAP or Part 32 requires or allows and option. Where GAAP permits more than one accounting method, the telephone utility shall include a statement as to which method it shall adhere to. For intrastate purposes, a telephone utility must petition for any change from the methods set forth in the Initial Notice.

(3) A representation of the utility's continued adherence to prior Commission ratemaking policies, including a statement that no accounting and ratemaking requirements instituted by the Commission, of which the utility is aware, will be negated by the adoption of Part 32 and that separate accounts shall be established to account for any difference. A list of those policies which would otherwise be overridden by the adoption of Part 32 and the account number in which jurisdictional differences shall be recorded. A statement listing the amount of any embedded liability which results from adopting Part 32.

(4) A description of the procedures for recording affiliate transactions, and transactions between the utility and its affiliated interests, as defined by 35-A M.R.S.A. § 707.

(5) An estimate of the costs associated with implementing Part 32.

Future changes to any of the provisions set out in the Initial Notice require prior written notice to and approval by the Commission or the Director of Finance.

B. Adoption of GAAP -

Any utility desiring to implement an accounting change to reflect a GAAP pronouncement for intrastate purposes shall notify the Director of Finance 90 days prior to the proposed date of implementation or the filing of its annual report, whichever is sooner. Such notice shall contain an estimate of the effect on revenue requirements. If the Director of Finance does not respond within 81 days of the filing of the Notice, the utility may implement the change until subsequently required to do otherwise by rule or order.

C. Retention of Records

Books and records shall be retained on an intrastate basis for as long as they may be material in establishing the utility's revenue requirement. The utility shall adopt a reasonable retention policy, which shall be at least 7 years. Property records shall be available for at least three (3) years after the physical retirement of the property.

D. Auditor's Attestation Function -

With the utility's first auditor's report, in accordance with Chapter 710, following adoption of Part 32, each Company's Independent Auditor shall attest to the accuracy of the opening journal entries, and that prior balances have been transferred in conformity with Part 32 requirements.

E. Comparative Reporting -

1. No later than 4 months after the effective date of this rule, each telephone utility following the Class A USOA shall provide a report to the Commission which restates 1987 financial data according to the new Part 32 USOA, using best estimates, if necessary. Each utility following the Class A system of accounts shall include with its annual report for fiscal years 1988 and 9189 its balance sheet and income statement for those years based on its previous chart of accounts. Only items of a material nature need be considered, and each utility may use its best estimate or use a special study to complete the required comparison.

2. Each utility adhering to the Class B system of accounts shall provide the above-specified comparative financial information for the first fiscal year in which it adopts the new Part 32 Class B USOA and for the fiscal year immediately preceding the year of adoption. as in Section E.1, best estimates may be utilized.

F. Accounting methods and practices required in place of certain provisions of Part 32.

The following accounting methods and practices are required for intrastate accounting and the necessary jurisdictional accounts shall be established in order to properly account for such differences:

1. The flow-through method of treatment of tax timing differences shall be used unless specifically prohibited by provisions of the Internal Revenue Code.

2. Class A utilities may charge the costs of short-term projects estimated to cost less than $100,000, or such lesser amount as a utility may select, directly to plant accounts. class B utilities may charge the costs of short-term projects estimated to cost less than $25,000, or such lesser amount as a utility may select, directly to plant accounts. Interest during construction shall be accrued on all amounts of telephone plant under construction, both short-term and long-term.

3. Pension cost shall be accounted for on a funded (cash) basis.

4. Post-retirement benefits shall be accounted for on a funded (cash) basis.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 501, 502, 504 and 505.
• EFFECTIVE DATE: This rule was approved by the Secretary of State on March 30, 1989 effective on April 4, 1989.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 220 Removal of Provider of Last Resort Service Obligation

Code Me. R. 65-407 Ch. 220 Removal of Provider of Last Resort Service Obligation {#sec-65-407-ch.-220 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 220}

SUMMARY: This Chapter governs the procedures for the removal of the obligation of a Price Cap ILEC to provide Provider of Last Resort (POLR) service in municipalities within the State.

§ 1 PURPOSE AND APPLICABILITY

A. Purpose 3

B. Applicability 3

§ 2 DEFINITIONS 3

§ 3 REMOVAL OF POLR SERVICE OBLIGATION IN

DESIGNATED MUNICIPALITIES 4

A. Procedure for Removal of POLR Service Obligation 4

B. Notice and Public Meeting 4

§ 4 REMOVAL OF POLR SERVICE OBLIGATION IN

NON-DESIGNATED MUNICIPALITIES 5

A. Required Findings 5

B. Filing Requirements 5

C. Notice of Intent 6

D. Notice of Public Hearing 6

E. Petition for Relief 7

F. Public Hearing 7

G. Objections to the Petition 7

H. Adjudicatory Proceeding 8

I. Timing of Commission Action 9

J. Confidentiality 9

§ 5 PROVISION OF SERVICE AFTER REMOVAL OF POLR SERVICE OBLIGATION 9

§ 6 DISCONTINUANCE, REDUCTION, OR IMPAIRMENT OF SERVICE 9

A. Commission Approval 9

B. Form of Request 9

C. Required Showing 9

D. Commission Process 10

E. Imposition of Terms, Conditions, or Other Requirements 10

F. Abandonment Without Approval 10

§ 7 WAIVER OR EXEMPTION 11

§ 1 PURPOSE AND APPLICABILITY

Purpose. The purpose of this Chapter is to establish the requirements that must be met and the procedures that must be followed before and after a Price Cap ILEC is relieved of the obligation to provide Provider of Last Resort service. This Chapter also establishes the findings the Commission must make to approve a request by a Price Cap ILEC to discontinue, reduce, or impair the service it provides in a municipality where it had previously served as the provider of Provider of Last Resort service.

Applicability. This Chapter applies to Price Cap ILECs who are providing Provider of Last Resort service in Maine as of the effective date of this Chapter.

§ 2 DEFINITIONS

Designated Municipality. "Designated Municipality" is any municipality scheduled for removal of Provider of Last Resort Service pursuant to 35-A M.R.S. section 7221(4)(A) and (B), i.e., Portland, Lewiston, Bangor, South Portland, Auburn, Biddeford, Sanford, Scarborough, Gorham, Waterville, Kennebunk, Cape Elizabeth, Old Orchard Beach, Yarmouth, Bath, Westbrook, Freeport, Brewer, Kittery, Windham, Brunswick, and Augusta.

Incumbent Local Exchange Carrier. "Incumbent Local Exchange Carrier" has the same meaning as in 47 U.S.C. section 251.

Price Cap ILEC. "Price Cap ILEC" means an incumbent local exchange carrier that agreed to accept Connect America Fund Phase II support pursuant to the Federal Communications Commission's Report and Order released on December 18, 2014, In the Matter of Connect America Fund, WC Docket No. 10-90, FCC 14-190, for locations within the State on or before January 1, 2016 and does not receive funding from a state universal service fund under 35-A M.R.S. section 7104.

Non-Designated Municipality. "Non-Designated Municipality" is any municipality not listed in Section 2(A) of this Chapter.

Provider of Last Resort Service. "Provider of Last Resort Service" or "POLR Service" has the same meaning as in 35-A M.R.S. section 7201(7).

Voice Network Service Provider. "Voice Network Service Provider" has the same meaning as in 35-A M.R.S. section 7104(3).

§ 3 REMOVAL OF POLR SERVICE OBLIGATION IN DESIGNATED MUNICIPALITIES

Procedure for Removal of POLR Service Obligation

1. Initial Legislative Removal of POLR Service Obligation. Effective August 29, 2016, the POLR service obligation in Portland, Lewiston, Bangor, South Portland, Auburn, Biddeford, and Sanford has been removed.
2. Subsequent Removal of POLR Service Obligation from Designated Municipalities. Every six months after July 29, 2016, the Commission shall examine the service quality reports for the preceding two consecutive calendar quarters filed by the Price Cap ILECs pursuant to 35-A M.R.S. section 7225-A. If the service quality requirements of section 7225-A have been met, section 7221 requires the Commission to issue a certificate to the relevant Price Cap ILEC removing the obligation to provide POLR service in a group of five municipalities, in the following order:

Group 1: Scarborough, Gorham, Waterville, Kennebunk, Cape Elizabeth.

Group 2: Old Orchard Beach, Yarmouth, Bath, Westbrook, Freeport.

Group 3: Brewer, Kittery, Windham, Brunswick, Augusta.

Notice and Public Meeting

1. Public Meeting. Prior to the removal of the obligation to provide POLR service in any municipality pursuant to Section 3 of this Chapter, the Commission will hold a public information meeting in the affected municipality to allow customers of the Price Cap ILEC to obtain information about the upcoming changes to their telephone service.
2. Notice. The Price Cap ILEC shall provide advance notice of the public meeting in its monthly billing statement to each of its customers in the municipality where relief from the POLR service obligation is about to occur.

The notice shall: a) inform the customers that for one year after the removal of the provider of last resort obligation, any customer receiving provider of last resort service on that date will continue to be provided with telephone service at the same rates, terms and conditions as the Price Cap ILEC provides to its remaining provider of last resort service customers; and b) include the date, time and location of the public information meeting that will be held by the Commission in the municipality.

1. Publication. The Price Cap ILEC shall arrange for notice of the meeting to be published in print and/or electronic media that is generally available to residents in the municipality where the public information meeting is scheduled. The print and/or electronic media publication must occur at least two weeks prior to the date set for the public meeting.

§ 4 REMOVAL OF POLR SERVICE OBLIGATIONS IN NON-DESIGNATED MUNICIPALITIES

Six months after a Price Cap ILEC has been relieved of the obligation to provide POLR service in all Designated Municipalities, a Price Cap ILEC may petition the Commission to be relieved of its POLR service obligation in Non-Designated Municipalities, pursuant to the provisions of this Section.

Required Findings. The Commission will approve a petition filed under this section if it finds the following:

1. That sufficient competition exists within a municipality to ensure access to affordable telephone service by households in the municipality, pursuant to the following standards: 1. That 95% of the households within the municipality are able to obtain service from at least one wireline facilities-based voice network service provider other than a Price Cap ILEC; and 2. There are one or more mobile telecommunications services providers that offer, on a combined basis, mobile telecommunications service to at least 97% of the households in the municipality; and
2. That, prior to filing the petition, the relevant Price Cap ILEC has met the service quality requirements established in Chapter 201 of the Commission's Rules in the immediately preceding two consecutive calendar quarters.

Filing Requirements. A Price Cap ILEC that petitions the Commission to be relieved of its obligation to provide POLR service pursuant to Subsection 4(A) of this Chapter must file with its petition sufficient information and empirical evidence that will allow the Commission to make the findings required by Subsections 4(A)(1)(a) and (b). The Price Cap ILEC must demonstrate that the required percentages of households in the municipality for which relief is sought are, in fact, able to receive a satisfactory level of voice telephone service from wireline and wireless providers, pursuant to Section 4(A)(1). In support of its petition, a Price Cap ILEC must include in its filing relevant information from any one of the following sources:

1. Publicly available information from the Federal Communications Commission (FCC);
2. Non-public information from the FCC, with a request for appropriate confidential treatment of such information;
3. Information from other federal, state or local governmental agencies, with a request for confidential treatment if necessary or appropriate;
4. Information from non-governmental entities or sources, with a request for confidential treatment if necessary or appropriate;
5. Information generated by or under the control of the petitioner Price Cap ILEC specifically to support its petition; or
6. Any other information that the Price Cap ILEC believes is relevant to the consideration of its petition and that would assist the Commission in making the findings required pursuant to subsection A(1) of this section.

Notice of Intent. A Price Cap ILEC shall notify the Commission and the Office of the Public Advocate of the Price Cap ILEC's intent to file a petition for relief from a POLR service obligation within a non-designated municipality at least ninety days prior to the filing of such a petition. Upon receipt of the Notice of Intent, the Commission shall open a docket relating to the affected municipality.

In its Notice of Intent, the Price Cap ILEC must inform the Commission of the date that it intends to file the petition for relief. The Price Cap ILEC must file with its Notice of Intent a description of the information and empirical evidence, including the source of the information, that it purports will show the required percentages of households in the municipality for which relief is sought are, in fact, able to receive a level of voice telephone service from wireline and wireless providers in accordance with 35-A M.R.S. section 7221(5) and Section 4(A)(1) of this Chapter. If the Price Cap ILEC intends to use information relating to a competitor as support for the Price Cap ILEC's petition, the Price Cap ILEC must also provide the relevant competitor or competitors with a copy of the Notice of Intent.

Notice of Public Hearing. Concurrent with its Notice of Intent, the Price Cap ILEC will request the Commission to issue a Notice of Public Hearing containing the following information:

1. The date, time and location of the public hearing in the municipality, pursuant to 35-A M.R.S. section 1221(5), which must be held within two weeks of the date of the projected filing of the petition for relief;
2. The Commission Docket number;
3. The process for objecting to the petition for relief, including a deadline for filing a written objection; and
4. Information from the Price Cap ILEC contained in its Notice of Intent that it purports will support its petition for relief.

The Commission will issue the Notice of Public Hearing within 30 days of the filing of the Notice of Intent. The Price Cap ILEC shall include a copy of the Notice of Hearing in its monthly billing statement to each of its customers in the municipality in which it will be seeking relief from its obligation to provide POLR service. The Notice of Hearing must be on a separate insert and may not appear as a line item on the monthly bill.

Petition for Relief. The Price Cap ILEC must file its Petition for Relief on the date stated in its Notice of Intent. If the Price Cap ILEC has changed its intent and no longer seeks to file a petition for relief, it must notify the Commission, the Office of the Public Advocate, and its customers in the affected municipality that it will not be proceeding with the petition and that the hearing will be canceled. The Price Cap ILEC may file a new Notice of Intent with respect to the municipality without prejudice and in accordance with 35-A M.R.S. section 7221(5) and this Chapter.

Public Hearing. Within two weeks of the filing of a petition by a Price Cap ILEC under this Section and in accordance with the date set forth on the Notice of Hearing issued in accordance with subsection 4(D) above, the Commission shall conduct a public hearing in each municipality for which the Price Cap ILEC has requested relief from its obligation to provide POLR service. At the public hearing, the Price Cap ILEC will present the information and empirical evidence that it included in its Notice of Intent that it purports will support its petition for relief.

In addition to the Notice of Hearing previously provided to each of its customers as set forth in subsection 4(D), the Price Cap ILEC shall publish notice of the public hearing in a newspaper of general circulation in the municipality. Notice of the public hearing shall also be sent to the city hall or town office of the municipality and shall be posted on the Price Cap ILEC's website and the Commission's website.

Objections to the Petition. Residents of the affected municipality will have the opportunity to object to the petition for relief by showing that the Price Cap ILEC has not met the standard for relief from POLR service obligations set forth in section 7221(5)(A) and subsection 4(A) of this Chapter such that they are not able to receive a satisfactory level of voice telephone service from wireline and wireless providers. Residents may file objections with the Commission as follows:

1. A resident of the municipality who objects to the Price Cap ILEC’s petition for relief from POLR service obligations may attend the public hearing and provide sworn testimony stating their objection. The resident’s name, address, and testimony will be recorded so as to serve as an objection and a request for investigation and adjudicatory proceeding.
2. A resident of the municipality who objects to the Price Cap ILEC’s petition for relief from POLR service obligations who does not attend the public hearing may file an objection with the Commission by placing a written comment in the relevant Commission docket, so long as the comment states the resident’s name, address, and basis for the objection. Any such objection filed with the Commission shall be treated as a request for investigation and adjudicatory proceeding.
3. Residents of the municipality may collectively file objections to the Price Cap ILEC’s petition for relief from POLR service obligations so long as the filing states the names and addresses for each of the residents and the basis for their objections. Such filings will be treated as a request for investigation and adjudicatory proceeding.
4. Objections must be filed with the Commission within fourteen days from the date of the public hearing to be treated as a request for investigation and adjudicatory proceeding.

Adjudicatory Proceeding. If the Commission receives objections in an amount that is equal to one percent of the households of the municipality, the Commission shall initiate an adjudicatory proceeding. The Commission also may initiate an adjudicatory proceeding if it becomes aware of information that would rebut the information and empirical evidence filed by the Price Cap ILEC in support of its petition for relief either on its own initiative or through the request of an interested party, such as the affected municipality or the Office of the Public Advocate.

The purpose of the adjudicatory proceeding will be to allow the Price Cap ILEC to produce evidence to show that it has met the statutory standard to be granted relief from its POLR service obligations, and allow any opposing parties, including residents in the affected municipality and the Office of the Public Advocate, to dispute the evidence and show that the Price Cap ILEC has not met the standards and must be denied relief.

The Price Cap ILEC has the burden of proof to demonstrate that the standards contained in Section 4(A)(1) are met. In cases in which an adjudicatory proceeding has been opened, the Commission will conduct, or will require the relevant Price Cap ILEC to conduct, surveys or field checks, by any appropriate means, to verify that satisfactory competitive service is provided by wireline and/or wireless providers.

Timing of Commission Action. The Commission shall issue an order granting or denying a petition filed under this section within 180 days of receiving the petition, except that the Commission may extend this period by an additional thirty days if the Commission determines that such extension is warranted. In the event the Commission fails to act within 210 days of receiving a petition, the petition will be deemed granted.

To ensure the orderly and timely processing of petitions, the Commission may decline to accept petitions for more than one municipality if they are filed simultaneously or within a compressed time period. In the event the Commission declines to accept a petition for filing, it will issue an order directing the Price Cap ILEC to resubmit the petition at a later date. To control its caseload, the Commission reserves the right to set a schedule for the filing of petitions.

Confidentiality. Pursuant to 35-A M.R.S. section 7221(5)(B), competitive information about the extent of service provided by wireline-facilities-based voice network service providers and mobile telecommunications services providers used to make this determination is confidential and is not a public record under 1 M.R.S. section 402(3), and may not be disclosed to any person outside the Commission.

§ 5 PROVISION OF SERVICE AFTER REMOVAL OF POLR SERVICE OBLIGATION

For one year from the date on which a Price Cap ILEC is relieved of the obligation to provide POLR service in any municipality, the Price Cap ILEC shall continue to offer to each customer who was receiving POLR service on the date the obligation ceased a telephone service with the same rates, terms and conditions as it provides to POLR service customers to whom it maintains its obligation to provide POLR service in other municipalities.

§ 6 DISCONTINUANCE, REDUCTION, OR IMPAIRMENT OF SERVICE

Commission Approval. A Price Cap ILEC may not discontinue, reduce or impair the service that it provides in any municipality, or part of a municipality, in which it has been relieved of its obligation to provide POLR service unless the Commission approves the discontinuance, reduction, or impairment.

Form of Request. In filing a request under this Section, a Price Cap ILEC must describe with specificity the service discontinuance, reduction, or impairment for which it is seeking authority.

Required Showing. A Price Cap ILEC must provide a showing that its request is not adverse to the public interest nor will it harm or impede the present or future public convenience and necessity. Among other things, a Price Cap ILEC must specifically demonstrate that the discontinuance, reduction, or impairment will not preclude any customer from having the ability to access emergency communications services.

Commission Process. Upon the filing of a request by a Price Cap ILEC to discontinue, reduce, or impair service, the Commission shall commence an adjudicatory proceeding to consider the request.

Imposition of Terms, Conditions, or Other Requirements. In granting approval under this section, the Commission may impose such terms, conditions, or other requirements as it finds, in its judgment, are necessary to protect the public interest and the public convenience and necessity. Pursuant to 35-A M.R.S. section 7221(6), a Price Cap ILEC that abandons any or all of its plant, property, or system, or that discontinues, reduces, or impairs its service pursuant to authority granted by the Commission under this Chapter, is deemed to have waived its right to object to the terms, conditions, or requirements imposed by the Commission in granting its approval. A Price Cap ILEC need not seek further approval under 35-A M.R.S. section 1104 for any discontinuance approved under this Chapter.

Abandonment Without Approval. A discontinuance, reduction, or impairment of service by a Price Cap ILEC constitutes an abandonment of service for the purposes of this Chapter. Upon a request from the Office of the Public Advocate or through a ten-person complaint filed by customers pursuant to 35-A M.R.S. section 1302(1) within any municipality in which a Price Cap ILEC formerly served as the POLR service provider, or upon its own motion, the Commission may commence an investigation into whether a Price Cap ILEC has undertaken an abandonment of service without approval by the Commission. If the request is made through a ten-person complaint, the Price Cap ILEC shall have twenty days from the filing of the request to file a response in the form of a desire to satisfy the complaint as set forth in section 12(a)(2) of Chapter 110 of the Commission’s Rules of Practice and Procedure. The Commission may accept or reject the Price Cap ILEC’s offer of satisfaction within ninety days of the filing of the ten-person complaint. If the Commission does not accept the Price Cap ILEC’s offer of satisfaction, it may conduct an investigation in accordance with Chapter 110 of the Commission's Rules.

Upon a finding after investigation that a Price Cap ILEC has abandoned service without approval of the Commission, the Commission may order the Price Cap ILEC to take appropriate action to correct the abandonment and restore service to its pre-abandonment level. The Commission may also order rebates or credits as compensation to customers. If the Price Cap ILEC fails to comply with a Commission Order to correct an abandonment of service, the Commission may order penalties pursuant to 35-A M.R.S. section 1508.

§ 7 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utilities, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 101, 111, 7221
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 2, 2017. It was filed with the Secretary of State on June 6, 2017 and became effective on July 6, 2017 (filing 2017-085).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 230 Installation, Maintenance and Ownership of Customer Premises Wire

Code Me. R. 65-407 Ch. 230 Installation, Maintenance and Ownership of Customer Premises Wire {#sec-65-407-ch.-230 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 230}

SUMMARY: This rule establishes the Commission's policies concerning the installation, maintenance and ownership of customer premises wire by local exchange carriers.

§1. Definitions.

A. Customer Premises Wire. Customer premises wire is wire at a customer's premises that is connected to the local exchange carrier's communication facilities. It is located on the customer's side of the demarcation point.

B. Competitive Local Exchange Carrier; Incumbent Local Exchange Carrier. A local exchange carrier is a local exchange carrier, as defined herein, that is not an incumbent local exchange carrier. An incumbent local exchange carrier is a local exchange carrier or its successor that provided local exchange service in a defined service territory in Maine on February 6, 1996.

C. Demarcation Point. The point of demarcation and/or interconnection between local exchange carrier communication facilities and customer premises wire, protective apparatus or terminal equipment at a subscriber's premises. The demarcation point shall be located as provided in section 3 of this rule.

D. Local Exchange Carrier. As used in this rule, a local exchange carrier is any telephone utility that provides local exchange services.

E. Minimum Point of Entry. The minimum point of entry is either the closest practicable point to where the wiring crosses a property line or the closest practicable point to where the wiring enters a multi-unit building or buildings. A local exchange carrier's reasonable and nondiscriminatory standard operating practices shall be stated in its terms and conditions and shall determine which shall apply.

F. Network Interface Device. A device that includes a jack and plug conforming to Part 68, subpart F of the rules of the Federal Communications Commission, and that permits disconnection of the customer premises wire from the local exchange carrier's communication facilities. When installed it shall serve as the demarcation point, provided that it is located in compliance with the requirements of Section 3. The network interface device shall function as a point that allows testing of whether a malfunction is in the local exchange carrier's communications facilities or is in the customer premises wiring or terminal equipment. The network interface device may be contained in the same unit as a protector, but shall always be on the customer's side of the protector.

G. Optional Wire Maintenance Plan. A plan under which a local exchange carrier, for a monthly or other periodic charge, will maintain customer premises wire without further fee or charge.

H. Premises. Premises as used in this rule means a dwelling unit, other building or legal unit of real property such as a lot on which a dwelling unit is located, as determined by the local exchange carrier's reasonable and nondiscriminatory standard operating practices which shall be stated in its terms and conditions.

§2. Applicability.

This Chapter applies to one and two line business and residential telephone customer premises wiring. Sections 4, 5, and 8 of this Chapter apply to one and two line businesses and residential telephone customer premises wire installation and maintenance services provided by local exchange carriers, unless the customer premises wire services of a local exchange carrier have been deregulated pursuant to 35-A M.R.S.A. § 7306.

§3. Location of the Demarcation Point.

A. Single Unit Installations. For single unit installations the demarcation point, if it consists of a jack and plug conforming to Part 68, subpart F of the rules of the Federal Communications Commission or is a network interface device as defined in this rule, shall be located within 30 cm (12 inches) of the protector or, where there is no protector, within 30 cm (12 inches) of where the telephone wire enters the customer's premises. If there is no jack and plug or network interface device, the demarcation point shall be at the customer's side of the protector. If there is no protector, the demarcation point shall be at the location that the telephone wire enters the customer's premises.

B. Multi-unit Premises Existing as of August 13, 1990. For multi-unit premises existing as of August 13, 1990, the demarcation point shall be determined in accordance with the local exchange carrier's reasonable and non-discriminatory standard operating practices which shall be stated in its terms and conditions. Provided, however, that where there are multiple demarcation points within the multi-unit premises, a demarcation point for a customer shall not be further inside the customer's premises than a point 30 cm (12 inches) from where the wiring enters the customer's premises. Facilities installed by a local exchange carrier or other person at, or constituting, the demarcation point, including any network interface devise, shall consist of a jack and plug conforming to Part 68, subpart F of the rules of the Federal Communications Commission.

C. Multi-unit Installations after August 13, 1990. For multi-unit premises in which wiring is installed after August 13, 1990, the local exchange carrier may establish in its terms and conditions a reasonable and non-discriminatory practice of placing the demarcation point at the minimum point of entry. if the local exchange carrier does not elect to establish such a practice, the multi-unit premises owner shall determine the location of the demarcation point or points. The multi-unit premises owner shall determine whether there shall be a single demarcation point for all customers or. separate such locations for each customer. Provided, however, that where there are multiple demarcation points within the multi-unit premises, a demarcation point for a customer shall not be further inside the customer's premises than a point 30 cm (12 inches) from where the wiring enters the customer's premises. Facilities installed by a local exchange carrier or other person at, or. constituting, the demarcation point, including any network interface device, shall consist of a jack and plug conforming to Part 68, subpart F of the rules of the Federal Communications Commission.

§4. Installation of Customer Premises Wire.

A. Installation by Customers and Premises Owners. The subscriber and/or premises owner, or a third party hired by such person, may install wiring on the subscriber's side of the demarcation point, and may remove, reconfigure, and rearrange wiring on that side of the demarcation point including wiring that may have been installed by the local exchange carrier. The customer or premises owner may not access carrier wiring and facilities on the carrier's side of the demarcation point. All plugs and jacks used in connection with inside wiring shall conform to Part 68, subpart F of the rules of the Federal Communications Commission. Installation performed by the customer shall also comply with any reasonable notice to the carrier and testing requirements and with all applicable technical specifications. Customers shall not be permitted access to the protector.

B. Installation by Local Exchange Carriers. Each local exchange carrier that offers services for installation of customer premises at a per visit or time and materials rate shall include those rates in its schedule of rates and terms and conditions. The rate may be the same as that provided in its schedule of rates for other premises work. The rate established by an incumbent local exchange carrier that is subject to rate-of-return regulation shall be based on cost. The rate established by an incumbent local exchange carrier that is subject to an alternative form of regulation (as defined in 35-A M.R.S.A. §§ 9101-03) or by a competitive local exchange carrier shall be set at no less than cost. When a local exchange carrier installs, modifies or adds to wiring at a customer premises, it shall install a network interface device without charge to the customer at any customer premises that does not have a network interface device. The network interface device shall be installed at the demarcation point as required by Section 3.

§5. Maintenance of Customer Premises Wire.

A. Disaggregation of Maintenance Charges from Basic Rates. The customer or premises owner has the financial responsibility for maintenance of customer premises wire. Charges for the maintenance of customer premises wire that have been included in the basic exchange rate shall be disaggregated from the basic exchange rate, which shall be correspondingly reduced. Charges for optional maintenance performed by the local exchange carrier shall be as provided in subsections C and D.

B. Maintenance by Customers or Premises Owners. A customer or the premises owner, or a third party hired by a customer or premises owner, may maintain or repair customer premises wire, including customer premises wire that was installed by local exchange carrier. Maintenance performed by the customer shall comply with any reasonable notice to the carrier and testing requirements and with any applicable technical specifications. Customers or third parties hired by customers shall not be permitted access to the protector.

C. Maintenance by the Local Exchange Carrier. Each local exchange carrier that offers services for the maintenance of customer premises wire at per-visit or a time and materials rate shall include those rates in its schedule of rates. The rate may be the same as that provided in the carrier's schedule of rates for other premises work. The-rate established by an incumbent local exchange carrier that is subject to rate-of-return regulation shall be based on cost. The rate established by an incumbent local exchange carrier that is subject to an alternative form of regulation (as defined in 35-A M.R.S.A. §§ 9101-03) or by a competitive local exchange carrier shall be set at no less than cost.

D. Installation of Network Interface Device at Time of Diagnosis or Maintenance. When a local exchange carrier, upon the request of a customer, performs any diagnosis at the customer's premises to determine the location or nature of a problem, or performs maintenance at the customer's premises, including any service performed on the carrier's side of the demarcation point, and there is no network interface device at the premises, the carrier shall not charge for the diagnostic service and shall install a network interface device at no charge to the customer. Pursuant to Section 4, this section, and its own terms and conditions, the local exchange carrier shall charge for maintenance or installation of new customer premises wire, if the customer requests those services. If the terms and conditions of the local exchange carrier are inconsistent with the requirements of this paragraph, the carrier shall file a revision to its terms and conditions to comply with this subsection within 60 days of the effective date of this subsection.

E. Optional Wire Maintenance Plans.

1. Participation.

No local exchange carrier is required to offer an optional wire maintenance plan. If a local exchange carrier does offer an optional wire maintenance plan, a customer shall be a participant in the plan only if that customer has positively indicated a desire to participate.

2. Exclusions. A local exchange carrier in its terms and conditions may required that customer-installed premises wire must meet company or National Electric Code specifications in order to be covered by the optional wire maintenance plan or may impose other reasonable conditions or exclusions of coverage. All such requirements or exclusions shall be stated in the local exchange carrier's terms and conditions approved by the Commission. For any such requirement or exclusion, a telephone utility shall provide prominent written notice of the requirement or exclusion to each subscriber prior to the time of subscription or within 30 days thereafter. The contents of the notice shall be included in the local exchange carrier's terms and conditions approved by the Commission.

3. Inapplicability of Requirements or Exclusions. No requirements or exclusion described in paragraph 2 shall apply if (a) the requirement is not contained in the local exchange carrier's approved terms and conditions; (b) the contents of the notice of the requirement or exclusion is not contained in the local exchange carrier's approved terms and conditions; or (c) the local exchange carrier failed to provide notice to the customer in compliance with the requirements of paragraph 2. In any dispute concerning whether prominent written notice was reasonable or was provided, the telephone utility offering the plan shall have the burden of proof.

§6. Installation of Network Interface Device by Customers or Premises Owners.

Customers, premises owners, or third parties hired by a customer or premises owner, may install a standard jack and plug or a network interface device at the demarcation point, provided that the jack and plug comply with Part 64, subpart F of the rules of the Federal Communications Commission and that the location complies with Section 3 of this rule. The jack and plug or network interface device shall be accessible to the customer. Customers shall not be permitted access to the protector.

A local exchange carrier may state in its terms and conditions that it has undertaken a program to install network interface devices or combined network interface-protector units that are weatherproofed or have special testing abilities or other features at demarcation points as provided in Section 3 and that are outside buildings or otherwise accessible to the carrier at convenient times. Local exchange carrier engaged in a program as described may provide in its terms and conditions that combination network interface-protector units must be installed by the local exchange carrier or that customers who install a network interface device that is not combined with a protector shall install a type approved by the carrier and in a location approved by the carrier. A local exchange carrier engaged in a program as described may also provide in its terms and conditions that in the event that both the carrier and the customer install devices that are capable of serving as the network interface device and as the demarcation point in accordance with Section 3, the carrier-installed network interface device shall be the demarcation point.

§7. Ownership of Customer Premises Wire.

Customer premises wire shall be owned by the customer or premises owner, as determined by law or contract, whether it is installed by a telephone utility or by another person.

§8. Inconsistent Rate Schedules and Terms and Conditions.

This Chapter supersedes any inconsistent rate schedules and terms and conditions of a local exchange carrier. All local exchange carriers shall revise their terms and conditions or schedule of rates to implement and to be consistent with this chapter, including the 1997 amendments to this chapter, and shall file revisions that comply with the 1997 amendments by September 1, 1997.

§9. Waiver.

Any provider of telecommunications services subject to the provisions of this Chapter may request that the Commission waive some or all of its requirements of this Chapter. Where good cause exists, the Commission may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the policies and intent of this Chapter.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §111
• EFFECTIVE DATE: February 4, 1985 (as Chapter 23)
• AMENDED: September 21, 1985 (as Chapter 23)
• EFFECTIVE DATE OF 1997 AMENDMENTS: June 18, 1997 (as Chapter 230)
• NON-SUBSTANTIVE CORRECTION: August 19, 1997 - closing of space in "exchange" in §6.
• CONVERTED TO MS WORD: May 17, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 240 Video Service Franchise Dispute Resolution

Code Me. R. 65-407 Ch. 240 Video Service Franchise Dispute Resolution {#sec-65-407-ch.-240 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 240}

SUMMARY: This Rule sets forth procedures for mediation between a municipality and a video service provider.

§ 1 APPLICABILITY

This Chapter sets forth a process for Mediation between a Municipality and a Video Service Provider relating to negotiations of a franchise agreement or contract, the obligations of the Participants under the agreement or contract, or the obligations of the Video Service Provider under 30-A M.R.S. §§ 3008 and 3010, except that the Commission will not address any provision of 30-A M.R.S. § 3010 relating to consumer rights or protections.

§ 2 Definitions

A. “Case Management System” or “CMS.” Case Management System or CMS means the Commission’s online case management and docketing system available through the Commission’s website at www.maine.gov/mpuc.

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Commission Staff. “Commission Staff” means employees of the Commission.

D. Mediator. "Mediator" or “Mediators” means the member or members of Commission Staff assigned by the Director of Telephone and Water Utility Industries to facilitate a Mediation.

E. Mediation. "Mediation" means a voluntary, informal, non-adjudicatory, ex parte, dispute resolution process by which a Mediator assists the Participants in resolving their dispute. Mediation is non-binding, and the Mediator or Commission may not impose a resolution upon the Participants. If the Participants cannot reach a mutually acceptable resolution, the Participants may pursue other forms of dispute resolution that do not involve the Commission.

F. Municipality. "Municipality" is as defined in 30-A M.R.S. § 2001(8).

G. Participant. "Participant" means a Municipality including its attorney(s) and other authorized representatives, or a Video Service Provider including its attorney(s) and other authorized representatives.

H. Video Service Provider. "Video Service Provider" is as defined in 30-A M.R.S. § 3008(1-A)(J).

§ 3. MEDIATION PROCESS

A. Activities Prior to Requesting Mediation

The Participants must engage in good faith negotiations to resolve their dispute prior to requesting Mediation by the Commission. A Participant may only request Mediation if the Participants’ good faith negotiations are unsuccessful or the Participants are at an impasse.

Prior to requesting Mediation, the Participant requesting Mediation must contact the other Participant and give at least 2 business days’ notice that they are planning to request Mediation and request dates and times that the other Participant will be available for Mediation.

B. Requesting Mediation

1. Filing of Request

The Participant requesting Mediation by the Commission must make the request by making a docketed filing in the Commission’s CMS.

2. Contents of Request

The request must describe the nature of the dispute, contain all relevant facts underlying the dispute, and contain a description of the steps the Participants have taken in good faith to resolve the dispute prior to requesting Mediation. If applicable, the Participant filing the request must attach all relevant documents ( e.g. , contract or franchise agreement). The request must also contain the dates and times that the Participants are available for Mediation.

3. Response to Mediation Request

Upon receipt of a request for mediation, the Participant that did not make the request may, within 15 days of the filing of the request, file a responsive statement in the appropriate docket in CMS. The responsive statement must contain items listed in Section 3(B)(2) of this Chapter.

C. Mediation

1. Date, Time, and Venue

Once the Commission receives a filed written request for Mediation, the Mediator will establish a mutually agreeable date and time for the Mediation. The Participants may agree to conduct the Mediation in-person at the Commission’s offices or the Participants may agree to conduct the Mediation virtually via Microsoft Teams or other similar virtual meeting platform as arranged by the Commission.

2. Further Mediation Sessions and Ex Parte Processes

With the mutual agreement of the Participants, the Mediator may schedule additional Mediation sessions. The Mediator may also, with notice to, and the mutual agreement of, the Participants, meet and communicate with each Participant on an ex parte ( i.e. , one-on-one) basis.

3. Conclusion of Mediation

a. Conclusion by Participants

Both Participants must participate in good faith in at least one Mediation session. After the first Mediation session, if both Participants have participated in good faith either Participant may decline to continue to participate in Mediation. The judgement regarding whether both Participants have participated in good faith is in the sole discretion of the Mediator.

Once the Participants have participated in good faith in one Mediation session, neither Participant is required to participate in subsequent Mediation regarding the same dispute. This concludes the mediation.

b. Conclusion by Mediator

The Mediator may conclude Mediation in the following circumstances:

i. If the Participants have resolved the dispute;

ii. If the Participants mutually agree that further mediation would be unproductive and unlikely to result in a mutually agreeable resolution to the dispute; or

iii. If, in the Mediator’s sole judgment, further discussion and Mediation would be unproductive or unlikely to result in a mutually agreeable resolution to the dispute.

c. Unsuccessful Mediation

If Mediation does not resolve the Participants’ dispute, the Participants may pursue resolution of the dispute through binding arbitration pursuant to 30-A M.R.S. § 3009-B(2), or by other means.

D. Confidentiality

Requests, responses, supporting materials, discussions, and any other information pertaining to Mediation may be entitled to confidential protection pursuant to 35-A M.R.S. § 1311-A and, as such, may not be “public records” pursuant to the Maine Freedom of Access Act, 1 M.R.S. §§ 400-521. Any Participant wishing to designate Mediation information as confidential must file a motion in the appropriate docket in CMS requesting issuance of a protective order pursuant to 35-A M.R.S. §§ 1311-A or 1311-B (as applicable) and Chapter 110 of the Commission’s Rules of Practice and Procedure. Participants must also file public redacted versions of all confidential written materials.

§ 4. WAIVER

Upon the written request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Rule that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Commission’s Administrative Director, or the Director of Telephone and Water Utility Industries may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Chapter is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2024-00316, issued on July 24, 2025. Copies of the Order have been filed with this Chapter at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 30-A M.R.S. § 3009-B(1); 35‑A M.R.S. § 111
• EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on August 5, 2025. It was filed with the Secretary of State on August 5, 2025 (filing 2025-154) and became effective on August 10, 2025.
• APAO ACCESSIBILITY CHECK: August 18, 2025

Chapter 252 Public Interest Payphone Program

Code Me. R. 65-407 Ch. 252 Public Interest Payphone Program {#sec-65-407-ch.-252 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 252}

SUMMARY: This Chapter defines the Public Interest Payphone program in Maine.

§ 1 PURPOSE 2

§ 2 DEFINITIONS 2

§ 3 PIP REQUIREMENTS 3

A. Type of Telephone 3

B. Calling Capabilities 3

§ 4 RESPONSIBILITIES 3

A. Responsibilities of the Local Exchange Carrier 3

B. Responsibilities of a PIP Provider 4

C. Selection of the PIP Providers 4

D. Sources of Compensation 4

§ 5 APPLICATION PROCEDURES 4

A. PIP Application Form 4

B. Annual Application Period 5

C. Ranking and Approval 5

D. Additional Application Period 5

E. PIP Installation 5

F. Discontinuing a PIP 5

G. Notice to Public Telephone Providers 5

§ 6 PIP SELECTION 5

A. Ranking Criteria 5

B. Proximity Limitation 6

§ 7 WAIVER OR EXEMPTION 6

§ 1 PURPOSE

The purpose of this Chapter is to implement 35-A M.R.S.A. §§ 7104(6) and 7508 by establishing the criteria the Commission will use to approve requests for Public Interest Payphones. It also defines the requirements that must be met for a telephone to be considered a Public Interest Payphone, the procedures for applicants to request a Public Interest Payphone, and the means by which Public Interest Payphone Providers and local exchange carriers will be compensated for their costs associated with Public Interest Payphones.

§ 2 DEFINITIONS

For the purposes of this Chapter, the following terms have the following meanings:

A. 800-style call. “800-style call” means a telephone call to a toll-free NPA (Numbering Plan Area) code such as 800, 877, and other numbers established as widespread toll-free numbers.

B. n11 call. “n11 call” means a telephone call to a 211, 311, 411, 511, 611, 711, 811, or 911 number or successor numbers used for similar purposes.

C. Applicant. “Applicant” means a person, business, organization, agency, or any other entity that submits an application to obtain a Public Interest Payphone pursuant to this Chapter.

D. Commission. “Commission” means the Maine Public Utilities Commission.

E. LEC. “LEC” means a local exchange carrier.

F. Public Interest Payphone (PIP). “Public Interest Payphone” means a publicly available telephone installed and funded pursuant to authority granted under 35-A M.R.S.A. §§ 7104(6) and 7508.

G. PIP instrument. ”PIP instrument” means the apparatus and station equipment associated with a PIP.

H. PIP access line. (PAL) “PIP access line” means the loop, switching and other equipment necessary to provide a connection from the PIP apparatus to the public switched network.

I. PIP Free Calling Area. “PIP Free Calling Area” means wire centers within the Basic Service Calling Area of the exchange where the PIP is located.

J. PIP Provider. “PIP Provider” means an entity chosen pursuant to Subsection 4(C) to provide PIP service in Maine.

§ 3 PIP REQUIREMENTS

A PIP must conform to the following requirements:

A. Type of Telephone.

A PIP instrument located inside a building shall be a standard tone dial telephone (wall or desk type) that is capable of being used to make or receive telephone calls. All inside PIP instruments shall be of a uniform appearance, as determined by the Commission, that renders the PIPs easily distinguishable from other telephones. A standard distinctive sign shall be installed within reasonable proximity of the PIP.

2. A PIP instrument located outside a building shall be a metal enclosed telephone instrument with an armored head set cord that is capable of being used to make or receive telephone calls. All outside PIP instruments shall be of a uniform appearance, as determined by the Commission, that renders the PIPs easily distinguishable from other telephones. A standard distinctive sign shall be installed within reasonable proximity of the PIP.

3. A PIP instrument shall be coinless.

B. Calling Capabilities.

1. A PIP shall be capable of being used to make direct dialed local, n11, and 800-style calls. A PIP shall also be capable of making interexchange calls (with all available interstate interexchange carriers) with the use of a prepaid calling card, credit, and calling card and collect (reverse charge) service.

The caller shall not be charged for calls to telephones within the PIP Free Calling Area, n11 calls, and 800-style calls. Any other calls must be made using prepaid calling cards, credit or calling cards, as collect calls, or through other billing methods.

3. A PIP shall be rendered incapable of receiving telephone calls if the applicant makes such a request of the PIP provider and the Commission determines that the request is reasonable.

§ 4 RESPONSIBILITIES

A. Responsibilities of the Local Exchange Carrier

The LEC shall provide a PIP Access Line at its tariffed PAL rate applicable to PIP access lines.

A PIP Access Line tariff must be a fixed, per-month rate, without any usage or per-call charges.

B. Responsibilities of a PIP Provider

PIP Providers shall install, maintain, and service all PIPs in Maine according to the terms of an RFP issued pursuant to Subsection 4(C).

A PIP Provider shall arrange for the installation of a PIP access line and shall compensate the LEC at its tariffed rate established pursuant to Subsection 4(2).

C. Selection of the PIP Providers

PIP providers shall be selected through the State’s purchasing procedures. If the Commission is unable to obtain the services of a PIP provider or PIP providers at a cost that it deems reasonable, it may contract separately for individual services and it may perform some or all of the services itself.

D. Source of Compensation. Compensation required by this Subsection shall be made from the state universal service fund established pursuant to 35-A M.R.S.A. §7104(3).

§ 5 APPLICATION PROCEDURES

A. PIP Application Form. The Commission shall establish and make available on its web page a standard PIP application form. The form shall include:

1. Name or names of applicant;

2. Location of the requested PIP;

Whether the PIP will be inside or outside;

4. A narrative stating the reasons why a PIP is desirable at the requested location;

5. All information necessary for the Commission to evaluate and rank the application pursuant to Section 6; and

6. Any other information the Commission determines is necessary to administer the PIP program.

B. Annual Application Period. The Commission shall establish an annual application period of one month each year during which applicants may submit to the Commission requests for new PIPs for the following year.

C. Ranking and Approval. No later than two months after the close of the annual application period, the Commission shall approve and rank all submitted applications using the criteria established in Section 6. The applications will be approved in rank order until all of the funding determined by the Commission to be available to fund the program for the year is fully expended.

D. Additional Applications. Applicants may submit to the Commission requests for PIPs at any time outside the annual application period. If the Commission determines that sufficient funds are available, it shall approve such additional applications using the criteria established in Section 6.

E. PIP Installation. The Commission shall notify each applicant of the approval or rejection of the applicant’s requested PIP. Each successful applicant shall notify its PIP Provider to arrange installation of the PIP.

F. Discontinuing a PIP. The Commission may, at its own discretion or upon petition of an interested person, order the removal of a PIP.

G. Notice to Public Telephone Providers. The Commission shall post a list of approved PIPs on its website. If any public telephone provider notifies the Commission within 20 days of the posting that it has installed a public telephone within 1,000 feet of a proposed PIP’s location, the approved PIP will not be installed at that location.

§ 6 PIP SELECTION

A. Ranking Criteria. The Commission may consider, but shall not be limited by, the following criteria when approving and ranking PIP requests.

1. Public welfare, health and safety considerations;

2. Cost of providing the requested PIP service;

3. Availability of wireless service in the area;

4. Residential telephone service penetration in the area;

5. Average income of the area; and

6. Financial ability of the applicant to provide public telephone Service.

B. Proximity Limitation. A PIP will not be installed if another publicly available telephone is located within 1,000 feet of the PIP’s location, unless the Commission determines that the PIP is nonetheless needed pursuant to the criteria in Section 6(A).

§ 7 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Finance, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 7104(6) and 7508.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 10, 2006. It was filed with the Secretary of State on May 11, 2006 (filing 2006-198) and became effective on May 16, 2006.

65-407 Chapter 252, Public Interest Payphone Program page 6

Chapter 280 Provision of Competitive Telecommunications Services

Code Me. R. 65-407 Ch. 280 Provision of Competitive Telecommunications Services {#sec-65-407-ch.-280 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 280}

SUMMARY - This Chapter, adopted pursuant to 35-A M.R.S.A. §§ 104, 111, 301, 1301, 2102, 2105, 2110, 7101, 7101-B, 7104-A, and 7303, establishes economically efficient and equitable access charges for- the provision of competitive services; and describes the process for intrastate competitive telecommunications carriers to obtain authority from the Commission to provide service.

§ 1 PURPOSE 5

§ 2 DEFINITIONS 5

A. Access Charges 5

B. Common Line; Common Line Costs 5

C. Competitive Local Exchange Carrier (CLEC) 5

D. Incumbent Local Exchange Carrier (ILEC) 5

E. Interexchange Access 6

F. Interexchange Carrier (IXC) 6

G. Interexchange Communications or-Traffic; Interexchange Service 6

H. Intrastate 6

I. Intrastate Communication or Telecommunication 6

J. Local Exchange Carrier (LEC) 6

K. Operator Services 7

L. Resale And Sharing ….7

M. Telecommunications Carrier 7

§ 3 APPLICABILITY 7

A. General Applicability 7

B. Exception: Inapplicability to Pay - Telephone Service Providers 7

C. Exception: Inapplicability to CMRS Providers for Intrastate

Traffic Within a Single MYA 7

§ 4 APPROVAL REQUIRED 8

A. Public Convenience and Necessity; Required Findings 8

B. Approval for Additional Service or Service Area 8

C. Contents of Application 8

§ 5 AVAILABILITY OF SERVICES AND FACILITIES 10

A. Requests 10

B. Responses 10

(1) Request Satisfied 10

(2) Request Not Satisfied 10

(3) Disposition of Request Not Resolved 10

C. Notification Requirements 11

(1) Request Not Satisfied 11

(2) Disposition of Request Not Resolved 11

(3) Filing of Responses 12

D. Commission Review 12

§ 6 PROVISION OF FACILITIES BY LOCAL EXCHANGE

CARRIERS TO OTHER TELECOMMUNICATIONS CARRIERS 12

A. General Obligation of LECs 12

B. Excessive Traffic 12

(1) Limitation or Delay 12

(2) Capital Additions; Payment 12

§ 7 UNAUTHORIZED INTEREXCHANGE SERVICE; BLOCKING OF

UNAUTHORIZED TRAFFIC 13

§ 8 ACCESS RATES 13

A. Rate Schedules 13

B. Rates for All LECs Effective June 1, 2003 and Thereafter 13

C. Direct End-User Class Charges Prohibited 14

§ 9 SCHEDULE FILINGS BY INTEREXCHANGE CARRIERS; CHANGES IN RATES 14

A. Rate Schedules 14

B. Telecommunication services for the deaf, hearing impaired, and speech Impaired 14

C. Exemption from Filing Requirements 14

§ 10 NOTICE BY ALL INTEREXCHANGE CARRIERS PRIOR TO

EFFECTIVE DATE OF RATE INCREASES 14

A. General Requirement 14

B. Cancellation Period Added to Notice Period 14

C. Affected Customer: Definition 15

D. Alternative Compliance 15

E. Exemption 15

§ 11 REPORTS AND RECORDS 15

A. Annual Reports 15

B. Records 15

§ 12 WAIVER OF 35-A M.R.S.A. §§ 707 AND 708; NOTICE REQUIREMENT 15

A. Waiver 15

B. Notice Requirement 16

C. Changes of Name, Business Office and Contact Person; Notice 16

§ 13. APPLICABILITY OF OTHER STATUTES (REPEALED) 16

§ 14 COMMISSION REVIEW 16

§ 15 WAIVER OF PROVISIONS OF CHAPTER 17

STATE OF MAINE

PUBLIC UTILITIES COMMISSION

CHAPTER 280

COMPETITIVE TELECOMMUNICATIONS SERVICES

§ I PURPOSE

The purposes of this Chapter are to establish economically efficient and equitable access charges for the provision of competitive-services and to describe the process for intrastate competitive telecommunications carriers to obtain authority from the Commission to provide service.

§ 2 DEFINITIONS

A. Access Charges. "Access charges" and "access rates" are those charges and rates, required by section 8 of this Chapter, that an interexchange carrier (defined herein) must pay in order to provide intrastate interexchange service in Maine.

B. Common Line; Common Line Costs. A "common line” is a facility that carries telecommunications between a local switch and a customer premises. The common line is also known as a "loop," and, for local exchange purposes, a "link." Common lines may carry intrastate local exchange, intrastate interexchange and interstate communications. Common line costs are subject to recovery as provided in section 8(C).

C. Competitive Local Exchange Carrier (CLEC). A competitive local exchange carrier" (CLEC) is any local exchange carrier (LEC) (defined herein) that is not an incumbent local exchange carrier (ILEC) (defined herein).

D. Incumbent Local Exchange Carrier (ILEC). "Incumbent local exchange carrier" (ILEC) means a local exchange carrier (defined herein) or its successor that provided local exchange service in a defined service territory in Maine on February 8, 1996. A local exchange carrier that is defined as an ILEC pursuant to this subsection shall not be considered to be an ILEC in any area to which it expands its service after February 8, 1996, and in which another ILEC or competitive local exchange carrier (CLEC) was providing service on the date of that expansion, unless it is found to be an ILEC by this Commission or by the Federal Communications Commission pursuant to 47 U.S.C. § 252(h)(2) provider as defined by federal law.

E. Interexchange Access. "Interexchange access" and "interexchange access services" refer to the access services provided by local exchange carriers and used by interexchange carriers for the carriage of intrastate interexchange traffic. The pricing for interexchange access services is governed by section 8 of this Chapter.

F. Interexchange Carrier (IXC). An "interexchange carrier" (IXC) is any person, association, corporation, or other entity that provides intrastate interexchange telecommunications services, including a local exchange carrier (LEC), whether or not that entity is a public utility. An interexchange carrier includes an entity that provides services using facilities that it owns, leases, controls, operates or manages, including leased private lines or special access facilities, and an entity that resells switched services provided by other carriers. An IXC does not include a commercial mobile radio service (CMRS) provider as defined by federal law.

G . Interexchange Communications or Traffic; Interexchange Service. For the purposes of this Chapter, "interexchange communications" or "interexchange traffic" are any switched or private line telecommunications between telephone exchanges or wire centers, except that switched traffic between points having local calling with one another (extended area service or EAS) under local. exchange carrier's schedule approved by the Commission isnot considered "interexchange." The provision of facilities or services for the carriage of interexchange traffic is an "interexchange service."

H. Intrastate. "Intrastate" as used in this chapter refers to the provision or carriage of an "intrastate communication" (as defined in this section), or to a carrier or service that provides intrastate communications.

I. Intrastate Communication or Telecommunication. An intrastate communication" or "intrastate telecommunication" is a telecommunication that is functionally intrastate, with points of origination and termination within Maine, regardless of the actual routing of the communication. In the case of mobile telecommunications services, the points of origination and termination of the communication shall be assumed to be the antenna locations at which the carrier acquires and passes on the end user's signal, unless the actual location of the end user can be determined.

J. Local Exchange Carrier (LEC). A "local exchange carrier" (LEC) is a telephone utility, as defined by 35-A M.R.S.A. § 102(19), that provides telephone exchange service or interexchange access service within a telephone exchange pursuant to authority granted by or under Private and Special Law of the State of Maine; or Public Law 1895, ch. 103, § 103 or subsequent codification's thereof; or 35-A M.R.S.A. § 2102, or prior codification's thereof; LECs include incumbent local exchange carriers (ILECS) (defined herein) and competitive local exchange carriers (CLECS) (defined herein), and local resellers (defined herein). A local exchange carrier does not include a commercial mobile radio service (CMRS)

K. Operator Services. "Operator services" are services performed by a live operator or by electronic means to obtain billing and other information for telephone calls not billed automatically to the telephone line from which the call is originated. Telephone calls that use operator services include, but are not limited to, credit or calling card calls, debit card calls collect calls, calls billed to a third number, and person-to-person calls. Information that is collected by an operator service includes, but is not limited to, a calling or credit card number, a debit card number, the name of the caller and a third-party billing number.

L. Resale And Sharing. "Resale" is the acquisition by a telecommunications carrier of a service authorized by the Commission from an authorized telephone utility, or from an entity that by lawdoes not require authority, and the subsequent sale of that service, in a technically unaltered form, with or without a different price structure, to end-users. If the carrier uses the acquired service together with its customers, the resale is termed "sharing.”

M. Telecommunications Carrier. A "telecommunications carrier" is any person, association, corporation, or other entity that provides intrastate telecommunications services, whether or not that entity is a public utility. Telecommunications carrier include all interexchange carriers (IXPS) (defined herein) and all local exchange carriers (LECS) (defined herein).

§ 3 APPLICABILITY

A. General Applicability. This Chapter applies to the provision of all interexchange and local competitive telecommunications services, except as provided in subsection B.

B. Exception: Inapplicability to Pay Telephone Service Providers. Nothing in this Chapter will apply to the certification or provision of local service by pay telephone service providers, which are governed by Chapter 250 of the Commission's rules, 65-407 C.M.R. 250.

C. Exception: Inapplicability to CMRS Providers for Intrastate Traffic Within a Single MTA. This Chapter shall not apply to Commercial Mobile Radio Service (CMRS) providers, as defined by Federal law, to the extent their intrastate Maine traffic is contained entirely within a single Major Trading Area (MTA), as established by Federal Communications Commission regulation.

§ 4 APPROVAL REQUIRED

A. Public Convenience and Necessity; Required Findings. No telecommunications carrier that is a telephone utility, as defined by 35-A M.R.S.A. § 102(19), shall provide competitive local exchange or interexchange telecommunications service in or to a municipality in which another telephone utility is furnishing or is authorized to provide telephone service unless the Commission has first approved the furnishing of that service pursuant to 35-A M.R.S.A. §§ 2102 and 2105 by making a declaration that the public convenience and necessity require an additional public utility. Approval to provide any service shall not be issued unless the applicant has presented sufficient evidence for the Commission to make the following findings:

(1) The applicant has adequate financial ability and willingness to cover any customer advances and deposits; and to pay intrastate access charges and interconnection charges on all intrastate telecommunications services;

(2) The applicant (other than a interexchange carrier that is a reseller or A local exchange carrier that provides service solely through resale of local service purchased from a wholesale schedule of another LEC) has the technical ability to measure and record intrastate traffic information and billing amounts that may be necessary for the calculation of access and interconnection charges; and

(3) The applicant is willing and able to comply with State law and Public Utilities Commission rules, including, but not limited to, this Chapter.

B. Approval for Additional Service or Service Area. A telephone utility that is authorized to provide either interexchange service or local exchange service and that desires to provide the other service or to extend either service to additional areas shall obtain further approval pursuant to 35-A M.R.S.A. § 2102, but does not need to provide the information required by this section unless the information supplied previously has changed since the time of the any earlier application. Any further application shall provide a reference by docket number to a prior application.

C. Contents of Application. Any application for approval pursuant to 35-A M.R.S.A. § 2102 to operate as a telephone utility and to provide competitive telecommunications services shall contain the following information, as applicable, except to the extent a waiver is granted pursuant to section 14:

(1) Name of the applicant and any names under which the applicant does business (d/b/a’s).

(2) Address of the principal office of the applicant.

(3) State (s) under which the applicant is organized and form of organization (corporation, partnership, association, firm, individual, etc.), including the date of organization.

(4) A statement that the applicant, if it is a corporation, is organized under the laws of the State of Maine; or, if it is a foreign corporation, evidence that it is authorized to do business in Maine pursuant to 13-A M.R.S.A. § 1201 et seq. and the name and address of the corporation's registered office and agent in Maine, as required by 13-A M.R.S.A. § 1212.

(5) Names and addresses of the officers and directors of the applicant.

(6) Names and addresses of any affiliated interests of the applicant, as defined by 35-A M.R.S.A. § 707(1), that are public utilities in Maine, as defined by 35-A M.R.S.A. § 102(13), or that own more than 10% of the applicant.

(7) A statement of whether the applicant is applying for authority to offer local service, interexchange service, or both, and the geographic areas for which the applicant seeks to obtain authority to serve. The application may designate those geographic area(s) by political boundaries or by the service areas of incumbent local exchange carriers or other areas specifically designated by the applicant.

(8) A proposed initial schedule setting forth rates and terms and conditions of the proposed services, or an explanation of why a proposed initial schedule is not included.

(9) Name(s), address and telephone number(s) of the person(s) whom the Commission should contact in regard to the proposed rate schedule and terms and conditions required by paragraph 8 and for future filings following the granting of authority.

(10) Name(s), address and telephone number(s) of the person(s) whom the Commission should contact in regard to complaints by consumers.

(11) Name(s), address and telephone number(s) that customers of the applicant should contact for inquiries about service, rates and bills.

(12) A statement that the applicant is willing and able to comply with this Commission's rules, including this Chapter.

(13) A statement whether the applicant presently or within the past 5 years has, to its knowledge, been the subject of an investigation (not including the initial application to provide service) by a state or federal regulatory authority, and, if so, a copy of the final order or settlement if the proceeding has concluded, or a copy of the notice of investigation and any interim orders if the proceeding is pending.

(14) A statement whether the applicant proposes to offer operator services (as defined in section 2(K) and, if so, a reference to the pages of the applicant's proposed rate schedule at which the proposed operator service rates are located.

(15) A statement of the means of access (feature group, special access, etc.) that the applicant intends to use for the provision of intrastate service in Maine; the location of any points of presence (POPS) at which that access is or is intended to be obtained and the local exchange carrier(s) from which it will be obtained; and a description of the means the applicant will use to identify its traffic as intrastate or interstate for the purpose of any intrastate billing reporting requirement required by this Chapter or the access administrator.

§ 5 AVAILABILITY OF SERVICES AND FACILITIES

A. Requests. Any person may make a bona fide request to a local exchange carrier (LEC) for a specific service, using the LEC's network not available in the requester's area or for access to its network, facilities. The request shall specify particular locations, times, and quantities desired by the requester. A request that is made to managerial, marketing or business office personnel shall constitute a bona fide request if it complies with the requirements of this subsection.

B. Responses. the local exchange carrier shall respond to a bona fide request. Responses shall take one of the following forms:

(1) Request Satisfied. The request will be considered satisfied if within 2 months of the request the telecommunications local exchange carrier has provided the requested service or facilities, or has agreed to provide it within 3 months of the request pursuant to special contract or rate schedules approved by the Commission.

(2) Request Not Satisfied. Within 2 months after receipt of a request for service or facilities if the local exchange carrier has not provided the requested service or facilities, and has determined that it will not provide it, or will not seek Commission approval of schedules or contracts governing such provision, it shall notify the Commission and the requester in accordance with the requirements in subsection C(1) below.

(3) Disposition of Request Not Resolved. Within 2 months after receipt of a request for service or facilities or if the local exchange carrier has not determined whether the requested service or facilities will be provided, it shall notify the Commission and the requester in accordance with the requirements of subsection C(2) below.

C. Notification Requirements.

(1) Request Not Satisfied. Notification required to be made in subsection B(2) above shall contain the following information:

(a) Identification of the person or other entity making the request;

(b) The date on which the request was made and/or received, and any date(s) on which the service or provision of facilities was requested to be effective;

(c) Any determination made by the localexchange carrier as to the bona fide nature of the request;

(d) The specific reason (s) that the requested service or facilities cannot or will not be provided, or reason (s) that the local exchange carrier's existing schedules, operating practice, contract(s), or corporate policy should not be changed to accommodate the request within the time requested or within 3 months after receipt of the request; and

(e) A report of any offer made by the local exchange carrier to the requester to furnish a similar or substitute service or facilities and the disposition of that offer.

(2) Disposition of Request Not Resolved. The notification which is required to be made in subsection B(3) above shall contain the following information:

(a) The identification of the person or other entity making the request;

(b) The date on which the request was made and/or received, and any date(s) on which the service or provision of facilities was requested to be effective;

(c) A description of any preliminary findings made with respect to provision of the requested service or facilities and

(d) The anticipated date on which a determination as to the provision of service or facilities will be made.

(3) Filing of Responses. Notification required to be made under this subsection must be filed with the Commission within 2 months after receipt of the request. A copy of the notification must be provided to the requester.

D. Commission Review. A request may obtain review of an local exchange carrier's refusal to provide a requested service or facility pursuant to section 15 of this Chapter.

§ 6 PROVISION OF FACILITIES BY LOCAL EXCHANGE CARRIERS TO OTHER TELECOMMUNICATIONS CARRIERS.

A. General Obligation of LECS. Upon request by an interexchange carrier, a local exchange carrier LEC shall provide access services and facilities in those areas where it provides service and where that provision is technically feasible, by using its own facilities or by obtaining them from another telecommunications carrier. Access facilities should be provided in a timely manner and in a quantity sufficient to accommodate the traffic expected to be generated by the interexchange carrier.

B. Excessive Traffic.

1. Limitation or Delay. If the provision of the access services or facilities will cause substantial concentration, redirection, or other change to traffic volumes carried on the public switched network that may result in a degradation of service to the LEC's other customers, the LEC shall apply to the Commission for a waiver of these provisions to allow it to terminate, limit, or delay temporarily the provision of service to the requesting interexchange carrier until sufficient facilities can be made available.

2. Capital Additions; Payment. If an interexchange carrier wishes to offer competitive services from an exchange which has Extended Area Service (EAS) calling to another exchange, it must obtain Feature Group D (FGD) type access from the affected local exchange carrier(s) at each of the exchanges in which the IXC competitive telecommunications services are to be provided. If FGD is unavailable, the IXC shall pay the affected local exchange carrier all the capital and other costs it incurs that are reasonably necessary to ensure that the access provided to the competitive carrier will not significantly degrade the service to the affected local exchange carrier's own end-users. A reasonable portion of those costs shall be collected in the form of an installation charge to the IXC at the time the capital additions are required.

§ 7 UNAUTHORIZED INTEREXCHANGE SERVICE; BLOCKING OF UNAUTHORIZED TRAFFIC

All interexchange carriers shall pay access charges as required by section 8 of this Chapter, and their continued authorization to provide service is contingent upon such payment. Where it is technically possible to distinguish and separate intrastate from interstate traffic, LECs shall deny intrastate access to interexchange carriers (IXCS) that are telephone utilities as defined in 35-A M.R.S.A. § 102(19) but are not authorized to provide intrastate telecommunications services. Where the LEC or LECs cannot deny access and the unauthorized IXC can block unauthorized traffic, the IXC shall block all such intrastate traffic. For unauthorized intrastate interexchange traffic that cannot be blocked, the unauthorized IXC shall pay a charge that is equal to the undiscounted Message Telecommunications Service (MTS) of the local exchange carrier.

§ 8 ACCESS RATES

A. Rate Schedules. Each local exchange carrier authorized to provide local exchange service in the State of Maine shall file and maintain rate schedules establishing that carrier’s access rates pursuant to 35-A M.R.S.A. § 307.

B. Rates for All LECs Effective June 1, 2003 and Thereafter. No later than June 1, 2003 (or such later date as may be established by statute), all local exchange carriers shall establish intrastate access rates that are less than or equal to the interstate access rates for that carrier that are in effect on June 1, 2003 (or such other date as may be established by statute). On or before June 1 of every two years thereafter (all odd-numbered years), except to the extent that the need for subsequent changes is modified by statute, all local exchange carriers shall reestablish intrastate access rates that are less than or equal to the interstate rates for that carrier that are in effect on June 1 of that year. If a date later than June 1, 2003, is established by statute for the implementation of intrastate access rates that are less than or equal to specified interstate access rates, the Commission, by order issued in a rate proceeding or in a proceeding under Chapter 288, § 3, may require a LEC to change its access rates to a level specified by the Commission prior to the final date established by statute, provided such an order is not precluded by statute.

C. Direct End-User Access Charges Prohibited. All access charges imposed by LECs shall be charged directly to interexchange carriers and no component of an access charge shall be charged by an local exchange carrier directly to an end-user.

§ 9 SCHEDULE FILINGS BY INTEREXCHANGE CARRIERS; CHANGES IN RATES

A. Rate Schedules. Interexchange carriers subject to the authority of the Commission shall file schedules of rates, terms and conditions as provided in 35-A M.R.S.A. § 307. Those rates, terms and conditions shall be subject to provisions of all applicable statues, including 35-A M.R.S.A. §§ 309 and 701-703.

B. Telecommunication services for the deaf, hearing impaired, and speech impaired. Interexchange carriers are required to provide a 70% rate reduction for intrastate toll calls for deaf, hard-of-hearing or speech-impaired persons as required by 35-A M.R.S.A. § 7302.

C . Exemption from Filing Requirements. Interexchange carriers other than ILECs shall be exempt from those provisions of Chapters 110 and 120 that require notice to customers and to the Commission and the filing of specified information at the time a utility files a "general increase in rates" as defined in 35-A M.R.S.A. § 307, unless the Commission orders otherwise in a particular case.

§ 10 NOTICE BY ALL INTEREXCHANGE CARRIERS PRIOR TO EFFECTIVE DATE OF RATE INCREASES

A. General Requirement. At least 15 days prior to the effective date of a rate increase of 20% or more in the rate for any individual interexchange service offered by any interexchange carrier (IXC) (including LECs offering interexchange service) that is subject to the authority of the Commission, the IXC shall send notice by a bill insert or by separate mailing to all affected customers, as defined in subsection C. For the purpose of this section, a rate shall be considered to be increased by 20% if rate increases for the service, including the current increase, cumulatively amount to 20% or more over the year prior to the current increase. For the purpose of this section, a "rate increase" shall include any term and condition that has the effect of raising a rate for one or more customers.

B. Cancellation Period Added to Notice Period. If a rate (including a rate pursuant to special contract) contains a term and condition stating that cancellation of a service by a customer will not be effective until a stated time period following notice given by the customer to the interexchange carrier, the notice period applicable to the interexchange carrier required by subsection A of this section shall equal 15 days plus the length of the period required for the customer to provide notice of cancellation.

C. Affected Customer: Definition. A customer is affected by a rate if the customer has used the service that is subject to the rate increase of 20% or greater and has incurred total charges for the service of $5 or more, during either the month prior to or after the filing of the proposed increase, or has incurred charges for the service that total $15 or more for the 3 month period prior to the filing of the proposed increase.

D. Alternative Compliance. An interexchange carrier may satisfy this requirement by sending notice of all increases of 20% or more to all its customers.

E. Exemption. An incumbent local exchange carrier or any other interexchange carrier that-has complied with the notice requirements of Chapter 110, § 718following a general rate case is not required to comply with this subsection.

§ 11 REPORTS AND RECORDS

A. Annual Reports. All interexchange carriers subject to the authority of the Commission are exempt from the annual report and other requirements of Chapter 210 (Uniform System of Accounts for Telephone Utilities) of the Commission's Rules. They shall, however, annually provide the Commission, in a manner prescribed and on forms specified by the Commission, with a report of its annual revenues, total minutes of use sold, the annual revenues derived from sales for resale and the number of minutes of use sold to resellers.

B. Records. All telecommunications carriers subject to the provisions of this Chapter shall maintain records sufficient to identify and to allow auditing of traffic volumes, intrastate interexchange billings for both retail and wholesale services, and all information that is necessary to calculate access or interconnection charges in accordance with this Chapter. Those records shall be maintained for a minimum of 2 calendar years.

§ 12 WAIVER OF 35-A M.R.S.A. §§ 707 AND 708; NOTICE REQUIREMENT

A. Waiver. Subject to the conditions described in subsections B and C below, interexchange carriers subject to the jurisdiction of the Commission shall be exempt from the requirement of 3 5 -A M.R.S.A. § 708(2) that each reorganization (defined in 35-A M.R.S.A. § 708(1)) of a public utility be approved by the Commission.

B. Notice Requirement. Each telephone utility that is exempt pursuant to subsection Afrom the requirement that reorganizations be approved shall file notice with the Commission of a reorganization if that reorganization results in a merger, sale or transfer of a controlling interest of the public utility or of any entity that owns more than 50% of the public utility. The notice required by this subsection shall be filed within 10 days following any reorganization described herein.

C. Changes of Name, Business office and Contact Person; Notice. Each public utility subject to the exemption contained in subsection Athat has changed its name, the name under which it does business (d/b/a), the location of its business office, and its contact person shall provide the Administrative Director of the Commission with notice of that change within 30 days following the change.

§ 13. REPEALED

§ 14 COMMISSION REVIEW

Any person aggrieved may obtain review of decisions by any local exchange carrier that has not provided a retail service, wholesale access services or any telecommunications facilities requested by that person, following the process described in section 5. The aggrieved person may refer the matter to the Commission for Staff resolution. The matter will be treated as an informal complaint submitted for resolution by the Staff under section 1102 of Chapter 110 of the Commission's rules. If a party is not satisfied with the Staff's resolution, it must file a written request for Commission review within 7 business days following the issuance of the resolution by the Staff. Failure to file a timely request for Commission review of the Staff’s resolution shall constitute acceptance of the resolution and waiver of further opportunity to be heard with respect to the matter.

Receipt of a request for Commission review shall be treated as a request for investigation pursuant to 35-A M.R.S.A. § 1303. A summary investigation shall be conducted, after which the Commission shall determine whether a formal investigation is warranted. If it decides to commence a formal investigation, the Commission shall may affirm, reverse, or modify the Staff's resolution. If the Commission decides not to commence a formal investigation, failure to act in accordance with the Staff's resolution shall constitute grounds to commence a formal investigation pursuant to section 1303 and the initiation of a proceeding to issue a temporary order pursuant to 35-A M.R.S.A. § 1322.

§ 15 WAIVER OF PROVISIONS OF CHAPTER

Any telecommunications carrier subject to the provisions of this Chapter may request that the Commission waive some or all of the requirements of this Chapter. Where good cause exists, the Commission, the Administrative Director, the Director of Technical Analysis, or the Hearing Examiner assigned to a proceeding involving the subject matter of the waiver may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the intent of this Chapter. The waiver shall be applicable only to the specific application under consideration.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §104, 111, 301, 1301, 2102, 2105, 2110. 7101, 7101-B, 7104-A and 7303.
• EFFECTIVE DATE: November 27, 1988
• AMENDED: November 19, 1991
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: June 18, 1997
• NON-SUBSTANTIVE CORRECTION: August 19, 1997 - insertion of missing 3(C) in Table of Contents.
• AMENDED: This amendment was approved as to form and legality by the Attorney General on December 19, 1997. It was filed with the Secretary of State on December 19, 1997 and became effective on December 24, 1997.
• NON-SUBSTANTIVE CORRECTIONS: January 26, 1998 - statutory citations in §9 (B) and 14.
• AMENDED: This amendment was approved as to form and legality by the Attorney General on March 19, 2003. It was filed with the Secretary of State on March 27, 2003 and became effective on April 1, 2003.
• AMENDED: This rule was approved as to form and legality by the Attorney General on July 16, 2003. It was filed with the Secretary of State on July 17, 2003 and became effective on July 22, 2003.
• CORRECTED: August 11, 2003 - proper integration of April 1 and July 22, 2003 filings under the authority of an August 4, 2003 memo from PUC General Counsel Joanne B. Stenneck.
• CORRECTED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 284 Prepaid Wireless Fee

Code Me. R. 65-407 Ch. 284 Prepaid Wireless Fee {#sec-65-407-ch.-284 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 284}

SUMMARY: This Chapter establishes the fee to be collected, and remitted on prepaid wireless telecommunications service and describes the requirements and procedures for collection, remittance and periodic adjustments of the fee.

§1 PURPOSE AND APPLICABILITY 2

A. Purpose 2

B. Applicability 2

§2 DEFINITIONS 2

§3 DETERMINATION OF THE PREPAID WIRELESS FEE AMOUNT 2

A. Determination of the Total Fee Amount 2

B. Universal Service Fund Contribution 3

C. Telecommunications Education Access Fund Contribution 3

D. E-911 Prepaid Wireless Surcharge 3

§4 ESTABLISHING AND CHANGING THE FEE AMOUNT 3

§5 COLLECTION AND REMITTANCE OF THE FEE 3

A. Collection of the Fee 3

B. Location of Transactions 3

C. Remittance of Fees 4

D. Retention by Seller 4

Remittance to Commission 4

§6 WAIVER OR EXEMPTION 4

§1 PURPOSE AND APPLICABILITY

A. Purpose. The purpose of this Chapter is to establish the fee on prepaid wireless telecommunications service that is required to be contributed to the Maine Universal Service Fund (MUSF) and the Maine Telecommunications Access Fund (MTEAF) by prepaid wireless consumers. This Chapter also describes the requirements and procedures for the collection, remittance and periodic adjustments of the Prepaid Wireless Telecommunications Service Fee (Prepaid Wireless Fee), which consists of the MUSF and MTEAF contributions and the E-9-1-1 prepaid wireless surcharge set by statute.

B. Applicability. This Chapter applies to all retail sales of prepaid wireless services in Maine. The requirements of Chapter 285, the Maine Telecommunications Education Access Fund, and Chapter 288, Maine Universal Service Fund, of the Commission’s rules do not apply to providers of prepaid wireless telecommunications service except as specifically provided for in this rule.

§2 DEFINITIONS

A. Prepaid wireless telecommunications service. “Prepaid wireless telecommunications service” has the same meaning as in 25 M.R.S. §2921(13).

B. Prepaid wireless telecommunications service consumer or prepaid wireless consumer. “Prepaid wireless telecommunications service consumer” or “prepaid wireless consumer” has the same meaning as in 25 M.R.S. §2921(13-A).

C. Prepaid wireless telecommunications service provider. “Prepaid wireless telecommunications service provider” has the same meaning as in 25 M.R.S. §2921(14).

D. Retail Transaction. “Retail transaction” has the same meaning as in 25 M.R.S. §2921(15).

E. Seller. “Seller” has the same meaning as in 25 M.R.S. §2921(16).

§3 DETERMINATION OF THE PREPAID WIRELESS FEE AMOUNT

A. Determination of the Total Fee Amount. The amount of the Prepaid Wireless Fee is the sum of the following fees effective January 1, 2013 and as thereafter adjusted pursuant to Section 4 below:

1. The amount of the fee that is required to be contributed to the MUSF as determined pursuant to 35-A M.R.S. §7104(3-A) and Chapter 288 of the Commission’s rules;

2. The amount of the fee that is required to be contributed to the MTEAF pursuant to 35-A M.R.S. §7104-B(2-A) and Chapter 285 of the Commission’s rules; and

3. The statewide prepaid wireless telecommunications service E-9-1-1 surcharge levied on prepaid wireless telecommunications service consumers pursuant to 25 M.R.S. §2927(1-F).

B. Universal Service Fund Contribution. The Commission shall determine the amount of the contribution to the MUSF on each retail transaction of prepaid wireless services by multiplying $25 by the percentage that the Commission has established pursuant to Chapter 288 of the Commission’s rules for the purpose of calculating contributions to the MUSF by providers of prepaid wireless telecommunications services. The fee amount shall be rounded to the nearest penny.

C. Telecommunications Education Access Fund Contribution. The amount of the contribution to the MTEAF on each retail transaction of prepaid wireless services shall be equal to the monthly per line, per number or per customer Contribution Amount that is established by the Commission pursuant to Chapter 285 of the Commission’s rules and that must be contributed by voice network service providers who are not prepaid wireless service providers. The amount contributed to the MTEAF through the PWF may not exceed $0.21 per retail transaction.

D. E-9-1-1 Prepaid Wireless Surcharge. The amount of the prepaid wireless E-9-1-1 surcharge to be collected on each retail transaction of prepaid wireless services shall be the amount established pursuant to 25 M.R.S. §2927(1-F).

§4 ESTABLISHING AND CHANGING THE FEE AMOUNT

Fee Amount. The Commission shall issue an order establishing the amount of the Prepaid Wireless Fee, pursuant to the provisions contained in Section 3 of this Chapter. For the fee amount initially adopted by the Commission pursuant to this Chapter, and for the adoption ofany subsequent change to the amount of the Prepaid Wireless Fee, the Commission shall provide not less than 30 days’ advance notice of its intent to adopt or to change the amount on the publicly accessible websites of both the Commission and the State Tax Assessor. The establishment of or any change in the amount of the Prepaid Wireless Fee shall take effect at the beginning of the next calendar quarter that is at least 60 days after the adoption or enactment of the change. The Commission shall not adjust the MUSF and MTEAF contribution amounts of the Prepaid Wireless Fee more frequently than once every 24 months, unless explicitly permitted by statute.

§5 COLLECTION AND REMITTANCE OF THE FEE

A. Collection of the Fee. A seller of prepaid wireless telecommunications services shall collect the Prepaid Wireless Fee on each retail sale in Maine of prepaid wireless services. The amount of the Prepaid Wireless Fee must be separately stated on an invoice, receipt or similar document provided to the prepaid wireless consumer by the seller except, where such disclosure is not practicable, the seller must make information regarding the amount of the Prepaid Wireless Fee available to the consumer in another manner.

B. Location of Transactions. For purposes of subsection A, a retail transaction that is effected in person by a prepaid wireless consumer at the business location of the seller is treated as occurring in this State if that business location is in this State. Any other retail transaction must be treated as occurring in this State if the retail transaction is treated as occurring in this State for the purposes of 36 M.R.S. §1752(8-B).

C. Remittance of Fees. Prepaid Wireless Fees collected by sellers, including all charges the seller is deemed to collect when the amount of the fee has not been separately stated on an invoice, receipt or similar document provided to the consumer by the seller, must be remitted to the State Tax Assessor at the times and in the manner provided for the remittance of sales tax under 36 M.R.S. §1951-A and rules adopted pursuant to that section for the remittance of sales tax on an other than monthly basis. The amount of the fee collected by a seller from a prepaid wireless consumer may not be included in the base for measuring any tax, fee, surcharge or other charge imposed by this State, any political subdivision of the State or any intergovernmental agency.

D. Retention by Seller. A seller who is not a prepaid wireless telecommunications service provider may deduct and retain 3% of the Prepaid Wireless Fee that is collected by the seller from a prepaid wireless consumer.

E. Remittance to Commission. The State Tax Assessor shall remit the total Prepaid Wireless Fees collected to the Commission and the Commission shall deposit the fees into the Prepaid Wireless Fee Fund. Within 30 days of the remittance by the State Tax Assessor to the Commission of the Prepaid Wireless Fees, the Commission shall:

(1) Deposit into a separate account those portions of the Prepaid Wireless Fees attributable to the E-9-1-1 surcharge imposed by 25 M.R.S. §2927(1-F);

(2) Deposit into the MUSF account established pursuant to 35-A M.R.S. §7104(3) those portions of the Prepaid Wireless Fees attributable to the fee imposed under 35-A M.R.S. §7104(3-A); and

(3) Deposit into the MTEAF account established under 35-A M.R.S. §7104-B(2) those portions of the Prepaid Wireless Fees attributable to the fee imposed under 35‑A M.R.S. §7104-B(2-A).

The Commission will calculate the amount of the Prepaid Wireless Fee that is deposited into each fund account by determining the percentage of the total Prepaid Wireless Fee that is attributable to each component of the Prepaid Wireless Fee (the MUSF, MTEAF and E-9‑1-1 surcharge) and multiplying the appropriate percentage by the total amount remitted into the Prepaid Wireless Fee Fund by the State Tax Assessor.

§6 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utilities, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 101, 111, 7104, 7104-B, P.L. 2011, ch. 600, and P.L. 2017, ch. 244.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 7, 2012. It was filed with the Secretary of State on September 10, 2012 (filing 2012-262) and became effective on September 15, 2012.
• EFFECTIVE DATE: The rule as amended was approved as to form and legality by the Attorney General on February 28, 2018. It was filed with the Secretary of State on March 10, 2018 (filing 2018-035) and became effective on March 10, 2018.

Chapter 285 Maine Telecommunications Education Access Fund

Code Me. R. 65-407 Ch. 285 Maine Telecommunications Education Access Fund {#sec-65-407-ch.-285 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 285}

SUMMARY: This Chapter implements the provisions of 35-A M.R.S. §7104‑B and describes the process for telecommunications carriers to contribute to the Maine Telecommunications Education Access Fund.

§ 1 PURPOSE AND APPLICABILITY 3

§ 2 DEFINITIONS 3

§ 3 ASSESSMENT 4

A. Required Contributions 4

B. Reporting and Remittance 4

C. Establishment of Contribution Amount 5

D. Administrator 6

§ 4 RECOVERY OF CONTRIBUTIONS FROM RETAIL CUSTOMERS 6

A. Collection From Retail Customers; Surcharge 6

B. Identification of Surcharge 6

§ 5 USE OF FUNDS 6

A. Recommendation of Department of Education (DOE) and

Maine State Library (MSL) 6

B. Review of Recommendation 6

C. Commission Order 6

§ 6 WAIVER OR EXEMPTION 7

§ 1 PURPOSES AND APPLICABILITY

This Chapter establishes the Maine Telecommunications Education Access Fund (MTEAF or the Fund), requires that voice network service providers must contribute to the MTEAF, establishes the reporting and payment requirements that must be followed by the contributing entities to the MTEAF, and establishes the criteria for use of the Fund to meet the guidelines contained in 35-A M.R.S. §7104-B. Pursuant to the provisions of this Chapter, all voice network service providers, as defined in this Chapter, shall report the number of their active voice exchange lines or their number of active voice customers who maintain a registered location in Maine, or whose place of primary use is in Maine, shall contribute into the MTEAF, and may recover their contributions from their customers.

§ 2 DEFINITIONS

A. Basic Service Calling Area. A "Basic Service Calling Area" is the area that a local exchange subscriber may call without toll charges, as defined in Chapter 204 of the Commission's Rules.

B. Billing Account Number. "Billing Account Number" or "BAN" is a unique number used by telecommunications service providers to designate a specific customer account or customer location to be billed.

C. Competitive Local Exchange Carrier (CLEC). A "competitive local exchange carrier" or "CLEC" is any LEC that is not an ILEC.

D. Dark fiber provider. "Dark fiber provider" means a person, its lessees, trustees, receivers or trustees appointed by any court, owning, controlling, operating or managing federally supported dark fiber that: (a) offers its federally supported dark fiber on an open-access basis without unreasonable discrimination as confirmed in a schedule of rates, terms and conditions filed for informational purposes with the commission; (b) is required to conduct its business subject to restrictions established and enforced by the Federal Government pursuant to Title VI of the federal American Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 115 (2009) and to grant security interests to the Federal Government under that Act; and (c) does not transmit communications for compensation inside this State.

E. Exchange Access."Exchange access" means the offering of access to telephone exchange services or facilities for the purpose of the origination or termination of telephone toll services.

F. Fund Administrator. The “Fund Administrator” is an independent fiscal agent that is not a state entity, and that is selected by the Commission through a state-approved Request For Proposals procedure, and that contracts with the Commission to provide all services necessary to administer and manage the MTEAF.

G. Home Service Provider. A "Home Service Provider" is the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

H Incumbent Local Exchange Carrier (ILEC). "Incumbent local exchange carrier" or "ILEC" means, with respect to an area, the local exchange carrier that on February 8, 1996 provided telephone exchange service in the area and: (a) On February 8, 1996 was deemed to be a member of the exchange carrier association pursuant to 47 Code of Federal Regulations, Section 69.601(b); or (b) Is a person or entity that, on or after February 8, 1996, became a successor or assign of a member described in (a) above.

I. Interconnected Voice over Internet Protocol Service (Interconnected VoIP). “Interconnected Voice over Internet Protocol Service” or “interconnected VoIP” means a service that enables real-time, two-way voice communications; requires a broadband connection from the user’s location; requires internet protocol-compatible customer premises equipment (CPE); and permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

J. Line. A "line" is any wired or wireless connection capable of real-time concurrent inbound or outbound voice communication calls that are made or received to or from the public switched telephone network. For the purposes of this Chapter, private branch exchange (PBX) lines and Centrex lines are considered to be lines. For the purposes of this Chapter, the number of lines a service provider provides to a subscriber shall be deemed to equal the number of inbound or outbound calls the subscriber can maintain at the same time using the service provider’s service.

K. Local Exchange Carrier (LEC). A "local exchange carrier" or "LEC" means any person that is engaged in the provision of telephone exchange service or exchange access. "Local exchange carrier" does not include a person insofar as that person is engaged in the provision of a commercial mobile service under 47 United States Code, Section 332(c), unless the commission by rule determines that the Federal Communications Commission includes such service in the definition of the term. "Local exchange carrier" does not include a person insofar as that person is engaged in the provision of interconnected voice over Internet protocol service unless the person is providing provider of last resort service. "Local exchange carrier" does include a person insofar as the person is a dark fiber provider.

L. Mobile Telecommunications Services. "Mobile telecommunications Services" means telecommunications services licensed by the Federal Communications Commission for mobile use.

M. Nomadic Interconnected Voice over Internet Protocol Service. “Nomadic Interconnected Voice over Internet Protocol Service” or “Nomadic interconnected VoIP service” is an interconnected VoIP service (defined herein) that permits users to make and receive calls from any location where the user can obtain access to a broadband connection that will permit connection to the interconnected VoIP service provider.

N. Place of Primary Use. The term “place of primary use” means the street address representative of where the customer’s use of mobile telecommunications services primarily occurs, which must be: (a) the residential street address or the primary business address of the customer, and (b) within the licensed service area of the home service provider.

O. Prepaid Wireless Telecommunications Service Provider. “Prepaid wireless telecommunications service provider” or "prepaid wireless provider" is a provider of prepaid wireless telecommunications service as defined in Title 25 M.R.S. §2921(14).

P. Provider of Last Resort Service. "Provider of Last Resort or "POLR Service" means a flat-rate service with voice grade access to the public switched telephone network; local usage within the basic service calling areas of the incumbent local exchange carriers as of January 1, 2012; dual-tone multifrequency signaling or its functional equivalent; single-party service or its functional equivalent; access to emergency services; access to operator services; access to interexchange services; access to directory assistance; toll limitation for qualifying low-income customers; and the capacity to maintain uninterrupted voice service during a power failure, either through the incorporation into the network or network interface devices of suitable battery backup or through electric current.

Q. Public Switched Telephone Network (PSTN). "Public Switched Telephone Network" or "PSTN" is the worldwide voice telephone network accessible to all those with telephones

R. Qualified Library. “Qualified library” means a public library as defined in 27 M.R.S. §110(10); research center as defined in 27 M.R.S. §110(12); or a library that provides free public access to all advanced telecommunications services available at that library and whose collection serves as a statewide resource, if the Commission determines, in consultation with the Maine Library Commission, that including that library as a qualified library is in the public interest. For purposes of this Rule, qualified library includes the Raymond H. Fogler Library at the University of Maine.

S. Qualified School. “Qualified school” means a public school as defined in 20-A M.R.S. §1(24), including alternative programs as provided for in 20-A M.R.S. §4729; a private school approved under 20-A M.R.S. §2901 or §2951; or a school that provides free public access to all advanced telecommunications services available at that school, if the Commission determines, in consultation with the Department of Education, that including that school as a qualified school is in the public interest.

T. Registered Location. Registered Location means the most recent information obtained by an interconnected VoIP service provider that identifies the physical location of an end user.

U. Telecommunications. "Telecommunications" means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.

V. Telecommunications Carrier. "Telecommunications carrier" means any provider of telecommunications services, except that it does not include aggregators of telecommunications services which, in the ordinary course of their operations, make telephones available to the public or to transient users of their premises using a provider of operator services.

W. Telecommunications Service. "Telecommunications service" means the offering of telecommunications for a fee directly to the public, or to such class of users as to be effectively available directly to the public, regardless of the facilities used.

X. Telephone Exchange Service. "Telephone exchange service" means (A) service within a telephone exchange, or within a connected system of telephone exchanges within the same exchange area operated to furnish to subscribers intercommunicating service of the character ordinarily furnished by a single exchange, and which is covered by the exchange service charge, or (B) comparable service provided through a system of switches, transmission equipment or other facilities, or combination thereof, by which a subscriber can originate and terminate a telecommunications service.

Y. Voice Network Service Provider. “Voice Network Service Provider” means a voice service provider that offers its subscribers the means to initiate or receive voice communications using the public switched telephone network.

Z. Working Telephone Number. A "Working Telephone Number" is an active ten-digit telephone number that (1) is compliant with the guidelines established by the North American Numbering Plan Administrator for use by a voice network service provider; (2) has been assigned to an end-user customer of the voice network service provider; and (3) is capable of receiving voice traffic from, or originating voice traffic to, the Public Switched Telephone Network.

§ 3 ASSESSMENT

A. Required Contributions

Each of the following voice network service providers who provide service to end-user retail customers in Maine shall report the number of their Lines or Working Telephone Numbers in Maine and shall contribute to the MTEAF under the provisions contained in Subsections B and C of this Section: local exchange carriers, interconnected voice over Internet protocol service providers, and providers of mobile telecommunications services.

B Reporting and Remittance

1. Local Exchange Carriers

Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each local exchange carrier shall report to the Fund Administrator on forms provided by the Fund Administrator the number of its Lines, including Centrex and PBX lines, or Working Telephone Numbers that are providing voice telephone service in Maine at the end of each month of the preceding quarter.

2. Providers of Interconnected VoIP Service

Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each provider of interconnected VoIP service shall report to the Fund Administrator on forms provided by the Fund Administrator the number, at the end of each month of the preceding calendar quarter, of its active interconnected VoIP Lines or Working Telephone Numbers that have a registered location within Maine. Providers of interconnected VoIP service must adhere to the requirements of 47 CFR §9.5(d).

3. Providers of Mobile Telecommunications Services

Subject to the limitation provided by Subsection B (4) of this Section, within thirty days after the end of each calendar quarter, each provider of mobile telecommunications services, except for prepaid wireless providers, shall report to the Fund Administrator on forms provided by the Fund Administrator for the end of each month of the preceding quarter the number of its mobile telecommunications services Lines or Working Telephone Numbers whose place of primary use is in Maine.

4. Limitation on Reporting by Billing Account Number

For the purposes of Subsections B (1), (2), and (3) of this Section, the reporting service provider shall not report more than twenty-five Lines or Working Telephone Numbers per active Billing Account Number.

5. Contribution Calculation and Remittance

Each service provider that must report its lines or customers to the Fund Administrator under the provisions of Subsections B (1), (2), or (3) of this Section, subject to the limitation provided by Subsection B (4), of this Section shall calculate its required contribution to the MTEAF by multiplying the number of Lines or Working Telephone Numbers reported for each month by the Contribution Amount established by the Commission under the provisions of Subsection C of this Section. The service provider must remit its required contribution to the Fund Administrator under procedures established by the Fund Administrator at the time its files its required report for each quarter.

6. Confidentiality

For the purposes of this Chapter, the counts of Lines or Working Telephone Numbers that must be reported to the Fund Administrator pursuant to the provisions of Subsections B (1), (2), or (3) of this Section will be considered Confidential Business Information, pursuant to the provisions of 35-A M.R.S. §1311-A(1).

C. Establishment of Contribution Amount. The Commission shall establish an amount per Line or per Working Telephone Number that does not exceed the amount permitted by 35-A M.R.S. §7104-B to be contributed by the voice network service providers specified in Subsection A of this Section. In establishing the contribution amount, the Commission shall consider the needs of schools and libraries based on the recommendation of the Department of Education (DOE) and the Maine State Library (MSL) as required in Section 4(A) of this Chapter; the amount collected in prior periods; the balance in the MTEAF account maintained by the Fund Administrator; and the impact on ratepayers. The Fund Administrator may recommend that the Commission add a specified amount for amounts calculated as due from contributors that may be uncollected, provided that the maximum amount that may be collected from contributors does not exceed the amount permitted by 35-A M.R.S. §7104-B(3). The Commission shall, by order, determine the effective date of the initial per line, per number or per customer amount established by the Commission pursuant to this paragraph, and that effective date shall be the beginning of the subsequent calendar quarter that is at least ninety days after the date of the order. The Commission shall determine any subsequent change to the contribution amount at least sixty days prior to the effective date of the change.

D. Administrator. The Commission shall contract with an appropriate independent fiscal agent to serve as Fund Administrator. Voice network service providers shall report and remit their required contributions to the Fund Administrator quarterly as specified in Subsection B of this Section. The Fund Administrator shall provide the forms and instructions for reporting and payment. In addition, the Fund Administrator shall establish the timing and procedures for reporting and payment after consultation with the Director of Telephone and Water Utility Industries.

§ 4 RECOVERY OF CONTRIBUTIONS FROM RETAIL CUSTOMERS

A. Collection from Retail Customers; Surcharge. Each contributing voice network service provider may recover its contributions to the MTEAF from its retail customers by applying a surcharge to its customers' bills that is no higher than the amount established by the Commission pursuant to Subsection 3(C) of this Chapter. Any surcharge imposed by a voice network service provider may not be applied to more than 25 lines or numbers per Billing Account Number.

B. Identification of Surcharge. Any surcharge implemented pursuant to this Section shall be included on customers’ bills as a separate line item and be identified as “School and Library Fund surcharge.” This provision does not apply to carriers that do not provide bills or other statements of charges (written or electronic) to their customers;

§ 5 USE OF FUNDS

A. Recommendation of Department of Education (DOE) and Maine State Library (MSL ). No later than March 1 of each year, the DOE and MSL shall jointly file a proposal describing any funding requested from the MTEAF for the following fiscal year, beginning July 1. The filing should explain how the proposal meets the criteria and guidelines set forth in 35-A M.R.S. §7104‑B and how schools and libraries will meet the requirements concerning Federal E-Rate contained in 35-A M.R.S. §7104-B(6).

B. Review of Recommendation. The Commission will seek comments from interested persons, including, but not limited to, the Maine Office of the Public Advocate, voice network service providers, internet service providers, cable TV operators, and school and library administrators, on the proposal. The Commission shall consider those comments in reaching any decision on spending for the following year. The Commission may request the MSL and DOE to respond to comments or to revise their proposal based on those comments.

C. Commission Order. The Commission shall issue an Order by May 1 of each year establishing a budget, which will authorize the use of MTEAF funds for the following fiscal year. The Commission may modify the spending allowed under the budget during the course of the fiscal year upon a request from the MSL and DOE, or upon its own motion, if it finds that unexpected or unforeseen events have occurred or are expected to occur during the pendency of the fiscal year. The Order shall also establish a level of funding for libraries that do not apply for Federal E-Rate, as permitted by 35-A M.R.S. §7104-B(6)(A).

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 7104-B.
• EFFECTIVE DATE: The original rule was approved as to form and legality by the Attorney General on August 21, 2000. It was filed with the Secretary of State on August 21, 2000 and became effective on August 26, 2000 (filing 2000-358).
• EFFECTIVE DATE: The rule as amended was approved as to form and legality by the Attorney General on March 19, 2003. It was filed with the Secretary of State on March 27, 2003 and became effective on April 1, 2003 (filing 2003-82).
• EFFECTIVE DATE: The rule as amended was approved as to form and legality by the Attorney General on September 27, 2007. It was filed with the Secretary of State on September 28, 2007 and became effective on October 3, 2007 (filing 2007-422).
• EFFECTIVE DATE: The rule as amended was approved as to form and legality by the Attorney General on August 8, 2011. It was filed with the Secretary of State on August 10, 2011 and became effective on August 15, 2011 (filing 2011-263).
• EFFECTIVE DATE: The rule as amended was approved as to form and legality by the Attorney General on February 16, 2018. It was filed with the Secretary of State on February 20, 2018 and becomes effective on July 1, 2018 (filing 2018-028).
• EFFECTIVE DATE: This chapter as amended was approved as to form and legality by the Attorney General on July 29, 2019. It was filed with the Secretary of State on July 30, 2019 and became effective on August 4, 2019 (filing 2019-141).

Chapter 288 Maine Universal Service Fund

Code Me. R. 65-407 Ch. 288 Maine Universal Service Fund {#sec-65-407-ch.-288 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 288}

SUMMARY: The purpose of this Chapter is to provide "high cost" support for those local exchange telephone companies that are not able to maintain affordable and reasonably comparable local service rates without that support and to provide support for other requirements established by law.

A. Collection from Customers; Surcharge 11

B. Identification of Surcharge 11

§ 7 WAIVER OF PROVISIONS OF CHAPTER 11

§ 1 PURPOSE

The purposes of the Maine Universal Service Fund (MUSF or Fund) implemented pursuant to this Chapter are:

A. Promotion and Encouragement of Universal Service and Reasonable Rates. To ensure that provider of last resort (POLR) telephone service is available to consumers throughout all areas of the State at reasonably comparable rates by providing support from the Fund to non-price cap incumbent local exchange carriers, or any successor entities, that provide POLR service; and

B. Other Supported Uses. To provide support for other services, functions or activities pursuant to authorization provided in 35-A M.R.S. §7104(5), (6), and (7).

§ 2 DEFINITIONS

A. Access Charges. "Access charges" and "access rates" are those charges and rates that an IXC must pay to LECs for using the LECs' facilities to originate and terminate intrastate interexchange service in Maine.

B. Basic Service Calling Area. A "Basic Service Calling Area" is the area that a local exchange subscriber may call without toll charges, as defined in Chapter 204 of the Commission's Rules.

C. Billing Account Number. "Billing Account Number" or "BAN" is a unique number used by telecommunications service providers to designate a specific customer account or customer location to be billed.

D. Competitive Local Exchange Carrier (CLEC). A "competitive local exchange carrier" or "CLEC" is any LEC that is not an ILEC.

E. Dark fiber provider. "Dark fiber provider" means a person, its lessees, trustees, receivers or trustees appointed by any court, owning, controlling, operating or managing federally supported dark fiber that: (a) offers its federally supported dark fiber on an open-access basis without unreasonable discrimination as confirmed in a schedule of rates, terms and conditions filed for informational purposes with the commission; (b) is required to conduct its business subject to restrictions established and enforced by the Federal Government pursuant to Title VI of the federal American Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 115 (2009) and to grant security interests to the Federal Government under that Act; and (c) does not transmit communications for compensation inside this State.

F. Eligible Telecommunications Carrier (ETC ). An "eligible telecommunications carrier" or "ETC" is a carrier designated by this Commission as eligible to receive universal service support pursuant to the provisions of 47 U.S.C §214(e).

G. Exchange Access."Exchange access" means the offering of access to telephone exchange services or facilities for the purpose of the origination or termination of telephone toll services.

H. Fund Administrator. The "Fund Administrator" is an independent fiscal agent that is not a state entity, and that is selected by the Commission through a state-approved Request For Proposals procedure, and that contracts with the Commission to provide all services necessary to administer and manage the MUSF.

I. Home Service Provider. A "Home Service Provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

J. Incumbent Local Exchange Carrier (ILEC). "Incumbent local exchange carrier" or "ILEC" means, with respect to an area, the local exchange carrier that on February 8, 1996 provided telephone exchange service in the area and: (a) On February 8, 1996 was deemed to be a member of the exchange carrier association pursuant to 47 Code of Federal Regulations, Section 69.601(b); or (b) Is a person or entity that, on or after February 8, 1996, became a successor or assign of a member described in (a) above.

K. Interconnected Voice over Internet Protocol Service (Interconnected VoIP). "Interconnected Voice over Internet Protocol Service" or "interconnected VoIP" means a service that enables real-time, two-way voice communications; requires a broadband connection from the user's location; requires internet protocol-compatible customer premises equipment (CPE); and permits users generally to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

L. Intrastate Interexchange Carrier (IXC). An "intrastate interexchange carrier" or "IXC" is any person, association, corporation, or other entity that provides intrastate interexchange telecommunications services, including a local exchange carrier that provides interexchange service.

M. Intrastate Service. An "intrastate service" is the provision of a telecommunications service that is functionally intrastate, with points of origination and termination within Maine, regardless of the actual routing of the communication. In the case of mobile telecommunications and paging services, the points of origination and termination of the communication shall be assumed to be the antenna locations at which the carrier acquires and passes on the end user's signal, unless the actual location of the end user can be determined.

N. Line. A "line" is any wired or wireless connection capable of real-time concurrent inbound or outbound voice communication calls that are made to or received from the public switched telephone network. For the purposes of this Chapter, private branch exchange (PBX) lines and Centrex lines are considered to be lines. For the purposes of this Chapter, the number of lines a service provider provides to a subscriber shall be deemed to equal the number of inbound or outbound calls the subscriber can maintain at the same time using the service provider’s service.

O. Local Exchange Carrier (LEC). A "local exchange carrier" or "LEC" means any person that is engaged in the provision of telephone exchange service or exchange access. "Local exchange carrier" does not include a person insofar as that person is engaged in the provision of a commercial mobile service under 47 United States Code, Section 332(c), unless the commission by rule determines that the Federal Communications Commission includes such service in the definition of the term. "Local exchange carrier" does not include a person insofar as that person is engaged in the provision of interconnected voice over Internet protocol service unless the person is providing provider of last resort service. "Local exchange carrier" does include a person insofar as the person is a dark fiber provider.

P. Mobile Telecommunications Services. "Mobile telecommunications Services" means telecommunications services licensed by the Federal Communications Commission for mobile use.

Q. Nomadic Interconnected Voice over Internet Protocol Service. "Nomadic Interconnected Voice over internet Protocol Service" or "Nomadic interconnected VoIP service" is an interconnected VoIP service that permits users to make and receive calls from any location where the user can obtain access to a broadband connection that will permit connection to the interconnected VoIP service provider.

R. Place of Primary Use. "Place of Primary Use" means the street address representative of where the customer's use of the mobile telecommunications services primarily occurs, which must be: (a) the residential street address or the primary business street address of the customer; and (b) within the licensed service area of the home service provider.

S. Prepaid Wireless Telecommunications Service Provider. "Prepaid wireless telecommunications service provider" or "prepaid wireless provider" is a provider of prepaid wireless telecommunications service as defined in Title 25 M.R.S. §2921(14)

T. Price Cap Incumbent Local Exchange Carrier. "Price cap incumbent local exchange carrier" or "price cap ILEC' means an incumbent local exchange carrier that agreed to accept Connect America Fund Phase II support pursuant to the Federal Communications Commission's Report and Order released on December 18, 2014, in In the Matter of Connect America Fund, WC Docket No. 10-90, FCC 14-190, for locations within the State on or before January 1, 2016 and does not receive funding from a state universal service fund under section 7104.

U. Provider of Last Resort Service. "Provider of Last Resort or "POLR Service" means a flat-rate service with voice grade access to the public switched telephone network; local usage within the basic service calling areas of the incumbent local exchange carriers as of January 1, 2012; dual-tone multifrequency signaling or its functional equivalent; single-party service or its functional equivalent; access to emergency services; access to operator services; access to interexchange services; access to directory assistance; toll limitation for qualifying low-income customers; and the capacity to maintain uninterrupted voice service during a power failure, either through the incorporation into the network or network interface devices of suitable battery backup or through electric current.

V. Public Switched Telephone Network (PSTN). "Public Switched Telephone Network" or "PSTN" is the worldwide voice telephone network accessible to all those with telephones.

W. Radio Paging Service. "Radio paging service" is a service provided by a communications common carrier engaged in rendering signaling communications. Signaling communication is one-way communication from a base station to a mobile or fixed receiver, or to multipoint mobile or fixed receivers by audible or subaudible means, for the purpose of activating a signaling device in the receiver or communicating information to the receiver, whether or not the information is to be retained in record form. Radio paging service is limited to the following types of communications: (a) An optical readout paging service is one which communicates a message to a receiver which displays the message on an optical or tactile readout, either in a permanent form or a temporary form; (b) A tone only paging service is one which activates an aural, visual or tactile signaling device when received; or (c) A tone-voice paging service is one which transmits tone to activate a signaling device and audio circuit in the addressed receiver, following which a voice-grade signal is transmitted, to be amplified by the audio circuit.

X. Registered Location. "Registered Location" means the most recent information obtained by an interconnected VoIP service provider that identifies the physical location of an end user.

Y. Telecommunications. "Telecommunications" means the transmission, between or among points specified by the user, of information of the user's choosing, without change in the form or content of the information as sent and received.

Z. Telecommunications Carrier. "Telecommunications carrier" means any provider of telecommunications services, except that it does not include aggregators of telecommunications services which, in the ordinary course of their operations, make telephones available to the public or to transient users of their premises using a provider of operator services.

AA. Telecommunications Service. "Telecommunications service" means the offering of telecommunications for a fee directly to the public, or to such class of users as to be effectively available directly to the public, regardless of the facilities used.

BB. Telephone Exchange Service. "Telephone exchange service" means (A) service within a telephone exchange, or within a connected system of telephone exchanges within the same exchange area operated to furnish to subscribers intercommunicating service of the character ordinarily furnished by a single exchange, and which is covered by the exchange service charge, or (B) comparable service provided through a system of switches, transmission equipment or other facilities, or combination thereof, by which a subscriber can originate and terminate a telecommunications service.

CC. Voice Network Service Provider. "Voice Network Service Provider" means a voice service provider that offers its subscribers the means to initiate or receive voice communications using the public switched telephone network.

DD. Working Telephone Number. A "Working Telephone Number" is an active ten-digit telephone number that (1) is compliant with the guidelines established by the North American Numbering Plan Administrator for use by a voice network service provider; (2) has been assigned to an end-user customer of the voice network service provider; and (3) is capable of receiving voice traffic from, or originating voice traffic to, the Public Switched Telephone Network.

§ 3 ELIGIBILITY AND FILING REQUIREMENTS

A. Eligible Applicants. To be eligible to apply for support from the MUSF, a carrier must be:

1. A non-price cap incumbent local exchange carrier that provides POLR service, or a successor provider of POLR service designated by the Commission; and

2. Found by the Commission to be an Eligible Telecommunications Carrier.

B. Application for Universal Service Funding or Change in Funding.

1. Filing. A non-price cap incumbent local exchange carrier (ILEC) that intends to request universal service funding or a change in the amount of funding shall file an application requesting the funding or change in funding. The application must demonstrate:

a. that the non-price cap ILEC's cost of providing POLR service is greater than the current POLR rate charged by the ILEC;

b. that the non-price cap ILEC's total intrastate revenue requirement exceeds the amount of intrastate revenue that the ILEC receives under its current rates and prices; or

c. that the non-price cap ILEC's total combined (intrastate and interstate) revenue requirement exceeds the total amount of revenue that the ILEC receives from all services under its current rates and prices.

2. Additional Requirements. If the non-price-cap ILEC files its application using the demonstration described in Subsection B (1)(a) of this Section, the ILEC must also demonstrate that raising its POLR rate to the level necessary to meet its cost of providing POLR service would result in a POLR rate that is not reasonably comparable. If the non-price cap ILEC files its application using the demonstrations described in Subsections B (1)(b) or B (1)(c) of this Section, the non-price cap ILEC must also:

demonstrate that it has maximized the revenues that it obtains from all intrastate services, other than POLR service, or all services, as applicable;

demonstrate that it has reduced to the lowest reasonably prudent level its costs necessary to provide safe and adequate service;

propose to raise its POLR rate to a reasonably comparable level; and

establish intrastate access rates that meet the requirements of 35-A M.R.S. §7101-B and any requirements established by the Commission pursuant to 35-A M.R.S. §7101-B(2)(C).

3. Contents

a. A non-price cap ILEC that files an application using the demonstration described in Subsection B (1)(a) of this Section must also provide complete support for its asserted cost of providing POLR service.

b. A non-price cap ILEC that files an application using the demonstrations described in Subsections B (1)(b) or B (1)(c) of this Section, shall also contain all information required by Chapter 120, Section 5 of the Commission's Rules, except to the extent waived pursuant to Section 7 of this Chapter.

C. Support for Successor Providers. In the event that a non-price cap ILEC is relieved of its POLR service obligation, and the Commission designates a successor entity to provide POLR service in the relieved provider's service territory, the successor entity shall initially receive the same amount of MUSF support as the non-price cap ILEC received at the time it was relieved of its POLR obligation. The successor entity may request a change in the amount of its MUSF support pursuant to the requirements applicable to a non-price cap ILEC under Subsection (B of this Section.

D. Order Establishing Amount of Support. Following any application or rate proceeding required by this Section or any adjustment or order for support permitted by this Section, the Commission shall issue an order establishing the amount of payments that a provider of POLR service is authorized to receive from the Fund and, if necessary, a schedule for the implementation of the rate for POLR service.

E. Adjustments Without Further Rate Proceeding. At any time after the initial establishment of the MUSF support level for a provider of POLR service, the Commission, without an additional proceeding pursuant to B of this Section, but after notice and such procedure as required by law, may adjust the amount of support provided from the Fund to accommodate substantial and direct changes in the cost of providing POLR service, or in the case of a POLR provider who received an adjustment of its MUSF support amount pursuant to the provisions of Subsection B (1)(b) or (c) of this Section, in costs and revenues of a provider of POLR service. The Commission may consider changes in:

1. access charges;

2. the amount of federal high cost support;

3. the Basic Service Calling Area of the provider;

4. federal or Maine regulatory rules or policies, accounting practices, tax laws, or other legislatively or judicially imposed requirements to the extent these changes have a direct and specific effect on telecommunications carriers collectively or individually; or

5. such other items the Commission considers to be appropriate.

F. Adjustments for Other Reasons. To change the amount of payments that a provider of POLR service receives from the Fund for reasons other than those listed in Section 3(E), the Commission shall conduct a proceeding that is appropriate to address the type of change under consideration.

§ 4 THE FUND

A. Fund Administrator. The Commission will select and contract with a Fund Administrator that is not a state entity and is not a telecommunications entity (or an affiliated interest thereof) that contributes to or receives money from the Fund. The Fund Administrator will act as agent for the Commission and will administer the Fund solely under the direction of the Commission.

B. Amount of Fund; Adjustments to MUSF Contribution Amount. On a quarterly basis, the Fund Administrator will calculate the total Fund Costs, which shall be equal to the amount of contributions necessary for Commission ordered support payments to providers of POLR service, other payments required or authorized by 35-A M.R.S. §7104, any other payments required by law, and administrative costs of the Fund. The Fund Administrator may also include an additional amount, not to exceed one percent of the total Fund Costs, to account for amounts due from contributors that may be uncollected. The Fund Administrator will recalculate the total Fund Costs quarterly, pursuant to Commission Orders described in Section 3 and changes in Fund Costs otherwise required by law or by order of the Commission. The Commission may also require the Administrator to collect in a subsequent quarter any additional Fund Costs that became effective in a previous quarter but that were not included in the Fund Costs for the previous quarter. Based on the total Fund Costs and the history and trend of reported Lines or Working Telephone Numbers, the Fund Administrator will calculate a recommended MUSF Contribution Amount, which will be stated as a monthly per Line or per Working Telephone Number amount. Any recommendation that changes the then-current monthly per Line or per Working Telephone Number amount will be docketed, sent out for comments, and placed on the Commission's deliberations agenda for its consideration. Any change in the MUSF Contribution Amount will become effective pursuant to Commission Order.

C. Disbursements from the Fund. The Fund Administrator will disburse the authorized support payments to POLR providers from the Fund in quarterly installments and payments to other recipients as required or authorized by law.

D. Electronic Processing. To the extent practicable, the Administrator shall implement an electronic system for reporting of Lines or Working Telephone Numbers, payments by contributors, and disbursements from the Fund.

§ 5 ASSESSMENT

A. Required Contributions

Beginning with the calendar quarter which starts on October 1, 2019, each of the following voice network service providers who provide service to end-user retail customers in Maine shall report the number of its Lines or the number of its Working Telephone Numbers assigned to customers located in Maine and shall contribute to the MUSF under the provisions contained in Subsection B of this Section: Local Exchange Carriers, Interconnected Voice over Internet Protocol Service Providers, and Mobile Telecommunications Service Providers.

Prior to January 1, 2020, local exchange carriers, interconnected voice over Internet protocol service providers, and mobile telecommunications service providers shall continue to make contributions to the Fund using the procedures in place on December 1, 2018.

B. Reporting and Remittance

1. Local Exchange Carriers

Subject to the limitation provided by Subsection 5(B)(4) of this Chapter, within thirty days after the end of each calendar quarter, each local exchange carrier shall report to the Fund Administrator on forms provided by the Fund Administrator the number of its active residential and business Lines or Working Telephone Numbers, including those assigned to Centrex and PBX lines, that were providing voice telephone service in Maine at the end of each month of the preceding quarter.

2. Providers of Interconnected VoIP Service

Subject to the limitation provided by Subsection 5(B)(4) of this Chapter, within thirty days after the end of each calendar quarter, each provider of interconnected VoIP service shall report to the Fund Administrator on forms provided by the Fund Administrator the number, at the end of each month of the preceding calendar quarter, of its active interconnected VoIP Lines or Working Telephone Numbers that had a registered location within Maine. Providers of interconnected VoIP service must adhere to the requirements of 47 C.F.R. §9.5(d).

3. Providers of Mobile Telecommunications Services

Subject to the limitation provided by Subsection 5(B)(4) of this Chapter, within thirty days after the end of each calendar quarter, each provider of mobile telecommunications services, except for prepaid wireless providers, shall report to the Fund Administrator on forms provided by the Fund Administrator for the end of each month of the preceding quarter the number of its Lines or Working Telephone Numbers assigned to mobile telecommunications end-user customers whose place of primary use was in Maine.

4. Limitation on Reporting by Billing Account Number

For the purposes of Subsections 5(B)(1), (2), and (3) of this Chapter, the reporting voice network service provider shall not report more than twenty-five Lines or Working Telephone Numbers per active Billing Account Number.

5. Contribution Calculation and Remittance

Within twenty days after the end of each calendar quarter, each voice network service provider that must report its Lines or Working Telephone Numbers to the Fund Administrator, using the forms and instructions promulgated by the Fund Administrator and under the provisions of Subsections B (1), (2), or (3) of this Section, subject to the limitation provided by Subsection B (4), of this Section, shall calculate its required contribution to the MUSF by multiplying the number of Lines or Working Telephone Numbers reported for each month by the Contribution Amount established by the Commission under the provisions of Subsection 4(B) of this Chapter. The voice network service provider must remit its required contribution to the Fund Administrator under procedures established by the Fund Administrator at the time it files its required report for each quarter.

6. Confidentiality

For the purposes of this Chapter, the counts of Lines or Working Telephone Numbers that must be reported to the Fund Administrator pursuant to the provisions of Subsections 5(B)(1), (2), or (3) of this Chapter will be considered Confidential Business Information, pursuant to the provisions of 35-A M.R.S. §1311-A(1).

7. Calculation of Prepaid Wireless Fee Percentage

For the purposes of calculating the Prepaid Wireless Fee (PWF) percentage pursuant to 35-A M.R.S. §7104(3-A), the Contribution Amount determined pursuant to Subsection 4(B) of this Chapter shall be divided by twenty-five dollars. The resulting percentage shall be used to calculate the amount of MUSF included in the PWF.

§ 6 RECOVERY OF CONTRIBUTIONS FROM RETAIL CUSTOMERS

A. Collection from Retail Customers; Surcharge. Each contributing voice network service provider, except for providers of prepaid wireless service, may recover its contributions to the MUSF from its retail customers by applying a surcharge to its customers' bills that is no higher than the amount established by the Commission pursuant to Subsection 4(B) of this Chapter. Any surcharge imposed by a voice network service provider may not be applied to more than 25 Lines or Working Telephone Numbers per Billing Account Number.

B. Identification of Surcharge. Any surcharge implemented pursuant to this Section shall be included on customers' bills as a separate line item and be identified as "Maine Universal Service Fund surcharge." This provision does not apply to any voice network service provider that does not provide bills or other statements of charges (written or electronic) to its customers.

§7 WAIVER OF PROVISIONS OF CHAPTER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 7104
• EFFECTIVE DATE: The original rule was approved as to form and legality by the Attorney General on July 23, 2001. It was filed with the Secretary of State on July 24, 2001 (filing 2001-281) and became effective on July 29, 2001.
• AMENDED: approved as to form and legality by the Attorney General on March 19, 2003. It was filed with the Secretary of State on March 27, 2003 (filing 2003-83) and became effective on April 1, 2003.
• AMENDED: approved as to form and legality by the Attorney General on August 8, 2011. It was filed with the Secretary of State on August 10, 2011 (filing 2011-264) and became effective on August 15, 2011.
• AMENDED: This chapter was approved as to form and legality by the Attorney General on December 18, 2018. It was filed with the Secretary of State on December 19, 2018 and became effective on December 24, 2018 (filing 2018-272).
• AMENDED: This chapter was approved as to form and legality by the Attorney General on July 29, 2019. It was filed with the Secretary of State on July 30, 2019 and became effective on August 4, 2019 (filing 2019-142).

Chapter 289 Requirements and Terms for Bundled Services Offered by Incumbent Local Exchange Carriers

Code Me. R. 65-407 Ch. 289 Requirements and Terms for Bundled Services Offered by Incumbent Local Exchange Carriers {#sec-65-407-ch.-289 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 289}

SUMMARY: This Chapter establishes consumer protection requirements associated with the provision of bundled services by Incumbent Local Exchange Carriers (ILECs); establishes methods for recording revenue from bundled services; establishes the upper and lower limits of bundled service prices that will result in predictable regulatory treatment of revenues; and establishes the treatment of certain consumer programs.

§ 1 PURPOSES

It is the purpose of this Chapter to:

A. Establish minimum consumer protection standards. Establish minimum consumer protection standards that all ILECs must meet when offering a bundled service. An ILEC may provide greater levels of consumer protection than those established in this Chapter.

B. Establish financial treatment of revenues. Establish methods for recording revenue from bundled services that will result in predictable regulatory treatment of those revenues, unless an ILEC is governed by an Alternative Form of Regulation.

C. Establish pricing parameters. Establish the lower limits of bundled service prices, unless an ILEC is governed by an Alternative Form of Regulation.

D. Establish the treatment of certain consumer programs. Establish the applicability of Lifeline, Link-Up, and discounted service for deaf, hard-of-hearing, and speech-impaired persons to all ILECs’ bundled services.

§ 2 DEFINITIONS

A. Account balance. "Account balance" is the total amount owed by a customer that has been billed in accordance with this Chapter.

B. Advance billing. "Advance billing" is a requirement that a customer prepay charges for services that will be provided during a specific, identifiable period in the future. Advance billing does not include any funds retained as a security deposit.

C. Amount overdue. "Amount overdue" is the amount that an ILEC has billed to a customer and that has not been paid by the due date of the bill or by a date otherwise agreed upon.

D. Basic service. "Basic service" is single-party service, voice grade access to the public switched telephone network, Dual Tone Multi-frequency or its functional digital equivalent, access to emergency services, access to operator services, access to interexchange service, access to directory assistance, and access to toll limitation. Basic service also includes all basic service attributes and standards mandated by federal and state statutes and Commission Rules.

E. Bill. "Bill" is a written statement (printed or electronic) from an ILEC to a customer that states the amount owed by the customer for the current billing period, the amount overdue, the account balance, late fees and any other charges owed by the customer.

F. Billed Account. "Billed account" is an account that is assigned a unique identification number by the ILEC for tracking purposes.

G. Bundled Service. “Bundled Service” means a single retail service offering that includes local exchange service and at least one additional service, and that is offered at a single price, except that for the purposes of this Chapter, a bundled service does not include a retail service offering composed of only local service and vertical features that are commonly associated with local service such as call waiting and voicemail.

H. Bundled Service Components. “Bundled Service Components” are the services that are included in a bundled service, whether or not they may be purchased separately. They may include but are not limited to local service, vertical features such as call waiting and voice mail, intrastate interexchange service, interstate interexchange service, broadband, internet access, wireless service, and video service.

I. Clear and Conspicuous. "Clear and conspicuous" is that which would be readily apparent to the average customer.

J. Commission. "Commission" is the Maine Public Utilities Commission.

L. Consumer Assistance Division. "Consumer Assistance Division" is the Consumer Assistance Division of the Maine Public Utilities Commission.

M. Customer. "Customer" is a person who has applied for, been accepted and is receiving bundled service in this State or has agreed to be billed for the same.

N. Deposit. "Deposit" is any funds, however designated, that are held as security for future payment or performance.

O. Dispute. "Dispute" is a grievance of a customer regarding an ILEC’s provision of service, application of Title 35-A, or any Commission rule.

P. Due date. "Due date" is the date by which payment must be received and after which the account is considered overdue.

Q. Incumbent Local Exchange Carrier. “ Incumbent Local Exchange Carrier” or “ILEC” is a local exchange carrier or its successor that provided local exchange service in a defined service territory in Maine on February 8, 1996 or that is designated as an ILEC pursuant to 47 U.S.C. §251(h)(2).

R. Lifeline/Link-Up. "Lifeline/Link-Up" is a program that provides financial assistance to qualifying low-income customers pursuant to Chapter 294 of the Commission's rules.

S. Local Exchange Service. “Local Exchange Service” is single-party service, voice grade access to the public switched telephone network.

T. Local Exchange Carrier. “Local Exchange Carrier” is any telephone utility that provides local exchange service.”

U. Residential service. "Residential service" is telecommunications service that is provided to a residence and used primarily for domestic purposes.

V. Service provider. "Service provider" is any entity that offers a product or service to a customer, the charge for which appears on the bill of the ILEC.

W. Toll service. For purposes of this Chapter, "toll service" is intrastate or interstate interexchange telecommunications service, but does not include unlimited intrastate or interstate service made as a component of bundled service.

X. Toll service provider. "Toll service provider" is any service provider that provides toll service to its customers.

§ 3 EMERGENCY MORATORIUM

When the Commission or the Director of the Consumer Assistance Division determines that, due to an emergency, termination of telecommunications service by one or more ILECs would present a clear danger to the health or safety of customers, the Commission or the Consumer Assistance Division Director may declare a partial or complete moratorium on the termination or disconnection of telecommunications service by any or all ILECs offering bundled service.

§ 4 NON-DISCRIMINATION

An ILEC shall provide service and apply credit and collections policies to customers receiving bundled service without discrimination on the basis of race, color, ancestry, sex, age, national origin, religion, marital status, receipt of public assistance or the exercise of rights under state or federal consumer protection laws and pursuant to the terms of 35-A M.R.S.A. §702 (1).

§ 5 UNFAIR OR DECEPTIVE PRACTICES

A. Deceptive names prohibited. An ILEC offering bundled service may not use a company name that is deceptive or unreasonably confusing to consumers.

B. Application of Maine Unfair Trade Practices Act. An ILEC offering bundled service shall not engage in conduct prohibited by the Maine Unfair Trade Practices Act, 5 M.R.S.A. §§ 205-A-214 and related consumer protection statutes.

§ 6 CUSTOMER PRIVACY

An ILEC offering bundled service shall comply with the Federal Communication Commission's Customer Proprietary Network Information Rules, 47 CFR §§ 64.2001-2009.

§ 7 INFORMATION DISCLOSURE

A. Before confirming the provision to a customer of a bundled service, an ILEC shall inform the customer:

1. Disconnection. That it may disconnect the bundled service of a customer for any reason not in violation of sections 4 and 5 of this Chapter, with 14-days notice to a residential customer and with 7-days notice to a nonresidential customer, with the exception that the customer must be transferred to basic service pursuant to section 11(C). If the ILEC charges a termination fee, it must disclose the existence and amount of the fee;

2. Calling area. Of the geographic area that will be included within the customer's bundled service calling area;

3. Pre-subscribed toll service and access to toll providers. Whether pre-subscribed toll service will be available and of any limitation regarding access to toll providers; and

4. Billing information. Of the billing period for the bundled service and any requirement for advance billing.

B. Lowest rate service plan. Upon the request of a customer receiving bundled service, an ILEC shall inform the customer of the lowest rate basic service plan available to that customer.

§ 8 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS

An ILEC shall provide customers with written confirmation of orders for bundled service generated by outbound sales calls. The written confirmation must include the specific terms and conditions for each bundled service ordered by the customer and must be provided no later than the time the customer receives the first bill for service. The written confirmation may be included with the first bill for services. Orders for bundled services generated by inbound calls from customers do not require written confirmation.

A. Services and fees.

1. Price, fees and terms and conditions. The written confirmation shall disclose the bundled service ordered by the customer with its separate price, late fees, fees for installation, disconnection, termination or cancellation, registration fees, and any other terms and conditions to which the customer is required to adhere.

2. Disputes. The written confirmation shall include instructions on how to dispute charges with the ILEC.

3. Price of service. The written confirmation shall include all relevant information necessary for the customer to calculate the full price of the bundled service.

B. Customer option to cancel order. Upon receipt of a written confirmation, a customer may, for any reason, cancel the order without penalty or further obligation. The customer shall pay or formally dispute any charges incurred prior to canceling the service.

C. Electronic confirmation. In situations where an ILEC solicits the sale of a bundled service electronically, e.g. using the Internet, the written confirmation may also be provided by similar electronic means.

D. Written contracts for services. To the extent that the requirements of this section are consistent with the information contained in a written contract for services between the ILEC and the customer, the written contract can serve as the written notice required by this section. Written confirmation of an order is required, however, in situations where the written contract does not address each of the requirements of section A above. In such situations, the written notice may include only the requirements not included in the written contract.

§ 9 NOTIFICATION OF PRICE INCREASES AND CHANGES IN TERMS AND CONDITIONS

A. Twenty-five day notice required. An ILEC must provide each of its customers at least 25 days written notice of any price increase or any change in the terms and conditions that will result in a price increase for a bundled service provided by the ILEC before the increase or change may take effect. A customer may terminate the bundled service without penalty at any time before the increase or change takes effect.

B. Adequate written notice. Written notice to customers of a price increase or change in terms and conditions that will result in a price increase provided in accordance with this section shall:

1. Form. Be in the form of a letter, a message on the bill, or a bill insert that contains only the notification language required by this section;

2. Readable and clear. Be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

3. Not included with promotional material. Be sent or provided independently of any advertising or promotional material of any kind;

4. Content of notice. Notify the customer of the amount of the increase and the date the increase will take effect; and

5. Right to cancel. Notify the customer of the customer's right to cancel the bundled service for which the price increase or change in terms and conditions that will result in a price increase applies prior to the increase or change taking effect.

C. Failure to provide adequate written notice. A customer who is not supplied with adequate written notice in accordance with this section is not obligated to pay for any increase in the bill attributable to an increase in price or change in terms and conditions.

D. Customer refund. An ILEC shall refund or credit any increase in the customer's payments attributable to an increase in price or change in terms and conditions if the ILEC fails to provide adequate written notice in accordance with this section.

E. Notice of Customer Rights. An ILEC shall provide notice to its customers of the requirement for notification of price increases, as well as the customer's right to not pay the increases and to be reimbursed for payments that are attributable to an increase in price or change in terms and conditions where the customer was not properly notified. The notice shall be:

1. Form. In the form of a letter or bill insert or in the ILEC’s directory and printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

2. Separate document. A separate document containing only the notification language required by this section;

3. Customer receiving a new bundled service. Provided to each customer at the time the customer first accepts a bundled service; and

4. Annual notice. Provided to each existing customer receiving a bundled serive on an annual basis.

F. Exception. This section does not apply to an increase or change in terms and conditions associated with an individual customer contract or promotional offering, provided the customer was notified before entering the contract or accepting the offer that the price or terms and conditions were subject to change.

§ 10 BILLING AND PAYMENT STANDARDS

A. Bill content. Each bill issued by an ILEC shall:

1. Identification of ILEC. Include a clear and conspicuous identification of the ILEC providing the customer's bundled service. If the ILEC has more than one name, the name appearing on the bill must be the name used to market the service;

2. Date. Identify the date that the bill is issued;

3. Balance. Identify the balance in each billed account at the beginning of the current billing cycle, using a term such as "previous balance;"

4. Charges debited for current billing cycle. Identify the amount of the charges debited to each billed account during the current billing cycle, using a term such as "current service;"

5. Payments made. Identify the amount of payments made to each billed account from the previous billing cycle, using a term such as "payments."

6. Charges debited for past charges. Identify the amount of the charges debited to each billed account during the current billing cycle for untimely payment of past charges, using a term such as "late charge;"

7. Closing dates and balance. Include the closing dates of the current billing cycle and the outstanding balance in each billed account on that date, specifying the "current amount due" and the "past due;"

8. Class of service. Identify the applicable class of service or otherwise recognizeable name of the bundled service as stated in the ILEC's bundled service literature;

9. Due date. Include the statement, or payment, due date;

10. Receipt deadline. Include the date by which payment of the new balance must be received to avoid assessment of a late charge;

11. Interest rate. Identify the effective monthly interest rate that will be imposed if the bill is not paid by the due date;

12. Contact information. Clearly and conspicuously disclose any information that the subscriber may need to make inquiries about, or contest, charges on the bill; and

13. Customer service representatives. Include the toll-free phone number(s) for customer service representatives of the ILEC and any other service provider to which charges are due, and to which customer questions or disputes concerning bills or services should be directed.

B. Compliance with federal “truth-in-billing” rules. An ILEC shall comply with the Federal Communication Commission's "Truth-in-Billing" Rules, 47 CFR §§ 64.2400-2401.

C. Billing errors. An ILEC shall promptly notify a customer of a billing error after it discovers or is notified of the error. The ILEC shall correct the error within 45 days of discovery or notice. The ILEC shall investigate the possibility that a billing error may affect multiple customers and shall immediately notify the Consumer Assistance Division if more than 10 customers in the State are affected by a billing error.

1. Make-up bills. An ILEC may issue a corrected bill for previously unbilled bundled service, or for service billed below the correct rate, that was provided in the previous 12 months. An ILEC may agree to a settlement that abates all or a portion of the previously unbilled service.

2. Refunds. An ILEC shall refund any charge billed in excess of correct rates within the previous 6 years from the date of discovery or notice.

D. Late payment fees. An ILEC may charge a fee for the late payment of bundled service charges in accordance with a rate schedule consistent with Chapter 870 of the Commission's Rules.

§ 11 DISCONNECTION

A. Disconnection. An ILEC may disconnect a customer's bundled service for any reason not in violation of sections 4 and 5 upon 14 days prior notice to residential customers and 7 days prior notice to nonresidential customers.

B. Content of disconnection notice. Each notice shall be in writing and conspicuously:

1. Disconnection date. Identify the disconnection date;

2. Services. Identify the services that will be disconnected;

3. Curability of disconnection. Indicate whether the disconnection may be cured and if so, how; and

4. Notice of transfer to basic service. That the customer will be transferred to a basic service rate and the treatment of any arrearages associated with the bundled service, as well as the customer’s right to contact the CAD for assistance. The notice must include the CAD’s current address, phone number, and website URL.

C. Transfer to basic service upon disconnection from bundled service. In situations where a bundled service is disconnected, the ILEC must transfer the customer to basic service without an interruption of basic service. An arrearage accumulated as a result of bundled service shall not be considered an arrearage applicable to basic service for the purposes of applying the terms of Chapter 290.

D. Interexchange service disconnections. If interexchange service is disconnected pursuant to this section, the disconnection must be completed in compliance with section 14 of Chapter 292 of the Commission’s rules.

§ 12 DISPUTE RESOLUTION PROCEDURES

A. Toll-free line. An ILEC shall have a toll-free number for customers to call to resolve billing or service disputes regarding bundled services.

B. Employees available. An ILEC shall have an adequate number of properly trained employees available during business hours to respond to questions from customers, resolve disputes, and address requests for bundled service. Customers calling the toll-free number discussed in section A above must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system.

C. Dispute resolution process. When an ILEC becomes aware of a dispute by a customer regarding a bundled service, whether or not disconnection is pending, the ILEC shall:

1. Investigate dispute. Investigate the dispute, preserving a record of the substance and results of the investigation;

2. Report results. Report the results of its investigation to the customer based on the record; and

3. Attempt to resolve dispute. Attempt in good faith to resolve the dispute.

D. Notification of right to file a complaint with the Consumer Assistance Division. If an ILEC cannot resolve the dispute with the customer after the procedures set forth above have been completed, the ILEC shall orally inform the customer of the right to file a complaint with the Consumer Assistance Division and of the toll-free telephone number of the Commission.

E. CAD complaint process

1. Consumer Assistance Division acceptance of complaint. The Consumer Assistance Division may reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be "without merit" if, among other things, the Consumer Assistance Division has previously issued a decision regarding the same issue that is the basis for the complaint. The customer may appeal the rejection of a complaint to the Commission. If the Consumer Assistance Division accepts a complaint, the Consumer Assistance Division shall investigate the complaint.

2. Consumer Assistance Division investigation of a complaint. The Consumer Assistance Division will inform an ILEC in writing, by telephone, by e-mail, by fax, or by any other means that is acceptable to both the Consumer Assistance Division and the ILEC, that a complaint associated with a bundled service has been filed and the date of the filing. The Consumer Assistance Division will conduct an informal investigation of the dispute that may include:

a. an informal meeting with the customer and/or an ILEC representative;

b. a review of the written record of the ILEC's investigation required by section C above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the Consumer Assistance Division deems relevant to the dispute.

3. Provision of information to the Consumer Assistance Division by an ILEC. An ILEC shall provide information requested by the Consumer Assistance Division within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute required by section C above, or any other information in the ILEC’s possession or that is readily available to the ILEC that the Consumer Assistance Division deems necessary to investigate the customer's dispute. If the ILEC cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the Consumer Assistance Division or his designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Decision. The Consumer Assistance Division shall complete its investigation and issue an oral or written decision as soon as practicable. The decision by the Consumer Assistance Division shall impose any just and reasonable requirements necessary to resolve the dispute.

5. Notice of appeal rights. When a decision is rendered, the Consumer Assistance Division shall inform the customer and the ILEC of the right to appeal the Consumer Assistance Division's decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.

F. Appeal to the Commission

1. Appeal process. The customer or the ILEC may appeal a Consumer Assistance Division decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within 10 calendar days after the date of the decision. Notwithstanding section 6(D) of the Maine Rules of Civil Procedure and section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.

2. Commission review. The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the Consumer Assistance Division.

3. Order. The Commission shall issue an order affirming the Consumer Assistance Division's decision or, if the decision is not affirmed, the Commission shall:

a. remand the complaint to the Consumer Assistance Division for reconsideration with an explanation of the basis for the remand;

b. remand the complaint back to CAD to gather further facts; or

c. issue an order reversing or altering the Consumer Assistance Division's decision.

§ 13 TREATMENT OF CERTAIN CONSUMER PROGRAMS

A. Lifeline and Link-Up. An ILEC shall provide Lifeline and Link-Up pursuant to Chapter 294 of the Commission’s rules to all customers that receive a bundled service and are eligible for these programs under the terms of Chapter 294.

B. Discounted service for deaf, hard-of-hearing, and speech-impaired persons. The discount required by 35-A M.R.S.A. §7302 is not applicable to unlimited intrastate calling made as part of bundled service offered by an ILEC, but is applicable to any measured intrastate component included in a bundled service.

§ 14 BUNDLED SERVICE PRICE – SAFE HARBOR

This Section shall not apply to an ILEC that is governed by an Alternative Form of Regulation as it is defined in 35-A M.R.S.A. Chapter 91.

A. Safe harbor price limiter

1. Lower price limiter. The lower limit of the safe harbor for a bundled service price is the marginal cost of separately offering all components of the bundled service.

2. Reasonable estimations. For the purposes of this section, the utility may make a reasonable estimation of the lower price limiter.

B. Treatment of safe harbor price limits

1. Conformance to safe harbor. If the price of a bundled service falls within the safe harbor for a bundled service price established in section 14(A), the price will be considered just and reasonable for the purposes of ratemaking and establishing the level of universal service the ILEC receives.

2. Non-conformance. If the price of a bundled service does not fall within the safe harbor for a bundled service price established in section 14(A), the treatment of the revenues received from the bundled service shall be determined at the time the Commission determines the ILEC’s revenue requirements or the level of universal service it receives.

§ 15 REVENUE ALLOCATION – SAFE HARBOR

This Section shall not apply to an ILEC that is governed by an Alternative Form of Regulation as it is defined in 35-A M.R.S.A. Chapter 91.

A. Safe Harbor Discount Allocation

1. Jurisdictional revenue limiter. The discount percentage applied to jurisdictional revenues shall not exceed the discount percentage applied to non-jurisdictional revenues.

2. Calculations

a. Discount percentage calculation. The “undiscounted revenue” is a reasonable estimation of the sum of the revenue that would be received for a group of bundled service components if those components were purchased individually. The “discount amount” is the difference between the undiscounted revenue and the revenue assumed to be actually received for those same bundled components when sold as part of the bundled service. The “discount percentage” is the ratio of the discount amount to the undiscounted revenue.

b. Jurisdictional revenues calculation. Jurisdictional revenues shall include revenues for all bundled service components that are or would be imputed to the ILEC for ratemaking purposes. For the purposes of this Chapter, intrastate interexchange service offered by an ILEC’s affiliate shall be included in the ILEC’s jurisdictional revenues.

c. Separating interexchange service. The intrastate portion of revenue derived from interexchange service that applies on an unseparated basis to both intrastate and interstate interexchange service shall be determined by applying the ratio of Maine intrastate directly assigned retail revenues (e.g., usage charged at a per-minute rate) to total (intrastate plus interstate) directly assigned retail revenue for service rendered in Maine. Upon petition by an ILEC, the Commission or the Director of Finance may approve an alternative separation method.

d. Purchases from a third party. A bundled service component that the ILEC purchases from a third party and for which the ILEC has no ability to obtain or extract a discount may be excluded from the calculations carried out pursuant to this section.

e. Subscriber Line Charge (SLC). The SLC may be excluded from the calculations carried out pursuant to this section.

f. Estimations. The ILEC may reasonably estimate portions of the discount percentage calculations by considering revenue that would be received by subsets of customers, by estimating minutes of use of unlimited services, and by other means made necessary by the terms of the bundled and individual services.

B. Treatment of safe harbor discount allocation

1. Conformance to safe harbor. If an ILEC allocates revenues received for a bundled service using the safe harbor for discount allocation established in section 15(A), the allocation will be considered just and reasonable for the purposes of ratemaking and establishing the level of universal service the ILEC receives.

2. Non-conformance. If an ILEC allocates revenues received for a bundled service using a method other than the safe harbor for discount allocation established in section 15(A), the treatment of the revenues received from the bundled service shall be determined at the time the Commission conducts a rate proceeding or determines the level of universal service the ILEC receives.

C. Reporting. For each bundled service it offers, the ILEC shall submit the following information, at the Commission’s request and annually at a time to be established by the Commission.

1. The number of customers that received the bundled service

2. The annual revenue received in payment for the bundled service

3. Information that shows the extent to which the bundled service price is likely to conform to the safe harbor for a bundled service price

4. Information that shows the extent to which the ILEC’s treatment of the bundled service is likely to conform to the safe harbor for discount allocation

§ 16 APPLICATION OF THIS RULE

If a provision of this Chapter conflicts with a provision in Chapter 290 or Chapter 292 of the Commission’s rule, when providing bundled services the provisions of this Chapter shall apply.

§ 17 WAIVER

A. General waiver. Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance Division, or the Hearing Examiner assigned to a proceeding related to this Chapter may grant the waiver.

B. Individual customer exemption

1. Request requirements. An ILEC may request that the Consumer Assistance Division grant an exemption from any provision of this Chapter in any case involving an individual customer whose conduct and known financial condition pose a clear danger of substantial losses to the ILEC. A request for exemption under this section must be made to the Consumer Assistance Division. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation must include a detailed statement of the facts alleged by the ILEC in support of the request. The ILEC shall immediately notify, in writing, the individual customer whose service would be affected by the proposed exemption, describing the nature and effect of the exemption requested and the facts alleged in support of the request.

2. Consumer Assistance Division investigation. The Consumer Assistance Division may reject, without investigation, any request that does not present facts that satisfy the standard of section 1 above. Before granting any exemption, the Consumer Assistance Division shall informally investigate the matter.

3. Decision. When the Consumer Assistance Division completes its investigation or summarily rejects the request, it shall issue a decision granting, denying, or granting in part the requested exemption. When the Consumer Assistance Division determines that an exemption is required to avoid a clear danger of substantial losses to the ILEC, it shall notify the customer and the ILEC of the decision. The notification may be made orally, but the Consumer Assistance Division shall promptly issue a written confirmation of the decision. The decision or written confirmation shall:

a. describe the nature and effect of the exemption;

b. explain why the exemption was granted or denied; and

c. inform the customer and the ILEC of the right to appeal the Consumer Assistance Division's decision to the Commission, as provided in section 4 below.

4. Appeal to Commission. By following the procedures in section 13 (F), a party may appeal a decision by the Consumer Assistance Division granting or denying, in whole or in part, a request for an exemption. If the Consumer Assistance Division grants an exemption, the ILEC may not act on the exemption until the appeal period expires.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Adopting Rule, Docket No. 2008-15 issued on June 24, 2008. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 704, and 7302.
• EFFECTIVE DATE: This Rule was approved as to form and legality by the Attorney General on July 7, 2008. It was filed with the Secretary of State on July 8, 2008 and became effective on July 13, 2008.
• EFFECTIVE DATE: 65-407 Chapter 289 page 2

Chapter 290 Standards for Billing, Credit, and Collection and Customer Information for Eligible Telecommunications Carriers Providing Basic Telephone Service

Code Me. R. 65-407 Ch. 290 Standards for Billing, Credit and Collection, and Customer Information for Eligible Telecommunications Carriers Providing Basic Telephone Service {#sec-65-407-ch.-290 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 290}

SUMMARY: This Chapter establishes consumer protections for the provision of local exchange telephone service by eligible telecommunications carriers in Maine. These rules govern interruptions in service, the granting and denying of service, provision of consumer information, credit and deposit practices, billing, disconnection, customer complaint procedures and methods of obtaining exemptions and variations from this Chapter.

§1 PURPOSES 6

A. Inform consumers 6

B. Prevent discrimination; ensure reasonable access to service 6

C. Establish minimum consumer protection standards 6

§2 DEFINITIONS 6

§3 JURISDICTION 8

§4 EMERGENCY MORATORIUM 8

§5 NON-DISCRIMINATION 8

§6 UNFAIR OR DECEPTIVE PRACTICES 8

A. Deceptive names prohibited 8

B. Application of Maine Unfair Trade Practices Act 8

§7 CUSTOMER PRIVACY 9

§8 CUSTOMER RIGHTS 9

A. Notice 9

B. Content of notice 9

1. Billing procedures 9

2. Accuracy verification 9

3. Payment options 9

4. Deposit requirements 9

5. Disconnection procedures 9

6. Dispute resolution procedures 9

7. Emergency service 9

8. Third-party notice 9

9. Limitations of liability; abatement and damages 9

10. Contact information 9

C. Notice of significant changes to terms and conditions 10

§9 APPLICATION FOR SERVICE 10

A. Obligation to provide service 10

1. Past overdue amount 10

2. Deposits for applicants for residential service 10

3. Applicants for nonresidential service 10

4. Obligation of ETC to provide service ....... 11

B. Service in another’s name 11

C. Lowest rate basic service plan 11

D. Enhanced service offerings 11

§10 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS 11

A. Services and fees 11

1. Price, fees, and terms and conditions 11

2. Disputes 11

3. Price of service 11

B. Customer option to cancel order 11

C. Electronic confirmation 12

D. Written contracts for services 12

§11 TRANSFER OF SERVICE TO ANOTHER LOCATION 12

A. No “applicant” status 12

B. Transfer of existing account balance 12

§12 BILLING AND PAYMENT STANDARDS 12

A. Late payment charges and returned check charges 12

B. Bill frequency 12

C. Advance billing limited; discount 12

D. Due date of bills 12

E. Bill content 13

1. Identification of ETC 13

2. Date 13

3. Balance 13

4. Charges debited for current billing cycle 13

5. Payments made 13

6. Charges debited for past charges 13

7. Closing dates and balance 13

8. Class of service 13

9. Due date 13

10. Receipt deadline 13

11. Interest rate 13

12. Basic service charges 13

13. Contact information 13

14. Toll-free number 14

F. Compliance with federal “Truth-in-Billing” rules 14

G. Billing errors 14

1. Make-up bills 14

2. Refunds 14

H. Payment 14

1. Extension of due date required 14

2. Payment by mail 14

3. Payment at a remote office 14

4. Conflicting due dates 14

I. Application of partial payments 14

§13 PAYMENT ARRANGMENTS 15

A. Payment arrangement required 15

B. Written confirmation of payment arrangement 15

1. Terms of payment arrangement 15

2. Contact information 15

3. Disconnect notice 15

C. Right to payment arrangement limited 15

D. Basic service payment arrangement to be separate 15

§14 DISCONNECTIONS 15

A. Disconnection at a customer’s request 15

B. Disconnection without consent 15

1. Non-payment of undisputed overdue amount 15

2. Unauthorized use 16

3. Safety risk 16

4. Deposit 16

5. Commission decision 16

6. Abandoned premises 16

C. Limitations 16

1. Non-payment for basic services 16

2. Prepaid basic service 16

3. Medical emergency 16

D. Notice requirements 16

1. Residential customers 16

2. Nonresidential customers 16

3. Three business-day disconnection notice 16

4. No notice 17

5. Time of issuance 17

6. Period of effectiveness 17

7. Dishonored check 17

8. Content of disconnection notice 18

E. Timing of Disconnection 18

1. Attempt to contact 18

2. Timing 18

§15 MEDICAL EMERGENCY 19

A. Service required during medical emergency 19

B. Disconnection postponed pending certification 19

C. Certification procedure 19

D. Connection or reconnection of service 20

E. Length of service; renewals 20

F. Customer’s duty to pay or make a payment arrangement 20

§16 RECONNECTION OF SERVICE 20

A. Duty to reconnect 20

B. Payment arrangement 20

C. Reconnection fee 20

§17 OPTIONAL SERVICE PROVIDERS 20

A. Marketing of optional services 20

1. Services not necessary for basic service 20

2. Costs 20

B. Bill disclosure 21

1. Service provided 21

2. Costs 21

3. Payments and credits 21

C. Optional and basic service bills combined 21

§18 DISPUTE RESOLUTION PROCEDURES 21

A. Toll-free line 21

B. Employees available 21

C. Basic service disconnection limited 21

D. Dispute resolution process 21

1. Investigate dispute 21

2. Report results 21

3. Attempt to resolve dispute 22

E. Notification of right to file a complaint with the Consumer Assistance Division 22

F. Limitation of disconnection during Consumer Assistance Division investigation 22

1. Limitation on disconnection resolution 22

2. Reconnection pending resolution 22

G. CAD Complaint process 22

1. Consumer Assistance Division acceptance of complaint 22

2. Consumer Assistance Division investigation of a complaint 22

3. Provision of information to the Consumer Assistance Division by an ETC 23

4. Decision 23

5. Notice of appeal rights 23

H. Appeal to the Commission 23

1. Appeal process 23

2. Disconnection delayed 23

3. Commission review 24

4. Order 24

§19 RECORDS; REPORTS 24

A. Record maintenance 24

1. Name and address 24

2. Date and subject matter 24

3. Record of investigation 24

4. Communications 24

5. Offer 24

6. Final resolution 24

B. Reports to the Commission 24

1. Number of accounts 24

2. Disconnection notices 25

3. Disconnections 25

4. Reconnections 25

5. Disputes 25

6. Deposits 25

7. Denials 25

C. Residential and nonresidential information stated separately 25

§20 WAIVER 25

A. General waiver 25

B. Individual customer exemption 25

1. Request requirements 25

2. Consumer Assistance Division investigation 26

3. Decision 26

4. Appeals to Commission 26

§ 1 PURPOSES

The purposes of this Chapter are to:

A. Inform consumers. Ensure that customers and applicants for service from eligible telecommunications carriers (ETCs) are provided adequate and timely information about basic service, intrastate toll service and optional service.

B. Prevent discrimination; ensure reasonable access to service. Ensure that all customers and applicants are treated in a nondiscriminatory manner and are not unreasonably denied or disconnected from telecommunications service.

C. Establish minimum consumer protection standards. Establish minimum consumer protection standards that apply to all ETCs. An ETC may provide greater levels of consumer protection than those established in this Chapter.

§ 2 DEFINITIONS

A. Account balance. "Account balance" is the total amount owed by a customer that has been billed in accordance with this Chapter.

B. Advance billing. "Advance billing" is a requirement that a customer prepay charges for services that will be provided during a specific, identifiable period in the future. Advance­ billing does not include any funds retained as a security deposit.

C. Amount overdue. "Amount overdue" is the amount that an ETC has billed to a customer and that has not been paid by the due date of the bill or by a date otherwise agreed upon.

D. Applicant. "Applicant" is any person who applies for basic, toll, or optional services and who is not a customer of the ETC.

E. Basic service. "Basic service" is single‑party service, voice grade access to the public switched telephone network, Dual Tone Multi-frequency or its functional digital equivalent, access to emergency services, access to operator services, access to interexchange service, access to directory assistance, and access to toll limitation. Basic service also includes all basic service attributes and standards mandated by federal and state statute and rules.

F. Bill."Bill" is a written statement (printed or electronic) from an ETC to a customer that states the amount owed by the customer for the current billing period, the amount overdue, the account balance, late fees and any other charges owed by the customer.

G. Billed Account. "Billed account" is an account that is assigned a unique identification number by the ETC for tracking purposes

H. Carrier. "Carrier" is any entity providing basic service, toll service or optional service to the public.

I. Clear and Conspicuous. "Clear and conspicuous" is that which would be readily apparent to the average customer.

J. Commission. "Commission" is the Maine Public Utilities Commission.

K. Consumer Assistance Division. "Consumer Assistance Division" is the Consumer Assistance Division of the Maine Public Utilities Commission.

L. Customer. "Customer" is any person who has applied for, been accepted and is receiving basic service, intrastate interexchange telecommunications service, interstate telecommunications service, or optional service in this State or has agreed to be billed for the same.

M. Deposit. "Deposit" is any funds, however designated, that are held as security for future payment or performance.

N. Dispute. "Dispute" is a grievance of an applicant or customer regarding an ETC's provision of service, application of Title 35‑A, or any Commission rule.

O. Due date. "Due date" is the date by which payment must be received and after which the account is considered overdue.

P. Eligible Telecommunications Carrier (ETC). "Eligible telecommunications carrier" is a basic service provider designated by the Commission as an eligible telecommunications carrier for purposes of section 254 of the Telecommunications Act of 1996, 47 U.S.C., § 151 et seq .

Q. Lifeline/Link‑up. "Lifeline/Link‑Up" is a program that provides financial assistance to qualifying low‑income customers to obtain and receive basic service pursuant to Chapter 294 of the Commission's rules.

R. Minimum Basic Service. "Minimum basic service" is basic service that is not bundled with other services, complies with this rule, and is available to all customers.

S. New Service Provider. "New service provider" is a service provider that did not bill the customer for service during the service provider's last billing cycle. This definition excludes service providers who bill the customer solely on a per transaction basis.

T. Optional service. "Optional service" is any telecommunications service other than basic service or toll service.

U. Payment arrangement. "Payment arrangement" is an agreement between an applicant or customer and an ETC that allows the applicant or customer to pay an account balance or deposit in installments.

V. Residential service. "Residential service" is telecommunications service that is provided to a residence and used primarily for domestic purposes.

W. Service provider. "Service provider" is any entity that offers a product or service to a customer, the charge for which appears on the bill of the ETC.

X. Toll service. "Toll service" is intrastate or interstate interexchange telecommunications service.

Y. Toll service provider. "Toll service provider" is any carrier that provides toll service to its customers.

§ 3 JURISDICTION

This Chapter applies to all telecommunications carriers who have been certified by the Commission as eligible telecommunications carriers pursuant to section 254 of the Telecommunications Act of 1996.

§ 4 EMERGENCY MORATORIUM

When the Commission or the Director of the Consumer Assistance Division determines that, due to an emergency, termination of telecommunications service by one or more ETCs would present a clear danger to the health or safety of one or more customers, the Commission or the Consumer Assistance Division Director may declare a partial or complete moratorium on the termination or disconnection of telecommunications service by any or all ETCs.

§ 5 NON-DISCRIMINATION

An ETC shall provide service and apply credit and collections policies to applicants and customers without discrimination on the basis of race, color, ancestry, sex, age, national origin, religion, marital status, receipt of public assistance or the exercise of rights under state or federal consumer protection laws.

§ 6 UNFAIR OR DECEPTIVE PRACTICES

A. Deceptive names prohibited. An ETC may not use a company name that is deceptive or unreasonably confusing to consumers.

B. Application of Maine Unfair Trade Practices Act. An ETC shall not engage in conduct prohibited by the Maine Unfair Trade Practices Act, 5 M.R.S.A. §§ 205‑A‑214 and related consumer protection statutes.

§ 7 CUSTOMER PRIVACY

An ETC shall comply with the Federal Communication Commission's Customer Proprietary Network Information Rules, 47 CFR §§ 64.2001-2009.

§ 8 CUSTOMER RIGHTS

A. Notice. An ETC shall provide a summary of a customer’s rights and responsibilities under this Chapter to all new customers. The notice may be provided either through a direct mailing, bill inserts, or by including the notice in the ETC’s directory.

B. Content of notice. The Notice shall:

1. Billing procedures. Describe the ETC’s billing procedures, e.g. billing frequency and assessment of late fees (if any);

2. Accuracy verification. Explain how a customer can verify the accuracy of her or his bill;

3. Payment options. Identify a customer’s options for making payment, e.g. location of payment agencies, and optional payment programs offered by the ETC;

4. Deposit requirements. Describe the ETC’s security deposit requirements;

5. Disconnection procedures. Describe the ETC’s procedures for disconnection and reconnection of basic service;

6. Dispute resolution procedures. Describe the ETC’s dispute resolution and appeal procedures;

7. Emergency service. Describe the procedures that a customer or occupant may follow during emergency service interruptions, including how to notify the ETC of the need for priority restoration due to the presence of life support systems;

8. Third-party notice. Describe procedures for having a third party receive copies of notices;

9. Limitations of liability; abatement and damages. Describe the ETC's limitations on liability for service interruptions contained in its tariff, when a customer may request a claim for abatement, and how a customer can submit a claim for damages or abatement due to service interruptions; and

10. Contact information. Identify telephone numbers and addresses of the ETC and of the Commission where further inquiries may be made.

C. Notice of significant changes to terms and conditions. An ETC shall provide notice to all customers affected by a significant change in the ETC's terms and conditions. The notice shall thoroughly describe the change and may be provided either through a direct mailing or bill insert, or by including the notice in the ETC’s directory.

§ 9 APPLICATION FOR SERVICE

A. Obligation to provide service. An ETC may not refuse to provide minimum basic service to an applicant. An ETC may condition the granting of service in specific circumstances as described below:

1. Past overdue amount. An ETC may condition the granting of service on the applicant paying an undisputed amount overdue for previous basic service provided by that ETC if the applicant accrued the debt within the prior 6 years and if the applicant is legally responsible for the debt, and subject to a, b and c below.

a. The ETC must offer a payment arrangement to the applicant on the undisputed balance before service is initiated.

b. Within 60 days of the customer's request for service, the ETC must provide written notice to the customer of the outstanding debt and its intention to collect the outstanding debt.

c. The ETC must allow the customer at least 30 days after receipt of the written notice to pay the debt or enter into a payment arrangement. If the customer fails to respond during this time period, the unpaid amount may be transferred to the customer's current account and disconnection procedures may be initiated for failure to pay or make a payment arrangement.

2. Deposits for applicants for residential service. An ETC may condition the granting of service on the payment of a deposit if there exists an undisputed amount overdue for basic service billed to the applicant within the prior 6 years.

a. Amount of deposit. The amount of the deposit may not exceed the applicant's basic service charges for 2 months.

b. Error. If the ETC determines that a deposit was requested in error, the ETC shall promptly refund that customer's deposit with interest.

3. Applicants for nonresidential service. An ETC may require a deposit from any applicant for nonresidential service regardless of the applicant's credit worthiness. The deposit may not exceed the applicant's basic service charges for 2 months.

4. Obligation of ETC to provide service. An ETC that properly conditions service upon one of the conditions described in this section is not obligated to provide service to a customer if the customer fails to meet the required condition(s).

B. Service in another's name. An ETC may not require that an applicant pay for basic service provided in another person's name unless a court, the Commission, or administrative agency has determined that the applicant is legally obligated to pay for that service.

C. Lowest rate basic service plan. An ETC shall inform an applicant of the lowest rate basic service plan available to the applicant at the time of the application for service.

D. Enhanced service offerings. Nothing in this rule shall prevent an ETC from offering basic service bundled with other services, provided that the ETC also offers a "minimum basic service option" that complies with this Rule.

§ 10 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS

An ETC shall provide customers with written confirmation of orders generated by outbound sales calls. The written confirmation must include the specific terms and conditions for each service ordered by the customer and must be provided no later than the time the customer receives the first bill for service. The written confirmation may be included with the first bill for services. Orders for services generated by inbound calls from customers do not require written confirmation.

A. Services and fees.

1. Price, fees, and terms and conditions. The written confirmation shall disclose each service or package of services ordered by the customer with its separate price, late fees, fees for installation, disconnection, termination or cancellation, registration fees, and any other terms and conditions to which the customer is required to adhere.

2. Disputes. The written confirmation shall include instructions on how to dispute charges with the ETC.

3. Price of service. The written confirmation shall include all relevant information necessary for the customer to calculate the full price of service.

B. Customer option to cancel order. Upon receipt of a written confirmation, a customer may, for any reason, cancel the order without penalty or further obligation. The customer shall pay or formally dispute any charges incurred prior to canceling the service.

C. Electronic confirmation. In situations where an ETC solicits a service electronically, e.g. using the Internet, the written confirmation may also be provided by similar electronic means.

D. Written contracts for services. To the extent that the requirements of this section are consistent with the information contained in a written contract for services between the ETC and the customer, the written contract can serve as the written notice required by this section. Written confirmation of an order is required, however, in situations where the written contract does not address each of the requirements of subsection A above. In such situations, the written notice may include only the requirements not included in the written contract.

§ 11 TRANSFER OF SERVICE TO ANOTHER LOCATION

A. No “applicant” status. Notwithstanding any other provision of this Rule, a customer who requests a transfer of basic service from one location to another with the same ETC, or who requests basic service at a new location within 30-days of ceasing prior basic service with the same ETC, may not be considered an "applicant" for basic service purposes.

B. Transfer of existing account balance. Whenever there's a change pursuant to subsection A above, an ETC may transfer without notice the customer's current account balance to the customer's new account.

§ 12 BILLING AND PAYMENT STANDARDS

A. Late payment charges and returned check charges. In addition to complying with the requirements listed below, ETCs must also comply with Chapter 870 of the Commission’s rules relating to late payment charges and returned check charges.

B. Bill frequency. An ETC shall bill on a regular recurring basis and must offer at least one monthly billing option.

C. Advance billing limited; discount. An ETC may not require the payment of basic service fees more than 1 month in advance. An ETC may, however, offer customers the option of receiving a discount for early payment.

D. Due date of bills. The due date of a bill for basic service must be at least 25 days after the bill is mailed or otherwise delivered to the customer. If the ETC mails its bills from a location outside the State and requires customers to mail payment to a location outside the State, the due date must be extended 5 days (for a total of 30 days). A bill is considered to have been mailed on the date it is postmarked. If there is no postmark, the ETC shall date the bill and mail the bill on or before the date on the bill.

E. Bill content. Each bill issued by an ETC shall:

1. Identification of ETC. Include a clear and conspicuous identification of the certificated ETC providing the customer's basic service. If the ETC has more than one name, the name appearing on the bill must be the name used to market the service;

2. Date. Identify the date on which the bill was issued;

3. Balance. Identify the balance in each billed account at the beginning of the current billing cycle, using a term such as "previous balance;

4. Charges debited for current billing cycle. Identify the amount of the charges debited to each billed account during the current billing cycle, using a term such as "current service;"

5. Payments made. Identify the amount of payments made to each billed account from the previous billing cycle, using a term such as "payments;"

6. Charges debited for past charges. Identify the amount of the charges debited to each billed account during the current billing cycle for untimely payment of past charges, using a term such as "late charge;"

7. Closing dates and balance. Include a listing of the closing dates of the current billing cycle and the outstanding balance in each billed account on that date, specifying the "current amount due" and the "past due;"

8. Class of service. Identify the applicable class of service as stated in the ETC's rate schedule;

9. Due date. Include a statement, or payment, due date;

10. Receipt deadline. Include the date by which payment of the new balance must be received to avoid assessment of a late charge;

11. Interest rate. Identify the effective monthly interest rate that will be imposed if the bill is not paid by the due date;

12. Basic service charges. Include an itemization of current basic service charges and other fees related to basic service, including installation or reconnection fees, deposit amounts, late payment interest charges, taxes, and separate surcharges provided by the ETC;

13. Contact information. Clearly and conspicuously disclose any information that the subscriber may need to make inquiries about, or contest, charges on the bill; and

14. Toll-free number. Include the toll‑free phone number(s) for customer service representatives of the ETC and any other service providerto which charges are due, and to which customer questions or disputes concerning bills or services should be directed.

F. Compliance with federal “Truth-in-Billing” rules. An ETC shall comply with the Federal Communication Commission's "Truth-in-Billing" Rules, 47 CFR §§ 64.2400-2401.

G. Billing errors. An ETC shall promptly notify a customer of a billing error after it discovers or is notified of the error. The ETC shall correct the error within 45 days of discovery or notice. An ETC shall investigate the possibility that a billing error may affect multiple customers and shall immediately notify the Consumer Assistance Division if more than 10 customers in the State are affected by a billing error.

1. Make‑up bills. The ETC may issue a corrected bill for previously unbilled service, or for service billed below the tariffed rate, that was provided in the previous 12 months. An ETC may agree to a settlement that abates all or a portion of the previously unbilled service.

2. Refunds. The ETC shall refund any charge billed in excess of correct rates within the previous 6 years from the date of discovery or notice.

H. Payment.

1. Extension of due date required. If the due date for payment falls on a Saturday, Sunday, legal holiday, or any other day when the ETC's offices are not open for business, the ETC shall extend the due date to the next business day.

2. Payment by mail. If the customer sends payment by mail, payment is made on the date the ETC receives the payment.

3. Payment at a remote office. If the customer pays at a branch office or authorized agency of the ETC, payment is made on the date of receipt at that location.

4. Conflicting due dates. When an ETC provides a customer with multiple notices or contacts containing different due dates, payment is due on or before the latest due date.

I. Application of partial payments. An ETC shall apply payments that are insufficient to pay the full account balance to the basic service portion of the bill, beginning with the oldest balances. Any remaining amounts shall be applied to non‑basic services.

§ 13 PAYMENT ARRANGEMENTS

A. Payment arrangement required. An ETC shall continue to serve a customer who does not pay a basic service account balance in full if the customer agrees to enter a payment arrangement for the account balance and agrees to pay each future bill for basic service on or before the due date of the bill until the payment arrangement is completed.

B. Written confirmation of payment arrangement. An ETC shall mail or deliver a written confirmation of a payment arrangement to the customer within 3 business days after a payment arrangement is agreed to. The written confirmation shall:

1. Terms of Payment Arrangement. Inform the customer of the terms of the payment arrangement;

2. Contact Information. Include the Consumer Assistance Division's address and toll free telephone number; and

3. Disconnection Notice. Inform the customer of the ETC's right to issue a 3-day disconnection notice for failure to comply with a payment arrangement.

C. Right to payment arrangement limited. An ETC is not required to enter a payment arrangement for an amount overdue as a result of a broken payment arrangement.

D. Basic service payment arrangement to be separate. Any agreement permitting installment payments on an account balance for non-basic service must be separate from a payment arrangement for basic service.

§ 14 DISCONNECTIONS

A. Disconnection at a customer's request. An ETC shall disconnect a customer's basic service on the date requested by the customer, except that the ETC may require a customer to provide up to 3-business days notice before the requested disconnection date. An ETC may require the customer to pay for service until the customer's basic service is disconnected or the 3 business day notice period expires, whichever occurs first.

B. Disconnection without consent. An ETC may begin disconnection procedures for basic service without the customer's consent only if:

1. Non-payment of undisputed overdue amount. The customer does not pay or make a payment arrangement on an undisputed amount overdue for the provision of basic service. Late fees may be included only to the extent the late fee is based upon an amount overdue for basic service;

2. Unauthorized use. There is unauthorized use of basic service, such as service being used without applying for customer status or for criminal activities;

3. Safety risk. The customer’s use poses a safety risk to others or the network;

4. Deposit. The customer does not pay or make a payment arrangement for a properly required deposit;

5. Commission decision. The customer does not comply with a decision of the Commission or the Consumer Assistance Division; or

6. Abandoned premises. The customer’s premises are clearly abandoned.

C. Limitations. An ETC may not disconnect basic service without the customer's consentor threaten the disconnection of basic service under the following circumstances:

1. Non-payment of non-basic services. An ETC may not disconnect a customer’s basic service for the non-payment of toll or other non-basic services.

2. Prepaid basic service. An ETC may not disconnect a customer’s basic service until after any prepaid basic service has been provided.

3. Medical emergency. An ETC may not disconnect a customer’s basic service if the ETC has been notified of a medical emergency in accordance with section 15.

D. Notice requirements.

1. Residential customers. An ETC shall provide a disconnection notice to a residential customer at least 14 calendar days before the stated disconnection date if the reason for disconnection is failure to pay or make a payment arrangement on undisputed charges for the provision of basic service.

2. Nonresidential customers. An ETC shall provide a disconnection notice to a nonresidential customer at least 7 calendar days before the stated disconnection date if the reason for disconnection is failure to pay or make a payment arrangement on undisputed charges for the provision of basic service.

3. Three business-day disconnection notice. An ETC shall provide a disconnection notice to residential and nonresidential customers at least 3 business days before the stated disconnection date if the disconnection is for:

a. failure to meet the terms of a payment arrangement;

b. failure to provide a properly required deposit; or

c. failure to comply with a decision of the Commission or the Consumer Assistance Division.

4. No notice. An ETC may disconnect basic service without any prior notice if the disconnection is:

a. at the customer's request;

b. for unauthorized use;

c. for use posing a risk to others or to the network; or

d. for abandonment.

5. Time of issuance

a. An ETC may not issue a 14‑day or 7-day disconnection notice until after the due date of the bill for which charges have not been paid and until prepaid services are used.

b. An ETC may not issue a 3‑day disconnection notice until at least 1 business day after the date a payment was due pursuant to a payment arrangement.

c. An ETC that mails disconnection notices from or requires that payment be sent to location(s) outside the State must add 5 calendar days to the notice time periods specified above.

6. Period of effectiveness. A disconnection notice is effective for the disconnection date stated in the notice and for 10 business days after that date. If an ETC fails to disconnect basic service within 10 business days after the disconnection date, the disconnection notice procedures must be repeated.

7. Dishonored check

a. If the customer has paid by a check that is not honored by the bank before the disconnection notice expires, the ETC shall attempt to contact the customer to obtain payment before disconnecting service.

b. If a check is not honored by the bank after the disconnection notice expires, the ETC may issue a 3‑business-day disconnection notice and require payment by cash or certified check. A disconnection notice issued as a result of a dishonored check supersedes any other pending disconnection notice.

8. Content of disconnection notice.An ETC's disconnection notice must be in writing and conspicuously contain the following information:

a. Amount overdue. The amount overdue or the reason for disconnection if not for an amount overdue.

b. Steps to avoid disconnection. The steps the customer may take to avoid disconnection of basic service.

c. Disconnection date. The disconnection date and the effective period of the disconnection notice.

d. Customer's right to postpone disconnection due to a medical emergency. A statement of a residential customer's right to postpone disconnection of basic service for a medical emergency and a description of how to declare a medical emergency under section 15 of this Chapter.

e. Customer's right to a payment arrangement. A statement that the customer can avoid disconnection of basic service by agreeing to a payment arrangement. This disclosure is not required if the notice is for a broken payment arrangement.

f. Customer's right to file a complaint with the Consumer Assistance Division. A statement of the customer's right to submit a disputed matter prior to the disconnection date to the Consumer Assistance Division. The statement must include the Division’s current address and telephone numbers. The statement must also state that the customer may not submit a dispute to the Consumer Assistance Division until the customer has first tried to resolve the dispute with the ETC.

g. Contact person and toll free number for ETC. The title and toll‑free phone numberof an appropriate customer representative of theETC.

h. Requirements for reconnection. A statement of the requirements forreconnection of basic service, reconnection charges, if any, and the ETC's security deposit requirements.

E. Timing of Disconnection

1. Attempt to contact. An ETC shall make a reasonable effort to contact the customer by phone before the customer's basic service is disconnected. If the ETC contacts the customer before disconnection, the ETC shall orally provide the customer with the information previously included in the written disconnection notice under section 14(D)(8).

2. Timing. Disconnection of a residential customer's basic service must occur between 8:00 a.m. and 3:00 p.m. on the disconnection date specified in the notice or during the effective period of the notice. Disconnection may not occur on a Friday, weekend, legal holiday, any other day when the ETC or the Commission is not open for business, or on the day before any day when the ETC or the Commission is not open for business. These restrictions do not apply if:

a. the ETC has made special arrangements with the customer to disconnect at an alternative time;

b. the disconnection is for unauthorized use or the existence of a safety risk; or

c. the ETC has personnel available to resolve disputes and reconnect basic service for at least two hours after the disconnection occurs. In that case, the ETC may disconnect service no later than 5:00 p.m.

§ 15 MEDICAL EMERGENCY

A. Service required during a medical emergency. An ETC may not disconnect basic service and may not refuse to connect or reconnect basic service to any residential customer when the customer or an occupant of the customer's residence is certified by a physician to have a medical condition such that a lack of basic service would pose a serious risk of harm to that individual. In situations where the household has multiple telephone lines, basic service may be disconnected pursuant to section 14 of this rule, provided that basic service continues in at least one telephone line. An ETC must also accept and provide basic service to a customer who is transferred to the ETC by a non-ETC when the customer or a member of the customer's household is certified by a physician to have a medical condition such that a lack of basic servicewould posea serious risk of harm to that individual. The ETC shall charge the non-ETC any non-recurring service installation costs associated with the transferred customer.

B. Disconnection postponed pending certification. If the customer or member of the customer's household notifies the ETC that a medical emergency exists and that certification will be obtained, the ETC may not disconnect basic service for at least 3 business days or until the final date of a disconnection notice, whichever date is later. If the certification is not provided within the 3-day period, the effective period of a pending disconnection notice can be extended to accommodate this 3-day period if the ETC notified the customer of the extension at the time the ETC was notified of the medical emergency.

C. Certification procedure. A physician's certification of a medical emergency may be oral or written. For purposes of this section, a "physician" is any person licensed by Maine Board of Licensure in Medicine, his or her agent, or any Maine-licensed mental health counselor. The ETC may require written confirmation within 7 days of an oral certification.

D. Connection or reconnection of service. When an ETC is required to connect or reconnect basic service under this section, the ETC shall attempt to provide service on the day it receives the certification. In any case, service must be provided before the end of the next day.

E. Length of service; renewals. The ETC may not disconnect the customer for the time period specified in the certification or 60 days, whichever is less. A certification may be renewed for additional periods of up to 60 days each as long as the medical emergency continues.

F. Customer's duty to pay or make a payment arrangement. Whenever service is provided due to the existence of a medical emergency, the ETC shall inform the customer of the continuing duty to pay or make a payment arrangement for the amount overdue but may not disconnect basic service as long as a medical emergency is certified to exist.

§ 16 RECONNECTION OF SERVICE

A. Duty to reconnect. If basic service has been disconnected, an ETC shall, upon the customer's request, reconnect basic service after the cause of disconnection has been removed. If the request to reconnect service is made within 10 days following the disconnection of service, the reconnection shall take place within one business day of the request. If the request to reconnect service is not made within 10 days following the disconnection, the reconnection should take place as soon as possible.

B. Payment arrangement. An ETC shall offer the customer a payment arrangement on the account balance if the disconnection was for nonpayment, unless the cause of the disconnection was the customer's failure to honor a previously established payment arrangement.

C. Reconnection fee. An ETC may file a rate schedule to charge a reasonablefee for reconnection. The fee may be higher for reconnection after normal business hours.

§17 OPTIONAL SERVICE PROVIDERS

A. Marketing of optional services. An ETC that also provides optional services shall inform potential customers:

1. Services not necessary for basic service. That such services are optional and not necessary to receive basic service; and

2. Costs. Of all costs associated with the optional service, including equipment or usage charges, installation costs and any contract terms requiring that a customer retain the service or pay for the service for a specific period of time.

B. Bill disclosure. Any bill for optional services shall clearly identify:

1. Service provided. Each optional service provided;

2. Costs. The costs associated with each optional service; and

3. Payments and credits. Each payment or credit and the total payments or credits made to the customer's account during the billing period.

C. Optional and basic service bills combined. If charges for optional services are included with a basic service bill, the optional service charges must be readily identifiable as non-basic service. A statement must disclose to the customer that failure to pay for optional services cannot cause disconnection of basic service. For bundled service offerings, a statement must be provided informing the customer that failure to pay for the bundled service may result in the customer defaulting to the minimum basic service offering.

§ 18 DISPUTE RESOLUTION PROCEDURES

A. Toll‑free line. An ETC shall have a toll‑free number for customers to call to resolve billing and service disputes.

B. Employees available. An ETC shall have an adequate number of properly trained employees available during business hours to respond to questions from applicants and customers, resolve disputes, and address requests for service. Customers calling the toll-free number discussed in subsection A above must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system.

C. Basic service disconnection limited. An ETC may not threaten disconnection or disconnect the basic service of a customer if the customer has informed the ETC that the customer disputes liability for the basic services portion of the bill, an ETC's deposit request, or the terms of a payment arrangement required by an ETC to avoid disconnection, until the dispute is resolved pursuant to subsection D below. When a customer disputes only a portion of the basic service bill, the ETC may require payment of that portion not in dispute to prevent disconnection.

D. Dispute resolution process. When an ETC becomes aware of a dispute by an applicant or customer, whether or not disconnection is pending, the ETC shall:

1. Investigate dispute. Investigate the dispute, preserving a record of the substance and results of the investigation;

2. Report results. Report the results of its investigation to the applicant or customer based on the record; and

3. Attempt to resolve dispute. Attempt in good faith to resolve the dispute.

E. Notification of right to file a complaint with the Consumer Assistance Division. If an ETC cannot resolve the dispute with the applicant or customer after the procedures set forth above have been completed, the ETC shall orally inform the applicant or customer of the right to file a complaint with the Consumer Assistance Division and of the toll‑free telephone number of the Commission. If the complaint concerns a pending disconnection of basic service, the ETC shall orally inform the customer that the complaint must be filed before the disconnection date or within 2 business days of the oral notice, whichever is later. During that time, the basic service provider may not disconnect or cancel the customer's basic service.

F. Limitation of disconnection during Consumer Assistance Division investigation.

1. Limitation on disconnection pending resolution. An ETC may not threaten disconnection or disconnect service to a customer who has filed a complaint with the Consumer Assistance Division until the complaint is resolved pursuant to subsection G below.

2. Reconnection pending resolution. If a customer files a complaint after service has been disconnected or terminated, the customer is entitled to reconnection pending resolution of the complaint only if the Director or Assistant to the Director of the Consumer Assistance Division finds reasonable grounds to believe that the ETC has failed to issue a disconnection or termination notice, has issued a disconnection or termination notice that fails to substantially conform to this Chapter or has failed to notify the customer of the right to file a complaint with the Consumer Assistance Division as required by subsection E above. If the Consumer Assistance Division orders the ETC to reconnect service on this basis, the ETC shall reconnect the customer's service without reconnection charges or deposit.

G. CAD complaint process

1. Consumer Assistance Division acceptance of complaint. The Consumer Assistance Division may reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be "without merit" if, among other things, the Consumer Assistance Division has previously issued a decision regarding the same issue that is the basis for the complaint. The customer may appeal the rejection of a complaint to the Commission, except that a pending disconnection, termination or cancellation will not be delayed as provided in subsection F(1) above. If the Consumer Assistance Division accepts a complaint, the Consumer Assistance Division shall investigate the complaint.

2. Consumer Assistance Division investigation of a complaint. The Consumer Assistance Division will inform an ETC in writing, by telephone, by e-mail, by fax, or by any other means that is acceptable to both the utility and the ETC, that a complaint has been filed and the date of the filing. The Consumer Assistance Division will conduct an informal investigation of the dispute that may include:

a. an informal meeting with the customer and/or an ETC representative;

b. a review of the written record of the ETC's investigation required by subsection D above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the Consumer Assistance Division deems relevant to the dispute.

3. Provision of information to the Consumer Assistance Division by an ETC. An ETC shall provide information requested by the Consumer Assistance Division within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute required by subsection D above, or any other information in the ETC's possession or that is readily available to the ETC that the Consumer Assistance Division deems necessary to investigate the customer's dispute. If the ETC cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the Consumer Assistance Division or his designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Decision. The Consumer Assistance Division shall complete its investigation and issue a written decision as soon as practicable. The decision by the Consumer Assistance Division shall impose any just and reasonable requirements necessary to resolve the dispute.

5. Notice of appeal rights. When a decision is rendered, the Consumer Assistance Division shall inform the customer and the ETC of the right to appeal the Consumer Assistance Division's decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.

H. Appeal to the Commission.

1. Appeal process. The customer or the ETC may appeal a Consumer Assistance Division decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within 10 calendar days after the date of the decision. Notwithstanding section 6(D) of the Maine Rules of Civil Procedure and section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.

2. Disconnection delayed. If an appeal is filed with the Commission, an ETC may not disconnect or terminate the customer's service until the appeal is decided.

3. Commission review. The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the Consumer Assistance Division.

4. Order. The Commission shall issue an order affirming the Consumer Assistance Division's decision or, if the decision is not affirmed, the Commission shall:

a. remand the complaint to the Consumer Assistance Division for reconsideration with an explanation of the basis for the remand;

b. remand the complaint back to CAD to gather further facts; or

c. issue an order reversing or altering the Consumer Assistance Division's decision.

§ 19 RECORDS; REPORTS

A. Record maintenance. An ETC shall preserve records of disputes for ten years and keep those records readily available for examination by the Commission and its staff. Dispute records must include:

1. Name and address. The name and address of the applicant or customer with the dispute;

2. Date and subject matter. The date and subject matter of the dispute;

3. Record of investigation. The record of the investigation required by section 18(D) above;

4. Communications. A summary of all communications to or from the customer regarding the dispute;

5. Offer. The adjustment or resolution offered by the ETC to the customer; and

6. Final resolution. The final adjustment or resolution of the dispute.

B. Reports to the Commission. An ETC's annual report to the Commission shall include:

1. Number of accounts. The average number of residential and nonresidential accounts for the year;

2. Disconnection notices. The number of residential and non-residential disconnection notices issued per month, by type, for the year;

3. Disconnections. The number of residential and nonresidential disconnections (except those performed at the customer's request) per month for the year;

4. Reconnections. The number of reconnections of residential and nonresidential customers following disconnection without consent per month for the year;

5. Disputes. The total number of residential and nonresidential customer disputes handled for the year;

6. Deposits. The number of residential and nonresidential deposits requested and received and their average dollar amount for the year; and

7. Denials. The number of residential and nonresidential applications for service that were denied for the year.

C. Residential and nonresidential information stated separately. The information required by subsection B above shall separate residential account information from nonresidential account information.

§ 20 WAIVER

A. General waiver. Upon the request of any person subject to this Rule or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35‑A. The Commission, the Director of the Consumer Assistance Division, or the Hearing Examiner assigned to a proceeding related to this Chapter, may grant the waiver.

B. Individual customer exemption

1. Request requirements. An ETC may request that the Consumer Assistance Division grant an exemption from any provision of this Chapter in any case involving an individual applicant or customer whose conduct and known financial condition pose a clear danger of substantial losses to the ETC. A request for exemption under this subsection must be made to the Consumer Assistance Division. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation shall include a detailed statement of the facts alleged by the ETC in support of the request. The ETC shall immediately notify, in writing, the individual applicant or customer whose service would be affected by the proposed exemption, describing the nature and effect of the exemption requested and the facts alleged in support of the request.

2. Consumer Assistance Division investigations. The Consumer Assistance Division may reject, without investigation, any request that does not present facts that satisfy the standard of subsection 1 above. Before granting any exemption, the Consumer Assistance Division shall informally investigate the matter.

3. Decision. When the Consumer Assistance Division completes its investigation or summarily rejects the request, it shall issue a decision granting, denying, or granting in part the requested exemption. When the Consumer Assistance Division determines that an exemption is required to avoid a clear danger of substantial losses to the ETC, it shall notify the customer and the ETC of the decision. The notification may be made orally, but the Consumer Assistance Division shall promptly issue a written confirmation of the decision. The decision or written confirmation shall:

a. describe the nature and effect of the exemption;

b. explain why the exemption was granted or denied; and

c. inform the customer and the ETC of the right to appeal the Consumer Assistance Division's decision to the Commission, as provided in subsection 4 below.

4. Appeals to Commission. By following the procedures in section 18(H) of this Chapter, a party may appeal a decision by the Consumer Assistance Division granting or denying, in whole or in part, a request for an exemption. If the Consumer Assistance Division grants an exemption, the ETC may not act on the exemption until the appeal period expires.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 704, 705, 716
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 25, 2002. It was filed with the Secretary of State on June 25, 2002 and became effective on June 30, 2002 (filing 2002-230).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 23, 2020. It was filed with the Secretary of State on April 23, 2020 and became effective on April 28, 2020 (filing 2020-103).
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 291 Standards for Billing, Credit, and Collection and Customer Information for Non-Eligible Telecommunications Carriers

Code Me. R. 65-407 Ch. 291 Standards for Billing, Credit and Collection, and Customer Information for Non-Eligible Telecommunications Carriers. {#sec-65-407-ch.-291 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 291}

SUMMARY: This Chapter establishes consumer protections for the provision of local exchange telephone service by non-eligible telecommunications carriers in Maine. These rules govern interruptions in service, the granting and denying of service, provision of consumer information, credit and deposit practices, billing, disconnection, customer complaint procedures and methods of obtaining exemptions and variations from this Chapter.

§1 PURPOSES 4

A. Inform consumers 4

B. Prevent discrimination; ensure reasonable access to service 4

C. Establish minimum consumer protection standards 4

§2 DEFINITIONS 4

§3 JURISDICTION 6

§4 EMERGENCY MORATORIUM 6

§5 NON-DISCRIMINATION 6

§6 UNFAIR OR DECEPTIVE PRACTICES 6

A. Deceptive names prohibited 6

B. Application of Maine Unfair Trade Practices Act 7

§7 CUSTOMER PRIVACY 7

§8 APPLICATION FOR SERVICE 7

A. Disconnection for any reason 7

B. Local calling area 7

C. Pre-subscribed toll service and access to toll providers 7

D. Billing information 7

E. Lowest rate basic service plan 7

§9 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS 7

A. Services and fees 7

1. Price, fees and terms and conditions 7

2. Disputes 8

3. Price of service 8

B. Customer option to cancel order 8

C. Electronic information 8

D. Written contracts for services 8

§10 NOTIFICATION OF PRICE INCREASES AND CHANGES IN TERMS AND

CONDITIONS 8

A. Twenty-five day notice required 8

B. Adequate written notice 8

1. Form 8

2. Readable and clear 8

3. Not included with promotional material 9

4. Content of notice 9

5. Right to cancel 9

C. Failure to provide adequate written notice 9

D. Customer refund 9

E. Notice of customer rights 9

1. Form 9

2. Separate document 9

3. New customer 9

4. Annual notice 9

F. Exception 9

§11 BILLING AND PAYMENT STANDARDS 10

A. Bill content 10

1. Identification of non-ETC 10

2. Date 10

3. Balance 10

4. Charges debited for current billing cycle 10

5. Payments made 10

6. Charges debited for past charges 10

7. Closing dates and balance 10

8. Class of service 10

9. Due date 10

10. Receipt deadline 10

11. Interest rate 10

12. Contact information 10

13. Toll-free number 10

B. Compliance with federal “Truth-in-Billing” rule 11

C. Billing errors 11

1. Make-up bills 11

2. Refunds 11

D. Late payment fees 11

§12 DISCONNECTION WITHOUT CAUSE 11

A. Disconnection 11

B. Content of disconnection notice 11

1. Disconnection date 11

2. Curability of disconnection 11

3. Medical emergency 11

4. Right to apply for service; contact information 11

C. Bundled service disconnection notice 12

D. Disconnection where advance payment made 12

§13 MEDICAL EMERGENCY 12

A. Service required during a medical emergency 12

B. Disconnection postponed pending certification 12

C. Certification procedure 12

D. Non-ETC may transfer customer to ETC 12

E. Length of service; renewals 12

§14 DISPUTE RESOLUTION PROCEDURES 13

A. Toll-free line 13

B. Employees available 13

C. Dispute resolution process 13

1. Investigate dispute 13

2. Report results 13

3. Attempt to resolve dispute 13

D. Notification of right to file a complaint with the Consumer Assistance Division 13

E. CAD Complaint process 13

1. Consumer Assistance Division acceptance of a complaint 13

2. Consumer Assistance Division investigation of a complaint 14

3. Provision of information to the Consumer Assistance

Division By a non-ETC 14

4. Decision 14

5. Notice of appeal rights 14

F. Appeal to the Commission 14

1. Appeal process 14

2. Commission review 15

3. Order 15

§15 WAIVER 15

A. General waiver 15

B. Individual customer exemption 15

1. Request requirements 15

2. Consumer Assistance Division investigation 15

3. Decision 16

4. Appeal to Commission 16

§ 1 PURPOSES

The purposes of this Chapter are to:

A. Inform consumers. Ensure that customers and applicants are provided adequate and timely information about telecommunications services offered by non-eligible telecommunications carriers (non-ETCs) as defined in section 2(S) of this Chapter.

B. Prevent discrimination; ensure reasonable access to service. Ensure that all customers and applicants for non-ETC services are treated in a nondiscriminatory manner and are not unreasonably denied or disconnected from telecommunications service.

C. Establish minimum consumer protection standards. Establish minimum consumer protection standards that non-ETC's must meet. A non-ETC may provide greater levels of consumer protection than those established in this Chapter.

§ 2 DEFINITIONS

A. Account balance. "Account balance" is the total amount owed by a customer that has been billed in accordance with this Chapter.

B. Advance billing. "Advance billing" is a requirement that a customer prepay charges for services that will be provided during a specific, identifiable period in the future. Advance billing does not include any funds retained as a security deposit.

C. Amount overdue. "Amount overdue" is the amount that a non-ETC has billed to a customer and that has not been paid by the due date of the bill or by a date otherwise agreed upon.

D. Applicant. "Applicant" is any person who applies for a basic, toll, or optional services and who is not a customer of the non-ETC.

E. Basic service. "Basic service" is single-party service, voice grade access to the public switched telephone network, Dual Tone Multi-frequency or its functional digital equivalent, access to emergency services, access to operator services, access to interexchange service, access to directory assistance, and access to toll limitation. Basic service also includes all basic service attributes and standards mandated by federal and state statutes and Commission Rules.

F. Basic service provider. "Basic service provider" is any non-ETC that provides basic service to its customers.

G. Bill. "Bill" is a written statement (printed or electronic) from a non-ETC to a customer that states the amount owed by the customer for the current billing period, the amount overdue, the account balance, late fees and any other charges owed by the customer.

H. Billed Account. "Billed account" is an account that is assigned a unique identification number by the non-ETC for tracking purposes.

I. Clear and Conspicuous. "Clear and conspicuous" is that which would be readily apparent to the average customer.

J. Commission. "Commission" is the Maine Public Utilities Commission.

K. Consumer Assistance Division. "Consumer Assistance Division" is the Consumer Assistance Division of the Maine Public Utilities Commission.

L. Customer. "Customer" is a person who has applied for, been accepted and is receiving basic service, intrastate interexchange telecommunications service, interstate telecommunications service, or optional service in this State or has agreed to be billed for the same.

M. Deposit. "Deposit" is any funds, however designated, that are held as security for future payment or performance.

N. Dispute. "Dispute" is a grievance of an applicant or customer regarding a non-ETC's provision of service, application of Title 35-A, or any Commission rule.

O. Due date. "Due date" is the date by which payment must be received and after which the account is considered overdue.

P. Eligible Telecommunications Carrier (ETC). "Eligible telecommunications carrier" is a basic service provider designated by the Commission as an eligible telecommunications carrier for purposes of section 254 of the Telecommunications Act of 1996, 47 U.S.C., § 151 et seq.

Q. Lifeline/Link-up. "Lifeline/Link-Up" is a program that provides financial assistance to qualifying low-income customers to obtain and receive basic service pursuant to Chapter 294 of the Commission's rules.

R. New Service Provider. "New service provider" is a service provider that did not bill the customer for service during the service provider's last billing cycle. This definition excludes service providers who bill the customer solely on a per transaction basis.

S. Non-Eligible Telecommunications carrier (non-ETC). "Non-eligible telecommunications carrier" is any entity providing basic service, toll service or optional service to the public who is not designated by the Commission as an eligible telecommunications carrier pursuant to section 254 of the Telecommunications Act of 1996, 47 U.S.C., § 151 et seq.

T. Payment arrangement. "Payment arrangement" is an agreement between an applicant or customer and a non-ETC that allows the applicant or customer to pay an account balance or deposit in installments.

U. Residential service. "Residential service" is telecommunications service that is provided to a residence and used primarily for domestic purposes.

V. Service provider. "Service provider" is any entity that offers a product or service to a customer, the charge for which appears on the bill of the non-ETC.

W. Toll service. "Toll service" is intrastate or interstate interexchange telecommunications service.

X. Toll service provider. "Toll service provider" is any non-ETC that provides toll service to its customers.

§ 3 JURISDICTION

This Chapter applies to all basic service providers that are not designated by the Commission as an eligible telecommunications carrier for purposes of section 254 of the Telecommunications Act of 1996.

§ 4 EMERGENCY MORATORIUM

When the Commission or the Director of the Consumer Assistance Division determines that, due to an emergency, termination of telecommunications service by one or more non-ETCs would present a clear danger to the health or safety of customers, the Commission or the Consumer Assistance Division Director may declare a partial or complete moratorium on the termination or disconnection of telecommunications service by any or all non-ETCs.

§ 5 NON-DISCRIMINATION

A non-ETC shall provide service and apply credit and collections policies to applicants and customers without discrimination on the basis of race, color, ancestry, sex, age, national origin, religion, marital status, receipt of public assistance or the exercise of rights under state or federal consumer protection laws.

§ 6 UNFAIR OR DECEPTIVE PRACTICES

A. Deceptive names prohibited. A non-ETC may not use a company name that is deceptive or unreasonably confusing to consumers.

B. Application of Maine Unfair Trade Practices Act. A non-ETC shall not engage in conduct prohibited by the Maine Unfair Trade Practices Act, 5 M.R.S.A. §§ 205-A-214 and related consumer protection statutes.

§ 7 CUSTOMER PRIVACY

A non-ETC shall comply with the Federal Communication Commission's Customer Proprietary Network Information Rules, 47 CFR §§ 64.2001-2009.

§ 8 APPLICATION FOR SERVICE

Before accepting any application for basic service, a non-ETC shall inform the applicant:

A. Disconnection for any reason. That it may disconnect a residential customer for any reason with 14-days notice and may disconnect a nonresidential customer for any reason with 7-days notice. If the non-ETC charges a termination fee, it must disclose the existence and amount of the fee;

B. Local calling area. Of the geographic area that will be included within the applicant's local calling area;

C. Pre-subscribed toll service and access to toll providers. Whether pre-subscribed toll service will be available and of any limitation regarding access to toll providers;

D. Billing information. Of the billing period for basic service and any requirement for advance billing; and

E. Lowest rate service plan. Of the lowest rate basic service plan available to that applicant or customer if requested.

§ 9 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS

A non-ETC shall provide customers with written confirmation of orders generated by outbound sales calls. The written confirmation must include the specific terms and conditions for each service ordered by the customer and must be provided no later than the time the customer receives the first bill for service. The written confirmation may be included with the first bill for services. Orders for services generated by inbound calls from customers do not require written confirmation.

A. Services and fees.

1. Price, fees and terms and conditions. The written confirmation shall disclose each service or package of services ordered by the customer with its separate price, late fees, fees for installation, disconnection, termination or cancellation, registration fees, and any other terms and conditions to which the customer is required to adhere.

2. Disputes. The written confirmation shall include instructions on how to dispute charges with the non-ETC.

3. Price of service. The written confirmation shall include all relevant information necessary for the customer to calculate the full price of service.

B. Customer option to cancel order. Upon receipt of a written confirmation, a customer may, for any reason, cancel the order without penalty or further obligation. The customer shall pay or formally dispute any charges incurred prior to canceling the service.

C. Electronic confirmation. In situations where a non-ETC solicits a service electronically, e.g. using the Internet, the written confirmation may also be provided by similar electronic means.

D. Written contracts for services. To the extent that the requirements of this section are consistent with the information contained in a written contract for services between the non-ETC and the customer, the written contract can serve as the written notice required by this section. Written confirmation of an order is required, however, in situations where the written contract does not address each of the requirements of subsection A above. In such situations, the written notice may include only the requirements not included in the written contract.

§ 10 NOTIFICATION OF PRICE INCREASES AND CHANGES IN TERMS AND CONDITIONS

A. Twenty-five day notice required. A non-ETC must provide each of its customers at least 25 days written notice of any price increase or any change in the terms and conditions for any service provided by the non-ETC before the increase or change may take effect. A customer may terminate the service without penalty at any time before the increase or change takes effect.

B. Adequate written notice. Written notice to customers of a rate increase or change in terms and conditions that will result in a rate increase provided in accordance with this section shall:

1. Form. Be in the form of a letter, a message on the bill, or a bill insert that contains only the notification language required by this section;

2. Readable and clear. Be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

3. Not included with promotional material. Be sent or provided independently of any advertising or promotional material of any kind;

4. Content of notice. Notify the customer of the amount of the increase and the date the increase will take effect; and

5. Right to cancel. Notify the customer of the customer's right to cancel the service for which the rate increase or change in terms and conditions that will result in a rate increase applies prior to the increase or change taking effect.

C. Failure to provide adequate written notice. A customer who is not supplied with adequate written notice in accordance with this section is not obligated to pay for any increase in the bill attributable to an increase in price or change in terms and conditions.

D. Customer refund. A non-ETC shall refund or credit any increase in the customer's payments attributable to an increase in price or change in terms and conditions if the non-ETC fails to provide adequate written notice in accordance with this section.

E. Notice of Customer Rights. A non-ETC shall provide notice to its customers of the requirement for notification of price increases, as well as the customer's right to not pay the increases and to be reimbursed for payments that are attributable to an increase in price or change in terms and conditions where the customer was not properly notified. The notice shall be:

1. Form. In the form of a letter or bill insert and printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

2. Separate document. A separate document containing only the notification language required by this subsection;

3. New customer. Provided to each new customer at the time the customer accepts services; and

4. Annual notice. Provided to each existing customer on an annual basis.

F. Exception. This section does not apply to an increase or change in terms and conditions associated with an individual customer contract or promotional offering, provided the customer was notified before entering the contract or accepting the offer that the price or terms and conditions were subject to change.

§ 11 BILLING AND PAYMENT STANDARDS

A. Bill content. Each bill issued by a non-ETC shall:

1. Identification of non-ETC. Include a clear and conspicuous identification of the certificated non-ETC providing the customer's basic service. If the non-ETC has more than one name, the name appearing on the bill must be the name used to market the service;

2. Date. Identify the date that the bill is issued;

3. Balance. Identify the balance in each billed account at the beginning of the current billing cycle, using a term such as "previous balance;"

4. Charges debited for current billing cycle. Identify the amount of the charges debited to each billed account during the current billing cycle, using a term such as "current service;"

5. Payments made. Identify the amount of payments made to each billed account from the previous billing cycle, using a term such as "payments."

6. Charges debited for past charges. Identify the amount of the charges debited to each billed account during the current billing cycle for untimely payment of past charges, using a term such as "late charge;"

7. Closing dates and balance. Include the closing dates of the current billing cycle and the outstanding balance in each billed account on that date, specifying the "current amount due" and the "past due;"

8. Class of service. Identify the applicable class of service as stated in the non-ETC's rate schedule;

9. Due date. Include the statement, or payment, due date;

10. Receipt deadline. Include the date by which payment of the new balance must be received to avoid assessment of a late charge;

11. Interest rate. Identify the effective monthly interest rate that will be imposed if the bill is not paid by the due date;

12. Contact information. Clearly and conspicuously disclose any information that the subscriber may need to make inquiries about, or contest, charges on the bill; and

13. Toll-free number. Include the toll-free phone number(s) for customer service representatives of the non-ETC and any other service provider to which charges are due, and to which customer questions or disputes concerning bills or services should be directed.

B. Compliance with federal “Truth-in-Billing” rules. A non-ETC shall comply with the Federal Communication Commission's "Truth-in-Billing" Rules, 47 CFR §§ 64.2400-2401.

C. Billing errors. A non-ETC shall promptly notify a customer of a billing error after it discovers or is notified of the error. The non-ETC shall correct the error within 45 days of discovery or notice. The non-ETC shall investigate the possibility that a billing error may affect multiple customers and shall immediately notify the Consumer Assistance Division if more than 10 customers in the State are affected by a billing error.

1. Make-up bills. A non-ETC may issue a corrected bill for previously unbilled service, or for service billed below the correct rate, that was provided in the previous 12 months. A non-ETC may agree to a settlement that abates all or a portion of the previously unbilled service.

2. Refunds. A non-ETC shall refund any charge billed in excess of correct rates within the previous 6 years from the date of discovery or notice.

D. Late payment fees. A non-ETC may charge a fee for the late payment of basic service charges in accordance with a rate schedule consistent with Chapter 870 of the Commission's Rules.

§ 12 DISCONNECTION WITHOUT CAUSE

A. Disconnection. A non-ETC may disconnect a customer's basic service for any reason not in violation of sections 4, 5, and 13 upon 14 days prior notice to residential customers and 7 days prior notice to nonresidential customers.

B. Content of disconnection notice. Each notice shall be in writing and conspicuously:

1. Disconnection date. Identify the disconnection date;

2. Curability of disconnection. Indicate whether the disconnection may be cured and if so, how;

3. Medical emergency. Include a statement of a residential customer's right to postpone disconnection of basic service for a medical emergency and a description of how to declare a medical emergency under section 13 below; and

4. Right to apply for service; contact information. Include a statement of a customer's right to apply for service from an ETC and direct the customer to the current address and phone number of the Consumer Assistance Division of the Public Utilities Commission, as well the Commission's website, for a list of ETCs.

C. Bundled service disconnection notice. A non-ETC that provides both basic service and intrastate toll service to a customer may include a notice for the disconnection of both services on the same notice provided that the notice complies with the requirements of this Chapter and provides a single date for disconnection of both services.

D. Disconnection where advance payment is made. If a non-ETC acting under this section disconnects the basic service of a customer who has paid basic service charges in advance, the non-ETC shall refund the balance of any prepaid basic service charges.

§ 13 MEDICAL EMERGENCY

A. Service required during a medical emergency. A non-ETC may not disconnect basic service to a residential customer when the customer or an occupant of the customer's residence is certified by a physician to have a medical condition such that a lack of basic service would pose a serious risk of harm to that individual. In situations where the household has multiple telephone lines, basic service may be disconnected pursuant to section 12 of this rule, provided that basic service continues in at least one telephone line.

B. Disconnection postponed pending certification. If the customer or member of the household notifies the non-ETC that a medical emergency exists and that certification will be obtained, the non-ETC may not disconnect basic service for at least 3 business days. If the certification is not provided within the 3-day period, the non-ETC may subsequently disconnect the customer's service or it may transfer the customer to an ETC in accordance with this section.

C. Certification procedure. A physician's certification of a medical emergency may be oral or written. For purposes of this section, a "physician" is any person licensed by Maine Board of Licensure in Medicine, his or her agent, or any Maine-licensed mental health counselor. The non-ETC may require written confirmation within 7 days of an oral certification.

D. Non-ETC may transfer customer to ETC. If a physician has certified that a medical emergency exists, a non-ETC may transfer the customer's basic service to an ETC. The non-ETC shall waive any charges associated with the transfer and shall pay the ETC its non-recurring service installation costs for the transferred customer. The non-ETC shall also notify the customer when the transfer is complete.

E. Length of service; renewals. A non-ETC may not disconnect the customer for the time period specified in the certification or 60 days, whichever is less. A certification may be renewed for additional periods of up to 60 days each as long as the medical emergency continues.

§ 14 DISPUTE RESOLUTION PROCEDURES

A. Toll-free line. A non-ETC shall have a toll-free number for customers to call to resolve billing or service disputes.

B. Employees available. A non-ETC shall have an adequate number of properly trained employees available during business hours to respond to questions from applicants and customers, resolve disputes, and address requests for service. Customers calling the toll-free number discussed in subsection A above must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system.

C. Dispute resolution process. When a non-ETC becomes aware of a dispute by an applicant or customer, whether or not disconnection is pending, the non-ETC shall:

1. Investigate dispute. Investigate the dispute, preserving a record of the substance and results of the investigation;

2. Report results. Report the results of its investigation to the applicant or customer based on the record; and

3. Attempt to resolve dispute. Attempt in good faith to resolve the dispute.

D. Notification of right to file a complaint with the Consumer Assistance Division. If a non-ETC cannot resolve the dispute with the applicant or customer after the procedures set forth above have been completed, the non-ETC shall orally inform the applicant or customer of the right to file a complaint with the Consumer Assistance Division and of the toll-free telephone number of the Commission.

E. CAD complaint process

1. Consumer Assistance Division acceptance of a complaint. The Consumer Assistance Division may reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be "without merit" if, among other things, the Consumer Assistance Division has previously issued a decision regarding the same issue that is the basis for the complaint. The customer may appeal the rejection of a complaint to the Commission. If the Consumer Assistance Division accepts a complaint, the Consumer Assistance Division shall investigate the complaint.

2. Consumer Assistance Division investigation of a complaint. The Consumer Assistance Division will inform a non-ETC in writing, by telephone, by e-mail, by fax, or by any other means that is acceptable to both the Consumer Assistance Division and the non-ETC, that a complaint has been filed and the date of the filing. The Consumer Assistance Division will conduct an informal investigation of the dispute that may include:

a. an informal meeting with the customer and/or a non-ETC representative;

b. a review of the written record of the non-ETC's investigation required by subsection C above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the Consumer Assistance Division deems relevant to the dispute.

3. Provision of information to the Consumer Assistance Division by a non-ETC. A non-ETC shall provide information requested by the Consumer Assistance Division within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute required by subsection C above, or any other information in the non-ETC's possession or that is readily available to the non-ETC that the Consumer Assistance Division deems necessary to investigate the customer's dispute. If the non-ETC cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the Consumer Assistance Division or his designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Decision. The Consumer Assistance Division shall complete its investigation and issue an oral or written decision as soon as practicable. The decision by the Consumer Assistance Division shall impose any just and reasonable requirements necessary to resolve the dispute.

5. Notice of appeal rights. When a decision is rendered, the Consumer Assistance Division shall inform the customer and the non-ETC of the right to appeal the Consumer Assistance Division's decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.

F. Appeal to the Commission

1. Appeal process. The customer or the non-ETC may appeal a Consumer Assistance Division decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within 10 calendar days after the date of the decision. Notwithstanding section 6(D) of the Maine Rules of Civil Procedure and section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.

2. Commission review. The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the Consumer Assistance Division.

3. Order. The Commission shall issue an order affirming the Consumer Assistance Division's decision or, if the decision is not affirmed, the Commission shall:

a. remand the complaint to the Consumer Assistance Division for reconsideration with an explanation of the basis for the remand;

b. remand the complaint back to CAD to gather further facts; or

c. issue an order reversing or altering the Consumer Assistance Division's decision.

§ 15 WAIVER

A. General waiver. Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance Division, or the Hearing Examiner assigned to a proceeding related to this Chapter may grant the waiver.

B. Individual customer exemption

1. Request requirements. A non-ETC may request that the Consumer Assistance Division grant an exemption from any provision of this Chapter in any case involving an individual applicant or customer whose conduct and known financial condition pose a clear danger of substantial losses to the non-ETC. A request for exemption under this subsection must be made to the Consumer Assistance Division. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation must include a detailed statement of the facts alleged by the non-ETC in support of the request. The non-ETC shall immediately notify, in writing, the individual applicant or customer whose service would be affected by the proposed exemption, describing the nature and effect of the exemption requested and the facts alleged in support of the request.

2. Consumer Assistance Division investigation. The Consumer Assistance Division may reject, without investigation, any request that does not present facts that satisfy the standard of subsection 1 above. Before granting any exemption, the Consumer Assistance Division shall informally investigate the matter.

3. Decision. When the Consumer Assistance Division completes its investigation or summarily rejects the request, it shall issue a decision granting, denying, or granting in part the requested exemption. When the Consumer Assistance Division determines that an exemption is required to avoid a clear danger of substantial losses to the non-ETC, it shall notify the customer and the non-ETC of the decision. The notification may be made orally, but the Consumer Assistance Division shall promptly issue a written confirmation of the decision. The decision or written confirmation shall:

a. describe the nature and effect of the exemption;

b. explain why the exemption was granted or denied; and

c. inform the customer and the non-ETC of the right to appeal the Consumer Assistance Division's decision to the Commission, as provided in subsection 4 below.

4. Appeal to Commission. By following the procedures in section 14(F), a party may appeal a decision by the Consumer Assistance Division granting or denying, in whole or in part, a request for an exemption. If the Consumer Assistance Division grants an exemption, the non-ETC may not act on the exemption until the appeal period expires.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 704, and 705.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 25, 2002. It was filed with the Secretary of State on June 25, 2002 and will be effective on June 30, 2002.
• EFFECTIVE DATE: 65-407 Chapter 291 page 16

Chapter 292 Standards for Billing, Credit, and Collection and Customer Information for Interexchange Carriers

Code Me. R. 65-407 Ch. 292 Standards for Billing, Credit and Collection, and Customer Information for Interexchange Carriers {#sec-65-407-ch.-292 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 292}

SUMMARY: This Chapter establishes consumer protections for the provision of interexchange telephone service in Maine. These rules govern interuptions in service, the provision of consumer information, billing, disconnection, customer complaint procedures and methods of obtaining exemptions and variations from this Chapter.

§ 1 PURPOSES 4

A. Inform consumers 4

B. Prevent discrimination; ensure reasonable access to service 4

C. Establish minimum consumer protection standards 4

§ 2 DEFINITIONS 4

§ 3 JURISDICTION 6

§ 4 EMERGENCY MORATORIUM 6

§ 5 NON-DISCRIMINATION 6

§ 6 UNFAIR OR DECEPTIVE PRACTICES 6

A. Deceptive names prohibited 6

B. Application of Maine Unfair Trade Practices Act 6

§ 7 CUSTOMER PRIVACY 6

§ 8 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS 6

A. Services and fees 7

1. Price, fees and terms and conditions 7

2. Disputes 7

3. Price of service 7

B. Customer option to cancel order 7

C. Electronic confirmation 7

D. Written contracts for services 7

§ 9 NOTIFICATION OF PRICE INCREASES AND CHANGES IN TERMS AND

CONDITIONS 7

A. Twenty-five day notice required 7

B. Adequate written notice 8

1. Form 8

2. Readable and clear 8

3. Not included with promotional material 8

4. Content of notice 8

5. Right to cancel 8

C. Failure to provide adequate written notice 8

D. Customer refund 8

E. Notice of customer rights 8

1. Form 8

2. Separate document 8

3. New customer 8

4. Annual notice 9

F. Exception .................................................................................................... 9

1. Contractual or promotional offerings 9

2. Dial-around customers 9

3. Collect calls 9

§ 10 BILLING AND PAYMENT STANDARDS 9

A. Bill content 9

1. Identification of IXC 9

2. Date 9

3. Balance 9

4. Charges debited for current billing cycle 9

5. Payments made 9

6. Charges debited for past charges 9

7. Closing dates and balance 9

8. Due date 9

9. Receipt deadline 10

10. Itemized statement of charges 10

11. Interest rate 10

12. Contact information 10

13. Toll-free number 10

B. Compliance with federal “Truth-in-Billing rule 10

C. Billing errors 10

1. Make-up bills 10

2. Refunds 10

§ 11 SERVICE OPTION DISCLOSURE 10

§ 12 MARKETING EFFORTS 11

A. Direct marketing efforts 11

B. Mass marketing efforts 11

§ 13 SUSPENSION AND TERMINATION PROCEDURES 11

A. Recorded message 11

B. Disconnection from the IXC’s network 11

§ 14 DISPUTE RESOLUTION PROCEDURES 11

A. Toll-free line 11

B. Employees available 11

C. Dispute resolution process 11

1. Investigate dispute 12

2. Report results 12

3. Attempt to resolve dispute 12

D. Notification of right to file a complaint with the Consumer Assistance Division 12

E. CAD complaint process 12

1. Consumer Assistance Division acceptance of a complaint 12

2. Consumer Assistance Division investigation of a complaint 12

3. Provision of information to the Consumer Assistance Division by an IXC 12

4. Decision 13

5. Notice of appeal rights 13

F. Appeal to the Commission 13

1. Appeal process 13

2. Commission review 13

3. Order 13

§ 15 WAIVER 14

A. General waiver 14

B. Individual customer exemption 14

1. Request requirements 14

2. Consumer Assistance Division investigation 14

3. Decision 14

4. Appeal to Commission 15

§ 1 PURPOSES

The purposes of this Chapter are to:

A. Inform consumers. Ensure that customers and applicants are provided adequate and timely information about toll service and optional calling plans.

B. Prevent discrimination; ensure reasonable access to service. Ensure that all customers and applicants for telecommunication services are treated in a nondiscriminatory manner and are not unreasonably denied or disconnected from telecommunications service.

C. Establish minimum consumer protection standards. Establish minimum consumer protection standards that all IXCs must meet. An IXC may provide greater levels of consumer protection than those established in this Chapter.

§ 2 DEFINITIONS

A. Account balance. "Account balance" is the total amount owed by a customer that has been billed in accordance with this Chapter.

B. Amount overdue. "Amount overdue" is the amount that an IXC has billed to a customer and that has not been paid by the due date of the bill or by a date otherwise agreed upon.

C. Applicant. "Applicant" is any person who applies for toll or optional services and who is not a customer of the IXC.

D. Bill. "Bill" is a written statement (printed or electronic) from an IXC to a customer that states the amount owed by the customer for the current billing period, the amount overdue, the account balance, late fees and any other charges owed by the customer.

E. Billed Account. "Billed account" is an account that is assigned a unique identification number by the IXC for tracking purposes.

F. Clear and Conspicuous. "Clear and conspicuous" is that which would be readily apparent to the average customer.

G. Commission. "Commission" is the Maine Public Utilities Commission.

H. Consumer Assistance Division. "Consumer Assistance Division" is the Consumer Assistance Division of the Maine Public Utilities Commission.

I. Customer. "Customer" is a person who has applied for, been accepted and is receiving basic service; intrastate interexchange telecommunications service; interstate telecommunications service; or optional service in this State or has agreed to be billed for the same.

J. Dispute. "Dispute" is a grievance of an applicant or customer about an IXC's provision of service, application of Title 35-A, or any Commission rule.

K. Due date. "Due date" is the date by which payment must be made and after which the account is considered overdue.

L. Interexchange carrier (IXC). An "interexchange carrier" is any person, association, corporation, or other entity that provides intrastate interexchange telecommunications services, including a local exchange carrier, whether or not that entity is a public utility. An interexchange carrier includes an entity that provides services using facilities that it owns, leases, controls, operates or manages, including leased private lines or special access facilities, and an entity that resells switched services provided by other IXCs. An interexchange carrier does not include commercial mobile radio service (CMRS) providers as defined by federal law.

M. Intrastate telecommunication. An "intrastate telecommunication" is a telecommunication that is functionally intrastate, with points of origination and termination within the State, regardless of the actual routing of the communication. In the case of mobile telecommunications services, the points of origination and termination of the communication are assumed to be antenna locations at which the IXC acquires and passes on the end user's signal, unless the location of the end user can be determined.

N. New Service Provider. "New service provider" is a service provider that did not bill the customer for service during the service provider's last billing cycle. This definition excludes service providers who bill the customer solely on a per transaction basis.

O. Service provider. "Service provider" is any entity that offers a product or service to a customer, the charge for which appears on the bill of the IXC.

P. Toll service. "Toll service" is intrastate or interstate interexchange telecommunications service.

Q. Toll service provider. "Toll service provider" is any IXC that provides toll service to its customers.

§ 3 JURISDICTION

This Chapter applies to all telecommunications utilities subject to the jurisdiction and supervision of the Commission who offer interexchange service.

§ 4 EMERGENCY MORATORIUM

When the Commission or the Director of the Consumer Assistance Division determines that, due to an emergency, termination of telecommunications service by one or more IXCs would present a clear danger to the health or safety of customers, the Commission or the Consumer Assistance Division Director may declare a partial or complete moratorium on the termination or disconnection of telecommunications service by any or all IXCs.

§ 5 NON-DISCRIMINATION

An IXC shall provide service and apply credit and collections policies to applicants and customers without discrimination on the basis of race, color, ancestry, sex, age, national origin, religion, marital status, receipt of public assistance or the exercise of rights under state or federal consumer protection laws.

§ 6 UNFAIR OR DECEPTIVE PRACTICES

A. Deceptive names prohibited. An IXC may not use a company name that is deceptive or unreasonably confusing to consumers.

B. Application of Maine Unfair Trade Practices Act. An IXC shall not engage in conduct prohibited by the Maine Unfair Trade Practices Act, 5 M.R.S.A. §§ 205-A-214 and related consumer protection statutes.

§ 7 CUSTOMER PRIVACY

An IXC shall comply with the Federal Communication Commission's Customer Proprietary Network Information Rules, 47 CFR §§ 64.2001-2009.

§ 8 CONFIRMATION OF ORDER WITH WRITTEN TERMS AND CONDITIONS

An IXC shall provide customers with written confirmation of orders generated by outbound sales calls. The written confirmation must include the specific terms and conditions for each service ordered by the customer and must be provided no later than the time the customer receives the first bill for service. The written confirmation may be included with the first bill for service. Orders for services generated by inbound calls from customers do not require written confirmation.

A. Services and fees.

1. Price, fees and terms and conditions. The written confirmation shall disclose each service or package of services ordered by the customer with its separate price, late fees, fees for installation, disconnection, termination or cancellation, registration fees, and any other terms and conditions to which the customer is required to adhere.

2. Disputes. The written confirmation shall include instructions on how to dispute charges with the IXC.

3. Price of service. The written confirmation shall include all relevant information necessary for the customer to calculate the full price of service.

B. Customer option to cancel order. Upon receipt of a written confirmation, a customer may, for any reason, cancel the order without penalty or further obligation. The customer shall pay or formally dispute any charges incurred prior to canceling the service.

C. Electronic confirmation. In situations where an IXC solicits a service electronically, e.g. using the Internet, the written confirmation may also be provided by similar electronic means.

D. Written contracts for services. To the extent that the requirements of this section are consistent with the information contained in a written contract for services between the IXC and the customer, the written contract can serve as the written notice required by this section. Written confirmation of an order is required, however, in situations where the written contract does not address each of the requirements of subsection A above. In such situations, the written notice may include only the requirements not included in the written contract.

§ 9 NOTIFICATION OF PRICE INCREASES AND CHANGES IN TERMS AND CONDITIONS

A. Twenty-five day notice required. An IXC shall provide each of its customers at least 25 days written notice of any price increase or any change in the terms and conditions for any service provided by the IXC before the increase or change may take effect. A customer may terminate the service without penalty at any time before the increase or change takes effect.

B. Adequate written notice. Written notice to customers of a rate increase or change in terms and conditions that will result in a rate increase provided in accordance with this section shall:

1. Form. Be in the form of a letter, a message on the bill, or a bill insert that contains only the notification language required by this section;

2. Readable and clear. Be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

3. Not included with promotional material. Be sent or provided independently of any advertising or promotional material of any kind;

4. Content of notice. Notify the customer of the amount of the increase and the date the increase will take effect; and

5. Right to cancel. Notify the customer of the customer's right to cancel the service for which the rate increase or change in terms and conditions that will result in a rate increase applies prior to the increase or change taking effect.

C. Failure to provide adequate written notice. A customer who is not supplied with adequate written notice in accordance with this section is not obligated to pay for any increase in the bill attributable to an increase in price or change in terms and conditions.

D. Customer refund. An IXC shall refund or credit any increase in the customer's payments attributable to an increase in price or change in terms and conditions if the IXC fails to provide adequate written notice in accordance with this section.

E. Notice of Customer Rights. An IXC shall provide notice to its customers of the requirement for notification of price increases, as well as the customer's right to not pay the increases and to be reimbursed for payments that are attributable to an increase in price or change in terms or conditions where the customer was not properly notified. The notice shall be:

1. Form. In the form of a letter or bill insert and printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

2. Separate document. A separate document containing only the notification language required by this subsection;

3. New customer. Provided to each new customer at the time the customer accepts services; and

4. Annual notice. Provided to each existing customer on an annual basis.

F. Exception. This section does not apply to:

1. Contractual or promotional offerings. An increase or change in terms and conditions associated with an individual customer contract or promotional offering, provided the customer was notified before entering the contract or accepting the offer that the price or terms and conditions were subject to change;

2. Dial-around customers. Customers that access the IXC's network by dialing its access number; and

3. Collect calls. Customers that access the IXC's network by making a collect call.

§ 10 BILLING AND PAYMENT STANDARDS

A. Bill content. Each bill issued by an IXC shall:

1. Identification of IXC. Include a clear and conspicuous identification of the certificated IXC providing the customer's basic service. If the IXC has more than one name, the name appearing on the bill must be the name used to market the service;

2. Date. Identify the date that the bill is issued;

3. Balance. Identify the balance in each billed account at the beginning of the current billing cycle, using a term such as "previous balance;"

4. Charges debited for current billing cycle. Identify the amount of the charges debited to each billed account during the current billing cycle, using a term such as "current service;"

5. Payments made. Identify the amount of payments made to each billed account from the previous billing cycle, using a term such as "payments;"

6. Charges debited for past charges. Identify the amount of the charges debited to each billed account during the current billing cycle for untimely payment of past charges, using a term such as "late charge;"

7. Closing dates and balance. Include the closing dates of the current billing cycle and the outstanding balance in each billed account on that date, specifying the "current amount due" and the "past due;"

8. Due date. Include the statement, or payment, due date;

9. Receipt deadline. Include the date by which payment of the new balance must be received to avoid assessment of a late charge;

10. Itemized statement of charges. Include an itemized statement of charges listing the date, time, destination, duration and rate period for each call. The itemization must include late payment interest charges, taxes, and separate surcharges provided by the IXC. This itemization is not required for bulk rate toll services;

11. Interest rate. Identify the effective monthly interest rate that will be imposed if the bill is not paid by the due date;

12. Contact information. Clearly and conspicuously disclose any information that the subscriber may need to make inquiries about, or contest, charges on the bill; and

13. Toll-free number. Include the toll-free phone number(s) for customer service representatives of the IXC and any other service provider to which charges are due, and to which customer questions or disputes concerning bills or services should be directed.

B. Compliance with federal “Truth-in-Billing” rules. An IXC shall comply with the FCC's "Truth-in-Billing" Rules, 47 CFR §§ 64.2400-2401.

C. Billing errors. An IXC shall promptly notify a customer of a billing error after it discovers or is notified of the error. The IXC shall correct the error within 45 days of discovery or notice. An IXC shall investigate the possibility that a billing error may affect multiple customers and shall immediately notify the Consumer Assistance Division if more than 10 customers in the State are affected by a billing error.

1. Make-up bills. The IXC may issue a corrected bill for previously unbilled service, or for service billed below the tariffed rate, that was provided in the previous 12 months. An IXC may agree to a settlement that abates all or a portion of the previously unbilled service.

2. Refunds. The IXC shall refund any charge billed in excess of correct rates within the previous 6 years from the date of discovery or notice.

§ 11 SERVICE OPTION DISCLOSURE

Upon the request of an applicant or customer, an IXC that offers more than one service plan shall identify and describe the lowest rate service plan available to that applicant or customer. Upon request, the applicant or customer must provide information reasonably requested by the IXC's representative concerning the customer's customary, recent or expected usage. Based upon familiarity with the IXC's service plans and exercising reasonable care in analyzing the applicant's or customer's usage history, the IXC's representative shall seek to identify and describe the service plan that is most likely to produce the lowest bill for the applicant or customer.

§ 12 MARKETING EFFORTS

A. Direct marketing efforts. An IXC that conducts direct marketing efforts aimed at specific customers or groups of customers shall have the facilities and be willing to provide the service marketed to all customers who are the subject of the direct marketing effort and who wish to subscribe to the service.

B. Mass marketing efforts. An IXC that conducts mass marketing efforts for services that are not offered to all customers exposed to the mass marketing shall disclose the fact that the service may not be available in certain areas.

§ 13 SUSPENSION AND TERMINATION PROCEDURES

A. Recorded message. IXCs that suspend or terminate a customer's presubscribed toll service must include a recorded message on the suspended or disconnected line that informs the customer that the service has been suspended or terminated, provides a toll-free number to reach the IXC, and informs the customer of the ability to complete toll calls using another carrier's dial-around service or a prepaid calling card. The message must remain on the line for as long as the suspension lasts or until 30 days have passed following the disconnection, whichever comes first.

B. Disconnection from the IXC's network. When an IXC disconnects a customer's toll service, either at the customer's request or involuntarily in accordance with this section, the carrier shall block the customer's access to place toll calls using the carrier's toll service with the carrier. This requirement shall apply only to blocking of the customer's ability to dial calls through presubscription and does not include dial-around access to the IXC's network.

§ 14 DISPUTE RESOLUTION PROCEDURES

A. Toll-free line. An IXC shall have a toll-free number for customers to call to resolve billing and service disputes.

B. Employees available. An IXC shall have an adequate number of properly trained employees available during business hours to respond to questions from applicants and customers, resolve disputes, and address requests for service. Customers calling the toll-free number discussed in subsection A above must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system.

C. Dispute resolution process. When an IXC becomes aware of a dispute by an applicant or customer, whether or not disconnection is pending, the IXC shall:

1. Investigate dispute. Investigate the dispute, preserving a record of the substance and results of the investigation;

2. Report results. Report the results of its investigation to the applicant or customer based on the record; and

3. Attempt to resolve dispute. Attempt in good faith to resolve the dispute.

D. Notification of right to file a complaint with the Consumer Assistance Division. If an IXC cannot resolve the dispute with the applicant or customer after the procedures set forth above have been completed, the IXC shall orally inform the applicant or customer of the right to file a complaint with the Consumer Assistance Division and of the toll free telephone number of the Commission.

E. CAD complaint process

1. Consumer Assistance Division acceptance of a complaint. The Consumer Assistance Division may reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be "without merit" if, among other things, the Consumer Assistance Division has previously issued a decision regarding the same issue that is the basis for the complaint. The customer may appeal the rejection of a complaint to the Commission. If the Consumer Assistance Division accepts a complaint, the Consumer Assistance Division shall investigate the complaint.

2. Consumer Assistance Division investigation of a complaint. The Consumer Assistance Division will inform an IXC in writing, by telephone, by e-mail, by fax, or by any other means that is acceptable to both the Consumer Assistance Division and the IXC, that a complaint has been filed and the date of the filing. The Consumer Assistance Division will conduct an informal investigation of the dispute that may include:

a. an informal meeting with the customer and/or an IXC representative;

b. a review of the written record of the IXC's investigation required by subsection C above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the Consumer Assistance Division deems relevant to the dispute.

3. Provision of information to the Consumer Assistance Division by an IXC. An IXC shall provide information requested by the Consumer Assistance Division within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute required by subsection C above, or any other information in the IXC's possession or that is readily available to the IXC that the Consumer Assistance Division deems necessary to investigate the customer's dispute. If the IXC cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the Consumer Assistance Division or his designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Decision. The Consumer Assistance Division shall complete its investigation and issue an oral or written decision as soon as practicable. The decision by the Consumer Assistance Division shall impose any just and reasonable requirements necessary to resolve the dispute.

5. Notice of appeal rights. When a decision is rendered, the Consumer Assistance Division shall inform the customer and the IXC of the right to appeal the Consumer Assistance Division's decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.

F. Appeal to the Commission

1. Appeal process. The customer or the IXC may appeal a Consumer Assistance Division decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within ten (10) calendar days after the date of the decision. Notwithstanding section 6(D) of the Maine Rules of Civil Procedure and section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.

2. Commission review. The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the Consumer Assistance Division.

3. Order. The Commission shall issue an order affirming the Consumer Assistance Division's decision or, if the decision is not affirmed, the Commission shall:

a. remand the complaint to the Consumer Assistance Division for reconsideration with an explanation of the basis for the remand;

b. remand the complaint back to Consumer Assistance Division to gather further facts; or

c. issue an order reversing or altering the Consumer Assistance Division's decision.

§ 15 WAIVER

A. General waiver. Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance Division, or the Hearing Examiner assigned to a proceeding related to this Chapter may grant the waiver.

B. Individual customer exemption

1. Request requirements. An IXC may request that the Consumer Assistance Division grant an exemption from any provision of this Chapter in any case involving an individual applicant or customer whose conduct and known financial condition pose a clear danger of substantial losses to the IXC. A request for exemption under this subsection must be made to the Consumer Assistance Division. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation must include a detailed statement of the facts alleged by the IXC in support of the request. The IXC shall immediately notify, in writing, the individual applicant or customer whose service would be affected by the proposed exemption, describing the nature and effect of the exemption requested and the facts alleged in support of the request.

2. Consumer Assistance Division investigation. The Consumer Assistance Division may reject, without investigation, any request that does not present facts that satisfy the standard of subsection 1 above. Before granting any exemption, the Consumer Assistance Division shall informally investigate the matter.

3. Decision. When the Consumer Assistance Division completes its investigation or summarily rejects the request, it shall issue a decision granting, denying, or granting in part the requested exemption. When the Consumer Assistance Division determines that an exemption is required to avoid a clear danger of substantial losses to the IXC, it shall notify the customer and the IXC of the decision. The notification may be made orally, but the Consumer Assistance Division shall promptly issue a written confirmation of the decision. The decision or written confirmation shall:

a. describe the nature and effect of the exemption;

b. explain why the exemption was granted or denied; and

c. inform the customer and the IXC of the right to appeal the Consumer Assistance Division's decision to the Commission, as provided in subsection 4 below.

4. Appeal to Commission. By following the procedures in section 14(F), a party may appeal a decision by the Consumer Assistance Division granting or denying, in whole or in part, a request for an exemption. If the Consumer Assistance Division grants an exemption, the IXC may not act on the exemption until the appeal period expires.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 704, 705.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 25, 2002. It was filed with the Secretary of State on June 25, 2002 and will be effective on June 30, 2002.
• EFFECTIVE DATE: 65-407 Chapter 292 page 15

Chapter 293 Abandonment of Service and Authority to Provide Services and Transfer of Customers by Competitive Telecommunications Carriers

Code Me. R. 65-407 Ch. 293 Abandonment of Service and Authority to Provide Service and Transfer of Customers by Competitive Telecommunications Carriers {#sec-65-407-ch.-293 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 293}

SUMMARY: The purpose of this Chapter is to provide an efficient method for competitive telecommunications carriers to abandon service and terminate their authority to provide service, and to govern transfers of customers from one carrier to another.

§ 1 PURPOSE AND APPLICABILITY 3

§ 2 DEFINITIONS 3

§ 3 NOTICE AND APPLICATION FOR ABANDONMENT OF SERVICE, FOR TRANSFER OF CUSTOMERS AND AUTHORITY TO PROVIDE SERVICE 4

§ 4 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY WHEN A COMPETITIVE TELECOMMUNICATIONS CARRIER HAS NO CUSTOMERS 5

§ 5 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY FOR A SERVICE CATEGORY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS NO CUSTOMERS IN THAT SERVICE CATEGORY 6

§ 6 ABANDONMENT OF ALL SERVICE TO A CUSTOMER CLASS BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS NO CUSTOMERS IN THAT CLASS 7

§ 7 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS CUSTOMERS 9

§ 8 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY FOR A SERVICE CATEGORY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS CUSTOMERS IN THAT SERVICE CATEGORY 10

§ 9 ABANDONMENT OF ALL SERVICE TO A CUSTOMER CLASS BY A COMPETITIVE CARRIER THAT HAS CUSTOMERS IN THAT CLASS 11

§ 10 TEMPORARY E-911 SERVICE BY ABANDONING CLEC IF CUSTOMER FAILS TO SELECT A NEW CARRIER 12

§ 11 NOTICE TO COMMISSION AND TO RETAIL CUSTOMERS WHEN UNDERLYING CARRIER DISCONTINUES SERVICE TO CLEC 13

§ 12 TRANSFER OF CUSTOMER ACCOUNTS TO A DIFFERENT CARRIER, WITH OR WITHOUT ABANDONMENT OF SERVICE 14

§ 13 FORM AND MANNER OF DELIVERY OF CUSTOMER NOTICES 17

§ 14 EXEMPTION FROM REQUIREMENTS OF 35-A M.R.S.A. § 1104 18

§ 15 DUTIES OF ADMINISTRATIVE DIRECTOR; DELEGATION OF AUTHORITY 18

§ 16 WAIVER OR EXEMPTION 18

Appendix A 20

§ 1 PURPOSE AND APPLICABILITY

The purpose of this Chapter is to provide a simple, efficient and nearly automatic method for competitive telecommunications carriers to abandon service and to terminate their authority to provide service, and to govern transfers of customers from one carrier to another. This Chapter does not govern the discontinuance of a service offering.

§ 2 DEFINITIONS

A. Abandonment of Service. ”Abandonment of Service” means either the abandonment of all service to all customers by a competitive telecommunications carrier and the termination of the competitive telecommunications carrier’s authority to provide service, or the abandonment of all service to a specified group of customers. A statement by a competitive telecommunications carrier that it is “canceling,” “withdrawing,” or “revoking” its authority or certificate or intends to do so, or that it is “no longer doing business in the state” shall be considered a notice, pursuant to 35-A M.R.S.A. § 1104 and this Chapter, to abandon service and terminate authority to provide service (see Sections 4 and 7) or to abandon a portion of the competitive telecommunications carrier’s service (see Sections 5, 6, 8 and 9).

B. Acquiring Carrier. An “acquiring carrier” is any telephone utility, whether it is a competitive telecommunications carrier or not, that acquires customers from a transferring competitive telecommunications carrier.

C. Competitive Local Exchange Carrier (CLEC). A “competitive local exchange carrier” or “CLEC” is any local exchange carrier that is not an incumbent local exchange carrier (ILEC).

D. Competitive Interexchange Carrier (Competitive IXC). A “competitive interexchange carrier” or “competitive IXC” is an interexchange carrier that does not also provide local exchange service as an incumbent local exchange carrier (ILEC).

E. Competitive Telecommunications Carrier. A “competitive telecommunications carrier” is a telephone utility, as defined in 35-A M.R.S.A. § 102(19), that is either a competitive local exchange carrier (CLEC) that does not receive funding from the Maine Universal Service Fund pursuant to Chapter 288 or a competitive interexchange carrier (IXC). The terms “competitive local exchange carrier” and “competitive interexchange carrier” are defined in this section.

F. Discontinuance of a Service Offering. “Discontinuance of a Service Offering” is the discontinuance, pursuant to the provisions of 35-A M.R.S.A. § 307, of a specific service offering in the rate schedules of a competitive telecommunications carrier. The discontinuance of a specific service offering by a CLEC is not an “abandonment of service” for purposes of this Chapter if the CLEC will continue to provide other local exchange service offerings to customers that subscribe to the discontinued offering. The discontinuance of a specific service offering by a competitive IXC is not an “abandonment of service” for the purpose of this Chapter if the competitive IXC will continue to provide other interexchange service offerings to customers that subscribe to the discontinued offering.

G. Incumbent Local Exchange Carrier (ILEC). An “incumbent local exchange carrier” or “ILEC” is a local exchange carrier that provided local exchange service in a defined service territory in Maine on February 8, 1996 or that is designated as an ILEC pursuant to 47 U.S.C. § 251(h)(2).

H. Mail. “Mail” means the sending and delivery of a paper copy of any notice or other document required by the Chapter using the United States Postal Service or other reliable delivery service. “Mail” also includes electronic mail (e-mail) when it is permitted by and meets the requirements set forth in Section 13.

I. Rate Schedules. “Rate schedules” are the schedules of rates, as described in 35-A M.R.S.A. § 304, that contain a telecommunications carrier’s rates and all terms and conditions filed with and as part of the schedules that in any way affect the rates charged for any telecommunications service.

§ 3 NOTICE AND APPLICATION FOR ABANDONMENT OF SERVICE, FOR TRANSFER OF CUSTOMERS AND AUTHORITY TO PROVIDE SERVICE

A. Docketing. The Administrative Director shall docket all letters, notices or applications from competitive telecommunications carriers that may reasonably be considered a notice of intent to abandon service or to relinquish authority to provide service, under the provisions of Sections 4 through 9, as applicable, or to transfer or acquire customers pursuant to Section 12. If an acquiring carrier does not have authority to provide service to a group of customers the carrier proposes to acquire, the Administrative Director shall docket any application or request to obtain that authority as a separate proceeding.

B. Required information. All notices or applications required by this Chapter shall state the name (and former names and assumed trade names, if any) of the competitive telecommunications carrier that is abandoning or discontinuing service, the name (and former names and assumed trade names, if any) of any acquiring carrier, the nature of the authority that each carrier obtained from the Commission (local or interexchange) and the docket number(s) of the order(s) for each grant of authority.

C. Accompanying Filings. With all notices or applications required by this Chapter, a competitive telecommunications carrier proposing to abandon service shall file copies of any notices to its customers that are required by this Chapter or by 47 C.F.R. § 1120(e)(3) and any proposed changes to its rate schedules that are required by this Chapter. If the competitive telecommunications carrier does not file either of these items, the Administrative Director shall notify the carrier of the requirement and the carrier shall provide the Commission with copies of the missing materials within 14 days.

D. Additional Information. If necessary, the Administrative Director may request additional information from the competitive telecommunications carrier. The Administrative Director may make such inquiry to determine whether the carrier is proposing to abandon service, whether the carrier has any customers in Maine, whether the carrier previously had customers and how those customers were terminated, whether notice to customers has been provided or will be required, which category of abandonment applies as defined in Sections 4 through 9 below, or any other matter the Administrative Director finds is necessary.

§ 4 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY WHEN A COMPETITIVE TELECOMMUNICATIONS CARRIER HAS NO CUSTOMERS

A. Approval Generally Not Required. If a competitive telecommunications carrier provides notice to the Commission that it intends to abandon all service to all customers or that it requests the Commission to terminate its authority to provide service and it states that it has no local or intrastate interexchange customers in Maine, no approval by the Commission is required except as provided in Section 4(B). The abandonment of service and termination of authority to provide service shall be effective 7 days after receipt of the notice by the Commission or, if a later date is specified in the notice, on that date.

B. Exceptions

1. Pending Proceedings. If any Commission proceedings or consumer complaints before the Consumer Assistance Division are pending against the competitive telecommunications carrier, the Commission must approve the abandonment of service and termination of authority. No approval will be granted until the proceedings are final and the complaints are resolved and the competitive telecommunications carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest. Nothing in this subparagraph prohibits the Commission from temporarily or permanently terminating the authority of a competitive telecommunications carrier to provide service as permitted by law.

2. Failure to Obtain Previously Required Approval. If a competitive telecommunications carrier states in its notice to the Commission that it presently has no customers, but upon investigation or inquiry to the carrier it appears that the carrier previously had customers in Maine and terminated those customers on its own initiative without obtaining the approval required by 35-A M.R.S.A. § 1104 and this Chapter, the carrier must obtain approval from the Commission to abandon service and for termination of its authority, notwithstanding Section 4(A). Prior to granting approval, the Commission may initiate proceedings as permitted by law against the carrier for the violation of 35-A M.R.S.A. § 1104. No approval will be granted until those proceedings are final and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a competitive telecommunications carrier to provide service as permitted by law.

3. Money Owed to Commission or to Funds Administered by the Commission. The Administrative Director, in consultation with the Director of Finance, shall determine whether the competitive telecommunications carrier seeking termination of its authority to provide service has failed to pay any assessments from the Commission, including those pursuant to 35-A M.R.S.A. § 116, from the Maine Universal Service Fund pursuant to 35-A M.R.S.A. § 7104 and Chapter 288 of the Commission’s Rules, and from the Maine Telecommunications Education Access Fund pursuant to 35-A M.R.S.A. § 7104-B. If the carrier owes money to the Commission or to either of the Funds, the Administrative Director shall notify the Commission, which shall decide whether to delay the termination of authority and approval of abandonment of service until after the collection of any outstanding amounts.

§ 5 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY FOR A SERVICE CATEGORY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS NO CUSTOMERS IN THAT SERVICE CATEGORY

A. Approval Generally Not Required. If a competitive telecommunications carrier provides notice to the Commission that it intends to abandon all service to a specific service category (e.g., interexchange service or local exchange service) and that it has no local or intrastate interexchange customers in that category, no approval by the Commission is required except as provided in Section 5(C). The abandonment of service and termination of authority to provide the service category shall be effective 7 days after receipt of the notice by the Commission or, if a later date is specified in the notice, on that date.

B. Changes to Rate Schedules. With the notice provided to the Commission pursuant to Section 5(A), the competitive telecommunications carrier shall file any necessary changes to its rate schedules that will remove any services that are no longer available. The proposed changes shall bear a proposed effective date that is the same as the date of abandonment of service and termination of authority and shall become effective on that date.

C. Exceptions

1. Pending Proceedings. If any Commission proceedings or consumer complaints before the Consumer Assistance Division are pending against the competitive telecommunications carrier that involve the service category the carrier proposes to discontinue, the Commission must approve the abandonment of service and partial termination of authority. No approval will be granted until the proceedings are final and the complaints are resolved and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

2. Failure to Obtain Previously Required Approval. If a competitive telecommunications carrier states in its notice to the Commission that it presently has no customers for the affected service category, but upon investigation or inquiry it appears that the carrier previously had customers in Maine and terminated those customers on its own initiative without obtaining the approval required by 35-A M.R.S.A. § 1104, the carrier must obtain approval from the Commission to abandon service to that service category, notwithstanding Section 5(A). Prior to granting approval, the Commission may initiate proceedings as permitted by law against the carrier for the violation of 35-A M.R.S.A. § 1104. No approval will be granted until those proceedings are final and the carrier has complied with the requirements of any orders issued by the Commission. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest. Nothing in this subparagraph prohibits the Commission from temporarily or permanently terminating the authority of a carrier to provide service as permitted by law.

§ 6 ABANDONMENT OF ALL SERVICE TO A CUSTOMER CLASS BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS NO CUSTOMERS IN THAT CLASS

A. Approval Generally Not Required. If a competitive telecommunications carrier provides notice to the Commission that it intends to abandon all service to a specific customer class (e.g., residential or business customers) and that it has no local or intrastate interexchange customers in that class or category, no approval by the Commission is required except as provided in Section 6(C). The abandonment of service shall be effective 7 days after receipt of the notice by the Commission or, if a later date is specified in the notice, on that date.

B. Changes to Rate Schedules. With the notice provided to the Commission pursuant to Section 6(A), the competitive telecommunications carrier shall file any necessary changes to its rate schedules that will remove or modify the rates and terms and conditions for any services that are no longer available to the applicable customer class. The proposed changes shall bear a proposed effective date that is the same as the date of abandonment of service and shall become effective on that date.

C. Exceptions

1. Pending Proceedings. If any Commission proceedings or consumer complaints before the Consumer Assistance Division are pending against the carrier that involve the affected customer class, the Commission must approve the abandonment of service. The Commission may decide that no approval will be granted until the proceedings are final and the complaints are resolved and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

2. Failure to Obtain Previously Required Approval. If the competitive telecommunications carrier states in its notice to the Commission that it presently has no customers in the affected class, but upon investigation or inquiry it appears that the carrier previously had customers in Maine and terminated those customers on its own initiative without obtaining the approval required by 35-A M.R.S.A. § 1104, the carrier must obtain approval from the Commission to abandon service to that class, notwithstanding Section 6(A). Prior to granting approval, the Commission may initiate proceedings as permitted by law against the carrier for the violation of 35-A M.R.S.A. § 1104. No approval will be granted until those proceedings are final and the carrier has complied with the requirements of any orders issued by the Commission. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

§ 7 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS CUSTOMERS

A. Approval Generally Not Required. Except as provided in Section 7(C), if a competitive telecommunications carrier that has intrastate customers in Maine provides notice to the Commission that it intends to abandon all service to all customers or it requests the Commission to terminate its authority to provide service, the approval of the Commission is not required provided that the carrier complies with the notice requirement of Section 7(B). The abandonment of service and termination of authority to provide service pursuant to this subsection shall be effective upon the date stated in the notice to customers.

B. Notice to Customers. A competitive telecommunications carrier that is abandoning service pursuant to this section, except for a carrier that is transferring customers to another carrier pursuant to Section 12 and 47 C.F.R. § 1120(e)(3), must provide written notice by mail to its customers stating that it will no longer provide service to them. The notice shall state the date that service will be terminated, which shall be no earlier than 30 days after providing the notice to the customer. The carrier shall be in compliance with this time requirement if it mails the notice 35 days prior to the transfer date. A CLEC must include a warning in the notice that, if the customer is subscribed to long distance (toll) calling plans with separate in-state or interstate toll providers, the customer may lose those plans when the customer selects a new local exchange carrier and may revert to higher-priced non-calling plan rates. The warning shall advise the customer that to ensure continued subscription to any toll calling plans the customer should call the customer’s in-state and interstate toll providers. The carrier shall provide a copy of its proposed notice to customers with the notice filed with the Commission pursuant to Section 7(A).

C. Exceptions

1. Pending Proceedings. If any Commission proceedings or consumer complaints before the Consumer Assistance Division are pending against the competitive telecommunications carrier, the Commission must approve the abandonment of service and termination of authority. No approval will be granted until the proceedings are final and the complaints are resolved and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

2. Money Owed to Commission or to Funds Administered by the Commission. The Administrative Director, in consultation with the Director of Finance, shall determine whether the competitive telecommunications carrier seeking termination of its authority to provide service has failed to pay any assessments from the Commission, including those pursuant to 35-A M.R.S.A. § 116, from the Maine Universal Service Fund pursuant to 35-A M.R.S.A. § 7104 and Chapter 288 of the Commission’s Rules, and from the Maine Telecommunications Education Access Fund pursuant to 35-A M.R.S.A. § 7104-B and Chapter 285 of the Commission’s Rules. If the carrier owes money to the Commission or to either of the Funds, the Administrative Director shall notify the Commission, which shall decide whether to delay the termination of authority and approval of abandonment of service until after the collection of any outstanding amounts.

§ 8 ABANDONMENT OF ALL SERVICE AND TERMINATION OF AUTHORITY FOR A SERVICE CATEGORY BY A COMPETITIVE TELECOMMUNICATIONS CARRIER THAT HAS CUSTOMERS IN THAT SERVICE CATEGORY

A. Approval Generally Not Required. Except as provided in Section 8(D), if a competitive telecommunications carrier that has intrastate customers in Maine provides notice to the Commission that it intends to abandon all service to a specific service category (e.g., interexchange service or local exchange service), the approval of the Commission is not required, provided that the carrier complies with the rate schedule requirements of Section 8(B) and the notice requirement of Section 8(C). The abandonment of service and termination of authority to provide the service category shall be effective on the date stated in the notice to customers.

B. Changes to Rate Schedules. With the notice provided to the Commission pursuant to Section 8(A), the competitive telecommunications carrier shall file any necessary changes to its rate schedules that will remove any services that are no longer available. The proposed changes shall bear a proposed effective date that is the same as the date of termination of service contained in the notice to customers contained in Section 8(C) and shall become effective on that date.

C. Notice to Customers; Copy of Customer Notice Provided to Commission. A competitive telecommunications carrier that is abandoning service to a service category pursuant to this section, except for a carrier that is transferring customers to another carrier pursuant to Section 12 and 47 C.F.R. § 1120(e)(3), must provide written notice of the abandonment of service by mail to the customers who subscribe to the service. The notice shall state the date that service will be terminated, which shall be no earlier than 30 days after providing the notice to the customer. The carrier shall be in compliance with this time requirement if it mails the notice 35 days prior to the transfer date. A carrier that is abandoning local exchange service must include a warning in the notice that, if the customer is subscribed to long distance (toll) calling plans with a different in-state or interstate toll provider, the customer may lose those plans when the customer selects a new local exchange carrier and may revert to higher-priced non-calling plan rates. The warning shall advise the customer that to ensure continued subscription to any toll calling plans the customer should call the customer’s in-state and interstate toll providers. The carrier shall provide a copy of its proposed notice to customers with the notice filed with the Commission pursuant to Section 8(A).

D. Exception: Pending Proceedings. If any Commission proceedings or consumer complaints before the Consumer Assistance Division are pending against the competitive telecommunications carrier that involve the service category proposed to be discontinued, the Commission must approve the abandonment of service and partial termination of authority. No approval will be granted until the proceedings are final, the complaints are resolved, and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

§ 9 ABANDONMENT OF ALL SERVICE TO A CUSTOMER CLASS BY A COMPETITIVE CARRIER THAT HAS CUSTOMERS IN THAT CLASS

A. Approval Generally Not Required. Except as provided in Section 9(D), if a competitive telecommunications carrier that has intrastate customers in Maine provides notice to the Commission that it intends to abandon all service to all customers in a specified customer class, the approval of the Commission is not required provided that the carrier complies with the rate schedule requirements of Section 9(B) and the notice requirements of Section 9(C). The abandonment of service pursuant to this subsection shall be effective on the date stated in the notice to customers.

B. Changes to Rate Schedules. With the notice provided to the Commission pursuant to Section 9(A), the competitive telecommunications carrier shall file any necessary changes to its rate schedules that will remove or modify the rates and terms and conditions for any services that are no longer available to the applicable customer class. The proposed changes shall bear a proposed effective date that is the same as the date of termination of service contained in the notice to customers contained in Section 9(C) and shall become effective on that date.

C. Notice to Customers; Copy of Customer Notice Provided to Commission. A competitive telecommunications carrier that is abandoning service pursuant to this section, except for a carrier that is transferring customers to another carrier pursuant to Section 12 and 47 C.F.R. § 1120(e)(3), must provide written notice by mail to the customers in the affected class stating that it will no longer provide service to them. The notice shall state the date that service will be terminated, which shall be no earlier than 30 days after providing the notice to the customer. The carrier shall be in compliance with this time requirement if it mails the notice 35 days prior to the transfer date. A carrier that is abandoning local exchange service for a class of customers must include a warning in the notice that, if the customer is subscribed to long distance (toll) calling plans with a different in-state or interstate toll provider, the customer may lose those plans when the customer selects a new local exchange carrier and may revert to higher-priced non-calling plan rates. The warning shall advise the customer that to ensure continued subscription to any toll calling plans the customer should call the customer’s in-state and interstate toll providers. The carrier shall provide a copy of its proposed notice to customers with the notice filed with the Commission pursuant to Section 9(A).

D. Exception: Pending Proceedings. If any Commission proceedings or consumer complaints pending before the Consumer Assistance Division are pending against the competitive telecommunications carrier that involve the affected customer class, the Commission must approve the abandonment of service. No approval will be granted until the proceedings are final and the complaints are resolved and the carrier has complied with the requirements of any orders or decisions issued by the Commission or the Consumer Assistance Division. In the alternative, the Commission may grant approval, but impose such terms, conditions or requirements as are necessary to protect the public interest, provided that jurisdiction shall continue over the competitive telecommunications carrier and the proceeding. Nothing in this subparagraph prohibits the Commission from temporarily terminating the authority of a carrier to provide service as permitted by law.

§ 10 TEMPORARY E-911 SERVICE BY ABANDONING CLEC IF CUSTOMER FAILS TO SELECT A NEW CARRIER

If a CLEC is abandoning all local exchange service or local exchange service to a specific customer class (as described in Sections 7, 8 and 9), and there is no acquiring local exchange carrier (as described in Section 12), the abandoning CLEC shall provide E-911 access (access to emergency services through the enhanced 911 system) to any customer who does not select another local exchange carrier prior to the effective date of the abandonment if it is technically possible to provide the service itself or the abandoning CLEC may obtain such service from its underlying or any other carrier. When E-911 access is provided, it shall continue for a period of 21 days after the termination of the remainder of local exchange service.

§ 11 NOTICE TO COMMISSION AND TO RETAIL CUSTOMERS WHEN UNDERLYING CARRIER DISCONTINUES SERVICE TO CLEC

A. Notice to Commission When Underlying Carrier Notifies CLEC of Discontinuance of Service. If a local exchange carrier providing wholesale local exchange service or unbundled network elements (UNEs, including UNE-platform) to a CLEC provides notice to the CLEC that it will be terminating the wholesale service or provision of UNEs (whether for nonpayment or otherwise), it shall simultaneously provide notice of the potential termination to the Commission. The local exchange carrier providing notice of termination shall provide the notice at least 28 days (4 weeks) prior to the stated termination date unless a longer period is specified in the interconnection agreement between the two carriers.

B. Notice By CLEC to Customers of Discontinuance of Service or Likelihood of Inability to Provide Service

1. General Requirement. Within 14 days following receipt of a notice provided to a CLEC pursuant to Section 11(A), the CLEC must provide notice to its retail customers of actual or likely termination 14 days following the sending of the notice. The notice must comply with all requirements of Section 7(B) (other than the time period stated in that provision) and Section 13, and shall state the more accurate of the following two statements:

a. the CLEC will terminate retail local exchange service to the customer 14 days after the sending of the notice and the customer should make arrangements for service from another local exchange carrier; or

b. there is a strong likelihood that the CLEC will not be able to provide local exchange service 14 days after the sending of the notice and the customer may want to make arrangements for service by another carrier.

2. Exception: Approval by Commission. A CLEC subject to termination of service from another local exchange carrier does not need to provide the notice required by Section 11(B)(1) if it establishes to the satisfaction of the Commission or the Director of the Consumer Assistance Division that it will be able to continue to provide local exchange service.

3. Exception: Alternative Notice. With the approval of the Commission, a CLEC subject to termination of service from another local exchange carrier may provide notice containing contents different from those required by Section 11(B)(1) if it establishes to the satisfaction of the Commission or the Director of the Consumer Assistance Division that its circumstances differ materially from either of the circumstances described in Section 11(B)(1).

C. Provision of E-911 Service After Disconnection of Local Service. If the CLEC subject to disconnection is actually disconnected, it shall comply with the provisions of Section 10.

§ 12 TRANSFER OF CUSTOMER ACCOUNTS TO A DIFFERENT CARRIER, WITH OR WITHOUT ABANDONMENT OF SERVICE

A. Transfer to Acquiring Carrier With Authority to Provide Service. A competitive telecommunications carrier may transfer all or a portion of its customers only to another telecommunications carrier that has authority from the Commission to provide the same service (local exchange or interexchange) that is provided by the transferring carrier. No transfer may occur until the acquiring carrier obtains any necessary authority to provide service pursuant to 35-A M.R.S.A. §§ 2102 and 2105 and Chapter 280 of the Commission’s Rules, and has obtained approval of rate schedules, as described in Section 12(C). No transfer may occur until the acquiring carrier complies with the requirements of this section, other applicable sections of this Chapter, and the requirements of the Federal Communications Commission contained in 47 C.F.R. § 64.1120(e), attached to this Chapter as Appendix A.

B. Notice to Commission. The acquiring carrier shall provide the Commission with written notice of the proposed transfer of customers, a copy of the notice to customers required by 47 C.F.R. § 64.1120(e)(3), a copy of the certification required by 47 C.F.R. § 64.1120(e)(1) and copies of any notices required by Section 12(H). At the same time as the filing of the notice of transfer:

1. The acquiring carrier, if it does not have the necessary authority to provide service, shall file an application for that authority, as required by Section 12(C), and proposed rate schedules or a statement that it will be adopting the rate schedules of the transferring carrier;

2. The transferring carrier, if it will no longer be providing all or some portions of its service, shall provide notice to the Commission of that abandonment of service and/or relinquishment of authority to provide service pursuant to Section 7, 8 or 9, as applicable, except that it is not necessary for the transferring carrier to provide a copy of notice to customers because such notice is not required; and

3. The transferring and acquiring carriers shall each file any necessary changes to their rate schedules.

C. Granting of Authority to Acquiring Carrier to Provide Service; Approval of Rate Schedules

If the acquiring carrier is not authorized to provide the same service (local exchange or interexchange) provided by the transferring carrier, it must obtain the approval of the Commission to provide service pursuant to 35-A M.R.S.A. §§ 2102 and 2105, Chapter 280 of the Commission’s Rules, and this subsection; and must obtain the approval of the Commission of its rate schedules as provided in this subsection.

1. Application. The acquiring carrier must file an application with the Commission for authority to provide service pursuant to the requirements of Chapter 280, § 4 of the Commission’s Rules. For good cause (e.g., a common parent owns more than 50% of the voting securities of both the transferring carrier and acquiring carrier or one of the two carriers owns 50% of the voting securities of the other), the Director of Finance may waive all or part of this requirement.

2. Order Granting Approval. When the application of the acquiring carrier is complete and meets the legal requirements for the granting of authority, the Commission will grant authority to provide service to the acquiring carrier by issuing an order containing all requirements, terms and conditions applicable to the acquiring carrier. In appropriate circumstances (e.g., a common parent owns more than 50% of the voting securities of both the transferring carrier and acquiring carrier or one of the two carriers owns 50% of the voting securities of the other) the Commission may grant authority to the acquiring carrier under the same terms and conditions previously granted to the abandoning carrier by reference to the order granting that authority.

3. Approval of Rate Schedules. The Commission must approve the rate schedules of the acquiring carrier before the acquiring carrier may provide service. The acquiring carrier may adopt the rate schedules of the transferring carrier by incorporation or by reissuing them with necessary changes to the carrier name and signature that are required by Chapter 120. The acquiring carrier may also propose new rate schedules, provided that if those schedules result in higher rates for the transferred customers, the acquiring carrier must comply with the customer notice requirement of Section 12(H). The Commission may permit a new acquiring carrier to provide service without approved rate schedules if the transferring carrier provided service to the transferred customers exclusively by special contracts and the acquiring carrier will provide service to those customers and new customers exclusively by special contracts.

D. Rate Schedules of Acquiring Carrier that Has Existing Authority to Provide Service

1. Incorporation of Rates of Transferring Carrier. An acquiring carrier that has existing authority to provide the service it will provide to the transferred customers may adopt or incorporate in its rate schedules the rate schedules of the transferring carrier, provided that the adopted or incorporated rate schedules must be contained in or attached to the rate schedules of the acquiring carrier.

2. Use of Acquiring Carrier’s Rates. An acquiring carrier that has existing authority to provide the service it will provide to the transferred customers may apply its existing approved rate schedules to the acquired customers, but if that application will result in higher rates for the transferred customers, the acquiring carrier must comply with the customer notice requirement of Section 12(H).

E. Abandonment of Service By Transferring Carrier. If the transferring carrier is abandoning all or part of its service or is relinquishing its authority to provide service, it must comply with Sections 7, 8, or 9, as applicable.

F. Compliance With FCC Regulations. The acquiring carrier must comply with all requirements of 47 C.F.R. § 64.1120(e).

G. Transfer in Compliance With FCC Regulations and This Section Not Slamming. A carrier that acquires customers from a transferring carrier in compliance with this Section and the requirements of 47 C.F.R. § 64.1120(e) shall not be in violation of the unauthorized change of carrier provisions of 35-A M.R.S.A. § 7106(1) or Chapter 296, § 3 of the Commission’s Rules.

H. Notice to Customers of Higher Rates. If any rates of the acquiring carrier will be higher than the rates for the same or similar service provided to the customer by the transferring carrier, or if the terms and conditions (including bundling options or lack thereof) of the acquiring carrier’s rate schedules may result in higher costs for some customers, the acquiring carrier must provide notice of the higher rates or potentially higher costs to customers subject to transfer. The notice shall be enclosed with the notice required by 47 C.F.R. § 64.1120(e)(3). The notice shall comply with the requirements of Section 13. The notice shall plainly state: (i) that the rates of the acquiring carrier are higher than those of the transferring carrier and the amounts of the differences; or (ii) that the terms and conditions (including bundling options or lack thereof) of the acquiring carrier’s rate schedules may result in higher costs for some customers; or (iii), if applicable, both of the preceding statements. The acquiring carrier will be subject to the provisions of Chapter 291, §§ 10(C) and (D) and Chapter 292, §§ 9(C) and (D) for failure to provide the notice required by this subsection. The notice requirement of this subsection applies in addition to any notice required by 47 C.F.R. § 64.1120(e)(3)(ii).

§ 13 FORM AND MANNER OF DELIVERY OF CUSTOMER NOTICES

All notices to customers required by this Chapter (including notices required by 47 C.F.R. § 64.1120(e)) shall comply with the following requirements:

A. Form. All notices to customers shall be in the form of a letter or bill insert. Notices to customers required by Sections 7-9 may be sent by electronic mail (e-mail) if the sender has complied with 10 M.R.S.A. §§ 9401, et seq. and, if applicable, 15 U.S.C. §§ 7001, et seq. Notices to customers required by Section 12 cannot be sent by e-mail.

B. Readable and Clear. All notices shall be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language;

C. Promotional Materials

1. General Rule. All notices required by this Chapter shall be sent or provided independently of any advertising or promotional material of any kind;

2. Exception: Acquiring Carrier; Same Rates. An acquiring carrier that acquires customers pursuant to Section 12, and that provides the notice to customers required by 47 C.F.R. § 64.1120(e)(3), may include advertising or promotional materials with that notice, but only if the transfer will not result in an increase in rates to the customer. If the acquiring carrier must provide a notice of higher rates pursuant to Section 12(I), it may not include advertising or promotional materials with the notice.

D. Notices of transfer: Envelope Notice. All notices required by Section 12 that the customer will be transferred to a different carrier shall either be mailed in an envelope showing the name of the transferring carrier or the acquiring carrier. If e-mail notice is permitted by Section 13(A) for notices required by Sections 7-9, the sender of the e-mail shall be identified as either the name of the transferring carrier or the acquiring carrier. If the notices are included in an envelope stating the name of the acquiring carrier as the sender, the face of the envelope shall contain a prominent message stating that the customer’s telephone service is about to be changed to a different carrier. A notice such as “IMPORTANT: PLEASE OPEN. YOUR TELEPHONE SERVICE IS BEING TRANSFERRED TO A DIFFERENT TELEPHONE PROVIDER” is sufficient to comply with this subsection. If e-mail notice is permitted by Section 13(A) for notices required by Sections 7-9, the subject line shall prominently state that the customer’s telephone service is about to be changed. A subject line such as “IMPORTANT: YOUR TELEPHONE SERVICE IS BEING TRANSFERRED” is sufficient to comply with this subsection.

§ 14 EXEMPTION FROM REQUIREMENTS OF 35-A M.R.S.A. § 1104

The provisions of Sections 4 through 9 of this Chapter that allow a competitive telecommunications carrier to abandon service and to have its authority to provide service terminated effective upon notice to the Commission and without Commission approval constitute an exemption from the approval requirement of 35-A M.R.S.A. § 1104. The Commission finds that this exemption is in the public interest and will not have a negative effect on competitive markets for telephone service. The Commission adopts this exemption pursuant to the provisions or 35-A M.R.S.A. § 1105.

§ 15 DUTIES OF ADMINISTRATIVE DIRECTOR; DELEGATION OF AUTHORITY

A. Upon Filing of Notice by Carrier. Upon receipt of a notice filed pursuant to Sections 4, 5, 6 or 7, the Administrative Director shall determine whether any of the factual circumstances contained in the exceptions in those sections apply to the competitive telecommunications carrier that is stating that it will no longer provide service. If the Administrative Director determines that those circumstances do exist, the abandonment of service and termination of authority shall not be effective until granted by the Commission. The Administrative Director shall notify the carrier within 7 days following receipt of the carrier’s notice that the abandonment of service and (if applicable) the termination of authority are not effective and can only be granted by the Commission. The Administrative Director shall promptly notify the Commission or the presiding officer assigned to the case of the action taken. The authority of the Administrative Director to make the determination described in this subsection constitutes a delegation of the Commission’s power pursuant to 35-A M.R.S.A. § 107(4).

B. Following Abandonment. On the effective date of an abandonment of all service pursuant to Sections 4 or 6, the Administrative Director shall cause the records of the Commission, including the docket or dockets in which the competitive telecommunications carrier obtained authority to provide service, to indicate that the carrier no longer has authority to provide service and shall remove the carrier’s name from any lists of authorized carriers that the Commission maintains.

§ 16 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Administrative Director, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for Chapter 293 is set forth in the Commission's Statement of Factual and Policy Basis and Order Adopting Rule, Commission Docket No. 2004-262, issued on November 5, 2004. Copies of this Statement and Order have been filed with this Rule with the office of the Administrative Director of the Public Utilities Commission, 242 State Street, Augusta, Maine 04333.

AUTHORITY: 35 M.R.S.A. §§ 104, 111, 1105 and 7106.

EFFECTIVE DATE: The Attorney General approved this rule as to form and legality on November 9, 2004. The Secretary of State approved this rule on November 10, 2004. The rule became effective on November 15, 2004.

Appendix A

47 C.F.R. §64.1120(e)

Note: 47 C.F.R. §64.1120(e) is a regulation of the Federal Communications Commission that governs transfers of customers from one carrier to another. Sections 12 and 13 of this Chapter refer to this regulation. This Chapter does not incorporate the federal regulation; by its own terms it governs transfers of intrastate customers and applies regardless of any provision in this Chapter. The text of the federal regulation is provided here as a convenience to the reader and was current on the date this Chapter became effective. The FCC could amend this regulation at any time. As of the date this Chapter was adopted, the current version of the regulation was available at http://www.access.gpo.gov/nara/cfr/cfr-table-search.html.

Text of 47 C.F.R. §64.1120(e):

(e) A telecommunications carrier may acquire, through a sale or transfer, either part or all of another telecommunications carrier's subscriber base without obtaining each subscriber's authorization and verification in accordance with § 64.1120(c), provided that the acquiring carrier complies with the following streamlined procedures. A telecommunications carrier may not use these streamlined procedures for any fraudulent purpose, including any attempt to avoid liability for violations under part 64, subpart K of the Commission rules.

(1) No later than 30 days before the planned transfer of the affected subscribers from the selling or transferring carrier to the acquiring carrier, the acquiring carrier shall file with the Commission's Office of the Secretary a letter notification in CC Docket No. 00-257 providing the names of the parties to the transaction, the types of telecommunications services to be provided to the affected subscribers, and the date of the transfer of the subscriber base to the acquiring carrier. In the letter notification, the acquiring carrier also shall certify compliance with the requirement to provide advance subscriber notice in accordance with § 64.1120(e)(3), with the obligations specified in that notice, and with other statutory and Commission requirements that apply to this streamlined process. In addition, the acquiring carrier shall attach a copy of the notice sent to the affected subscribers.

(2) If, subsequent to the filing of the letter notification with the Commission required by § 64.1120(e)(1), any material changes to the required information should develop, the acquiring carrier shall file written notification of these changes with the Commission no more than 10 days after the transfer date announced in the prior notification. The Commission reserves the right to require the acquiring carrier to send an additional notice to the affected subscribers regarding such material changes.

(3) Not later than 30 days before the transfer of the affected subscribers from the selling or transferring carrier to the acquiring carrier, the acquiring carrier shall provide written notice to each affected subscriber of the information specified. The acquiring carrier is required to fulfill the obligations set forth in the advance subscriber notice. The advance subscriber notice shall be provided in a manner consistent with 47 U.S.C. 255 and the Commission's rules regarding accessibility to blind and visually-impaired consumers, 47 CFR 6.3, 6.5 of this chapter. The following information must be included in the advance subscriber notice:

(i) The date on which the acquiring carrier will become the subscriber's new provider of telecommunications service,

(ii) The rates, terms, and conditions of the service(s) to be provided by the acquiring carrier upon the subscriber's transfer to the acquiring carrier, and the means by which the acquiring carrier will notify the subscriber of any change(s) to these rates, terms, and conditions.

(iii) The acquiring carrier will be responsible for any carrier change charges associated with the transfer,

(iv) The subscriber's right to select a different preferred carrier for the telecommunications service(s) at issue, if an alternative carrier is available,

(v) All subscribers receiving the notice, even those who have arranged preferred carrier freezes through their local service providers on the service(s) involved in the transfer, will be transferred to the acquiring carrier, unless they have selected a different carrier before the transfer date; existing preferred carrier freezes on the service(s) involved in the transfer will be lifted; and the subscribers must contact their local service providers to arrange a new freeze.

(vi) Whether the acquiring carrier will be responsible for handling any complaints filed, or otherwise raised, prior to or during the transfer against the selling or transferring carrier, and

(vii) The toll-free customer service telephone number of the acquiring carrier.

65-407 Chapter 293 page 2

Chapter 294 Lifeline

Code Me. R. 65-407 Ch. 294 Lifeline {#sec-65-407-ch.-294 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 294}

SUMMARY: This rule establishes state Lifeline benefits and adopts federal Rules for Lifeline eligibility and verification.

§1 Definitions 2

§2 Eligibility 2

§3 Discounts 2

§4 Verification 2

§5 Waivers 2

§1. DEFINITIONS

A. Commission. "Commission" means the Maine Public Utilities Commission.

B. Eligible Telecommunications Carrier. An "eligible telecommunications carrier or "ETC" is one designated as such by the Commission or the FCC pursuant to the carrier's meeting the criteria outlined in 47 U.S.C. §214(e)(1).

C. FCC. "FCC" means the Federal Communications Commission.

D. Lifeline Service. "Lifeline service" is a non-transferable retail service offering provided directly to qualifying low-income customers as defined in 47 C.F.R. §54.401 and as may be subsequently amended.

§2. ELIGIBILITY

State lifeline support eligibility shall be the same as the eligibility for federal Lifeline support pursuant to federal rules. Any low-income customer currently receiving Lifeline based solely on eligibility under a state program may, within 90 days of the effective date of this Rule, provide proof of eligibility under a qualifying federal program.

§3. DISCOUNTS

Federal Lifeline support amounts per qualifying low-income customer shall be provided according to federal rules. In addition to any federal support, an ETC offering Lifeline service shall reduce by $3.50 the monthly charges paid by qualifying low-income customers who receive Lifeline service.

§4. VERIFICATION

Verification for the state Lifeline service benefit shall be the same as that prescribed by federal rules for the federal Lifeline benefit.

§5. WAIVERS

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter that are not required by statute. Where good cause exists, the Commission, the Director of Consumer Assistance and Safety, or the presiding officer assigned to a proceeding related to this Chapter may grant the requested waiver, provided that the granting of the waiver is not inconsistent with the purposes of this Chapter or Title 35-A.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 111, 7101, 7104
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 2, 1999 as Lifeline and Link-up Services Programs. It was filed with the Secretary of State on March 3, 1999 (filing 99-96) and became effective on March 8, 1999.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 24, 2013 as Lifeline. It was filed with the Secretary of State on June 26, 2013 (filing 2013-152), and became effective on July 1, 2013.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 27, 2021. It was filed with the Secretary of State on July 28, 2021 (filing 2021-152) and became effective on August 2, 2021.

Chapter 296 Selection of Primary Interexchange and Local Exchange Carriers

Code Me. R. 65-407 Ch. 296 Selection of Primary Interexchange and Local Exchange Carriers {#sec-65-407-ch.-296 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 296}

SUMMARY - This rule prohibits telecommunications carriers from changing a customer’s preferred telecommunications carrier without first receiving the customer’s authorization and allows customers to “freeze” their preferred carrier selections. The rule establishes requirements for soliciting, imposing, and lifting preferred carrier freezes and establishes penalty procedures for violations.

§ 1 General Scope and Definitions 4

A. Scope of Rule 4

B. Definitions 4

1. Authorized Carrier 4

2. Customer 4

3. Executing Carrier 4

4. Letter of Agency (“LOA”) 4

5. Initiation of a Change of Carrier. 4

6. Non-executing Carrier 4

7. Preferred Carrier 5

8. Preferred Carrier Freeze 5

9. Submitting Carrier 5

10. Unauthorized Carrier 5

11. Unauthorized Change 5

§ 2 Soliciting, Imposing and Lifting Preferred Carrier Freezes. 5

A. Preferred Carrier Freezes on Customer Request 5

B. Freezes for Individual Telecommunications Services 5

C. Solicitation of Preferred Carrier Freezes 6

D. Imposition of Preferred Carrier Freeze 6

E. Verification of Customer’s Request to Inactivate or

Lift a Preferred Carrier Freezes 7

§ 3 Changing a Preferred Carrier Selection. 8

A. Authorization for Change 8

B. Verification of Carrier-Initiated Preferred Carrier Changes 8

1. Letter of Agency (LOA). 8

2. Electronic Authorization 9

3. Third Party Verification 9

C. Responsibility of Executing Carrier 10

D. Verification for Changing Multiple Telecommunications Services 10

E. Verification Method for Customer-Initiated Requests for

Preferred Carrier Changes. 10

§ 4 Liability AND REIMBURSEMENT PROCEDURES for FAILURE

to EXECUTE AN AUTHORIZED Change 11

A. Carrier Liability 11

B. Customer Liability 12

C. Disputes Regarding the Submission of Authorized Change Requests 12

§ 5 LIABILITY AND Reimbursement Procedures FOR AN

UNAUTHORIZED CHANGE 13

A. Carrier Liability 13

B. Customer Liability 13

C. Reimbursement Procedures 14

§ 6 Consistency with Federal Communications

Commission Rule 16

§ 7 PENALTY 16

§ 8 Waiver and or Exemption 17

§1 General Provisions and Definitions

A. Scope of Rule

This Chapter applies to local exchange carriers, interexchange carriers, and resellers of both local exchange and interexchange telephone service in Maine.

B. Definitions

1. Authorized Carrier. An “authorized carrier” is: 1) any telecommunications carrier that submits a change, on behalf of a customer, in the customer’s selection of a provider of telecommunications service with the customer’s authorization verified in accordance with the procedures specified in this rule; or 2) any telecommunications carrier to which a customer has presubscribed for telecommunications service (e.g. local exchange, intrastate toll, interstate toll, or international toll service).

2. Customer. A “customer” is any person who has agreed to receive, been accepted and is receiving telecommunication service or has agreed to be billed for the same, including that person’s spouse or legal guardian. For businesses, “customer” also includes a person designated as the contact person for telecommunications services or an officer or owner of the business.

3. Executing Carrier. An “executing carrier” is any telecommunications carrier that performs the physical operations needed to accomplish a request that a customer’s telecommunications carrier be changed. A carrier may be treated as an executing carrier, however, if it is responsible for any unnecessary delays in the execution of carrier changes or for the execution of unauthorized carrier changes, including fraudulent authorizations.

4. Letter of Agency (LOA). A “letter of agency” is a document containing a customer’s signature that authorizes a change to a customer’s preferred carrier selection.

5. Initiation of a Change of Carrier. The "initiation of a change of carrier" is defined in the definitions "executing carrier" and "submitting carrier" of this rule.

6. Non-executing Carrier. A "non-executing carrier" is an executing carrier that is providing a telecommunications service (either directly or indirectly through an affiliate) that is the subject of an authorized change who fails to execute that authorized change.

7. Preferred Carrier. A “preferred carrier” is a carrier to which a customer has presubscribed for local, intrastate, interstate, or international telecommunications service.

8. Preferred Carrier Freeze. A preferred carrier freeze is the process by which a customer's selection of a preferred telecommunications carrier cannot be changed without the customer's express authorization, as prescribed in this rule.

9. SubmittingCarrier. A “submitting carrier” is a telecommunications carrier that: 1) requests on behalf of a customer that the customer's telecommunications carrier be changed; and 2) seeks to provide retail services to the end user customer. A carrier may be treated as a submitting carrier, however, if it is responsible for any unnecessary delays in the submission of carrier changes or for the submission of unauthorized carrier changes, including fraudulent authorizations.

10. Unauthorized Carrier. An “unauthorized carrier” is any telecommunications carrier that submits a change, on behalf of a customer, in the customer’s selection of a provider of telecommunications service but fails to obtain the customer’s authorization verified in accordance with the verification procedures specified in this rule.

11. Unauthorized Change. An “unauthorized change” is a change in a customer’s selection of a provider of telecommunications service that was made without authorization verified in accordance with the verification procedures specified in this rule.

§ 2 Soliciting, Imposing, and Lifting Preferred Carrier Freezes

A. Preferred Carrier Freezes on Customer Request

Telecommunications carriers that offer preferred carrier freezes shall offer freezes on a non-discriminatory basis to all customers, regardless of the customer’s carrier selections, upon request by a customer.

B. Freezes for Individual Telecommunication Services

A telecommunications carrier that offers freezes for more than one type of service (i.e. local exchange, intrastate toll, interstate toll, and international toll) must provide and obtain separate authorization for each type of freeze separately; telecommunications carriers may not bundle freezes for multiple services. Telecommunications carriers offering preferred carrier freezes must inform customers of this requirement when customers make inquiries regarding preferred carrier freezes.

C. Solicitation of Preferred Carrier Freezes

All carrier-provided solicitation and other materials regarding preferred carrier freezes must include:

1. An explanation, in clear and neutral language, of what a preferred carrier freeze is and what services may be subject to a freeze;

2. A description of the specific procedures necessary to lift a preferred carrier freeze;

3. An explanation that the customer will be unable to make a carrier change unless he or she lifts the freeze; and

4. An explanation of any charges associated with the preferred carrier freeze.

D. Imposition of a Preferred Carrier Freeze

No local exchange carrier shall implement a preferred carrier freeze unless the subscriber’s request to impose a freeze has first been confirmed in accordance with one of the following procedures:

1. Written Authorization. The local exchange carrier has obtained the subscriber’s written authorization in a form that meets the following requirements:

a. The written authorization shall comply with section 3(B)(1) of this Chapter concerning the form and content of letters of agency.

b. The written authorization must be printed with a readable type of sufficient size to be clearly legible and must contain clear and unambiguous language that confirms:

i. the subscriber’s billing name and address and the telephone number(s) to be covered by the carrier freeze;

ii. the decision to place a preferred carrier freeze on the telephone number(s) and particular service(s). The authorization must contain separate statements regarding the particular selections to be frozen (i.e. for local exchange, intrastate toll, interstate/interstate toll service, and international toll);

iii. that the subscriber understands that he or she will be unable to make a change in carrier selection unless he or she lifts the preferred carrier freeze; and

iv. that the subscriber understands that any preferred carrier freeze may involve a charge to the subscriber.

2. Electronic Authorization. The local exchange carrier has obtained the subscriber’s electronic authorization, placed from the telephone number(s) on which the preferred carrier freeze is to be imposed. The electronic authorization should confirm verification data (e.g. the subscriber’s date of birth or social security number) and the information required in section 2(D)(1)(b). Telecommunications carriers electing to confirm preferred carrier freeze orders electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. Calls to the number(s) will connect a subscriber to a voice response unit, or similar mechanism, that records the required information regarding the preferred carrier freeze request, including automatically recording the originating automatic numbering identification; or

3. Third Party Verification. An independent third party has obtained the subscriber’s oral authorization to submit the preferred carrier freeze and confirmed the verification data (e.g. the subscriber’s date of birth or social security number) and the information required in section 2(D)(1)(b).The independent third party cannot be owned, managed, controlled, or directed by the carrier or the carrier’s marketing agent; cannot have any financial incentive to confirm preferred carrier freezes for the carrier or the carrier’s marketing agent; and must operate in a location physically separate from the carrier or the carrier’s marketing agent.

E. Verification of Customers' Request to Inactivate or Lift a Preferred Carrier Freeze

Prior to lifting a customer’s preferred carrier freeze to effect a carrier change, the local exchange carrier must verify the customer’s request to lift the freeze through one of the following methods:

1. Three Way Call. A three-way call with the new carrier and customer. When engaged in an oral authorization to lift a preferred carrier freeze, the carrier administering the freeze shall confirm appropriate verification data (e.g., the subscriber’s date of birth, or social security number) and the subscriber’s intent to lift the freeze. The carrier administering the freeze shall not market its own services during three-way calls;

2. Customer Initiated Telephone Request. A telephonic request initiated by the customer. The carrier administering the freeze shall confirm appropriate verification data as described in section 2(E)(1); or

3. Written Request. A written and signed request submitted by the subscriber.

§ 3 Changing a Preferred Carrier Selection

A. Authorization for Change

A submitting carrier may not submit a change in a customer’s preferred telecommunications carrier without authorization from the customer pursuant to section 3(B) of this Chapter.

B. Verification for Carrier-Initiated Preferred Carrier Changes

A submitting carrier may not submit a change in a customer’s preferred carrier selection unless the change is verified with a letter of agency, electronic authorization, third party verification, or any other verification method adopted by the FCC after the effective date of this rule.

1. Letter of Agency (LOA). If the submitting carrier obtains the customer’s written authorization in the form of an LOA, the LOA must conform to this section.

a. Form. The LOA shall:

i. be a separate or easily separable document containing only the authorizing language consistent with this section, whose sole purpose is to authorize a preferred carrier change, and shall not include any advertising or promotional material, or inducements of any kind. The LOA must be signed and dated by the subscriber to the telephone line(s) that are the subject of the carrier change request;

ii. notwithstanding paragraph (i) of this section, the letter of agency may be combined a check that contains only the required letter of agency language described in this section and the necessary information to make the check a negotiable instrument. The letter of agency check shall not contain any promotional language or material. The letter of agency check shall contain, in easily readable bold-faced type on the front of the check, a notice that the consumer is authorizing a preferred carrier change by signing the check. The letter of agency language also shall be placed near the signature line on the back of the check.

b. Content. The LOA must be printed with a type of sufficient size to be clearly legible and must contain clear and unambiguous language that:

i. confirms the decision to change the preferred carrier from the current telecommunications carrier to the submitting telecommunications carrier;

ii. confirms the customer’s billing name, address, and telephone number to be covered by the preferred carrier change;

iii. informs the customer that only one telecommunications carrier may be designated as the preferred carrier for interstate or intrastate service for any one telephone number;

iv. contains separate statements regarding preferred carrier choices for each service being changed (e.g. local exchange, intrastate toll, interstate toll, or international toll);

v. confirms that the customer designates the submitting carrier to act as the customer’s agent for the preferred carrier change; and

vi. confirms that a charge may be assessed to the customer for the preferred carrier change.

c. Any carrier designated in an LOA as a preferred carrier must be the carrier directly setting the rates for the subscriber.

d. If any portion of an LOA is translated into another language, then all portions of the LOA must be translated into that language.

e. Every LOA must be translated into the same language as any promotional materials, oral descriptions or instructions provided with the LOA.

2. Electronic Authorization. If the submitting carrier has obtained the customer’s electronic authorization, the call must be placed from the telephone number(s) on which the preferred carrier is to be changed. The authorization shall include the information described in section 3(B)(1)(b) of this rule. Carriers electing to confirm sales electronically shall establish one or more toll-free telephone numbers exclusively for that purpose. A call to the number will connect a customer to a voice response unit, or similar mechanism, that records the required information regarding the preferred carrier change, including automatically recording the customer’s automatic number identification (ANI). The recording must be maintained and stored by the submitting carrier for a minimum of two years.

3. Third Party Verification. If the submitting carrier uses a third party to verify preferred carrier changes, the third party must be qualified and independent, and must obtain the customer’s oral authorization to submit the preferred carrier change that includes appropriate verification data (e.g. the customer’s date of birth or social security number). This method of verification is valid only if:

a. the data are maintained and stored by the independent third party or the submitting carrier for a minimum of two years;

b. the independent third party informs the customer that he/she is authorizing a change in telecommunication carriers and provides the identity of the new telecommunications carrier;

c. the independent third party is not owned, managed, controlled, or directed by the new carrier or the carrier’s marketing agent;

d. the independent third party has no financial incentive to confirm preferred carrier change orders for the new carrier or the carrier’s marketing agent; and

e. the independent third party operates in a location physically separate from the new telecommunications carrier or the new carrier’s marketing agent.

C. Responsibility of Executing Carrier

An executing carrier shall not verify the submission of a change order for a preferred carrier change received from a submitting carrier. For an executing carrier, compliance with this section shall be defined as prompt execution, without unreasonable delay, of changes that have been submitted to the executing carrier by the submitting carrier.

D. Verification for Changing Multiple Telecommunications Services

Where a submitting carrier is selling more than one type of telecommunications service (e.g. local exchange, intrastate toll, interstate toll, international toll), that carrier must obtain separate authorization from the customer for each service sold, although the authorizations may be made within the same solicitation. Each authorization must be verified separately from any other authorizations obtained in the same solicitation. Each authorization must be verified in accordance with the verification procedures prescribed in this section.

E. Verification Method for Customer-Initiated Requests for Preferred Carrier Changes

A new submitting carrier receiving a customer-initiated request for a preferred carrier change shall maintain a record of the request for a minimum of two years after the request was made as verification of the customer’s authorization to change preferred carriers. If the request is made orally, the submitting carrier shall verify the request in accordance with one of the verification methods specified in section 3(B) of this rule. The submitting carrier shall make the record available to the customer, as well as the Commission, upon request.

§ 4 Liability and Reimbursement Procedures for Failure to

Execute an Authorized Change

An executing carrier that is providing the telecommunications service (either directly or through an affiliate) that is the subject of an authorized change who fails to properly execute that authorized change (non-executing carrier), shall be liable as provided below.

A. Carrier Liability

In addition to other penalties provided by law,the non-executing carriershall be liable to the customer’s authorized carrier (i.e., the carrier to whom the customer would have been switched had the authorized change been executed) for charges the authorized carrier would have assessed had the change been executed, as well as for any reasonable billing and collection expenses.

1. If a customer has already paid charges to the non-executing carrier, the non-executing carrier must:

a. remit all moneys collected from the customer to the authorized carrier;

b. execute the authorized change request; and

c. provide the authorized carrier with all billing information necessary to determine what the customer would have paid the authorized carrier had the authorized change been executed.

2. The authorized carrier must refund to the customer any amounts it has collected in excess of what it would have assessed had the authorized change been executed.

3. If a customer has not paid the non-executing carrier, the non-executing carrier must:

a. remit to the authorized carrier the charges the authorized carrier would have assessed the customer had the authorized change request been executed;

b. execute the change request; and

c. provide the authorized carrier with all billing information necessary to determine what the customer would have paid the authorized carrier had the authorized change been executed, if such information is requested by the authorized carrier.

B. Customer Liability

1. Charges Incurred Within 30 Days Of the Date of Submission of the Authorized Change Request. Any customer whose preferred telecommunications carrier is not changed by a non-executing carrieris absolved of liability for charges imposed by the non-executing carrier for service provided within 30 days of the date of submission of the authorized change request if the customer has not already paid charges to the non-executing carrier. Upon being informed by a customer that an authorized change has not occurred, the non-executing carrier and the authorized carrier shall inform the customer of this 30-day absolution period.

2. Charges Incurred Beyond 30 Days Of Submission of Authorized Change Where the Customer Has Not Paid Charges to the Non-Executing Carrier. The authorized carrier may re-rate charges incurred subsequent to the 30-day absolution period to reflect its own rates and the customer shall be liable for paying such re-rated charges to the authorized carrier. The authorized carrier may also absolve the customer of the entire bill if in the authorized carrier’s judgment the revenue to be recovered from the customer is less than the cost of re-rating the charges.

3. Customer Has Paid Charges to Non-Executing Carrier. If the customer has already paid charges to the non-executing carrier, and the authorized carrier recovers such charges as provided in section 4(A), the authorized carrier shall refund or credit to the customer any charges recovered from the non-executing carrier in excess of what the customer would have paid the authorized carrier for the same service had the authorized change occurred.

C. Disputes Regarding Submission of Authorized Change Requests.

1. A non-executing carrier may contest the existence of an authorized change request or the date of its submission by notifying the authorized carrier of its dispute within 30 days of its notification by the authorized carrier or the customer that the authorized change was not executed.

2. Within 30 days of receipt of notification of a dispute, the authorized carrier must provide proof of a properly authorized change request and the date such request was submitted to the non-executing carrier.

3. Upon receipt of proof from the authorized carrier of an authorized change request, the non-executing carrier must comply with this section.

§ 5 Liability and Reimbursement Procedures for an

Unauthorized Change

A. Carrier Liability

In addition to other penalties provided by law, a submitting telecommunications carrier who initiates an unauthorized change shall be liable to the customer’s authorized carrier in an amount equal to charges paid to the unauthorized telecommunications carrier by such customer after such violation, as well as for additional amounts as prescribed in this section. The unauthorized carrier shall also be liable to the customer for any charge required to return the customer to his or her authorized carrier.

B. Customer Liability

1. Charges Incurred Within 30 Days Of Unauthorized Change Where the Customer Has Not Paid Charges to the Unauthorized Carrier. Any customer whose preferred telecommunications carrier is changed without authorization verified in accordance with section 3(B)is absolved of liability for charges imposed by the unauthorized carrier for service provided during the first 30 days after the unauthorized change if the customer has not already paid charges to the authorized carrier. Upon being informed by a customer that an unauthorized change has occurred, the authorized carrier, the unauthorized carrier, and the executing carrier shall inform the customer of this 30-day absolution period.

2. Charges Incurred Beyond 30 Days Of Unauthorized Change Where the Customer Has Not Paid Charges to the Unauthorized Carrier. Any charges imposed by the unauthorized carrier on the customer after this 30-day period shall be paid by the customer to the authorized carrier at the rates the customer was paying to the authorized carrier at the time of the unauthorized change. Upon the customer's return to the authorized carrier, the customer shall forward to the authorized carrier a copy of any bill that contains charges imposed by the unauthorized carrier after the 30-day period of absolution. The authorized carrier may re-rate charges incurred subsequent to the 30-day absolution period to reflect its own rates and the customer shall be liable for paying such re-rated charges to the authorized carrier. The authorized carrier may also absolve the customer of the entire bill if in the authorized carrier’s judgment the revenue to be recovered from the customer is less than the cost of re-rating the charges.

3. Customer Has Paid Charges to Unauthorized Carrier. If the customer has already paid charges to the unauthorized carrier, and the authorized carrier recovers such charges as provided in section 5(A), the authorized carrier shall refund or credit to the customer any charges recovered from the unauthorized carrier in excess of what the customer would have paid the authorized carrier for the same service had the unauthorized change not occurred, in accordance with the procedures set forth in this section.

C. Reimbursement Procedures

1. Customer has Paid Charges to the Unauthorized Carrier

Where a customer has paid charges to the unauthorized carrier, the authorized carrier (i.e. in this context the carrier to which the customer was presubscribed immediately prior to the allegedly unauthorized change) and the unauthorized carrier must follow the following procedures.

a. Verification Process. Upon receiving notification from the customer or a carrier that a customer has been subjected to an unauthorized change and that the customer has paid charges to an allegedly unauthorized carrier, the properly authorized carrier must, within 30 days, request from the allegedly unauthorized carrier proof of verification of the customer’s authorization to change carriers. Within ten days of receiving such a request, the allegedly unauthorized carrier shall forward to the authorized carrier proof of verification of the subscriber’s authorization to change carriers or payment as described in section 5(C)(1)(b).

b. Payment by the Unauthorized Carrier to the Authorized Carrier. Alleged unauthorized carriers that do not forward proof of verification to an authorized carrier as described in section 5(C)(1)(a) shall provide to the authorized carrier the following:

i. an amount equal to all charges paid by the customer to the unauthorized carrier;

ii. an amount equal to any charge required to return the customer to his or her properly authorized carrier, if applicable; and

iii. copies of any telephone bill(s) issued from the unauthorized carrier to the customer.

c. Billing and Collection Expenses. If an authorized carrier incurs any billing and collection expenses in collecting charges from the unauthorized carrier, the unauthorized carrier shall reimburse the authorized carrier for reasonable expenses.

d. Authorized Carrier Notification. Where a customer notifies the unauthorized carrier, rather than the authorized carrier, of an unauthorized carrier change, the unauthorized carrier must immediately notify the authorized carrier. Where a customer notifies the LEC, rather than the authorized carrier, of an unauthorized carrier change, the LEC shall either notify the authorized carrier of the unauthorized change or refer the customer to the authorized carrier.

e. Customer Refunds or Credits. Upon receipt from the unauthorized carrier of the amount described in section 5(C)(1)(b), the authorized carrier shall provide a refund or credit to the customer for all charges paid in excess of what the authorized carrier would have charged the customer absent the unauthorized change.

f. Restoration of Premiums. Where possible, the authorized carrier must reinstate the customer in any premium program in which that customer was enrolled prior to the unauthorized change, if that customer’s participation in the premium program was terminated because of the unauthorized change. The properly authorized carrier shall also provide or restore to the customer any premiums to which the customer would have been entitled had the unauthorized change not occurred. The authorized carrier must comply with the requirements of this subsection regardless of whether it is able to recover from the unauthorized carrier any charges that were paid by the customer.

2. Customer has Not Paid Charges to the Unauthorized Carrier. Where a customer has not paid charges to the unauthorized carrier, the authorized carrier (i.e. in this context the carrier to which the customer was presubscribed immediately prior to the allegedly unauthorized change) and the unauthorized carrier must follow the following procedures.

a. Customer Absolved of Liability for Charges. The unauthorized carrier shall remove from the customer’s bill all charges that were incurred for service provided during the first 30 days after the unauthorized change has occurred.

b. Dispute of Alleged Unauthorized Change. The unauthorized carrier may, within 30 days of the customer’s return to the authorized carrier, submit to the authorized carrier a claim that the customer was not subjected to an unauthorized change along with a request for the amount of charges for which the customer was credited pursuant to section 5(C)(2)(a) and proof that the change to the customer’s telecommunications carrier selection was made with authorization verified in accordance with the verification procedures specified in section 3(B) of this rule.

c. Investigation of Alleged Unauthorized Change. The authorized carrier shall conduct a reasonable and neutral investigation of the claim, including, where appropriate, contacting the customer and the carrier making the claim.

d. Decision. Within 60 days after the receipt of the claim and proof of verification, the authorized carrier shall issue a decision on the claim to the customer and the carrier making the claim.

i. If the authorized carrier decides that the customer was not subjected to an unauthorized change, the authorized carrier shall place on the customer’s bill a charge equal to the amount of charges for which the customer was previously credited pursuant to section 5(C)(2)(a). Upon receiving this amount, the authorized carrier shall forward this amount to the carrier making the claim.

ii. If the authorized carrier decides that the customer was subjected to an unauthorized change, the customer shall not be required to pay the charges for which he or she was previously absolved.

§ 6 Consistency with Federal Communications Commission Rule

In the event that the Federal Communications Commission promulgates a rule that is inconsistent with any provision of this rule, the Maine Public Utilities Commission will review the FCC's rule and initiate a rulemaking to amend this rule if necessary. In the event that the FCC waives the liability portion of its rules for carriers that agree to participate in an industry-funded independent dispute resolution process, sections 4 and 5 of this Chapter will not apply to those carriers.

§ 7 Penalty

The Commission may impose an administrative penalty against any person, corporation, or entity that violates this rule, applicable statute, or order adopted pursuant to this rule.

A. Method for Imposing Penalty

The Director of the Consumer Assistance Division will collect the necessary data and make a recommendation to the Commission regarding the severity of the violation, whether a penalty should or should not be assessed, and the amount of any penalty. In determining whether or not a penalty should be assessed, the intent of the violator may be considered. The Commission may impose the penalty only after giving the alleged violator the opportunity to respond to the Director of the CAD’s recommendation.

B. Amount of Penalty

The penalty for a violation may be in an amount not to exceed $5,000.00 for each day the violation continues, up to a maximum of $40,000.00 for a first offense and a maximum of $110,000.00 for subsequent offenses. The amount of the penalty must be based on:

1. the severity of the violation, including the intent of the violator, the nature, circumstances, extent and gravity of any prohibited acts;

2. the history of previous violations; and

3. the amount necessary to deter future violations.

C. Repeat Violations

If the Commission finds that a carrier has repeatedly violated this rule, the Commission shall order the utility to take corrective action as necessary. In addition, the Commission, if consistent with the public interest, may suspend, restrict or revoke the registration or certificate of the carrier, so as to deny the carrier the right to provide service in the State.

D. Deposit of Penalties

Penalties collected by the Commission under this section must be deposited in the Public Utilities Commission Reimbursement Fund under 35-A M.R.S.A. § 117.

§ 8 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any or all requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, the Director of Consumer Assistance, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

AUTHORITY: 35-A M.R.S.A. § 7106.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 9, 1999. It was filed with the Secretary of State on September 10, 1999 and will be effective on September 15, 1999.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 297 Anti-Cramming Rule: Registration Requirements, Complaint Procedures and Penalty Provisions for Service Providers and Billing Aggregators

Code Me. R. 65-407 Ch. 297 Anti-Cramming Rule: Registration Requirements, Complaint Procedures and Penalty Provisions for Service Providers and Billng Aggregators {#sec-65-407-ch.-297 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 297}

SUMMARY - This rule prohibits telephone utilities from placing charges for services on a customer's bill without first receiving the customer’s authorization. The rule also establishes a registration process for billing aggregators and service providers and establishes penalty procedures for violations.

§ 1 GENERAL PROVISIONS AND DEFINITIONS .4

A. Scope of Rule 4

B. Definitions .4

§ 2 CHARGES FOR GOODS AND SERVICES APPEARING ON A

CUSTOMER’S TELEPHONE BILL 5

A. Customer Authorization 5

B. Authorization Methods .5

1. Letter of Agency (LOA) 5

a. Form 5

b. Content 6

c. Language 6

2. Oral Authorization with Third-Party Verification 6

C. Customer-Initiated Calls 7

§ 3 REGISTRATION REQUIREMENTS AND OBLIGATIONS OF SERVICE PROVIDERS, BILLING AGGREGATORS AND BILLING AGENTS 7

A. Obligations of Service Providers 7

B. Obligations of Billing Aggregators 7

C. Obligations of Billing Agents 7

D. Bill Format .8

E. Obligation of Telephone Utilities 8

§ 4 REGISTRATION PROCEDURES FOR SERVICE PROVIDERS

AND BILLING AGGREGATORS .8

A. Registration Procedure 8

1. Form 8

2. Number of Copies; Service 8

3. Change in Application Information .9

4. Notice of Application .9

B. Denial of Registration 9

C. Application Review 9

D. Registration Revocation Procedure 10

1. Service Providers .10

2. Billing Aggregators 10

3. Telephone Utilities 10

4. Notification of Revocation 11

§ 5 COMPLAINT PROCEDURES 11

A. Procedures to be Followed by Billing Agent Upon

Customer Notice of Complaint 11

1. Suspension of Collection Efforts 11

2. Evidence of Customer Authorization 11

B. Reinstitution of Charges 11

C. Notice to Customers 12

D. Appeal Procedures 12

§ 6 PENALTY .12

A. Violations Subject to Penalty 12

B. Recommendation of Director of Consumer Assistance Division 13

C. Penalty Amount 13

D. Repeat Violations 13

§ 7 WAIVER OR EXEMPTION 13

§1 General Provisions and Definitions

A. Scope of Rule.

This Chapter applies to telephone utilities, as defined in 35-A M.R.S.A. §102, that bill customers for services in Maine. This Chapter also applies to service providers and billing aggregators who bill for goods or services using a charge on customers' local telephone bills in Maine.

B. Definitions.

1. Billing agent. A "billing agent" is a telephone utility that includes in a bill it sends to a customer a charge for a product or service offered by a service provider.

2. Billing Aggregator. A "billing aggregator" is any person, other than a service provider, who forwards the charge for a product or service offered by a service provider to a billing agent.

3. CAD Director. The "CAD Director" is the Director of the Consumer Assistance Division, the Assistant Director of the Consumer Assistance Division, or the Commission's designee.

4. Customer. A “customer” is any person who has agreed to receive, been accepted and is receiving telecommunication service or has agreed to be billed for the same, including that person’s spouse or legal guardian. For businesses, “customer” also includes a person designated as the contact person for telecommunications services or by any other person with actual or apparent authority to purchase goods or services on behalf of the organization.

5. Letter of Agency (LOA). A “letter of agency” is a document containing a customer’s signature that authorizes a service provider to bill a customer for a good or service that will appear as a charge on the customer's telephone bill.

6. Service Provider. A "service provider" is any person, other than the billing agent, who offers a product or service to a customer, the charge for which appears on the bill of a billing agent.

7. Unauthorized Charge. An "unauthorized charge" is the charge for a service or product by a service provider for which the provider has not obtained sufficient evidence of customer authorization and for which a charge appears on the customer's telephone bill. For the purposes of this rule, a charge for a collect call will be deemed to be authorized by the person receiving the call. For direct-dialed calls where the call itself represents the service for which a charge is placed on a customer’s local telephone bill, e.g. "900 number" services and “dial around” services, evidence that the call was placed from the number that is subject to the phone bill shall be considered sufficient evidence of authorization for that call.

§ 2 CHARGES FOR GOODS AND SERVICES APPEARING ON A CUSTOMER’S TELEPHONE BILL

A. Customer Authorization. No service provider shall bill a customer for goods or services that will appear as a charge on the customer’s local telephone bill without first obtaining the customer’s express authorization.

B. Authorization Methods. Any service provider billing a customer for goods or services other than those described in Section 2(C) that will appear on the customer’s local telephone bill must verify the customer’s authorization pursuant to one of the following procedures:

1. Letter of Agency (LOA). If the service provider obtains the customer’s written authorization in the form of an LOA, the LOA must conform to this section.

a. Form. The LOA shall:

i. Be a separate or easily separable document containing the authorizing language consistent with this section, whose sole purpose is to authorize a bill for goods or services to appear as a charge on the customer's local telephone bill, and shall not include any advertising or promotional material, or inducements of any kind. The LOA must be signed and dated by the customer, as defined in Section 1(B), to the telephone line(s) that are the subject of the bills;

ii. Notwithstanding paragraph (i) of this section, the letter of agency may be combined with a check that contains only the required letter of agency language described in this section and the necessary information to make the check a negotiable instrument. The letter of agency check shall not contain any promotional language or material. The letter of agency check shall contain, in easily readable bold-faced type on the front of the check, a notice that the consumer is authorizing to be billed for goods or services that will appear as a charge on the customer' s local telephone bill by signing the check. The letter of agency language also shall be placed near the signature line on the back of the check.

b. Content. The LOA must be printed with a type of sufficient size to be clearly legible and must contain clear and unambiguous language that:

i. Confirms the decision to be billed for goods or services that will appear as a charge on the customer' s local telephone bill by signing the check or LOA;

ii. Confirms the customer’s billing name, address, and telephone number; and

iii. Contains separate statements for separate goods and/or services for which the customer is agreeing to be billed, where such billing will appear as charges on the customer' s local telephone bill.

c. Language. If any portion of an LOA is translated into another language, then all portions of the LOA must be translated in0to that language. Every LOA must also be translated into the same language as any promotional materials, oral descriptions or instructions provided with the LOA.

2. Oral Authorization with Third Party Verification. A service provider may accept a customer’s oral authorization to be billed for goods or services that will appear as a charge on the customer’s local telephone bill, provided the service provider verifies the customer’s oral authorization with an independent third party.

a. The independent third party must be qualified and independent, must obtain the customer’s oral authorization to be billed for goods or services that will appear as a charge on the customer’s local telephone bill, and must obtain appropriate verification data to ensure the identity of the customer (e.g. the customer’s date of birth or social security number). This method of verification is valid only if:

i. The data are maintained and stored by the independent third party or the service provider for a minimum of two years;

ii. The independent third party informs the customer that he/she is agreeing to be billed for goods or services that will appear as a charge on the customer’s local telephone bill;

iii. The independent third party is not owned, managed, controlled, or directed by the service provider; and

iv. The independent third party has no financial incentive to confirm such billing arrangements for the service provider or the provider’s marketing agent; and the independent third party operates in a location physically separate from the service provider or the provider’s marketing agent.

C. Customer-Initiated Service Calls. For direct-dialed calls where the call itself represents the service for which a charge is placed on a customer’s local telephone bill, e.g. "900 number" services and “dial around” services, evidence that the call was placed from the number that is subject to the phone bill shall be considered sufficient evidence of authorization for that call.

§ 3 REGISTRATION REQUIREMENTS AND OBLIGATIONS OF SERVICE PROVIDERS, BILLING AGGREGATORS, AND BILLING AGENTS

A. Obligations of Service Providers. A service provider may not offer a product or service to a customer, the charge for which appears on the bill of a billing agent, nor forward such a charge to a billing agent, unless the service provider is registered with the Commission pursuant to this section.

B. Obligations of Billing Aggregators. A billing aggregator may not forward to a billing agent charges for a service or product offered by a service provider unless:

1. The billing aggregator is registered with the Commission pursuant to this section; and

2. The service provider is properly registered pursuant to this section.

C. Obligations of Billing Agents. A billing agent may not knowingly bill on behalf of a service provider or billing aggregator who is required to be registered under this section and who is not properly registered under this section.

1. For the purposes of this subsection, there is a rebuttable presumption that a billing agent acted knowingly if it billed on behalf of a service provider and/or billing aggregator whose name was not on the Commission’s list of registered service providers at the time the charge appeared on the customer’s bill or billed on behalf of a service provider and/or billing aggregator whose registration had been revoked and properly noticed pursuant to section 4(G) of this rule.

a. The Commission will add new registrants to its list of registered carriers within two business days of the effective date of the registration and said list will be posted to the Commission’ worldwide website.

b. The Commission will remove registrants from its list whose registration has been revoked within two (2) business days of the revocation becoming final.

c. A billing agent that places a charge on a customer’s bill on behalf of a service provider that is not registered with the Commission pursuant to section 3 of this rule must immediately remove the charge from the customer’s bill and will be liable to the customer for reimbursement of charges paid pursuant to section 4 of this rule.

D. Bill Format. Customer bills issued by billing agents must comply with the Federal Communications Commission’s Truth-in-Billing Rule, 47 CFR Part 64, once the rule becomes effective, as well as clearly identify the service provider which originated the charge for goods or services.

E. Obligations of Telephone Utilities. A telephone utility that is authorized by the Commission or by law to provide telephone services in Maine is not required to be registered under this section.

§ 4 REGISTRATION PROCEDURES FOR SERVICE PROVIDERS AND BILLING AGGREGATORS

A. Registration Procedure.

1. Form. Billing aggregators and service providers must register on a form provided by the Commission that is notarized and signed by two officers of the applicant. A copy of the application form is attached to the rule and is available from the Commission’s Administrative Director or on the Commission’s Internet website.

2. Number of Copies; Service. Each applicant must file an original application, two paper copies and a copy in an electronic format specified by the Commission. A copy of the completed application with supporting documentation must be served on the Office of the Public Advocate.

3. Change in Application Information. The applicant shall inform the Commission of any change in the information provided in the application during the pendency of the application.

4. Notice of Application. The Commission will place notification of approved applications on its Internet website within two business days of the registration becoming effective.

B. Denial of Registration. The Commission may deny an application if the Commission finds that:

1. The application is incomplete and the applicant does not take reasonable steps to provide the missing information;

2. The applicant has knowingly misrepresented or omitted a material fact on the application; or

3. The applicant or a principal of the applicant has engaged in conduct in Maine or in another jurisdiction which would constitute grounds to revoke a registration under this rule.

a. The Commission may deny a registration based on conduct occurring outside of Maine only if that conduct would constitute grounds to revoke a registration if it occurred in Maine.

C. Application Review. The Director of the Commission’s Consumer Assistance Division (CAD) will review all applications.

1. If the application is complete and there is no indication that grounds exist to deny the application under section 4(B) above, the registration will take effect 14 days after the filing date.

2. If the application is incomplete, the CAD Director may request additional information from applicants. If, after submission of additional information, the CAD Director is satisfied that the application meets the Commission's registration criteria, the CAD Director will approve the registration.

3. If the application is complete but there is evidence that grounds exist to deny the application under Section 4(B) above, the CAD Director will object to the application and provide notice to the applicant within 14 days.

a. If the CAD Director objects to the registration, the registration does not become effective unless expressly approved by the Commission.

i. Hearing. Unless the Commission approves the application based on the information provided to the CAD Director, the Commission shall offer the applicant an opportunity for a hearing at which the applicant may present other evidence in support of its application.

D. Registration Revocation Procedure. After notice and an opportunity for a hearing, the Commission may revoke a registration in accordance with this subsection.

1. Service Providers. The Commission may revoke the registration of a service provider who has:

a. Knowingly or repeatedly billed one or more customers for unauthorized service, provided that for the purposes of this subsection, there is a rebuttable presumption that a service provider “knowingly” billed for unauthorized charges if it cannot verify the customer's authorization for such charges, pursuant to section 2 of this rule, or

b. Engaged in any other false or deceptive billing practices prohibited by Commission rules.

2. Billing Aggregators. The Commission may revoke the registration of a billing aggregator who has:

a. Knowingly or repeatedly forwarded the charge for a service or product to a billing agent on behalf of a service provider who was required to be registered with the Commission under subsection 2 and who was not registered, provided that for purposes of this subsection, there is a rebuttable presumption that a billing aggregator acted knowingly if it forwarded a charge and if the service provider's name was not on the Commission's list of registered service providers at the time the charge was forwarded to the billing agent or if the service provider's registration had been revoked and properly noticed pursuant to sections 4(G)(1) and 4(G)(4) at the time the charge was forwarded to the billing agent; or

b. Engaged in any other false or deceptive billing practices prohibited by other Commission rules.

3. Telephone Utilities. Service providers who are telephone utilities and who are not required to register with the Commission under section 3 are subject to the jurisdiction and control of the Commission and the Commission may impose penalties as permitted under Title 35-A.

4. Notification of Revocation. The Commission shall send written notice of the revocation of a registration under this subsection to all telephone utilities and billing aggregators doing business in Maine within two business days of the revocation becoming final.

§ 5 COMPLAINT PROCEDURES

A. Procedures to be Followed by Billing Agents Upon Customer Notice of Complaint.

1. Suspension of Collection Efforts. If a customer of a billing agent notifies the billing agent that an unauthorized charge has been included in the customer’s telephone bill, the billing agent shall:

a. Immediately suspend collection efforts on that portion of the customer’s bill; and

b. Either cease collection efforts entirely with regard to the disputed charge or request evidence from the service provider that the customer authorized the service for which payment is sought.

2. Evidence of Customer Authorization. If the billing agent ceases collection efforts or sufficient evidence of customer authorization is not presented to the billing agent within 30 days of a request for such information by the billing agent, the billing agent shall:

a. Immediately remove any charges associated with the unauthorized service; and

b. Refund to the customer any amounts paid for the unauthorized service that were billed by the billing agent during the 6 months prior to the customer’s complaint or during any longer period in which the customer can prove the customer was billed by the billing agent for unauthorized services. For purposes of this subsection, proof of being billed by a billing agent includes, but is not limited to, the possession of past bills issued by the billing agent that contain the unauthorized charges.

B. Reinstitution of Charges. If sufficient evidence of customer authorization is provided to the billing agent (as provided by Section 2(B) of this Rule), the billing agent may restore the charges on the customer’s bill and reinstitute collection efforts.

C. Notice to Customers. In situations where a billing agent makes a determination that results in a charge being restored to a customer's bill, the billing agent must include a notice to the customer that includes the following information:

1. The billing agent has decided that sufficient evidence of customer authorization for the disputed charge exists and that the charge is being restored to the customer's bill;

2. The customer has the right to appeal the billing agent's decision to the Commission's Consumer Assistance Division (CAD); and

3. The CAD's toll free number, mailing address, and email address.

D. Appeal Procedures. The customer or the service provider may appeal the billing agent’s determination regarding the sufficiency of the customer’s authorization to the Commission’s Consumer Assistance Division. The appeal will be handled as a complaint to the Consumer Assistance Division; however, the appeal will not be counted as a complaint against the billing agent.

§ 6 PENALTY

The Commission may impose an administrative penalty against any person, corporation, or entity that violates this rule, applicable statute, or order adopted pursuant to this rule. Before imposing such a penalty, the Commission must provide the offending party the opportunity to be heard regarding the imposition and amount of the penalty.

A. Violations Subject to Penalty. The Commission, in an adjudicatory proceeding, may impose an administrative penalty upon the following entities for the following violations:

1. A service provider who forwards charges for an unauthorized service;

a. A service provider or billing aggregator who is required to be registered under section 3 and who is not properly registered pursuant to that section;

b. A billing agent who bills on behalf of a service provider who is required to be registered under section 3 and who is not properly registered pursuant to that section at the time the billing agent’s bill is generated; and

c. A billing agent that fails to comply with any of the requirements of section 5 regarding complaint procedures.

B. Recommendation of Director of the Consumer Assistance Division. The Director of the Consumer Assistance Division (CAD) will provide the Commission with a description of the violation and its severity and make a recommendation to the Commission regarding the amount of any penalty.

C. Penalty Amount. The amount of any administrative penalty imposed under paragraph A may not exceed $1,000 per for violation arising out of the same incident or complaint. In situations where more than one entity is involved with the violation, e.g. a service provider and a billing aggregator, each entity in violation of the rule will be liable for a penalty up to $1,000 per violation. The amount of the penalty must be based on:

1. The severity of the violation, including the intent of the violator, the nature, circumstances, extent and gravity of any prohibited acts;

2. The history of previous violations; and

3. The amount necessary to deter future violations.

For purposes of this subsection, in situations where a service provider, billing aggregator, or a billing agent is notified by a customer that a charge appearing on the customer’s local telephone bill is unauthorized and the service provider, billing aggregator, or billing agent either fails to remove the charge from the customer’s bill or reinstitutes the charge to the customer’s bill without sufficient evidence of authorization from the customer, each time the unauthorized charge reappears on the customer’s bill will be considered a separate violation.

D. Repeat Violations. If the Commission finds that a service provider or billing aggregator has repeatedly violated this rule, the Commission shall order the service provider or the billing aggregator to take corrective action as necessary. In addition, the Commission, if consistent with the public interest, may suspend, restrict or revoke the registration of the service provider or billing aggregator.

§ 7 WAIVER OR EXEMPTION

Upon request of any persons subject to the provisions of this Chapter or upon its own motion, the Commission may for good cause, waive any or all requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, the Director of Consumer Assistance, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. § 7107.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 13, 2000. It was filed with the Secretary of State on January 14, 2000 and will be effective on January 19, 2000.
• EFFECTIVE DATE: 65-407 Chapter 297 page 13

Chapter 301 Standard Offer Service

Code Me. R. 65-407 Ch. 301 Standard Offer Service {#sec-65-407-ch.-301 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 301}

SUMMARY: This rule establishes terms and conditions for standard offer service for electric generation, and establishes a methodology for selecting standard offer providers.

§1 General Provisions and Definitions 8

A. Scope of Rule 8

B. Definitions 8

1. Aggregator 8

2. Competitive Electricity Provider 8

3. Consumer-Owned Transmission and Distribution Utility 8

4. Core Customer Classes 9

5. Large, Investor-Owned Transmission and Distribution Utility 9

6. Maritimes Control Area 9

7. Northern Maine 9

8. Retail Access 9

9. Standard Offer Service 9

10. Standard Offer Classes 9

11. Standard Offer Provider 9

12. Transmission and Distribution Utility 10

C. Availability of Standard Offer Service 10

§2 Rates, Charges and Procedures for Initiating

and Terminating Standard Offer Service 10

A. Rates and Rate Schedules 10

1. Establishment and Filing of Rates 10

2. Standard Offer Classes 10

a. Investor-Owned Transmission and

Distribution Utility Service Territories 10

i. Residential and small non-residential 10

ii. Medium non-residential 11

iii. Large non-residential 11

b. Consumer-Owned Transmission and

Distribution Utility Service Territories 11

3. Rate Structure 11

4. Division of Load; Averaged Rates 11

5. Geographic Averaging of Rates 12

6. Charges for Billing and Administration 12

B. Establishment and Re-establishment of Standard Offer Service 12

1. For Nonselecting Customers Existing on March 1, 2000 12

2. For New Customers After March 1, 2000 12

3. For Customers Returning from Competitive Service 12

C. Termination of Standard Offer Service 13

1. Unlimited Termination of Standard Offer Service by Residential

and Small Non-Residential Customers 13

2. Termination of Standard Offer Service by Medium and Large Non-Residential Customers, and Aggregated Sets of Customers; Applicable of Opt-Out Fee 13

a. Applicability of Paragraph 13

Termination of Standard Offer Service by Original

Standard Offer Customer 13 Offer Customer 12

c. Termination of Standard Offer Service Prior to March 1, 2110 by Previous Competitive Market Customer; Opt-Out Charge 13

d. Termination of Standard Offer Service on or After March 1, 2001 By Previous Competitive Market Customer; Opt-Out Fee 14

e. Establishment of Higher Opt-Out Fee 15

3. Application of Fees or Restrictions to Residential and

Small Non-Residential Customers and Customers in

Northern Maine 15

D. Notice; Transfer of Service; Bill Calculation 15

1. Notice of Transfer Into Standard Offer Service 15

2. Transfer Into Standard Offer Service 16

3. Notice of Transfer out of Standard Offer Service 16

4. Transfer out of Standard Offer Service 16

5. Calculation of Bill for Transfer on Other Than

Meter-Reading Date 16

E. Charges for Costs of Transfer 16

§3 Eligibility and Obligations of Standard Offer

Service Providers 17

A. Licensing 17

B. Financial Security 17

1. Requirements 17

2. Amount of Security 17

3. Type of Security 17

a. Letter of Credit 18

b. Corporate Guarantees 18

c. Cash 19

4. Termination 19

5. Use of Security Amounts 19

C. Provision of Generation, Line Losses 19

D. Renewable Resource Portfolio 19

E. Independent System Operator – New England and

NEPOOL Requirements 19

F. General Obligations 20

G. Technical and Financial Capability 20

§4 Credit and Collection; Customer Complaints

UNCOLLECTIBLE ACCOUNTS 20

A. Residential Utility Service Regulations for Credit and Collection, Disconnection

and Deposits 20

B. Nonresidential Utility Service Regulations for Credit and Collection,

Disconnection and Deposits 20

C. Late Payment Charges, Interest Rates to be Paid on

Customer Deposits, and Charges for Returned Checks 21

D. Allocation of Uncollectible Accounts to Standard Offer Providers 21

§5 Obligations of the Transmission and Distribution Utility 21

A. Power Delivery 21

B. Billing and Metering 21

C. Administration of Service Connections and Terminations 22

D. Standard Contract Between Transmission and Distribution

Company and Standard Offer Providers 22

E. Provision of Standard Offer Service by an Affiliate of a Large Transmission and Distribution Utility 22

§6 Information Provided by Transmission and

Distribution Utilities to Potential Bidders 23

A. Required Information 23

B. General Requirements and Conditions 23

1. Aggregation 23

2. Historic Data Period 23

3. Due Care; Corrections 23

4. Affiliated Interests 24

5. Electronic Form; Standard Software 24

6. Scope and Format 24

§7 Standard Offer Bid Requirements and Conditions;

Contents of Bid 24

A. General Requirements 24

1. Duration of Standard Offer Obligation 24

2. Form of Pricing 24

3. Limitation on Bids by Affiliates of Large Transmission and Distribution3Utilities 25

B. Contents of Bid 25

1. Bid for Standard Offer Classes 25

2. Rate Structure and Design 25

3. Bids for Portions of Standard Offer Class Requirements 25

4. Price for Meeting Obligations 25

Statement of Ability to Satisfy Financial Capability Requirements 25

§8 Bidding Procedure and Selection 26

A. Bidding Procedure 26

1. Process 26

2. Request for Bids 26

3. Provision of Information Required by Section 6 26

4. Time Frames 26

5. Duration of Proposals 26

B. Rejection of Bids for Noncompliance 27

C. Selection 27

1. Selection Date 27

2. Selection Criteria 27

3. Identical Bids 27

4. Multiple Providers for a Standard Offer Class 27

5. Payment 28

D. Insufficient Bids; Rejection of Bids 28

1. No Bids 28

2. Inadequate Bids 28

3. Standard Offer Rates 28

E. Consumer-owned Utilities 29

1. Option 29

2. Single Provider 29

3. Notification 29

§9 Failure of Standard Offer Provider to Provide Service 29

A. Default; Replacement Service 29

B. Temporary Provision of Service 30

C. Financial Security Amounts 30

D. Cost Recovery 30

§10 CONSUMER-OWNED UTILITY LOAD AGGREGATION 30

A. Standard Offer Aggregation 30

B. Service Provider 31

C. Establishment 31

D. Maximum Term 31

E. Customer Opt-Out 31

F. Migration Restriction 31

G. Pre-Existing Contracts 31

H. New Customer and Load Expansions 32

I. Customer Notification 32

J. Commission Notification 32

K. Consolidated Load 33

§11 Waiver or Exemption 33

§1 General Provisions and Definitions

A. Scope of Rule

The following provisions shall govern all standard offer service and the process for selecting standard offer providers, except to the extent they are modified as permitted under §10.

B. Definitions

1. Aggregator

Aggregator means an entity that gathers individual customers together for the purpose of purchasing electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

2. Competitive Electricity Provider

Competitive electricity provider means a marketer, broker, aggregator or any other entity selling electricity to the public at retail in Maine.

3. Consumer-Owned Transmission and Distribution Utility

Consumer-owned transmission and distribution means any transmission and distribution utility wholly owned by its consumers, including, but not limited to:

a. the transmission and distribution portion of a rural electrification cooperative organized under Title 35-A, chapter 37;

b. the transmission and distribution portion of an electrification cooperative organized on a cooperative plan under the laws of the State;

c. a municipal or quasi-municipal transmission and distribution utility;

d. the transmission and distribution portion of a municipal or quasi‑municipal entity providing generation and other services; and

e. a transmission and distribution utility wholly-owned by a municipality.

4. Core Customer Classes

Core customer classes means customer classes of a transmission and distribution utility which are not optional rate classes.

5. Large, Investor-Owned Transmission and Distribution Utility

Large, investor-owned transmission and distribution utility means an investor-owned transmission and distribution utility serving more than 50,000 retail customers.

6. Maritimes Control Area

Maritimes control area means the area in which New Brunswick Power Corporation operates the Maritimes bulk power system.

7. Northern Maine

Northern Maine means the area of Maine that is located in the Maritimes control area.

8. Retail Access

Retail access means the right of a retail consumer of electricity to purchase generation service from a competitive electricity provider.

9. Standard Offer Service

Standard offer service means electric generation service provided to any electricity consumer who does not obtain electric generation service from a competitive electricity provider or who has terminated service from a competitive electricity provider.

10. Standard Offer Classes

Standard offer classes means the customer groupings within a transmission and distribution utility service territory as specified in section 2(A)(2).

11. Standard Offer Provider

Standard offer provider means an entity selected pursuant to Section 8 to provide all or a specified portion of electric generation service to consumers receiving standard offer service.

12. Transmission and Distribution Utility

Transmission and distribution utility means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

C. Availability of Standard Offer Service

Standard offer service shall be available to any consumer who does not obtain electric generation service from a competitive electricity provider. Standard offer service is not available to an electricity consumer in amounts less than the consumer's total retail electricity purchases, except that, if a consumer has multiple service accounts with a transmission and distribution utility, standard offer service is available for amounts corresponding to one or more specified accounts.

§2 Rates, Charges and Procedures for Initiating and Terminating Standard Offer Service

A. Rates and Rate Schedules

1. Establishment and Filing of Rates

Rates for standard offer service shall be established, maintained and modified pursuant to the provisions of this subsection and the bidding and selection processes of section 8. Rates for standard offer service shall be available for public inspection at the Commission's office, and at the office maintained by the transmission and distribution utility in whose service territory the standard offer providers are authorized to provide service.

2. Standard Offer Classes

a. Investor-Owned Transmission and Distribution Utility Service Territories

Unless otherwise specified in the request for standard offer bids issued pursuant to section 8 of this Chapter, for each investor-owned transmission and distribution utility service territory there shall be the following three standard offer classes:

i. Residential and small non-residential. This standard offer class shall contain customers taking service as residential customers under the terms and conditions of the transmission and distribution utility and non-residential customers that are taking service under a core customer class rate schedule of the transmission and distribution utility that does not include a demand charge. Residential and small non-residential customers include customers that are not taking service under a core customer class rate schedule, but would be eligible to take service as a residential customer or as a non-residential customer from a core customer class rate schedule that does not include a demand charge.

ii. Medium non-residential . This standard offer class shall contain non-residential customers that are taking service under a core customer class rate schedule of the transmission and distribution utility that includes a demand charge and in which a customer's maximum demand shall not exceed 500 kW, or the kW breakpoint that is closest to but does not exceed 500 kW. Medium non-residential customers include customers that are not taking service under a core customer class rate schedule, but are eligible to take service from a core customer rate schedule that includes a demand charge and a maximum demand limit that does not exceed 500 kW, or the kW breakpoint that is closest to but does not exceed 500 kW.

iii. Large non-residential. This standard offer class shall contain non-residential customers that are not small non-residential or medium non‑residential customers.

b. Consumer-Owned Transmission and Distribution Utility Service Territories

For each consumer-owned transmission and distribution utility service territory there may be, at the utility's option, a single standard offer service class that shall contain all customers in the service territory of the consumer-owned transmission and distribution utility or the three standard offer classes specified in section 2(A)(2).

3. Rate Structure

For the residential and small non-residential standard offer class and for all standard offer service in a consumer-owned utility service territory with a single standard offer class, the standard offer rate shall be an amount per kWh that does not vary by level of usage, or by time of year or day. The rate structure shall not include any demand charges nor any amounts charged on a per customer or fixed-charge basis.

For the medium and large non-residential standard offer classes, the rate structure may include demand and kWh charges and may reflect seasonal and time-of-day differentiation. The time-of-day differentiation must be compatible with the transmission and distribution utility's core rate structure for customers in the standard offer class. The rate structure for the medium and large non-residential standard offer classes shall not include any amounts charged on a per customer or fixed-charge basis.

4. Division of Load; Averaged Rates

If the Commission selects more than one standard offer provider for a standard offer class within a transmission and distribution utility's service territory, each standard offer provider shall be responsible for a specified portion of the total standard offer requirement of the class. Rates for the standard offer class and for each rate element within the standard offer class shall be equal to the weighted average of the rates of all standard offer providers selected for the class . Customers shall not be assigned to a specified standard offer provider.

5. Geographic Averaging of Rates

Rates, terms and conditions for standard offer service shall not vary within the transmission and distribution utility's service territory on the basis of customer location.

6. Charges for Billing and Administration

The transmission and distribution utility shall charge the standard offer provider(s) the utility's incremental costs of administering standard offer service, including providing basic bill issuance, bill calculation, and collections. These charges shall be consistent with Chapter 322 of the Commission's Rules.

B. Establishment and Re-establishment of Standard Offer Service

1. For Nonselecting Customers Existing on March 1, 2000

Standard offer service shall be provided beginning on March 1, 2000 to any customer who has not obtained electric generation service from a competitive electricity provider on that date. There shall be no fee for a customer to establish standard offer service in this manner.

2. For New Customers After March 1, 2000

Standard offer service shall be provided to any customer who establishes a new service within a transmission and distribution utility’s service territory after March 1, 2000, and who does not obtain electric generation service from a competitive electricity provider at that time. There shall be no fee for a customer to establish standard offer service in this manner. Nothing in this paragraph shall relieve the customer from Commission-authorized charges for the construction of transmission and distribution facilities to serve any new location pursuant to the terms and conditions of the transmission and distribution utility on file with the Commission.

3. For Customers Returning from Competitive Service

Any customer taking service from a competitive electricity provider may terminate service with a competitive electricity provider and elect standard offer service at any time, upon notice to the customer’s transmission and distribution utility as required by subsection D and subject to any applicable transfer fees required by subsection E.

C. Termination of Standard Offer Service

Unlimited Termination of Standard Offer Service by Residential and Small Non-residential Customers

Any individual customer or account in a residential and small non-residential standard offer class or any customer or account with a demand of 50 kilowatts or less in the service territory of a consumer-owned transmission and distribution utility having a single standard offer class may terminate standard offer service and obtain generation service from a competitive electricity provider, at any time, by obtaining service from a competitive electricity provider under the provisions in subsection D and subject to any applicable transfer fees required by subsection E. No opt-out fee shall be required unless the Commission establishes such a fee pursuant to the provisions of paragraph 3 below.

2. Termination of Standard Offer Service by Medium and Large Non-Residential Customers and Aggregated Sets of Customers; Applicability of Opt-Out Fee

a. Applicability of Paragraph

The provisions of this paragraph shall apply to all individual customers or accounts in a medium or large non-residential standard offer class, to any customer or account with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, and to any competitive electricity provider or aggregator that serves a set of customers whose demand in the aggregate is greater than 50 kilowatts.

b. Termination of Standard Offer Service By Original Standard Offer Customer

Any customer in a medium or large non-residential standard offer class, any customer with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, or any set of customers having a demand of greater than 50 kilowatts who has never obtained generation service from a competitive electricity provider may terminate standard offer service by obtaining generation service from a competitive electricity provider under the provisions in subsection D and subject to any applicable fees required by subsection E.

c. Termination of Standard Offer Service Prior to March 1, 2001 By Previous Competitive Market Customer; Opt-Out Charge

A customer or account in a medium or large non-residential standard offer class, a customer or account with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class or an aggregated group of customers having a demand of greater than 50 kilowatts who has previously obtained generation service from a competitive electricity provider and who has reestablished standard offer service may, prior to March 1, 2001, terminate standard offer service and return to competitive provider service upon payment of an opt-out charge.

The opt-out charge shall equal the amount of that customer’s, or aggregated group of customers’, average monthly bill for the most recent period that the customer has taken standard offer service. If the customer has not taken standard offer service for a full month, the transmission and distribution utility shall calculate a monthly bill amount using the customer’s average daily consumption. All opt-out charges shall be collected by the transmission and distribution utility and paid to the standard offer service provider(s). Any customer or aggregator terminating standard offer service pursuant to this paragraph shall provide notice to the transmission and distribution utility and pay any applicable administrative fees as provided in subsection E. An aggregator shall be responsible for the payment of any charge applicable to an aggregated group due under this subsection.

d. Termination of Standard Offer Service on or After March 1, 2001 By Previous Competitive Market Customer; Opt-Out Fee

A customer in a medium or large non-residential standard offer class, or a customer with a demand of greater than 50 kilowatts in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class who has previously obtained generation service from a competitive electricity provider and who has transferred to standard offer service may, on or after March 1, 2001, terminate standard offer service and return to competitive provider service:

i. without payment of an opt-out fee if 12 months or more have elapsed since the customer most recently established standard offer service; or

ii. without payment of an opt-out fee if the customer takes service in northern Maine unless the Commission establishes a charge pursuant to the provisions of paragraph 3 below; or

iii. upon payment of an opt-out fee.

The opt-out fee shall equal two times the amount of the highest standard offer bill of the customer during the most recent period that the customer has taken standard offer service unless the Commission has increased the amount of the opt-out fee pursuant to the provisions of paragraph 3 below. If the customer has not taken standard offer service for a full month, the transmission and distribution utility shall calculate a monthly bill amount using the customer’s average daily consumption. The transmission and distribution utility shall make reasonable efforts to collect the opt‑out charge. In the event the customer during its return to standard offer service was served by more than one standard offer provider, the utility shall apportion the fee among the standard offer providers on the basis of the number of months each provider provided service to the customer. The customer shall notify the transmission and distribution utility that is required to pay an opt-out fee pursuant to this provision prior to the termination of standard offer service.

e. Establishment of Higher Opt-Out Fee

The Commission may establish a higher opt-out fee by order upon a finding that such action is necessary to accomplish the deterrent purposes of this paragraph or to obtain reasonably priced standard offer service.

3. Application of Fees or Restrictions to Residential and Small Non-Residential Customers and Customers in Northern Maine

a. The opt-out requirements provided for in paragraph 2(d) shall apply to a competitive electricity provider or an aggregator who serves a set of customers in the residential and small non-residential standard offer class, which set has an aggregate demand of greater than 50 kilowatts, and who induces that set of customers to re-enter standard offer service, and within 12 months of such re-entry, to return to competitive service. This provision shall not apply if the customers are in northern Maine unless the Commission otherwise provides pursuant to paragraph 3(b).

b. If the Commission finds that there is good cause to deter frequent transfers in or out of standard offer service by customers in the residential and small non-residential standard offer class, customers having a demand of 50 kilowatts or less in the service territory of a consumer-owned transmission and distribution utility with a single standard offer class, or customers in northern Maine, the Commission by order may impose an opt-out charge, a re-entry charge, or other deterrent measures. The Commission may require transmission and distribution utilities to include any charges or other measures required pursuant to this paragraph in their terms and conditions.

D. Notice; Transfer of Service; Bill Calculation

1. Notice of Transfer into Standard Offer Service

A customer who intends to transfer into standard offer service shall do so by notifying the transmission and distribution utility or by canceling service with its competitive electricity provider.

2. Transfer into Standard Offer Service

If the customer notifies the transmission and distribution utility no less than 2 business days before the customer's next normally scheduled meter read date, the transmission and distribution utility shall transfer the customer on the customer's next meter read date. Otherwise, transfer will occur on the following meter read date. Upon request by the customer, the transmission and distribution utility shall assign the customer's usage to the standard offer provider(s) on a date that is not the customer's meter read date pursuant to section 2(D)(5). The transmission and distribution utility shall accommodate the request to the greatest extent practicable.

3. Notice of Transfer out of Standard Offer Service

Notice that a standard offer service customer will terminate standard offer service and obtain service from a competitive electricity provider shall be provided to the transmission and distribution utility by the customer’s competitive electricity provider pursuant to provisions in Chapter 322 of the Commission's Rules.

4. Transfer out of Standard Offer Service

If the competitive electricity provider notifies the transmission and distribution utility no less than two business days before the customer's next meter read date, the transmission and distribution utility shall transfer the customer on the customer's next meter read date. Otherwise, transfer will occur on the subsequent read date.

5. Calculation of Bill for Transfer on Other Than Meter-Reading Date

For any transfer into standard offer service on a date other than the next meter read date for that customer, the transmission and distribution utility shall determine the customer’s consumption from the date of the previous meter reading to the date of the change of service by prorating the customer’s metered consumption from the date of the last meter reading to the date of the next meter reading, and shall prorate demand levels by a method determined in its contract with the competitive electricity provider. Alternatively, if requested by the customer, the transmission and distribution utility shall perform an unscheduled meter reading. For either service, the transmission and distribution utility shall charge a transfer fee as provided in subsection E.

E. Charges for Costs of Transfer

The transmission and distribution utility shall charge the customer its incremental cost for transferring the customer into standard offer service on a date other than the meter read date. Alternatively, if the competitive electricity provider requested the transfer pursuant to provisions in Chapter 322, the charge shall be paid by the competitive electricity provider. The transmission and distribution utility shall establish these charges in its terms and conditions on file with the Commission. Separate charges shall be established for bill proration and unscheduled meter reading services described in subsection D(4).

§3 Eligibility and Obligations of Standard Offer Service Providers

A. Licensing

Each standard offer provider must have a license authorizing to it provide standard offer service issued pursuant to Chapter 305 of the Commission's Rules prior to Commission acceptance of its bid its to provide standard offer service. Each standard offer provider must maintain the license throughout the designated standard offer term.

B. Financial Security

1. Requirements

Each standard offer provider shall comply with the financial security requirements in this subsection and as specified by the Commission in the request for standard offer bids. The financial security requirements shall provide reasonable assurance that sufficient funds will be available for the additional costs of replacement standard offer service in the event that the standard offer provider fails to satisfy its obligations to provide standard offer service.

2. Amount of Security

The Commission shall specify the required financial security amount or the methods to determine the amount in its request for standard offer bids. The amount of financial security may be fixed for the term of standard offer service, decline in pre-determined amounts over the term of standard offer service, or vary periodically based on actual or projected changes in market prices of electricity or standard offer load.

3. Type of Security

A standard offer provider may satisfy its financial security requirement through an irrevocable letter of credit, a corporate guarantee, or cash. The financial security must comply with the requirements of this subsection and the request for standard offer bids. The Commission may limit the amount of financial security that may be satisfied through a corporate guarantee or may determine that financial security may not be satisfied through a corporate guarantee. Each standard offer provider shall provide the letter of credit, corporate guarantee or cash to the applicable transmission and distribution utility.

Letter of Credit

An irrevocable letter of credit must unconditionally obligate the issuing financial institution to honor drafts drawn on such letters for the purpose of paying the additional costs of replacement standard offer service and be issued by a commercial bank with a minimum corporate debt rating of “BBB+” by Standard & Poor’s or Fitch or “Baa1” by Moody’s Investors Service, or an equivalent short-term debt rating by one of these agencies. If, at any time, the corporate debt ratings of an issuing financial institution drop below the above specified levels, the standard offer provider shall notify the Commission’s Director of Technical Analysis and the applicable transmission and distribution utility in writing and provide replacement security that satisfies the requirements of this subsection and the request for standard offer bids.

b. Corporate Guarantees

A corporate guarantee must be issued by the standard offer provider, a corporation affiliated with the standard offer provider, the standard offer provider’s wholesale supplier or a corporation affiliated with the standard offer provider’s wholesale supplier. The corporate guarantee must be unconditional and irrevocable for the period of the standard offer term. The Commission may not accept a corporate guarantee to satisfy the requirement of this subsection unless the corporate guarantor meets the following financial qualifications and capabilities:

i. The senior secured debt obligations of the guarantor shall be publicly rated, at a minimum, at “BBB-” from Standard & Poor's, or Fitch or "Baa3" from Moody's Investors Service;

ii. The total assets of the guarantor must be at least 5.0 times the amount of the corporate guarantee amount ; and

iii. The total common equity of the guarantor must be at least 2.5 times the amount of the corporate guarantee.

If a corporate guarantor's senior secured debt obligations are rated by two of the agencies listed above, the guarantor's rating will be determined by the lower assigned rating. If a corporate guarantor's senior secured debt obligations are rated by all three of the agencies listed above, two of those agencies must have assigned ratings equal to or higher than the required ratings described above. If, at any time, the corporate guarantor fails to meet the requirements of this subsection and the request for standard offer bids, the standard offer provider shall immediately notify the Commission’s Director of Technical Analysis and applicable transmission and distribution utility in writing and provide replacement security that satisfies the requirements of this subsection and the request for standard offer bids. The Commission may adopt greater financial qualification and capability standards in the request for standard offer bids.

c. Cash

To satisfy the security requirement of this section, cash must be accompanied by proper documentation so as to perfect a security interest. Cash and the applicable interest shall be returned to the standard offer provider after all standard offer obligations are satisfied.

4. Termination

Each standard offer provider shall maintain financial security that complies with the requirements of this subsection and the request for standard offer bids for a period not less than 30 days after the end of the applicable term of service. The termination of the financial security shall not affect obligations incurred while the financial security was in effect.

5. Use of Security Amounts

Amounts received as a result of the financial security requirements shall be used to defray the additional costs of replacement standard offer service. For purposes of this provision, additional costs of replacement standard offer service are all costs that are incurred or will be incurred to acquire replacement standard offer service, including supply and administrative costs, through the remaining standard offer term that exceed the amounts paid or to be paid by standard offer customers at the standard offer rates in effect at the time of the Commission’s declaration of a standard offer provider’s default. Amounts received as a result of the financial security requirements may also be used to reimburse expenses and costs (including attorneys’ fees) associated with enforcing the obligations of the standard offer provider, including payment obligations deriving from the financial security requirements.

C. Provision of Generation; Line Losses

Standard offer providers shall provide all or the specified portion of the standard offer requirements of each standard offer class for which it is selected at its accepted bid price. Standard offer service shall include all line losses associated with delivery to the customers’ meters .

D. Renewable Resource Portfolio

Each standard offer provider shall comply with the renewable resource portfolio requirements pursuant to Chapter 311 of the Commission's Rules.

E. Independent System Operator - New England and NEPOOL Requirements

Each standard offer provider that serves within a service area of a transmission and distribution utility within the New England bulk power system control area shall comply with all applicable Independent System Operator - New England rules and requirements; and either the standard offer provider or an affiliate of the standard offer provider shall be a designated load serving entity with a settlements account pursuant to Independent System Operator - New England rules for the standard offer load obligations. Each standard offer provider that serves within an area that is within the Maritimes control area shall comply with all applicable rules and requirements of the Northern Maine Independent System Administrator.

F. General Obligations

Each standard offer provider shall comply with all statutory and regulatory requirements applicable to standard offer service, applicable provisions in the requests for standard offer bids, and the requirements of the standard offer contract between the transmission and distribution utility and standard offer providers, approved by the Commission pursuant to section 5(D) below.

G. Technical and Financial Capability

Each standard offer provider shall maintain the technical and financial capability to fulfill its obligations under this section.

§4 Credit and Collection; Customer Complaints; UNCOLLECTIBLE ACCOUNTS

A. Residential Utility Service Regulations for Credit and Collection, Disconnection and Deposits

Chapter 815 of the Commission's rules shall apply to residential standard offer service customers. For the purpose of this section, residential customers shall be customers taking residential utility service as defined by Chapter 815 of the Commission's rules. Pursuant to the standard offer contract established under section 5(D) of this rule, the transmission and distribution utility shall undertake all necessary actions under the provisions of Chapter 815 on behalf of standard offer providers.

B. Nonresidential Utility Service Regulations for Credit and Collection, Disconnection and Deposits

Chapter 815 of the Commission's rules shall apply to nonresidential standard offer service customers. For the purpose of this section, nonresidential customers are all customers that are not taking residential utility service as by Chapter 815 of the Commission's rules. The transmission and distribution utility shall undertake all necessary actions under the provisions of Chapter 815.

C. Late Payment Charges, Interest Rates to be Paid on Customer Deposits, and Charges for Returned Checks

Chapter 870 of the Commission's rules shall apply to standard offer service customers. The transmission and distribution utility shall undertake all necessary actions under the provisions of Chapter 870.

D. Allocation of Uncollectible Accounts to Standard Offer Providers

Each standard offer provider shall be allocated a share of the uncollectible accounts in the standard offer class or classes the provider serves. The allocated amount of each standard offer provider shall be determined by a pre-established percentage applied to the product of the standard offer provider's price multiplied by the provider's share of sales in that standard offer class. The pre-established percentages shall be set forth in the standard offer contract between the transmission and distribution utility and standard offer providers, and shall reflect the average uncollectible accounts of customers in the standard offer class during a representative historic period. The Commission will allow for the recovery of reasonable costs incurred by a transmission and distribution utility associated with standard offer uncollectible accounts.

§5 Obligations of the Transmission and Distribution Utility

A. Power Delivery

The transmission and distribution utility shall provide transmission and distribution services within its service territory to all standard offer service customers.

B. Billing and Metering

Each customer receiving standard offer service shall receive a single bill from the transmission and distribution utility pursuant to provisions governing consolidated utility billing in Chapter 322 of the Commission's Rules. The bill shall separately state charges for generation service supplied by the standard offer service providers and charges for services supplied by the transmission and distribution utility pursuant to section 4(H) of Chapter 305 of the Commission's Rules. The bill shall prominently display the names of the standard offer service providers that provide standard offer generation service to the customer's standard offer class. The transmission and distribution utility shall provide all meters, perform all metering and meter reading and provide all billing for standard offer service customers within its service area until such time as those services may be provided by other authorized entities.

C. Administration of Service Connections and Terminations

The transmission and distribution utility shall administer all billing, metering and other functions described in this rule in association with transfers to or from standard offer service.

D. Standard Contract Between Transmission and Distribution Company and Standard Offer Providers

Each transmission and distribution utility in the State shall have on file with the Commission a proposed standard form contract between itself and standard offer providers. The standard form contract shall include terms governing billing, metering, collections, transfer of funds, exchange of data, transmission delivery point, and other matters as determined by the Commission.

The Commission will review proposed standard form contracts filed by each transmission and distribution utility and approve the proposed or a modified version. The Commission shall provide an opportunity for interested persons to comment on substantial changes to the standard form contracts. The Commission may allow standard offer bidders to propose alternatives to the provisions in the standard form contracts during the bid process, but may only accept alternative provisions to the contract after consultation with the applicable transmission and distribution utility. Commission authority to review and approve changes to the standard form contract is delegated to the Director of Technical Analysis.

E. Provision of Standard Offer Service by an Affiliate of a Large Transmission and Distribution Utility

1. Pursuant to 35-A M.R.S.A. § 3212(2)(C), a large investor-owned transmission and distribution utility may not provide standard offer service except through an affiliate, and the affiliate may submit a bid for only 20% of a standard offer class within the service territory of the affiliated large transmission and distribution utility.

2. An affiliate of a large investor-owned transmission and distribution utility may not provide a greater share of the standard offer service, within the service territory of the affiliated large transmission and distribution utility, than has been authorized pursuant to the selection process described in section 6.

3. Each large investor-owned transmission and distribution utility or the affiliate of the utility that provides standard offer service shall submit reports twice each year to the Commission demonstrating that it did not provide more than the authorized amount of standard offer service requirements in the previous six months.

4. If the Commission finds that an affiliate of a large investor-owned transmission and distribution utility provided more than the authorized amount of the standard offer service within the service area of its affiliate, the Commission may impose penalties as provided in 35-A M.R.S.A. § 3205(5).

§6 Information Provided by Transmission and Distribution Utilities to Potential Bidders

A. Required Information

Each transmission and distribution utility shall provide to potential standard offer bidders the following information on a date specified by the Commission. The Commission may direct that the information be provided through either the Commission’s or the utilities’ website :

1. monthly demand and energy consumption data, as defined by the Commission, for each standard offer class and transmission and distribution utility customer class.

2. number of customers in each standard offer class and core customer class and the number of customers taking standard offer service within each customer class.

3. representative load shapes for each profile group as defined in Chapter 321 by month.

4. other information as determined by the Commission to be necessary or useful to standard offer bidders.

B. General Requirements and Conditions

1. Aggregation

All information required to be provided by subsection A shall be provided on an aggregate class basis. Individual customer information shall not be provided.

2. Historic Data Period

All information provided will reflect usage during a period of time specified by the Commission. Information describing factors that would cause the information to be unrepresentative of electricity usage in the transmission and distribution service territory during the standard offer period shall also be provided.

3. Due Care; Corrections

Transmission and distribution utilities shall use due care in compiling the information for their service territory with the understanding that bidders will be relying on the data to formulate standard offer bids. Transmission and distribution utilities shall have the duty to correct any inaccuracies promptly upon discovery.

4. Affiliated Interests

Investor-owned transmission and distribution utilities shall not provide any information to an affiliated competitive provider that is not provided to all potential standard offer bidders for its service territory. Consumer-owned transmission and distribution utilities shall provide all information that it uses in preparing its standard offer bids to interested standard offer bidders. All transmission and distribution utilities must comply with codes of conduct contained in or adopted pursuant to 35-A M.R.S.A. §§ 3205, 3206 and 3207.

5. Electronic Form; Standard Software

Transmission and distribution utilities shall provide all information in electronic form usable by standard personal computer software packages.

6. Scope and Format

The Commission shall determine the scope and detail of the information required by subsection A and subsection B, paragraphs 1 and 2, and the format required by subsection B, paragraph 5.

§7 Standard Offer Bid Requirements and Conditions; Contents of Bid

A. General Requirements

1. Duration of Standard Offer Obligation

The Commission shall specify the durations for standard offer bids in the request for standard offer bids.

2. Form of Pricing

Standard offer bids must specify prices or a set of prices for the entire standard offer period. At the direction of the Commission in the request for standard offer bids, prices may be defined by a formula or reference to market or economic indices.

3. Limitation on Bids by Affiliates of Large Transmission and Distribution Utilities

Standard offer bids made byan affiliate of a large investor-owned transmission and distribution utility shall not exceed 20% of any standard offer class within the service territory of the affiliated large investor-owned transmission and distribution utility.

B. Contents of Bids

1. Bids for Standard Offer Classes

Standard offer bids must separately specify bids for each of that transmission and distribution utility's standard offer classes as specified in section 2(A)(2)(a) that the bidder is proposing to serve.

2. Rate Structure and Design

Standard offer bid prices and rate design must conform to the requirements of sections 2(A)(2), (3) and (5).

3. Bids for Portions of Standard Offer Class Requirements

Standard offer bids may be for a portion of the requirements of a standard offer class, but must be in multiples of 20% of the total standard offer class requirements. Standard offer bids may be to provide 20%, 40%, 60%, 80%, or 100% of a standard offer class’s requirements. The bid prices may be different for each percentage of the standard offer class requirements.

4. Price for Meeting Obligations

Standard offer bids, either for all or a portion of the standard offer service requirements of a standard offer class, shall include the bidder's price for meeting all the obligations described in section 3(B) and in the requests for standard offer bids.

5. Statement of Ability to Satisfy Financial Security Requirements

Standard offer bids must state how the bidder will satisfy the financial security requirements contained in this Chapter and in the request for standard offer bids. Standard offer bidders that will submit a letter of credit must include a certified statement from a financial institution licensed to conduct business in the United States or Canada that it will provide a letter of credit that satisfies the requirements of this Chapter and the request for standard offer bids. Standard offer bidders that will submit a corporate guarantee must include a certified statement of the bidder, an affiliated corporation of the bidder, the wholesale supplier or an affiliated corporation of the wholesale supplier that it will provide a corporate guarantee that satisfies the requirements of this Chapter and the request for standard offer bids. The standard offer bids must contain documentation demonstrating that the financial institution or corporate guarantor satisfies all financial requirements stated in this Chapter or the request for standard offer bids.

§8 Bidding Procedure and Selection

A. Bidding Procedure

1. Process

The Commission shall establish the process and procedures to solicit and evaluate bids to provide standard offer service. The process and procedures shall be designed to maximize participation from qualified bidders. The Commission may establish a process whereby the non-price portions of proposals are evaluated for conformance prior to the submission of bid prices.

2. Request for Bids

The Commission shall develop and issue a request for standard offer bids for each applicable transmission and distribution utility service territory. The request for standard offer bids shall specify the standard offer bid process and procedures and shall include a copy of the standard form contract between transmission and distribution utilities and standard offer service providers approved pursuant to section 5(D). The request shall prominently state the deadline for the submission of bids.

3. Provision of Information Required by Section 6

Transmission and distribution utilities shall provide the information required under section 6 of this rule as determined by the Commission. All information shall be made available to each interested standard offer bidder at the same time.

4. Time Frames

The Commission shall establish reasonable timeframes for the issuance of the requests for standard offer bids, the submission of bids, and the evaluation and selection of the winning bidders.

5. Duration of Proposals

The Commission shall establish the allowed durations for standard offer service proposals in the request for standard offer bids. The Commission may allow bidders to submit proposals for differing durations.

B. Rejection of Bids for Noncompliance

The Commission may reject any bid that does not substantially comply with the requirements of this Chapter or the requests for standard offer bids.

C. Selection

For each transmission and distribution utility service territory:

1. Selection Date

The Commission, by order, shall select the standard offer provider or providers for each standard offer class on a selection date as determined by the Commission.

2. Selection Criteria

The Commission shall select the standard offer provider or combination of standard offer providers for each standard offer class based on the objectives of obtaining the lowest price for standard offer service for each standard offer class, the lowest cost for standard offer service overall, the stability of standard offer prices, and the establishment of standard offer prices that track changes in the regional wholesale market. In the event there are bids for a standard offer class or portion of a standard offer class that reflect different rate structures or rate designs, the Commission shall compare the bids by applying the bid prices to the usage of the standard offer class as reflected in the information provided pursuant to section 6(A).

3. Identical Bids

In the event that two or more acceptable bids are identical, the Commission shall establish a reasonable means to determine the standard offer provider or providers that may include, but not be limited to, an agreed-upon arrangement with bidders, or a required re-bid by the tied bidders.

4. Multiple Providers for a Standard Offer Class

If the selection of standard offer providers in accordance with section 8(C)(2) does not result in at least three providers in the transmission and distribution service territory, the Commission shall consider further bids. The Commission shall select further providers for a standard offer class in a manner that minimizes any increase to the total cost of standard offer service in the transmission and distribution utility's service territory. The Commission shall select at least three standard offer providers in each transmission and distribution utility service territory unless such a selection increases the standard offer prices in any standard offer class by more than 1.5%. If at least three standard offer providers cannot be selected without increasing the standard offer prices in a standard offer class by more than 1.5%, the Commission shall select two standard offer providers unless such a selection increases the standard offer prices in a standard offer class by more than 1.5%.

5. Payment

Each selected standard offer provider will receive its accepted bid price for the standard offer requirements it serves, adjusted by its allocated share of uncollectible accounts pursuant to section 4(D), notwithstanding the rate averaging requirement of section 2(A)(4) if more than one provider is selected.

D. Insufficient Bids; Rejection of Bids

1. No Bids

In the event the Commission receives no bids for a standard offer class, it will either select a standard offer provider for that class through alternative means or issue an order directing the transmission and distribution utility to provide standard offer service to that class through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a standard offer provider is made through a new bid process.

2. I nadequate Bids

The Commission may reject standard offer bids for any standard offer class if it finds that the bids are unreasonably high and acceptance would not be in the public interest. In the event the Commission rejects standard offer bids, it will either select a standard offer provider for the applicable standard offer class(es) through alternative means or issue an order directing the transmission and distribution utility to provide standard offer service to the applicable standard offer class(es) through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a standard offer provider is made through a new bid process.

3. Standard Offer Rates

In the event the Commission acts pursuant to paragraphs 1 or 2 above, it shall establish the standard offer rates for the applicable standard offer class(es). The standard offer rates shall reflect the costs of the supply arrangement(s) made pursuant to this section and the incremental administrative costs of the transmission and distribution utility to procure and manage the supply arrangements. The Commission shall, through full reconciliation, ensure recovery by the transmission and distribution utility of all costs of providing standard offer service pursuant to this section, including, but not limited to, the costs of the supply arrangement(s), any incremental administrative costs of procuring and managing the purchases and all applicable carrying costs. After an appropriate period, which period will not exceed one year, the Commission shall make appropriate adjustments in standard offer rates or other rates charged by the transmission and distribution utility to allow recovery of any difference between the actual costs incurred by the transmission and distribution utility to provide standard offer service and actual revenue from standard offer service in that period.

E. Consumer-owned Utilities

1. Option

A consumer-owned transmission and distribution utility may conduct a competitive bidding process to select one or more standard offer service providers for its territory, in accordance with the Commission's rules on selection of a standard offer service provider. If a consumer-owned transmission and distribution utility chooses to select a standard offer provider pursuant to this subsection, the Commission will not conduct a competitive bidding process or select a standard offer service provider for that utility's service territory. A consumer-owned transmission and distribution utility's selection of a standard offer provider in accordance with this subsection is not subject to Commission approval.

2. Single Provider

Notwithstanding any other provision of this Chapter, a consumer-owned transmission and distribution utility may choose a single standard offer provider for its service territory.

3. Notification

A consumer-owned transmission and distribution utility must notify the Commission of its intent to have a standard offer provider(s) selected pursuant to a Commission administrated process no later than 90 days prior to the beginning of the term of standard offer service.

§9 Failure of Standard Offer Provider to Provide Service

A. Default; Replacement Service

In the event a standard offer provider fails to provide service as required, the Commission will act as quickly as practicable to secure alternative service. The Commission may take any one of the following actions:

1. inquire whether other standard offer providers in the service territory are willing and able to provide service at the defaulting providers prices.

2. inquire whether other standard offer providers in the State are willing and able to provide service at the defaulting providers prices.

3. conduct and complete a new bid process as soon as possible.

4. issue an order directing the transmission and distribution utility to provide standard offer service through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a new standard offer provider is made through a new bid process.

B. Temporary Provision of Service

In the time period before replacement standard offer service begins, the transmission and distribution utility shall use the revenue from standard offer customers that it would otherwise transfer to the defaulting standard offer provider to cover any costs it incurs to serve the standard offer requirements pursuant to the rules of the Independent System Operator - New England or the Maritime control area, as applicable.

C. Financial Security Amounts

Amounts received as a result of the defaulting standard offer provider’s financial security will be used to defray any additional costs of the replacement standard offer service so as to avoid the need for standard offer prices to increase.

D. Cost Recovery

If the Commission directs the transmission and distribution utility to provide replacement standard offer service pursuant to subsection (A)(4) above, the transmission and distribution utility shall use the revenue from standard offer, customers that it would otherwise transfer to the defaulting standard offer provider to cover the cost of providing replacement service. If the costs to the transmission and distribution utility of providing replacement standard offer service pursuant to this section exceed the amount available from standard offer service revenue and the proceeds from the defaulting provider’s bond, letter of credit or corporate guarantee, the Commission may adjust standard offer rates such that the rates will cover the excess costs of providing the replacement standard offer service. The Commission shall, through full reconciliation, ensure recovery by the transmission and distribution utility of all costs of providing standard offer service pursuant to this section consistent with § 8(D)(3).

§10 CONSUMER-OWNED UTILITY LOAD AGGREGATION

Standard Offer Aggregation

Notwithstanding any other provision of this Chapter, a consumer-owned transmission and distribution utility may aggregate load within its service territory for the purpose of providing standard offer service as specified in this section. The standard offer load aggregation must contain provisions for service to all customers within the service territory that are not taking service from competitive electricity providers.

Service Provider

The consumer-owned transmission and distribution utility may arrange for a retail standard offer load aggregation provider or may be the retail provider of the standard offer load aggregation service. The consumer-owned transmission and distribution utility must choose either a wholesale or retail provider through a competitive bid process. The consumer-owned transmission and distribution utility may serve all or a portion of the standard offer load aggregation service through its own generation resources or through a purchase power contract with a generator without conducting a competitive process.

Establishment

A consumer-owned transmission and distribution utility may establish a standard offer load aggregation only through a vote of its governing board.

Maximum Term

Unless otherwise authorized by order of the Commission, a standard offer load aggregation may be no longer than five years.

Customer Opt-Out

All customers shall have the opportunity to opt-out of the standard offer load aggregation and take service from a competitive electricity provider by providing notice to the consumer-owned transmission and distribution utility at least 30 days prior to the initiation of load aggregation service. The standard offer load aggregation must provide for service to customers that have chosen to opt-out of the load aggregation and have subsequently defaulted to standard offer service. The standard offer load aggregation may contain alternative pricing for customers that have chosen to opt-out of the load aggregation. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

Migration Restriction

Customers that do not opt-out of the standard offer load aggregation pursuant to subsection E may be required to take standard offer service at specified load aggregation prices for a pre-specified term.

Pre-Existing Contracts

Customers taking service from a competitive electricity provider under a pre-existing contract that terminates after the initiation of the standard offer load aggregation service and do not opt-out by providing notice pursuant to subsection E will become part of the aggregation when the contract expires. The standard offer load aggregation may contain alternative pricing for customers who do not provide notice of the expiration of the pre-existing contract pursuant to this subsection. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

New Customers and Load Expansions

New customers in the utility service territory will become part of the standard offer load aggregation unless the customer receives service from a competitive electricity provider. The standard offer load aggregation shall provide new residential and small non‑residential customers service at the predetermined load aggregation prices. The standard offer load aggregation may contain alternative pricing for new load of medium and large non‑residential customers and for load expansions of existing customer above a pre-specified demand level. The alternative pricing may be based on current electricity market prices at the time the customer takes service as part of the load aggregation.

Customer Notification

The customer-owned transmission and distribution utility shall provide its customers notification of the standard offer load aggregation at least 90 days but no greater than 120 days before the initiation of service. The notification shall be in writing and contain, at a minimum the following information:

1. a description of the terms and conditions of the standard offer load aggregation including the initiation and termination dates, load aggregation prices are not required to be included in the notification;
2. a prominent statement that customers that do not opt-out of the load aggregation will be required to continue to take service from the load aggregation throughout the term;
3. the procedures for customers to opt-out of the load aggregation; and
4. the existence of alternative pricing for customers that opt-out pursuant to subsection E and subsequently default to standard offer service, customers with pre-existing contracts that do not provide notice of the expiration of the contract pursuant to subsection G, and new customers and load expansions pursuant to subsection H.

Commission Notification

A consumer-owned transmission and distribution utility that establishes a standard offer load aggregation must notify the Commission at least 90 days prior to the initiation of load aggregation service.

Consolidated Load

Consumer-owned transmission and distribution utilities may consolidate the loads within their service territories for purposes of forming a standard offer load aggregation.

§11 Waiver or Exemption

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter that are not required by statute. Where good cause exists, the Commission, the Director of Technical Analysis, or the Hearing Examiner assigned to a proceeding related to this rule may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Chapter 32 of Title 35-A.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 1306, 3202(7), and 3212
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on May 7, 1998. It was filed with the Secretary of State on May 7, 1998 and became effective on June 6, 1998.
• ORIGINAL FILING: 1999 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on June 30, 1999. It was filed with the Secretary of State on July 1, 1999 and became effective on July 31, 1999.
• ORIGINAL FILING: 2000 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on August 22, 2000. It was filed with the Secretary of State on August 24, 2000 and became effective on August 29, 2000.
• ORIGINAL FILING: 2000 EMERGENCY AMENDMENT:
• ORIGINAL FILING: This emergency rule was approved as to form and legality by the Attorney General on November 8, 2000. It was filed with the Secretary of State on November 8, 2000 and became effective on November 8, 2000. It expires on February 6, 2001.
• ORIGINAL FILING: 2001 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on January 26, 2001. It was filed with the Secretary of State on January 29, 2001 and became effective on February 3, 2001.
• ORIGINAL FILING: 2004 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on July 14, 2004. It was filed with the Secretary of State on July 9, 2004 and became effective on July 14, 2004.
• ORIGINAL FILING: 2005-2006 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on December 23, 2005. It was filed with the Secretary of State on December 27, 2005 as filing 2005-536, and became effective on January 1, 2006.
• ORIGINAL FILING: 2009 AMENDMENT:
• ORIGINAL FILING: This rule was approved as to form and legality by the Attorney General on March 27, 2009. It was filed with the Secretary of State on March 30, 2009 and became effective on April 4, 2009 – filing 2009-140.
• ORIGINAL FILING: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 304 Standards of Conduct for Transmission and Distribution Utilities and Affiliated Competitive Electricity Providers

Code Me. R. 65-407 Ch. 304 Standards of Conduct for Transmission and Distribution Utilities and Affiliated Competitive Electricity Providers {#sec-65-407-ch.-304 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 304}

SUMMARY - This Chapter establishes standards of conduct applicable to both large and small investor-owned distribution utilities and affiliated competitive providers, a method of tracking the retail sales made by an affiliated competitive provider within the service territory of its affiliated distribution utility and a requirement that consumer-owned utilities notify the Commission of any wholesale generation sales.

§ 1 PURPOSE OF RULE 4

§ 2 DEFINITIONS 4

A. Affiliated Competitive Provider 4

B. Distribution Utility 4

C. Distribution Utility 4

D. Joint Advertising or Marketing 4

E. Large Investor-owned Distribution Utility 4

F. Regulated Product or Services 4

G. Small Investor-owned Distribution Utility 5

§ 3 STANDARDS OF CONDUCT 5

A. No Preference 5

B. Service Provided Without Discrimination 5

C. Posting 5

D. Requests for Regulated Products 5

E. No Tying 5

F. Requests for Information 5

G. Employees 6

H. Log of Information Requests 6

I. Promotion of Affiliate; Joint Marketing 6

J. No Recommendation 8

K. Sharing of Employee Prohibition 8

1. Exemption 8

L. Books 8

M. Dispute Resolution 8

1. Complaints log 9

N. Separate Records 9

O. Implementation Plan 9

P. Notice of Stock Acquisition 9

Q. Distribution Utility 10

R. Compliance with Chapter 820 10

§ 4 MARKET SHARE LIMITATIONS 10

A. Reports 10

B. Sanctions 10

§ 5 IMPLEMENTATION PLAN 11

A. Effective Date 11

B. Changes 11

C. Commission Investigation 11

§ 6 AUDITS 11

A. Audits Schedule 11

B. Expense 11

§ 7 SANCTIONS 11

A. General Administrative Penalties; Disgorgement 12

B. Violations of Market Share Limitation. 12

C. Divestiture 13

§ 8 CONSUMER-OWNED DISTRIBUTION UTILITIES 13

§ 9 WAIVER OR EXEMPTION 13

§ 1 PURPOSE OF RULE; APPLICATION

This Chapter establishes standards of conduct governing the relationship and interactions between a distribution utility and an affiliated competitive provider to promote the development of a fair and efficient competitive retail electricity market.

A distribution utility or an affiliated competitive provider may not use its corporate structure, or any other means, to circumvent the requirements or intent of this Chapter.

§ 2 DEFINITIONS

A. Advertising or Marketing. Advertising or Marketing is:

1. Any communication or activity designed or intended to increase the profitability of an entity or to increase the recipient’s likelihood of purchasing service from the entity; or

2. Any communication or activity that could reasonably be viewed by the recipient of the communication or activity as an attempt to increase the recipient’s likelihood of purchasing a service or product.

B. Affiliated Competitive Provider. Affiliated competitive provider means a competitive electricity provider whose relationship with an investor-owned transmission and distribution utility qualifies it as an affiliated interest under 35-A M.R.S.A. § 707.

C. Distribution Utility. Distribution utility means an investor-owned transmission and distribution utility that has an affiliated competitive provider.

D. Joint Advertising or Marketing. Joint advertising or marketing is any advertising or marketing that includes, directly or indirectly, references to both the distribution utility and its affiliated competitive provider. It also includes the use by the affiliated competitive provider of the same or substantially similar name or logo as the distribution utility in a way that would require a payment for good will under Chapter 820.

E. Large Investor-owned Distribution Utility. Large investor-owned distribution utility means an investor-owned transmission and distribution utility serving more than 50,000 retail customers.

F. Regulated Product or Services. A regulated product or service means the transmission or distribution of electricity, services necessary to perform those functions, services for which the utility is the provider of last resort or services the Commission requires the utility to provide, except that any service that a utility provides outside its service territory is not a regulated product or service.

G. Small Investor-owned Distribution Utility. Small investor-owned distribution utility means an investor-owned transmission and distribution utility serving 50,000 or fewer retail customers.

§ 3 STANDARDS OF CONDUCT

A. No Preference. A distribution utility may not, through a tariff provision or otherwise, give its affiliated competitive provider or customers of its affiliated competitive provider preference over nonaffiliated competitive electricity providers or customers of nonaffiliated competitive electricity providers in matters relating to any regulated product or service.

B. Service Provided Without Discrimination. All regulated products and services offered by a distribution utility, including any discount, rebate or fee waiver, must be available to all customers and competitive electricity providers simultaneously to the extent technically possible and without undue or unreasonable discrimination. Nothing in this Chapter prevents a distribution utility from entering into a special contract offering a special rate to a customer or group of customers pursuant to a rate flexibility program approved by the Public Utilities Commission under the Maine 35-A M.R.S.A. § 3195(6).

C. Posting. A distribution utility may not sell or otherwise provide regulated products or services to its affiliated competitive provider without either simultaneously posting the offering electronically on the distribution utility's Internet web site or otherwise making a sufficient offering to the market for that product or service. Provision of the product or service under the terms of a filed tariff constitutes a sufficient offering. Otherwise, a sufficient offering to the market must be approved by the Commission before the distribution utility sells or provides the product or service to its affiliated competitive provider.

D. Requests for Regulated Products. A distribution utility shall process all similar requests for a regulated product or service in the same manner and within the same period of time.

E. No Tying. A distribution utility may not condition or tie the provision of any regulated product, service or rate agreement by the distribution utility to the provision of any product or service in which an affiliated competitive provider is involved.

F. Requests for Information. A distribution utility shall process all similar requests for information in the same manner and within the same period of time. A distribution utility may not provide information to an affiliated competitive provider without a request when information is made available to nonaffiliated competitive electricity providers only upon request. A distribution utility may not allow an affiliated competitive provider preferential access to any nonpublic information regarding the distribution system, customers taking service from the distribution utility, or any other nonpublic information that the utility has obtained as a result of its status as a provider of core utility services that is not made available to nonaffiliated competitive electricity providers upon request. A distribution utility shall instruct all of its employees not to provide any competitive electricity provider preferential access to nonpublic information.

G. Employees. Employees of a distribution utility may not share with any competitive electricity provider:

1. Any market information acquired from any other competitive electricity provider, other than information that is generally publicly available, without the permission of the competitive electricity provider from which the information was acquired; or

2. Any market information developed by the distribution utility in the course of responding to requests for distribution service, other than information that is generally publicly available.

H. Log of Information Requests. A distribution utility shall keep a log of all requests made by a competitive electricity provider for commercial information that it has obtained by virtue of providing electricity service.. The log is subject to Commission review. The log must:

1. Contain all requests for commercial information from competitive electricity providers, including the nature and date of the request;

2. Identify, for each request, the name of the entity making the request; and

3. Describe the date and nature of the distribution utility's response to each request. The distribution utility shall protect the information contained in the log from being disclosed to any entity (except the Commission) unless, or until, the Commission determines such protection is unnecessary. Absent such a finding by the Commission, any entity (other than the distribution utility that maintains the log or the Commission) that seeks access to the information contained in the log, must file a request for such access with the Commission. At that time, the Commission will determine the appropriate level of protection for the information pursuant to its statutory authority to grant protective orders. 35-A M.R.S.A. § 1311-A.

I. Promotion of Affiliate; Joint Marketing.

1. Neither a distribution utility nor its affiliated competitive provider may give any appearance of speaking on behalf of the other.

2. Neither a distribution utility nor an affiliated competitive provider may in any way represent that any advantage accrues to customers or others in the use of the distribution utility's services as a result of that customer’s or others’ dealing with the affiliated competitive provider.

3. A distribution utility and its affiliated competitive provider may not engage in joint advertising or marketing.

4. The distribution utility may not in any manner promote its affiliated competitive provider or any product or service offered by its affiliated competitive provider nor may the affiliated competitive provider promote any product or service offered by the distribution utility.

5. The Commission shall maintain a current list of all competitive providers available to customers in each distribution utility's service territory. The Commission shall update the list and rearrange the names on the list in a random sequence at least every 60 days. If a customer requests information about competitive electricity providers or where the customer may obtain generation services, the distribution utility shall provide a copy of the most recent list of competitive electricity providers issued by the Commission.

6. Unless the distribution utility or affiliated competitive provider is specifically asked what the relationship is between the two entities or whether the distribution utility or affiliated competitive provider has an affiliation or association with a competitive provider or distribution utility, respectively, employees of those entities may not disclose the affiliation. If they are specifically asked, employees may disclose the affiliation but must inform the questioner that:

a. The affiliated competitive provider is not regulated by the Public Utilities Commission;

b. No advantage will accrue to any customer of the affiliated competitive provider due to the affiliate’s relationship with the distribution utility; and

c. Customers may select another competitive electricity provider.

The distribution utility shall submit as part of its implementation plan under Section 5 a script containing the information specified above that distribution utility and affiliated competitive provider employees shall use in responding to inquiries regarding affiliated status.

J. No Recommendation. Employees of a distribution utility may not state or provide to any customer or potential customer any opinion regarding the reliability, experience, qualifications, financial capability, managerial capability, operations capability, customer service record, consumer practices or market share of any affiliated competitive provider or nonaffiliated competitive electricity provider.

K. Sharing of Employee Prohibition. Employees of a distribution utility must be located in a separate building from the employees of the affiliated competitive provider. Employees may not be shared between a distribution utility and its affiliated competitive provider. An employee is considered to be shared if the employee performs work for both entities. The employees of a distribution utility and the employees of an affiliated competitive provider must be served by separate telecommunications and computer systems. An employee who is transferred from an affiliated competitive provider to the distribution utility cannot return to the affiliated competitive provider for at least one year.

1. Exemption.

The Commission may approve an exemption from this subsection upon a finding that:

a. Sharing employees or facilities would be in the best interest of the public;

b. Sharing employees or facilities would have no anticompetitive effect; and

c. The costs of any shared employees or facilities can be fully and accurately allocated between the distribution utility and the affiliated competitive provider.

Any request for an exemption must be accompanied by a full and transparent allocation of costs for any shared facilities or general and administrative support services. The Commission shall allow a reasonable opportunity for parties to submit comments regarding any request for an exemption. An exemption is valid until the Commission determines that modification or removal of the exemption is necessary.

L. Books. A distribution utility and its affiliated competitive provider shall keep separate books of account and records, which are subject to Commission review.

M. Dispute Resolution. A distribution utility shall establish and file with the Commission, as part of its implementation plan under Section 5, a dispute resolution procedure to address complaints alleging violations of 35-A M.R.S.A. §§ 3205 & 3206; applicable Chapter 820 provisions governing the actions of the distribution utility and its affiliated competitive provider; the distribution utility's implementation plan; and this Chapter. A dispute resolution procedure must, at a minimum, designate a person to conduct an investigation of the complaint and communicate the results of the investigation to the claimant in writing within 30 days after the complaint was received, including a description of any action taken and the complainant's right to file a complaint with the Commission if not satisfied with the results of the investigation.

1. Complaints log. The distribution utility shall maintain a log of all resolved and pending complaints. This log is subject to Commission review. The log must include, at a minimum:

a. The name of the person or entity that filed the complaint;

b. The date the complaint was filed;

c. The written statement of the complaint, if any; and

d. The date the complaint was resolved and the resolution or the reason why the complaint is still pending.

N. Separate Records. A distribution utility shall maintain its books of account and records of its transmission and distribution operations separately from those of its affiliated competitive provider. These books of account and records are subject to Commission review.

O. Implementation Plan. A distribution utility shall maintain in a public place and file with the Commission current written procedures implementing the standards of conduct established by 35-A M.R.S.A. §§ 3205 & 3206 and this Chapter. A copy of this Chapter must be posted in the distribution utility's offices in the same manner as required for minimum wage information under 26 M.R.S.A. § 668. The distribution utility and its affiliated competitive provider shall provide every employee with a copy of the implementation plan and any amendments to the plan. The implementation plan must include procedures to train employees of the distribution utility and its affiliated competitive provider in procedures necessary to ensure compliance with 35-A M.R.S.A. §§ 3205 & 3206 and this Chapter. The implementation plan must be in detail sufficient to enable customers and the Commission to determine that the company is in compliance with 35-A M.R.S.A. §§ 3205 & 3206 and this Chapter.

P. Notice of Stock Acquisition. A distribution utility must immediately notify the Commission if another entity acquires 10% or more of the distribution utility’s stock or achieves 10% ownership of the distribution utility’s stock after June 26, 1997.

Q. No Subsidization. A distribution utility may not subsidize the business of its affiliated competitive provider at ratepayer expense in any manner not specifically authorized under this section.

R. Compliance with Chapter 820. A distribution utility and its affiliated competitive provider must comply with all applicable provisions of Chapter 820.

§ 4 MARKET SHARE LIMITATIONS

No competitive electricity provider affiliated with a large investor-owned distribution utility may sell or contract to sell more than 33% of the total kilowatt-hours sold at retail within its affiliated distribution utility's service territory over a calendar year. Any standard offer service provided within the distribution utility's service territory by an affiliated competitive provider under Chapter 302 is included within the 33% limitation. No competitive electricity provider affiliated with a large investor-owned distribution utility may bid to provide more than 20% of the total standard-offer service kilowatt-hours in its affiliated distribution utility’s service territory.

If a distribution utility has more than one affiliated competitive provider, all limits and sanctions will be determined based on the total kilowatt-hours sold, contracted for sale or bid for sale, respectively, by all of its affiliated competitive providers in the aggregate.

A. Reports. By May 1st of each year, each affiliated competitive provider shall report to the Commission:

1. The total kilowatt-hours it sold at retail between January 1 and December 31 of the previous year within its affiliated distribution utility's service territory; and,

2. The total kilowatt-hours it contracted to sell at retail between January 1 and December 31 of the previous year within its affiliated distribution utility's service territory.

By May 1st of each year, each distribution utility shall report to the Commission the total kilowatt-hours sold at retail between January 1 and December 31 of the previous year within its service territory.

B. Sanctions. A competitive provider affiliated with a large investor-owned distribution utility that sells or contracts to sell more than 33% of the total kilowatt-hours sold at retail in its affiliated distribution utility's service territory or bids to sell more than 20% of the standard-offer kilowatt-hours in its affiliated distribution utility’s service territory is subject to the sanctions provided in Section 7.

§ 5 IMPLEMENTATION PLAN

Before an affiliated competitive provider is authorized, or if an affiliated competitive provider has already been authorized, within 30 days after the effective date of this Chapter, the distribution utility must have filed with the Commission an implementation plan in compliance with Section 3(P).

A. Effective Date. An implementation plan takes effect 30 days after it is filed with the Commission unless the Commission suspends the effectiveness of all or part of the plan, in which case the suspended portion takes effect upon Commission approval .

B. Changes. A distribution utility shall file with the Commission any change to an implementation plan. A change to an implementation plan takes effect 30 days after the change is filed with the Commission unless the Commission suspends the effectiveness of all or part of the change, in which case the suspended portion takes effect upon Commission approval.

C. Commission Investigation. The Commission may open an investigation into a distribution utility's implementation plan or a distribution utility's compliance with its plan at any time and may order changes to be made in an implementation plan as a result of the investigation.

§ 6 AUDITS

The Commission shall audit the records of each distribution utility and affiliated competitive provider subject to this Chapter to ensure compliance with 35-A M.R.S.A. §§ 3205 and 3206, applicable Chapter 820 provisions, the distribution utility's implementation plan, and this Chapter.

A. Audit Schedule. For the first three years following adoption of this Chapter, the Commission shall annually audit each distribution utility and affiliated competitive provider. Thereafter, the Commission shall audit investor-owned distribution utilities and affiliated competitive providers at least once every three years but may audit them more frequently at the Commission's discretion.

§ 7 SANCTIONS

This section governs sanctions applicable to violations of 35-A M.R.S.A. §§ 3205, 3206 and this Chapter. For purposes of imposing a sanction under this Section, the provisions of a distribution utility's implementation plan and Chapter 820 are incorporated into this Chapter. Penalties collected pursuant to this section must be deposited in the Public Utilities Commission Reimbursement Fund.

A. General Administrative Penalties; Disgorgement. The Commission may, in an adjudicatory proceeding, impose an administrative penalty of up to $100,000 for a violation of 35-A M.R.S.A. §§ 3205, 3206 or this Chapter. Each day a violation continues constitutes a separate offense. In addition, the Commission may, in an adjudicatory proceeding, require disgorgement of profits or revenues realized as a result of a violation of 35-A M.R.S.A., §§ 3205, 3206 or this Chapter.

B. Violations of the 33% Market Share Limitation. If an affiliated competitive provider exceeds the 33% market share limitation imposed by Section 4, the penalty is determined according to the following:

1. If in the calendar year reported pursuant to Section 4(A) (current calendar year), the actual retail sales (measured in kilowatt-hours) of an affiliated competitive provider plus its contracted retail sales (measured in kilowatt-hours) exceed 33% but not 35% of the total retail sales in its affiliated distribution utility's service territory in the year previous to the year reported pursuant to Section 4(A) (prior calendar year), the penalty equals the difference between the average revenue per kilowatt-hour the affiliated competitive provider received for sales in the service territory of its affiliated distribution utility during the current calendar year and the New England independent system operator average market clearing prices for capacity and energy for the current calendar year, multiplied by the kilowatt-hours in excess of 33% of the total retail kilowatt-hours sold within the affiliated distribution utility’s service territory in the prior year, up to a maximum penalty of $100,000 per day.

For example, assuming the total retail sales within a distribution utility’s service territory in calendar year 2002 was 9,000,000,000 kWhs, an affiliated competitive provider could not sell more than 2,970,000,000 kWhs (9,000,000,000 * 0.33 = 2,970,000,000) within that distribution utility’s service territory in calendar year 2003 without incurring a penalty. If, hypothetically, in 2003 the affiliated competitive provider sold 34% of the 2002 total retail kWh sales within its affiliated distribution utility’s territory, received $91,800,000 in revenues associated with those sales and the average market clearing price for capacity and energy in 2003 was $0.025 per kWh, a penalty of $450,000 would be due: [(0.34 * 9,000,000,000 kWhs = 3,060,000,000 kWhs; excess sales = 3,060,000,000 - 2,970,000,000 = 90,000,000 kWhs; average revenue per kWh = $91,800,000/3,060,000,000 kWhs = $0.030 per kWh sale price; therefore the penalty = 90,000,000 * (0.030 - 0.025)=$450,000].

2. If the affiliated competitive provider's actual retail sales (measured in kilowatt-hours) plus its contracted retail sales (measured in kilowatt-hours) in the current calendar year exceed 35% of the total retail sales in its affiliated distribution utility's service territory in the prior calendar year, the penalty equals the penalty as determined in subsection 1 plus the average revenue per kilowatt hour the affiliated competitive provider received for sales in the service territory during the current calendar year multiplied by the kilowatt hours in excess of 35% of the total retail kilowatt-hours sold within the affiliated distribution utility’s service territory in the prior year, up to a maximum penalty of $100,000 per day.

For example, using the same assumptions as in subsection 1 except that in 2003 the affiliated competitive provider sold 38% of the 2002 total retail kWh sales within that distribution utility’s territory and received $102,600,000 in revenues associated with those sales, a penalty of $9,000,000 would be due: [(0.38 * 9,000,000,000 kWhs = 3,420,000,000 kWhs; sales in excess of 33% but up to 35% = (0.35 * 9,000,000,000) - 2,970,000,000 = 180,000,000 kWh; sales in excess of 35% = 3,420,000,000 - (0.35 * 9,000,000,000 kWhs) = 270,000,000 kWhs; therefore the penalty = 180,000,000 * (0.030 - 0.025) + (270,000,000 * 0.030) = $900,000 + $8,100,000 = $9,000,000].

C. Divestiture. The Commission shall require a distribution utility to divest an affiliated competitive provider if the Commission determines in an adjudicatory proceeding that:

1. The distribution utility or its affiliated competitive provider has knowingly violated Title 35-A M.R.S.A. § 3205, or this Chapter and the violation resulted or had the potential to result in substantial injury to retail consumers of electric energy or to the competitive retail market for electric energy; or

2. An affiliated competitive provider obtains an unfair market advantage as a result of an entity's ownership of 10% or more of the stock of the distribution utility.

§ 8 CONSUMER-OWNED UTILITIES

A consumer-owned utility must report to the Commission any wholesale sale or sales of generation service that, over any 12-month period, cumulatively exceed 5% of the total kilowatt hours sold at retail by the utility over the same period. The report must describe the details of the transaction and explain why the sale was incidental and necessary to reduce the cost of providing retail service.

§ 9 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 3205, 3206, 3207, 3203(9)
• STATUTORY AUTHORITY: Resolves 1999, ch. 36; P.L. 1999, ch. 398, Sec. G-5.
• STATUTORY AUTHORITY: Rule History:
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 30, 1999. It was filed with the Secretary of State on July 1, 1999 and will be effective on July 31, 1999.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 1, 1999. It was filed with the Secretary of State on October 5, 1999 and will be effective on November 4, 1999.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 305 Licensing Requirements, Annual Reporting, Enforcement and Consumer Protection Provisions for Competitive Provision of Electricity

Code Me. R. 65-407 Ch. 305 Licensing Requirements, Annual Reporting, Enforcement and Consumer Protection Provisions for Competitive Provision of Electricity {#sec-65-407-ch.-305 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 305}

SUMMARY: This Chapter establishes licensing requirements for competitive electricity providers, which includes marketers, brokers, and aggregators, and establishes registration requirements for third-party sales agents. The Chapter includes procedural rules governing application for licensing, registration, revocation, termination, and enforcement, and annual reporting provisions. The Chapter also establishes consumer protection rules applicable to competitive electricity providers and third-party sales agents.

§ 1 GENERAL PROVISIONS AND DEFINITIONS 5

A. Scope of Rule 5

B. Definitions 5

§ 2 LICENSING AND REGISTRATION REQUIREMENTS 7

A. Entities Subject to Licensing and Registration Requirements 7

1. Competitive Electricity Providers and Third-Party Sales Agents 7

2. Transmission and Distribution Utilities 7

B. Application Requirements for Competitive Electricity Providers 8

1. Evidence of Financial Capability 8

2. Evidence of Technical Capability 9

3. Financial Security 9

4. Disclosure of Enforcement Proceedings and Customer Complaints 11

5. Evidence of Ability to Satisfy Portfolio Requirement 12

6. Disclosure of Affiliates 12

7. Tax Registration 12

8. Agent of Service 12

9. Application Information 12

10. Registration of Third-Party Agents ………………………………………… 13

C. Licensing Conditions 15

D. Licensing Procedures 15

1. Scope 15

2. Form 15

3. Filing 15

4. Material Change in Application Information 15

5. Fees 16

6. Commission Review 16

7. Issuance Criteria 16

8. Conditions 16

9. Term of License 16

10. Transfer of License 16

11. Abandonment of License 17

12. Accuracy of Information 17

E. Annual Reporting 17

1. Information 17

2. Confidentiality 18

§ 3 SANCTIONS AND ENFORCEMENT 18

A. Sanctions 18

1. Penalties 19

2. Cease and Desist Orders 19

3. Restitution 20

4. Revocation; Suspension 20

5. Termination of Registration …………………………………………………..20

6. Other 20

7. Waiver 20

B. Enforcement 21

1. Court Action 21

2. Notice to Attorney General 21

§ 4 CUSTOMER PROTECTION 21

A. General Protections 21

1. Customer Authorization 21

2. Customer Information 21

3. Trade Practices 21

4. Collection Costs 21

5. Equal Credit 22

6. Telemarketing 22

7. Marketing of Electricity Attributes 22

8. Notice of Opt-Out Fee 23

9. Commission Standards and Requirements 23

B. Small Customer Protections 23

1. Disclosure Regarding Standard Offer …….23

2. Disclosure and Limitations Regarding Door-to-Door Sales ………………...24

3. Bill Information ………………………………………………………………...24

4. Terms of Service Document …………………………………………………...25

5. Right of Rescission 26

6. Verification of Affirmative Customer Choice 27

7. Minimum Service Period 28

8. Minimum Notice of Changes in Terms of Service 28

9. Renewals 28

10. Assignments 29

11. Variable Rates and Charges 29

12. Termination Fees 30

13. Promotional Practices 30

14. Trade Practices 31

15. Door-to-Door Sales 31

16. Cancellation of Service ………………………………………………………...32

17. Generation Service Bills 33

18. Application for Service; Denial of Credit 33

19. Dispute Resolution and Compliant Procedure 34

C. Representatives and Agents 36

D. Disclosure Label 36

E. Market Risk Disclosure 37

1. Applicability 37

2. Disclosure Requirement 37

3. Disclosure Language 37

4. Distribution 37

§ 5 INFORMATIONAL FILINGS 37

A . Generally Available Service

1. Filing Required ………………………………………………………………...37 2. Modification ……...…………………………………………………………….37

3. No Approval ……………………………………………………………………38

B . Individual Service Contracts …………………………………………………………..38

§ 6 WAIVER OR EXEMPTION 38

§ 1 GENERAL PROVISIONS AND DEFINITIONS

A. Scope of Rule. This Chapter applies to competitive electricity providers, who must be licensed to sell electricity at retail in Maine, and third-party sales agents, who must be registered in Maine. Competitive electricity providers include marketers, brokers and aggregators. This Chapter establishes licensing criteria and procedures, annual reporting requirements, enforcement provisions, and consumer protections standards.

B. Definitions. The following definitions, when used as defined in this rule, will have initial capitalization. For the purposes of this Chapter, the following terms have the following meanings:

1. Affiliated Interest. "Affiliated interest" means:

a. Any person who owns directly, indirectly or through a chain of successive ownership, 10% or more of the voting securities of an applicant or licensee;

b. Any person, 10% or more of whose voting securities are owned, directly or indirectly, by an affiliated interest as defined in subparagraph (a);

c. Any person, 10% or more of whose voting securities are owned, directly or indirectly, by an applicant or licensee;

d. Any person, or group of persons acting in concert, which exercises substantial influence over the policies and actions of an applicant or licensee, provided that the person or group of persons beneficially owns more than 3% of the applicant or licensee's voting securities.

2. Aggregate. "Aggregate" means to organize individual electricity consumers into a group or entity for the purpose of purchasing electricity on a group basis.

3. Aggregator. "Aggregator" means an Entity that gathers individual Customers together for the purpose of purchasing electricity.

4. Applicant. "Applicant" means any Entity that has filed an application for a license as a Competitive Electricity Provider

5. Broker. "Broker" means an Entity that acts as an agent or intermediary in the sale and purchase of electricity but that does not take title to electricity.

6. Commission. "Commission" means the Maine Public Utilities Commission.

7. Competitive Electricity Provider. "Competitive electricity provider" means a Marketer, Broker or Aggregator, unless Brokers and Aggregators are expressly excluded from a provision of this Chapter.

8. Complaint. "Complaint" means a grievance of a Customer about the application of any provision of this Chapter by a Competitive Electricity Provider or Third-party Sales Agent.

9. Customer. "Customer" means any person who has requested, will receive or is receiving Generation Service or Aggregator or Broker service from a Competitive Electricity Provider. This term includes an applicant for Generation Services when the context addresses the process of application for generation service in this Chapter.

10. Door-to-door Sales. "Door-to-door Sales" means the practice by which a representative of a Competitive Electricity Provider, including a Third-party Sales Agent, solicits or sells electric services to Residential or small commercial consumers by means of personal visits to consumers at locations other than the representative's place of business. "Door-to-door Sales" does not include sales conducted entirely by mail, telephone or other electronic means; sales conducted during a scheduled appointment at a consumer's residence or place of business; or sales conducted following an initial contact that was solicited by the consumer.

11. Enroll. "Enroll" means the assignment of a Customer to a Competitive Electricity Provider pursuant to Chapter 322 of the Commission's rules.

12. Entity. "Entity" means a person or organization, including but not limited to any political, governmental, quasi-governmental, corporate, business, professional, trade, agricultural, cooperative, for-profit or nonprofit organization.

13. Generation Service. "Generation Service" means the provision of electric power to a retail Customer through a Transmission and Distribution Utility but does not encompass any activity related to the transmission or distribution of that power.

14. GIS Certificates. “GIS Certificates” mean certificates created pursuant to NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

15. ISO-NE. "ISO-NE" means the Independent System Operator of the New England bulk power system.

16. Large Non-Residential Customer. “Large Non-Residential Customer” means a non-residential Customer that is not a Small Non-residential Customer or a Medium Non‑residential Customer.

17. Maritimes Control Area. "Maritimes control area" means the area in which the New Brunswick Power Corporation operates the Maritimes bulk power system.

18. Marketer. "Marketer" means an entity that as an intermediary purchases electricity and takes title to electricity for sale to retail Customers.

19. Medium Non-Residential Customer. “Medium Non-Residential Customer” means a non-residential customer that is taking service from a Transmission and Distribution Utility under terms and conditions that includes a demand charge and in which the Customer’s maximum demand does not exceed 500 kilowatts or the kilowatt breakpoint that is closest to but does not exceed 500 kW.

20. NAR. “NAR” means the Northern American Renewables Registry.

21. NAR Certificates. NAR Certificates mean certificates created pursuant to the Northern American Renewables Registry that represent attributes of electric power and that may be traded separately from the energy commodity.

22. NMISA. “NMISA” means the Northern Maine Independent System Administrator of the electricity market in northern Maine.

23. Northern Maine. "Northern Maine" means the area of Maine that is located in the Maritimes control area.

24. Residential Customer. “Residential Customer” means a Customer taking service as a residential customer under the terms and conditions of the applicable Transmission and Distribution Utility.

25. Small Non-Residential Customer. “Small Non-residential Customer” means a non-residential Customer taking service from an investor-owned Transmission and Distribution Utility under terms and conditions that do not include a demand charge or a non-residential Customer that is taking service from a consumer-owned Transmission and Distribution Utility with a demand of 20 kilowatts or less.

26. Third-party Sales Agent. "Third-party Sales Agent" means a person or Entity that has a business relationship with a Competitive Electricity Provider in which the person or Entity conducts or arranges to conduct residential or small commercial consumer sales of electricity to the public at retail on behalf of the Competitive Electricity Provider through Door-to-door Sales. "Third-party Sales Agent" does not include an employee of a Competitive Electricity Provider, and does not include an employee, contractor, or other person working on behalf of a Third-party Sales Agent if the employing entity is registered by the Commission as a Third-party Sales Agent in accordance with Title 35-A and this Chapter.

27. Transmission and Distribution Utility. "Transmission and Distribution Utility" means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

28. Indexed Variable Rate or Charge. “Indexed Variable Rate or Charge” means any rate or charge that varies over the duration of the term of service where the rate or charge is reasonably related to a public index or otherwise reasonably determined through a readily accessible formula.

29. Non-indexed Variable Rate or Charge. “Non-indexed Variable Rate or Charge” means any rate or charge that varies over the duration of the term of service other than an Indexed Variable Rate or Charge.

§ 2 LICENSING AND REGISTRATION REQUIREMENTS

A. Entities Subject to Licensing and Registration Requirements

1. Competitive Electricity Providers and Third-Party Sales Agents

a. Licensure and Registration

All Competitive Electricity Providers must be licensed by the

Commission, and third-party sales agents must be registered by the

Commission. No Entity may contract or offer to contract to provide

Generation Service, Enroll customers, provide Generation Service, or

arrange for a contract for the provision of Generation Service without

having obtained a license from, or with respect to third-party agents

without being registered with, the Commission. The Commission

delegates to the Director of Electric and Gas Utility Industries the

authority to license Competitive Electricity Providers and register Third-

party Sales Agents.

b. Provision of Documentation

Upon request by the Commission, Applicants, registrants, Competitive

Electricity providers, and Third-party Sales Agents must provide any

information the Commission determines is necessary or useful in

carrying out its duties and obligations under Title 35-A and this Chapter,

including but not limited to the Commission’s review of license

applications and annual reports, and registering Third-party Sales

Agents.

2. Transmission and Distribution Utilities

This section is not applicable to Transmission and Distribution Utilities that

arrange for standard offer service to their customers pursuant to Chapter 301 of

the Commission’s rules.

B. Application Requirements for Competitive Electricity Providers

1. Evidence of Financial Capability

a. Financial Disclosures

An Applicant must include its most recent financial disclosures. If the

Applicant does not make financial disclosures, it must include the most

recent financial disclosures of its corporate parent. If the Applicant is a

newly formed Entity that is not part of another organization, the

Commission may accept other documentation to demonstrate financial

capability.

b. Customer Deposits

An Applicant must include additional documentation necessary to

demonstrate financial capability sufficient to refund deposits to retail

customers in the case of bankruptcy or nonperformance or for any other

reason. This provision is not applicable if the applicant will not hold

customer deposits.

2. Evidence of Technical Capability

a. Industry Experience

An Applicant must include a description of the industry experience of the

Applicant, the corporate parent of the Applicant or individuals that will

be responsible for the provision of service in Maine. For purposes of this

provision, industry experience includes involvement with retail or

wholesale electricity or natural gas markets in the United States or

Canada.

b. Generation Service

An Applicant that will provide Generation Service in the ISO-NE control

area must document that it is either a participant in the ISO-NE

electricity market or will conduct transactions through a contractual

arrangement with an Entity that is a participant in the ISO-NE electricity

market. An Applicant that will provide generation service in Northern

Maine must document that it is either a participant in the market

administered by NMISA or will conduct transactions through a

contractual arrangement with an Entity that is a participant in the market

administered by the NMISA.

c. Interconnection

If applicable, applications must include a demonstration of the ability of

the Applicant to enter into binding interconnection arrangements with

Transmission and Distribution Utilities.

3. Financial Security

a. Applicability

The financial security requirements of this paragraph apply only to

Applicants that seek a license to provide Generation Service to

residential and small non-residential customers. The requirements of this

paragraph do not apply to standard offer service.

b. Requirements

An Applicant must submit financial security that complies with this

paragraph prior to the issuance of a license. The Applicant must maintain

financial security that complies with this paragraph as long as it is

licensed to provide Generation Service to Residential and Small non-

residential Customers and must submit replacement security at least

seven days prior to the expiration or cancellation of a previously

submitted financial security instrument. Upon termination of a license to

provide Generation Service to Residential and Small Non-residential

Customers, the financial security instrument must remain in force until

the Commission determines that all obligations of the Competitive

Electricity Provider have been satisfied.

c. Security Amount

The initial security amount must be $100,000. The Commission may

grant modifications of this amount commensurate with the nature and

scope of the business the licensee anticipates conducting in Maine upon

submission of information in support of the modification. A request for

modification of the initial security amount may be made in conjunction

with the filing of the license application. The required security amount

will change each year and must equal 10 percent of the licensee’s annual

revenues from sales of generation services to Residential and Small Non-

residential Customers in Maine over the prior calendar year, or

$1,000,000, whichever is lesser. Annual revenues for purposes of this

provision do not include revenues from standard offer service. A licensee

must submit a report each year on March 1^st, in the Commission’s

electronic case management system’s revenues for financial security

project file. The report must contain the licensee’s revenues from sales

to Residential and Small Non-residential Customers during the prior year

and provide updated security consistent with the requirements of this

provision.

d. Use of Security Amounts

Upon a finding that a licensee has violated a statute or regulation

regarding the provision of service to Residential or Small Non-residential

Customers, the Commission may direct that amounts from the financial

security be distributed as follows:

(i) to Customers for a refund of security deposits or advanced

payments paid to the Competitive Electricity Provider;

(ii) to Customers for restitution of amounts paid in error or due to charges assessed in violation of the applicable terms of service, statute, or rule; or

(iii) to the Commission for payment of administrative penalties or any other sanction ordered by the Commission pursuant to section 3 of this Chapter or other statutes or rules applicable to Competitive Electricity Providers.

e. Type of Security

An Applicant may satisfy the financial security requirements of this

paragraph through an irrevocable letter of credit or cash perfected as

security. Financial security documents must be in a form and contain

language that is acceptable to the Commission.

(i) Letter of Credit. An irrevocable letter of credit must unconditionally obligate the issuing financial institution to honor drafts drawn on such letters for the purpose of paying the obligations of the Competitive Electricity Provider pursuant to Maine law and regulations and must specify that the issuing financial institution will notify the Commission 30 days in advance of the expiration or cancellation of the letter of credit. The letter of credit must include the following language: that the letter of credit binds the issuing financial institution to pay one or more drafts drawn by the Commission as long as the draft does not exceed the total amount of the letter of credit; and that any draft presented by the Commission will be honored by the issuer upon presentation. The letter of credit must be issued by a financial institution with a minimum corporate credit rating of “BBB+” by Standard & Poor’s or Fitch or “Baa1” by Moody’s Investors Service, or an equivalent short term credit rating by one of these agencies. If, at any time, the corporate debt rating of an issuing financial institution drops below the above specified levels, the Competitive Electricity Provider must notify the Commission’s Director of Electric and Gas Industries in writing and provide replacement security that satisfies the requirements of this Chapter.

(ii) Cash. To satisfy the security requirement of this paragraph, cash must be perfected as a security interest. Cash and applicable interest must be returned to the Competitive Electricity Provider after all obligations are satisfied.

f. Other Liability

Liability of Competitive Electricity Providers for violation of law,

Commission orders or Commission rules is not limited by the security

requirements of this section.

4. Disclosure of Enforcement Proceedings and Customer Complaint

Applicability

This paragraph applies to actions against the Applicant and associated

entities of the Applicant. For purposes of this provision, an associated

Entity is any entity for which the Applicant is a control person; any

control person of the Applicant; any Entity under common control with

the Applicant; or any Entity for which a control person of the Applicant

served as a control person at the time of the conduct that was the basis

for the action. A control person is any person who serves as an officer or

director of, or who exercises similar authority over, an Entity or who

possesses, directly or indirectly, voting power over 10% or more of the

voting securities of the Entity.

b. Enforcement Proceedings

An Applicant must disclose all civil court or regulatory enforcement

proceedings or criminal prosecutions commenced against it or an

associated entity within the last six years prior to the date of the license

application or currently pending that relate to or arise out of the sale of

electricity, the sale of natural gas, the provision of utility services,

business fraud, or unfair or deceptive sales practices.

c. Customer Complaints

An Applicant must disclose the number of customer Complaints, by state

and customer class, related to the retail sale of electricity or natural gas

filed against it at regulatory bodies other than the Commission within the

last 12 months prior to the date of the license application.

5. Evidence of Ability to Satisfy Portfolio Requirement

An Applicant must submit evidence of its ability to satisfy the eligible resource

portfolio requirement under 35-A M.R.S. § 3210, consistent with the provisions

of the Commission's portfolio requirement rules, Chapter 311. This provision is

not applicable to Aggregator and Broker license applications.

6. Disclosure of Affiliates

An Applicant must disclose the names and addresses of all Affiliated Interests

engaged in the retail sale of electricity in the United States or Canada. An

Applicant may submit a copy of its most recent corporate annual report in

compliance with this provision if the annual report contains the required

information. At the request of the Commission, the Applicant must submit

further information on the corporate structure of the Applicant’s parent

corporation.

7. Tax Registration

An Applicant must submit evidence that the Applicant is registered with the State

Tax Assessor as a seller of tangible personal property pursuant to Title 36,

section 1754-B, together with a statement that the Applicant agrees to be

responsible for the collection and remission of taxes in accordance with Title 36,.

Part 3 on all taxable sales of electricity made by the Applicant to consumers

located in Maine.

8. Agent for Service

An Applicant must submit evidence that demonstrates that it has an agent for

service of process located in Maine

9. Application Information. An Applicant must provide the following

information:

a. Legal name and name(s) under which the Applicant will do business in Maine;

b. Business street and mailing address;

c. Name and mailing address of an agent for service of process in Maine;

d. Location and mailing address of any office available to the general public or Maine customers of the Applicant;

e. Contact person, address, e-mail and telephone number for regulatory matters;

f. Contact person, address, e-mail and telephone number for consumer issues and Complaints;

g. A generic list of the products and services that will be marketed or sold in Maine, the customer class(es) that will be served (residential and small non-residential, medium non-residential, or large non-residential), and the Transmission and Distribution Utility service territories in which the Applicant will do business;

h. A list of all jurisdictions in which the Applicant or any Affiliated Interest of the Applicant is engaged or has been engaged within the prior 6 years in the sale of Generation Services or Broker or Aggregator services;

i. A list of all jurisdictions in which the Applicant or any Affiliated Interest of the Applicant has applied for a license or has otherwise sought the authority to engage in the sale of Generation Service or Broker or Aggregator services, and the disposition of the application;

j. Whether the Applicant or affiliated interest of the applicant has filed for bankruptcy within the past six years;

k. A copy of the documents which demonstrate the type of organization of the Applicant (sole proprietor, corporation, partnership, association, or other business form) and a copy of its by-laws;

l. The state(s) in which the Applicant is incorporated or otherwise registered or licensed to do business and a copy of its registration or license number, where applicable;

m. A copy of any FERC approval as a Power Marketer or date and docket number of the application to FERC, if applicable;

n. The name, address and title of each officer and director, partner, or other similar officer; and

o. Whether the Applicant will use its own employees to market its product(s) or whether it will use other representatives or Third-party Sales Agents.

10. Registration of Third-Party Sales Agents

Registration

A Third-party Sales Agent undertaking the retail sale or marketing of

electricity on behalf of a Competitive Electricity Provider may not

engage in any sales or marketing activity unless the Third-party Sales

Agent is registered with, and has obtained a registration number from,

the Commission. If an individual person is an employee, representative,

or otherwise working on behalf of an Entity registered with the

Commission as a Third-party Sales Agent, then that person need not

individually register with the Commission. Competitive Electricity

Providers must register all proposed Third-party Sales Agents regardless

of whether a Third-party Sales Agent is registered by another

Competitive Electricity Provider.

Disclosures and Acknowledgement

An Applicant to be a Competitive Electricity Provider in Maine must

register its Third-party Sales Agents and provide certain disclosures and

acknowledgments. An Applicant must obtain a registration form from

the Commission’s website and file it in the docket designated for it as a

Competitive Electricity Provider using the Commission’s electronic case

management system. The Commission will adopt a specific registration

process to administer the disclosures and acknowledgement of Third-

party Sales Agents and to issue notices of registration, and delegates

adoption of the process to the Director of Electric and Natural Gas

Utilities. The Applicant’s registration of its Third-party Sales Agents

must contain the following information:

i. The names and corporate addresses of all Third-party Sales

Agents proposed to be used by the Applicant.

ii. A sworn statement by each proposed Third-party Sales Agent

attesting to the Third-party Sales Agent's understanding of its

compliance obligations with the State's door-to-door sales law,

the Maine Unfair Trade Practices Act, and the applicable

Commission rules;

iii. Any transient seller license number issued to each proposed

Third-party Sales Agent by the Department of Professional and

Financial Regulation pursuant to Title 32, chapter 128,

subchapter 2;

iv. All legal actions, including civil court or regulatory enforcement

proceedings, criminal prosecutions, as well as customer Complaints, filed against each proposed Third-party Sales Agent at a judicial or regulatory body other than the Commission within the last six years prior to the date of the applicable license or registration application or currently pending that relate to or arise out of the sale of electricity, the sale of natural gas, the provision of utility services, business fraud, or unfair or deceptive sales practices; and

v. An acknowledgement by each Third-party Sales Agent proposed

to be used by the Applicant of the third-party sales agent's

submission to the jurisdiction of the courts of the State of Maine

and the Maine Public Utilities Commission.

C. Licensing Conditions

By obtaining a license, Competitive Electricity Providers agree:

1. To comply with all Maine laws and regulations applicable to Competitive Electricity Providers;

2. To provide, by filing in the docket designated for it as a Competitive Electricity Provider using the Commission’s electronic case management system, updated information if there are substantial changes in circumstances from those documented in the license application process no later than within 60 days of those changes, including filing updated disclosures and acknowledgement forms regarding Third-party Sales Agents prior to any Third-party Sales Agent undertaking any Door-to-door Sales on behalf of the Competitive Electric Provider;

3. To use reasonable efforts not to conduct business with any Entity acting as a Competitive Electricity Provider in Maine without a license from the Commission. For purposes of this provision, a review of the Commission’s webpage to determine if an entity is licensed constitutes a reasonable effort;

4. That it and its agents and Third-party Sales Agents submit to the jurisdiction of the courts of the State of Maine and the Maine Public Utilities Commission; and

5. That all contracts for generation, Broker or Aggregator service to Residential or Small Non-residential Customers will be interpreted according to Maine law and maintained in Maine courts or before Maine administrative agencies.

D. Licensing Procedures

1. Scope

These procedures apply to the application for a Competitive Electricity Provider

license before the Commission.

2. Form

An application for a license must be made on the electronic form provided by the

Commission on its website and verified by an officer of the Applicant by affidavit.

3. Filing

Each Applicant must file its verified application in a docket designated for the

Competitive Electricity Provider using the Commission's electronic case

management system. An electronic signature is not required.

4. Material Change in Application Information

The Applicant must inform the Commission of any material change in the

information provided in the application during the pendency of the application

process.

5. Fees

Each Applicant must pay a fee of $100 to the Commission. Fees collected by the

Commission under this provision must be deposited in the Public Utilities

Commission Reimbursement Fund. The applicant must mail this fee to the

Commission pursuant to the application's instructions.

6. Commission Review

An Applicant must include all documentation necessary to demonstrate

compliance with Title 35-A and this Chapter. The Commission will review

applications and will issue a license, deny the application, or initiate a formal

investigation of the application within 60 calendar days of submission of a

complete application. If additional time is required for the initial review, the

Administrative Director, the Director of Electric and Natural Gas Industries, the

Director of Consumer Assistance and Safety Division, or the Presiding Officer

assigned to a proceeding related to this Chapter may extend the review period for

an additional 60 calendar days. In the event the Commission initiates a formal

investigation, it must provide notice to the Applicant.

7. Issuance Criteria

The Commission will issue a license unless it finds that the Applicant has not

complied with all applicable licensing requirements of this Chapter, that the

Applicant does not have the financial and technical capability to conduct its

business, or that sufficient reason exists to conclude that issuance of a license is

not in the public interest.

8. Conditions

The Commission may place reasonable conditions on the issuance of a license,

including, but not limited to, the provision of financial security in a form and

amount determined by the Commission.

9. Term of License

Licenses are valid until revoked by the Commission or abandoned by the

Applicant.

10. Transfer of License

A license may not be transferred without prior Commission approval. A request

for transfer of a license must be in writing accompanied by a completed license

application from the transferee. The Commission may order the licensee to notify

its customers of the license transfer.

11. Abandonment of License

A licensee may not abandon service without providing at least 30 days written

notice to the Commission, the licensee’s Residential and Small Non-residential

Customers and the affected Transmission and Distribution Utilities.

12. Accuracy of Information

Any Applicant who knowingly submits misleading, incomplete or inaccurate

information may be penalized in accordance with perjury statutes and pursuant to

35-A M.R.S. § 3203 and the provisions of this Chapter.

E. Annual Reporting

1. Information

Each Competitive Electricity Provider must file an annual report on or before

July 1 of each year for the previous calendar year. Aggregators and Brokers must

comply only with subparagraphs (c), (d) and (i) of the annual reporting

requirement of this subsection. The annual report electronic form must be

obtained from the Commission’s website and filed in the annual report module of

the Commission’s electronic case management system. The annual report must

contain the following information:

a. Average Prices, Revenues and Sales

Average prices, revenues. sales and number of Customers, in total and

for each pricing product, broken out by (i) Residential and Small Non-

residential Customers; (ii) medium non-residential customers; and (iii)

large non-residential customers and by transmission and distribution

service territory. The number of customers is to be calculated as of

December 31 of the reporting period. Individually negotiated prices may

be provided in the aggregate;

b. Resource Mix

The resources used to serve customers in Maine by resource category

and percentage of Maine load served by each resource category. For

service to customers in the ISO-NE control area, resources must be

reported based on Generation Information System certificates contained

in a Maine GIS sub-account and the ISO-NE’s residual system mix. For

service in Northern Maine, resources must be reported based on NAR

Certificates. For purposes of this provision, the resources used for service

in the ISO-NE control area and Northern Maine must be combined into a

single resource mix;

c. Enforcement Actions

Identification of any enforcement action initiated or concluded against

the licensee or an Affiliated Interest by any federal, state or local

government agency in the United States or Canada with respect to

actions involving the sale of electricity, the sale of natural gas, the

provision of utility services, business fraud, or unfair or deceptive sales

practices;

d. Ownership or Control

Changes in the licensee's ownership or control;

e. Information Disclosure

The information required to be provided annually pursuant to the

Commission's information disclosure rule, Chapter 306;

f. Portfolio Requirement

The information required to be provided annually pursuant to the

Commission's eligible resource portfolio requirement rule, Chapter 311;

g. Terms of Service Documents

All terms of service documents produced pursuant to Section 4(B)(4) of

this Chapter that were in effect during the reporting period with a

notation of time period for which each document was in effect;

h. Marketing of Electricity Attributes

Information demonstrating compliance with Section 4(A)(7), if

applicable;

Disclosure of Enforcement Proceedings and Customer Complaints

The information required to be provided upon application pursuant to

Section 2(B)(4) of this Chapter; and

2. Confidentiality

The Commission may subject any information required by Title 35-A or this

Chapter to appropriate protective orders.

§ 3 SANCTIONS AND ENFORCEMENT

A. Sanctions

Competitive Electricity Providers and Third-party Sales Agents are subject to sanctions

for violations of applicable provisions of Chapter 32 of Title 35-A, and Commission rules

or orders. Sanctions may be imposed following a hearing before the Commission in

conformance with 5 M.R.S. Chapter 375, subchapter IV (Maine Administrative

Procedures Act) and Chapter 110 of the Commission's rules. The following sanctions

may be imposed:

1. Penalties

In an adjudicatory proceeding, the Commission may impose administrative penalties on Competitive Electricity Providers and Third-party Sales Agents as authorized by 35-A M.R.S. § 1508-A and § 3203(7). Penalties collected by the Commission under this provision must be deposited in the Public Utilities Commission Reimbursement Fund or refunded to customers as directed by the Commission.

A letter from the Commission’s General Counsel providing the notice articulated in 35-A M.R.S. § 1508-A(1)(B) and (B-1)(2) and issued in the docket designated for the Competitive Electricity Provider using the Commission’s electronic case management system constitutes an example of that Competitive Electricity Provider or its Third-party Sales Agent having been explicitly notified by the Commission for the purpose of imposing a penalty or terminating a Third-party Sales Agent registration.

2. Cease and Desist Orders

a. Hearing. The Commission may issue a cease and desist order following

an adjudicatory hearing, if the Commission finds that any Competitive

Electricity Provider or Third-party Sales Agent has engaged or is

engaging in any act or practice in violation of any law or rule

administered or enforced by the Commission or any lawful order issued

by the Commission. A cease and desist order is effective when issued

unless the order specifies a later effective date or is stayed pursuant to

Title 5, section 11004; or

b. Emergency. The Commission may issue a cease and desist order in an emergency, without hearing or notice, if the Commission receives a written, verified complaint or affidavit showing that either a Third-party Sales Agent is conducting or arranging to conduct sales without being registered or showing that a Competitive Electricity Provider is selling electricity to retail consumers or providing Aggregator or Broker services without being duly licensed, or that either is engaging in conduct that creates an immediate danger to the public safety or is reasonably expected to cause significant, imminent and irreparable public injury. An emergency cease and desist order is effective immediately and continues in force and effect until further order of the Commission or until stayed by a court of competent jurisdiction. Following a subsequent hearing, the Commission will issue a final order, affirming, modifying, or setting aside the emergency cease and desist order and may employ simultaneously or separately any other enforcement or penalty provisions available to the Commission.

3. Restitution

The Commission may order restitution for any party injured by a violation for

which a penalty may be assessed pursuant to this subsection.

4. Revocation; Suspension

The Commission may revoke or suspend the license of a Competitive Electricity

Provider as stated below. At its option, the Commission may suspend only a

Competitive Electricity Provider's authority to Enroll new customers.

a. For any cause for which issuance of the license could have been denied had it then existed or been known to the Commission;

b. For a violation or material noncompliance with any applicable provision of any law or rule administered or enforced by the Commission or any lawful order issued by the Commission;

c. For obtaining or attempting to obtain a license through misrepresentation, failure to disclose a material fact required to be disclosed in the application, or fraud; or

d. For the use of fraudulent, coercive, or deceptive practices, or misuse of customer funds with respect to the provision of generation service or aggregator or broker service.

5. Termination of Registration

In an adjudicatory proceeding, the Commission may terminate the registration of

a Third-party Sales Agent if the third-party sales agent was explicitly notified by

the Commission that it was not in compliance with Title 35-A, a Commission

rule, or a Commission order and that failure to comply could result in the

termination of the Third-party Sales Agent’s registration.

6. Other

The Commission may impose any other sanction authorized by law that it

determines appropriate taking into account the facts and circumstances that

resulted in the violation.

7. Waiver

The Commission may waive the imposition of sanctions upon a showing that the

violation was immaterial, unintentional, or that the Competitive Electricity

Provider or Third-party Sales Agent acted in good faith to comply with all

applicable statutory and regulatory requirements.

B. Enforcement

1. Court action

The Commission through its own counsel or through the Attorney General may

apply to the Superior Court of any county of the State to enforce any lawful order

made or action taken by the Commission pursuant to this Chapter.

2. Notice to Attorney General

If the Commission has reason to believe that any Competitive Electricity

Provider or Third-party Sales Agent has violated any provision of law for which

criminal prosecution is provided or any antitrust law of this State or the United

States, the Commission will notify the Attorney General.

§ 4 CUSTOMER PROTECTION

A. General Protections

All Competitive Electricity Providers, and Third-party Sales Agents where applicable,

must comply with the provisions of this subsection.

1. Customer Authorization

Competitive Electricity Providers must obtain a Customer’s authorization before

providing service.

2. Customer Information

Competitive Electricity Providers and Third-party Sales Agents may not release

to any other Entity, other than for purposes of debt collection or credit reporting

pursuant to state and federal law or to law enforcement agencies pursuant to

lawful process, any personal information regarding a Customer, including name,

address, telephone number, usage and historical payment information, without

the consent of the Customer.

3. Trade Practices

Competitive Electricity Providers and Third-party Sales Agents must comply

with the provisions of the Maine Unfair Trade Practices Act, Title 5, chapter 10

and related consumer protection statutes. Any finding by an entity of competent

jurisdiction that a Competitive Electricity Provider violated either the Maine or

Federal Unfair Trade Practices Act is deemed to be a violation of this subsection.

4. Collection Costs

Competitive Electricity Providers may not collect or seek to collect unreasonable

costs from a Customer who is in default. For purposes of this provision,

unreasonable costs are those in excess of actual out-of-pocket expenses incurred

by the Competitive Electricity Provider, including reasonable attorney fees and

actual court costs.

5. Equal Credit

Competitive Electricity Providers must comply with all applicable provisions of

the federal Equal Credit Opportunity Act, 15 United States Code, Sections 1691

to 1691f.

6. Telemarketing

Competitive Electricity Providers must comply with all federal and state laws,

federal regulations and state rules regarding the prohibition or limitation of

telemarketing. Competitive Electricity Providers must record and retain all

outbound telemarketing calls to Residential and Small Commercial Customers

for a period of two years from the date of recording.

7. Marketing of Electricity Attributes

Competitive Electricity Providers that market or promote electricity products on

the basis that all or a percentage of the electricity provided have specified

attributes, including but not limited to green, renewable, specified resource types

and locations, must provide supporting documentation in the annual report filed

pursuant to section 2(E) of this Chapter. For purposes of this provision, the

documentation must be as follows:

ISO-NE Control Area. For service to Customers in the ISO-NE control

area, the Competitive Electricity Provider must have GIS Certificates in

a Maine GIS-sub-account that reasonably corresponds to the usage of the Customers provided the green electricity or renewable electricity

product.

b. Maritimes Control Area. For service to customers in Northern Maine,

the Competitive Electricity Provider must have market settlement data

and other documentation that demonstrates the renewable resources used

to serve load reasonably corresponds to the usage of the Customers

provided the green electricity or renewable electricity product. This

information must document that the renewable attributes of the resources

have not been used or transferred for any other purposes.

This provision does not prohibit Competitive Electricity Providers from

marketing, promoting, or providing green or environmental products, such as

renewable credits associated with resources that are not used to serve load in

New England, as part of the provision of electricity services. The promotion of

such products may not state or suggest that that the electricity actually used to

serve the customer has the stated attributes. The Competitive Electricity Provider

must provide supporting documentation in the annual report filed pursuant to

section 2(E) of this Chapter.

8. Notice of Opt-Out Fee

Competitive Electricity Providers must, prior to Enrolling a Customer, provide notice to that Customer of the existence of opt-out fees pursuant to Chapter 301 of the Commission rules that might apply if a Customer commits to service from the Competitive Electricity Provider. The notice must explain the opt-out fee and the actions that may result in the assessment of the fee. The Competitive Electricity Provider must retain evidence that the required notice was provided to the Customer, including the date upon which the notice was provided.

This notice requirement is not applicable if the Enrolling Customer is not subject to an opt-out fee pursuant to Chapter 301, Section 2(C)(1).

This notice must be provided in writing as set forth below:

Your termination of standard offer service may require the payment of a

fee, as required by Chapter 301 of the Commission’s rules. This is a

regulatory fee, and it is not imposed by competitive electricity providers.

You are encouraged to review the applicability of Chapter 301 in advance

of accepting service from a competitive electricity provider.

9. Commission Standards and Requirements

Competitive Electricity Providers and Third-party Sales Agents must comply

with any other applicable standards or requirements established by the

Commission by order or rule.

B. Small Customer Protections

In addition to complying with subsection A, all Competitive Electricity Providers and the

Third-party Sales Agents who conduct or arrange to conduct sales on their behalf, and

that provide service to Residential or Small Non-residential Customers must also comply

with the provisions of this subsection. For purposes of determining the applicability of

the provisions of this subsection, Competitive Electricity Providers must create a record

documenting a Customer’s class status at the time of Enrollment. The consumer

protections provided to Customers in this subsection cannot be waived by a Customer or

superseded by provisions in the Terms of Service document. Unless otherwise specified,

the provisions of this subsection do not apply to Aggregators or Brokers. The provisions

of this subsection do not apply to standard offer providers.

Disclosure Regarding Standard Offer

Before entering into an agreement to provide service, each Competitive

Electricity Provider must disclose in writing to the Customer where the Customer

can obtain information with which to compare the service provided by the

Competitive Electricity Provider and the standard-offer service. The written

comparison disclosure must include information regarding how a customer can

obtain information about standard-offer service rates, including a link to the

Commission’s standard offer rates website page.

Disclosure and Limitations Regarding Door-to-Door Sales

A Competitive Electricity Provider must comply with all federal and state laws,

federal regulations and state rules regarding the prohibition or limitation on

Door-to-door Sales. Competitive Electricity Providers may not enter, or allow its

agents or 3rd-party sales agents, to enter into any Terms of Service to provide

service when that service is solicited using Door-to-door Sales without providing

the Customer with a written disclosure that meets the following requirements:

A type size that is no less than 14 points;

Contact information, including the telephone numbers for the Competitive Electricity Provider, the Commission, and the Office of the Public Advocate;

A telephone number and publicly accessible website where the consumer may obtain information on the current standard-offer service rate and expiration date and the publicly accessible website for electricity supply information available through the Office of the Public Advocate;

Information regarding the consumer's right to rescind service;

The registration number of the Third-party Sales Agent issued by the Commission and any transient seller's license number issued by the Department of Professional and Financial Regulation pursuant to Title 32, chapter 128, subchapter 2; and

Any other information the Commission determines is necessary.

Bill Information

The supply bill for a Customer that elects to receive Generation Service from a

Competitive Electricity Provider must contain the following:

The website address and telephone number of the Office of the Public Advocate where Customers can access information that provides independent information that allows Customers to compare terms, conditions, and rates of electricity supply.

A statement that directs the Customer to the Competitive Electricity Provider for more information on the customer’s Terms of Service, including its specific terms, and that provides the telephone number of the Competitive Electricity Provider.

For Customers for whom a Competitive Electricity Provider has elected

consolidated utility billing pursuant to Chapter 322 of the Commission’s

rules, the foregoing information must be included on the consolidated bill by

the Transmission and Distribution Utility. For customers for whom a

Competitive Electricity Provider has elected provider billing under Chapter

322 of the Commission’s rules, the foregoing information must be included

by the Competitive Electricity Provider on its bills to such Customers.

Terms of Service Document

a. Obligations and responsibilities. Each Competitive Electricity Provider

must prepare a document entitled "Terms of Service" as described in this

subsection. The Terms of Service document must be in plain language

and printed in legible type and must contain all contractual obligations

and responsibilities between the Competitive Electricity Provider and the

Customer. The Terms of Service are sometimes referred to as a contract

for Generation Service.

b. Initiation of service. Each Competitive Electricity Provider must

provide to each Customer the Terms of Service document within seven

calendar days of agreeing to provide service with a Customer. A

Competitive Electricity Provider may not Enroll a Customer until the

Terms of Service document has been provided to the Customer and the

Customer's statutory right of rescission has expired as set forth in this

subsection. Competitive Electricity Providers must maintain sufficient

records, either in writing or electronically, to demonstrate compliance

with the issuance of the Terms of Service document, including the

Customer's right of rescission, prior to Enrolling the Customer.

Competitive Electricity Providers must also maintain a copy of the

applicable Terms of Service document and provide a copy to the

Customer or the Commission upon request.

c. Webpage. Each Competitive Electricity Provider must prominently display all effective Terms of Service documents on its webpage with an indication of the effective dates of each document. The Terms of Service document must be available and easily accessed on the webpage without any requirement that any personal customer-specific information be provided.

d. Terms of Service Document Content

The Terms of Service document must contain the following information:

(i) The pricing structure specifying whether the rates are fixed or variable;

(ii) The term or length of service obligation of the Competitive Electricity Provider and the Customer, including the date upon which service will begin and whether the service obligation will automatically renew;

(iii) Due dates of bills and consequences of late payment, including the amount of any late payment fee, interest, or finance charge assessed for late payment;

(iv) Deposit requirements and interest on deposits;

(v) Any fee associated with the early termination of service;

(vi) Any Limits on warranty and damages;

(vii) A disclosure of the Customer's right of rescission of the contract without penalty, how this right may be exercised, and how to contact the provider orally, electronically or in writing to exercise this right;

(viii) A market risk disclosure, if applicable, consistent with Section 4(E) of this Chapter;

(ix) A toll-free number for Customer Complaints and the hours the Customer can contract the provider for questions or Complaints;

(x) A generic description of the standard offer generation service;

(xi) A statement on how a Customer may contact the Commission to obtain information on consumer protection rights; and

(xii) A standardized notice form, setting forth the requirements of the terms of service document. The Commission or the Director of Electric and Natural Gas Industries will by order specify the standardized form.

5. Right of Rescission

a. General. Competitive Electricity Providers must provide a right of rescission to every customer. Competitive Electricity Providers must provide Customers a minimum of five calendar days from receipt of the first bill or invoice from the Competitive Electricity Provider to exercise the right of rescission.

b. Oral Agreement. Competitive Electricity Providers must orally notify Customers of their right of rescission at the time the Customer orally agrees to purchase Generation Services from the provider.

c. Exercise of Right of Rescission. A Customer may rescind the selection of a competitive provider orally, in writing or by electronic means. A Customer that exercises its right of rescission is responsible for paying the CEP bill prior to the rescission.

d. Rescission Complaints. It is the obligation of the Competitive Electricity Provider to maintain sufficient evidence of the notification of the right of rescission and whether the Customer rescinded in writing, electronically or orally.

6. Verification of Affirmative Customer Choice

a. General. Each Competitive Electricity Provider must obtain verification that each Customer choosing that provider has affirmatively chosen such Entity. No provider may Enroll a Customer without first obtaining evidence of the affirmative choice from the Customer. The provider must retain this evidence for at least 12 months from the date that the Customer’s service is ended with the provider.

b. Affirmative Choice. For the purposes of this subsection, the Customer's affirmative choice may be evidenced by a Customer-signed letter of authorization, third-party verification, or through electronic authorization.

(i) Letter of authorization. For the purposes of this subsection, the term "letter of authorization" means an easily separable document whose sole purpose is to authorize a Competitive Electricity Provider to initiate Generation Service for a Customer or represent the Customer for the purposes of selecting a provider on behalf of the Customer. The letter of authorization must be signed and dated by the Customer and must not be combined with a check, prize or other document which intends to confer any benefit on the Customer as a result of the Customer’s selection of the provider. The document may be transmitted electronically by the Customer to the provider if the provider maintains a security system sufficient to identify the Customer and prevent fraudulent use of the letter of authorization by any person.

(ii) Third-party verification. For the purposes of this section, the

term "third-party verification" means an appropriately qualified

and independent third party operating in a location physically

separate from the telemarketing representative who has obtained

the customer's oral authorization to change to a new provider.

The authorization must include appropriate verification data,

such as the Customer's date of birth or other voluntarily

submitted information; provided, however, any such information

or data in the possession of the third party verifier or the

marketing company may not be used, in any instance, for

commercial or other marketing purposes, and may not be sold,

delivered, or shared with any other party for such purposes.

(iii) Electronic authorization. For purposes of this section, the term

“electronic authorization” refers to a verification of agreement

for service through electronic means. Competitive Electricity

Providers must acknowledge receipt and confirmation of the

Customer’s agreement to accept service within one business day.

The confirmation may be provided to the Customer by e-mail.

An electronic copy of the confirmation e-mail must be retained

by the Competitive Electricity Provider.

7. Minimum Service Period

Each Competitive Electricity Provider must offer Generation Service to each of

its Customers for a minimum period of 30 days.

8. Minimum Notice of Changes in Terms of Service

Each Competitive Electricity Provider must provide written notice to its

Customers between 30 and 60 calendar days in advance of any change in the

Customer’s Terms of Service. Customers must affirmatively consent to continued

service under the modified terms of service pursuant to the provision of section

4(B)(6) of this Chapter.

9. Renewals

If a Customer does not provide the express consent required by this section, the

Customer must be transferred to the standard-offer service.

Each Competitive Electricity Provider must provide dated, written notice to its Customers two times between 30 and 60 calendar days in advance of a renewal of service. The notices must be sent at least 14 calendar days apart. The two notifications must be made electronically or by US Postal Service, but one of the notifications must be by US Postal Service. The words “contract renewal notice” must be included in bold at either the top of a paper notice or in the subject line for notices sent electronically. Copies of the two notifications, either in hard copy or electronically, must be retained by the Competitive Electricity Provider for at least 12 months from the date the second notice is sent. The renewal notices must include a standardized notice form, setting forth the requirements of the terms of service document upon renewal. The Commission or the Director of Electric and Natural Gas Industries will by order specify the standardized form.

Competitive Electricity Providers may not renew a contract for Generation Service for a term that differs from the term of the expiring contract without the express consent of the Customer in accordance with subsection 4(B)(6).

Fixed rate to fixed rate. A Competitive Electricity Provider may not renew the Terms of Service providing service at a fixed rate at a fixed rate that is 20% or more above the fixed rate of the expiring Terms of Service or at a fixed rate greater than the fixed rate that would, at the time of the Customer’s contract renewal, be offered by the Competitive Electricity Provider to Customers Enrolling with the provider for an initial contract of a similar term and product offering without the express consent of the Customer obtained in accordance with subsection 4(B)(6).

Fixed rate to variable rate. A Competitive Electricity Provider may not renew Terms of Service providing service at a fixed rate with Terms of Service providing service at an Indexed Variable Rate or a Non-indexed Variable Rate without the express consent of the Customer obtained in accordance with subsection 4(B)(6).

10. Assignments

Each Competitive Electricity Provider must provide written notice to its Customers between 30 and 60 calendar days in advance of any assignment of the service obligation to another Competitive Electricity Provider if there is a change in the Terms of Service. If there is no change in the Terms of Service, then written notice must be provided to Customers within 30 days after the assignment.

The written notification must be made electronically or by US Postal Service. Unless a Customer affirmatively consents to a change in the Terms of Service pursuant to the provision of section 4(B)(6) of this Chapter, the Competitive Electricity Provider that is assigned the Customer account must provide service in compliance with each Customer’s currently existing Terms of Service. A copy of the written notification, either in hard copy or electronically, must be retained by the Competitive Electricity Provider for at least 12 months from the date the notice is sent. In the event that there is no change to the Terms of Service, Customer consent is not required.

11. Variable Rates and Charges

Each Competitive Electricity Provider that offers and provides service with

Indexed Variable Rate or Charge or Non-indexed Variable Rate or Charge:

Must clearly specify in the Terms of Service document and on its webpage the formula and/or market indices by which the Variable Rate or Charge will be calculated or disclose that there is none for a Non-indexed Variable Rate or Charge;

Must clearly specify in the Terms of Service document and on the webpage whether there is any limit on how high the rates or charges may rise;

Must provide on the webpage the Indexed Variable Rate or Charge that the formula and/or index would have produced over the immediately prior 12-month period;

Must provide on the webpage the Non-indexed Variable Rate or Charge that would have been applicable over the immediately prior 12-month period;

Must clearly specify in all Terms of Service documents and on its webpage the highest and lowest price during the prior 12-month period or the highest and lowest price during whatever period if the rate or charge has been offered or provided during less than a 12-month period; and

For rates that are established prior to the billing period, the rates must be posted on the Competitive Electricity Provider’s website at least one week in advance of any change in the applicable rate or charge.

12. Termination Fees

Termination fees prohibited on or after June 30, 2023. Competitive Electricity Providers may not enter into or renew a contract for Generation Service on or after June 30, 2023, that includes an early termination fee.

Termination fees effective prior to June 30, 2023. Termination fees existing in contracts for Generation Service that were effective prior to June 30, 2023, must comply with the provisions of this subparagraph. Termination fees must be a fixed dollar amount and may not be established by formula. Termination fees may not apply to Customers whose Terms of Service provided for a month-to-month Indexed Variable Rate or Charge or Non-indexed Variable Rate or Charge. Competitive Electricity Providers may not impose a termination fee for any Terms of Service that was renewed without the express consent from the Customer obtained in accordance with subsection 4(B)(6).

13. Promotional Practices

This subsection applies to all Competitive Electricity Providers, including

Aggregators and Brokers.

a. A Competitive Electricity Provider must not use fraudulent, coercive, or

deceptive promotional practices.

b. Any comparison of Customer savings relative to standard offer service must not provide customer savings comparisons based on standard offer rates that will not be in effect during the same period of time as the rate that the Customer would pay to the Competitive Electricity Provider pursuant to the promotion.

c. A Competitive Electricity Provider or Third-party Sales Agent, may not, in any way, state, suggest or imply any affiliation or association with a Transmission and Distribution Utility, or that it is an alternative to a Transmission and Distribution Utility, and it must clearly and conspicuously indicate on its website and promotional materials that it is not affiliated or associated with any Transmission and Distribution Utility, and that it is not an alternative to any Transmission and Distribution Utility. Upon contacting a Customer by telephone, a Competitive Electricity Provider or Third-party Sales Agent must state the name of its company and the purpose of the call.

14. Trade Practices

This subsection applies to all Competitive Electricity Providers, including

Aggregators and brokers. Competitive Electricity Providers may not engage in

any unfair or deceptive act or practice that creates a likelihood of confusion or

misunderstanding in connection with the offer for sale or the sale of electricity.

By way of example and not of limitation, this prohibition includes the failure to

make clear and conspicuous disclosures of the information required to be

contained in the Terms of Service document, making statements susceptible to

both a misleading and truthful interpretation, and making deceptive statements,

even though the true facts are subsequently made known to the consumer. This

provision does not affect unfair trade practices otherwise actionable at common

law or under other statutes of Maine.

15. Door-to-Door Sales

This subsection applies to all Competitive Electricity Providers, including

Aggregators and Brokers. This subsection does not apply under circumstances

where a Customer or potential Customer has agreed to meet in-person prior to the

Competitive Electricity Provider arriving at the Customer’s premises. All

Competitive Electricity Providers soliciting a potential Customer in person at the

Customer’s premises must:

Create a written log, including the full name or first name and associated identification number of the employee or agent, identifying the street address of each visited premises, retain the written log for at least 12 months after the date of the solicitation, and maintain the written log in a format amendable to electronic conveyance to the Commission upon request;

Produce identification, to be visible at all times thereafter, which prominently displays in reasonable size type the full name of the Competitive Electricity Provider and the full name of the employee or agent, or the first name of the employee, or agent together with an identification number, as well as the Competitive Electricity Provider’s telephone number for inquiries, verification, and Complaints, and must leave behind written materials identifying the same information upon request of a potential Customer;

Clearly state that the employee or agent is not working for and is independent of the potential Customer’s Transmission and Distribution Utility;

State that if the potential Customer purchases electricity from the Competitive Electricity Provider, the potential Customer’s Transmission and Distribution Utility will continue to deliver the potential Customer’s electricity and will respond to any outages or emergencies. This requirement may be fulfilled by an oral statement to the potential Customer, or by written materials left with the potential Customer;

Terminate the in-person contact with the potential Customer when it is apparent that the potential Customer’s language skills are insufficient to allow the potential Customer to understand and respond to the information conveyed, or where the potential Customer or another third party informs the Competitive Electricity Provider, or its agent, of this circumstance;

Require its employee or agent to ensure the third-party verification call, during which Customer Enrollment is confirmed, is not influenced by the employee or agent by, including but not necessarily limited to, remaining silent during the verification call.

16. Cancellation of Service

a. C ancellation by a Competitive Electricity Provider. Each

Competitive Electricity Provider must provide written notice to a

Customer at least 30 calendar days prior to cancellation of that

Customer's generation services due to a default of obligations in the

Terms of Service document by the Customer.

Competitive Electricity Providers must provide the notice required by

this subsection in a separate mailing or e-mail from the Customer’s bill.

The notice must include the following information:

(i) The telephone number and hours of the Competitive Electricity Provider's consumer contact staff;

(ii) The reason for cancellation;

(iii) Steps the Customer can take to avoid cancellation, if any; and

(iv) Notice of the existence of other providers,including standard offer service.

b. Cancellation by Customer. A Customer can cancel service with a

Competitive Electricity Provider at any time. A cancellation of service

does not release the Customer of any obligations related to early

termination fees that may apply pursuant to the Terms of Service. When a

Competitive Electricity Provider receives a request to cancel service from

a Customer, it must within two business days send an EDI transaction,

pursuant to Chapter 323 of the Commission’s rules, notifying the

applicable Transmission and Distribution Utility of the cancellation of

service to the Customer. Competitive Electricity Providers must take all

necessary actions to effectuate a cancellation request from a Customer.

c. Standard Offer Service. A Customer whose service from a Competitive

Electricity Provider is canceled and who does not select another

Competitive Electricity Provider will receive service from the standard

offer.

17. Generation Service Bills

a. Content. Each bill for competitive Generation Service, including standard offer service, must provide the following information on the customer’s billing statement:

(i) Electricity consumption, including whether the consumption was based on actual recorded usage or estimated usage;

(ii) The total charge for Generation Service for the current billing period;

(iii) The actual cents per kWh charged to the Customer for the Customer’s usage of electricity for the current billing period, calculated by dividing the total charge for generation service by the Customer's usagefor the current billing period;

(iv) An itemized list of each service or product billed by the provider to the Customer for the current billing period;

(v) The amount of any payment or other credit applied to the Customer’s outstanding balance for Generation Service during the billing period;

(vi) The total amount in arrears owed by the Customer, consistent with the requirements of consolidated utility billing pursuant to Chapter 322 of the Commission rules;

(vii) The due date by which payment must be made to avoid late payment fees or other collection action by the provider; and

(viii) The total amount owed by the Customer, including the amount in arrears for Generation Service and the amount owed for the current billing period, consistent with the requirements of consolidated utility billing pursuant to Chapter 322 of the Commission rules.

b. Combined bill. If the Customer’s bill for Generation Service is combined on the same bill with regulated charges for transmission and distribution services, the charges associated with competitive services must be separately identified and disclosed as required in this subsection. The billing entity must either provide Generation Service charges on a separate page from regulated charges or separate the Generation Service charges graphically from the rest of the bill.

18. Application for Service; Denial of Credit

a. Written procedures; prohibition on discrimination.Each Competitive Electricity Provider must adopt written procedures to guide its evaluation of applications for service from prospective Customers and may not discriminate in the provision of electricity as to availability and terms of service based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance income, or the exercise of rights under state or federal consumer protection laws.

b. Written denial of service. A provider who denies service to a consumer based on consumer-specific information obtained by the provider during the application process must inform the consumer in writing of the reason for the denial. This disclosure may be combined with any disclosures required by applicable federal or state law. This disclosure is not required when the provider notifies the Customer orally that the Customer is not located in a geographic area served by the provider, does not have the type of usage characteristics that is served by the provider, or is not part of a customer class served by the provider.

c. Customer Complaint. A Customer Complaint relating to the denial of service pursuant to state or federal equal credit opportunity laws will be coordinated with the Maine Office of the Attorney General. A Competitive Electricity Provider must provide the Commission written notice in the Commission’s electronic case management system’s docket for the Competitive Electricity Provider within 30 days of any decision or order by an entity of competent jurisdiction that the Competitive Electricity Provider violated the Maine Human Rights Act, 5 M.R.S. Chapter 337, or the Federal Equal Credit Opportunity Act, 15 U.S.C. §§ 1691 – 1691f.

19. Dispute Resolution and Complaint Procedure

This subsection applies to all Competitive Electricity Providers, including

Aggregators and Brokers, and Third-party Sales Agents. The Commission or

the Consumer Assistance and Safety Division will resolve disputes among

Competitive Electricity Providers, including their Third-party Sales Agents, and

retail consumers of electricity regarding the provisions of this Chapter, other

Commission rules, and statutory provisions regarding Competitive Electricity

Provider activities and service according to the following procedures:

a. Provider Employee Available. Each Competitive Electricity Provider must provide at least one employee (whose duties need not be limited to this obligation) during business hours to respond to questions and resolve Complaints from Customers and applicants, and to work with the Commission on Complaint resolution. If a Competitive Electricity Provider is not able to provide a real time response to the Customer or applicant, it must respond no later than within 48 hours of the contact or, if the contact is received after 5:00 p.m. on a Friday, a Competitive Electricity Provider must respond no later than the following business day by noon. A Competitive Electricity Provider must provide Customers with the option of leaving a telephone message when the Competitive Electricity Provider is not able to answer the phone in-person.

b. Provider Investigation. When a Competitive Electricity Provider becomes aware of a Complaint by a Customer or applicant, the provider must:

(i) investigate the Complaint, preserving the record of the substance and results of the investigation;

(ii) report the results of its investigation to the Customer; and

(iii) attempt in good faith to resolve the Complaint.

c. Notification of Right to File a Complaint with the Consumer Assistance and Safety Division. If the Competitive Electricity Provider cannot resolve the dispute with the Customer after the procedures in paragraph 2 are completed, the provider must orally inform the Customer of his or her right to file a Complaint with the Commission's Consumer Assistance and Safety Division and of the toll free telephone number of the Commission.

d. Investigation by the Consumer Assistance and Safety Division; Appeal to the Commission. All Complaints brought to the Consumer Assistance and Safety Division against a Competitive Electricity Provider will follow the procedures set forth in Chapter 815, section 13(H). Each Competitive Electricity Provider must respond to any inquiry or request for information from the Consumer Assistance and Safety Division within the timeframe specified in Chapter 815, section 13(H). Each Competitive Electricity Provider must respond to a Consumer Assistance and Safety Division contact no later than within 48 hours of the contact.

e. Procedure for Resolving Customer Service Verification Complaints

Complaint. Any person may file a Complaint with the Consumer Assistance and Safety Division stating that a Competitive Electricity Provider has transferred the Customer to its service without the Customer's authorization required section 4(B)(6) of this Chapter.

Timing. Within 10 business days of filing the Complaint, the Consumer Assistance and Safety Divisionwill request from the Customer: a copy of the Customer's bill or notice that included the information regarding the initiation of Generation Service; the name of the original provider; and any other information the Consumer Assistance and Safety Divisiondetermines to be relevant. The Consumer Assistance and Safety Division will request that the customer, within 15 business days of the Consumer Assistance and Safety Divisionnotification, respond to the Consumer Assistance and Safety Division's request for information.

Request for information. The Consumer Assistance and Safety Division will inform the Transmission and Distribution Utility and original Competitive Electricity Provider of the pending Cand request that information relevant to the initiation of Generation Service be furnished.

(iv) Request for evidence. The Consumer Assistance and Safety Division will notify the new Competitive Electricity Provider of the pending Cand request evidence of the Customer's affirmative choice to initiate Generation Service as provided for in this subsection, and any additional information the Consumer Assistance and Safety Division determines to be relevant.

(v) Provision of information. The Transmission and Distribution Utility, the original Competitive Electricity Provider and the new Competitive Electricity Provider must respond to the Consumer Assistance and Safety Division's request within five business days from the issuance of the requests.

(vi) Determination. Within 30 days after receiving evidence of the Customer's affirmative choice and all relevant information, the Consumer Assistance and Safety Division will determine if the Customer authorized the new Competitive Electricity Provider to initiate Generation Service.

(vii) Refunds. If the Consumer Assistance and Safety Division determines that the new Competitive Electricity Provider does not possess the required evidence of the Customer's affirmative choice as provided for in section 4(B)(6) of this Chapter and that the Customer made an initial Complaint within 75 days after the statement date of a bill containing charges from the new provider or notice indicating that the unauthorized transferred has occurred, the Consumer Assistance and Safety Division will require the new provider to refund to the Customer, any charges already paid to the new provider and any reasonable expense the Customer incurred in switching back to the original provider.

C. Representatives and Agents

For purposes of this section, the obligations and requirements of a Competitive

Electricity Provider apply to representatives or agents, including any Third-party Sales

Agents, who act on behalf of a Competitive Electricity Provider. Competitive Electricity

Providers are subject to liability to the full extent authorized under this Chapter and Title

35-A for the violations of their representatives or agents, including Third-party Sales

Agents, acting on their behalf.

D. Disclosure Label

Each Competitive Electricity Provider must prominently display on its website a

disclosure label or labels that complies with Chapter 306 of the Commission rules. The

disclosure label or labels must be available and easily accessed on the webpage without

any requirement that any personal or customer specific information be provided.

E. Market Risk Disclosure

1. Applicability

This subsection applies to all Competitive Electricity Providers, including

Aggregators and Brokers, that are offering to provide or arrange for an electricity

product in which the price to the Customer varies with changes in energy prices

or an energy price index.

2. Disclosure Requirement

All Competitive Electricity Providers must provide a written disclosure to

Customers of the market risks associated with their electricity products prior to or

at the time the Customer agrees to take generation service from the Competitive

Electricity Provider.

3. Disclosure Language

The Commission or the Director of Electric and Natural Gas Industries will by

order specify the language Competitive Electricity Providers must use in the

market risk disclosure statement. A Competitive Electricity Provider may request

approval to use alternative language. Approval of alternative language pursuant to

this provision is delegated to the Director of Electric and Natural Gas Industries.

4. Distribution

Competitive Electricity Providers must provide the market risk disclosure

statement as a provision in the contract for service or Terms of Service

document, as applicable:

a. As a provision in the contract for service with the Customer

acknowledging the provision by signature or initials; or

b. On a document separate from the contract containing only the market risk disclosure statement.

§ 5. INFORMATIONAL FILINGS

A. Generally Available Service

1. Filing Required. Competitive Electricity Providers must file with the

Commission and provide to the Public Advocate rates, terms, and conditions of

any service generally available to the public or any segment of the public prior to

offering the service. This subsection does not apply to standard offer service.

2. Modification. Competitive Electricity Providers must file any modifications to

generally available rates, terms and conditions prior to the effective date of the

modification.

3. No Approval. The generally available rates, terms and conditions are for

informational purposes and do not require Commission approval.

B. Individual Service Contracts

Competitive Electricity Providers are not required to file individual service contracts. The

Commission may at any time request and obtain individual service contracts from

Competitive Electricity Providers. The Commission may subject individual service

contracts to appropriate protective orders.

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion,

the Commission may, for good cause, waive any of the requirements of this Chapter that are not

required by statute. The waiver may not be inconsistent with the purpose of this Chapter or

Title 35-A. The Commission, the Director of Electric and Natural Gas Industries, the Director of

the Consumer Assistance and Safety Division, or the Presiding Officer assigned to a proceeding

related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2023-00077, issued on June 25, 2025. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111 and 3203
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 3, 1999. It was filed with the Secretary of State on February 5, 1999 and was effective on February 10, 1999.
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on May 11, 2000. It was filed with the Secretary of State on May 12, 2000 and was effective on May 17, 2000.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 13, 2006. It was filed with the Secretary of State on March 14, 2006 as filing 2006-114 and was effective on March 19, 2006.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 20, 2015. It was filed with the Secretary of State on January 21, 2015 and became effective on January 26, 2015 (filing 2015-010).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 24, 2018. It was filed with the Secretary of State on September 25, 2018 and became effective on September 30, 2018 (filing 2018-211).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 2, 2022. It was filed with the Secretary of State on July 8, 2022 and became effective on July 13, 2022 (filing 2022-133).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 5, 2025. It was filed with Secretary of State on August 5, 2025, and became effective on August 10, 2025 (filing 2025-139).
• APAO ACCESSIBILITY CHECK: August 8, 2025

Chapter 306 Uniform Information Disclosure

Code Me. R. 65-407 Ch. 306 Uniform Information Disclosure {#sec-65-407-ch.-306 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 306}

SUMMARY: This Chapter contains requirements for competitive electricity providers to disclose price, contract, resource mix, and emissions information to customers in a uniform format.

§ 1 DEFINITIONS 3

§ 2 UNIFORM INFORMATION DISCLOSURE REQUIREMENTS 4

A. Purpose and Scope 4

1. Purpose 4

Scope 4

Applicability 4

B. Information Disclosure Label 4

1. General 4

2. Customer Information 5

3. Resource Portfolio 5

a. Determining the resource portfolio 5

b. Label reporting period 5

c. Portfolio characteristics 5

d. Disaggregation of resource portfolio. 5

4. Fuel Mix 6

5. Emissions 6

6. Format of Information Disclosure Label 6

7. Standard Offer Service 6

C. Company Disclosure 7

D. Availability of Disclosure Label 7

1. Prior to Initiation of Service 7

2. After Initiation of Service 7

3. Upon request 7

4. Standard offer service 7

E. Information Disclosure in Advertising 8

F. Enforcement 8

G. Verification; Annual Reporting 8

1. Provider Obligation 8

2. Verification Method 8

3. Annual Reports 8

4. Additional Information 9

5. Audits 9

6. Rejection of Certificates 9

7. Generation Facilities 9

8. Confidentiality 9

§ 3 WAIVER OR EXEMPTION 9

§ 1 DEFINITIONS

A. Aggregate. "Aggregate" means to organize individual electricity consumers into a group or entity for the purpose of purchasing electricity on a group basis.

B. Aggregator. "Aggregator" means an entity that gathers individual customers together for the purpose of purchasing electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

C. Broker. "Broker" means an entity that acts as an agent or intermediary in the sale and purchase of electricity but that does not take title to electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

D. Commission. "Commission" means the Maine Public Utilities Commission.

E. Competitive Electricity Provider. "Competitive electricity provider" means a marketer, broker, aggregator, and any entity selling electricity to the public at retail.

F. Customer. "Customer" means any person who has applied for, been accepted or is receiving generation service from a competitive electricity provider for retail use. This term includes an applicant to a competitive electricity provider when the context so indicates.

G. Generation Service. "Generation service" means the provision of electric power to a retail customer through a transmission and distribution utility but does not encompass any activity related to the transmission or distribution of that power.

H. GIS. “GIS” means the NEPOOL Generation Information System or successor system.

I. GIS Certificates. “GIS certificates” mean certificates created pursuant to the NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

J. ISO-NE. "ISO-NE" means the Independent System Operator of the New England bulk power system or successor organization

K. ISO-NE Control Area. “ISO-NE control area” means the area in which the ISO-NE operates the New England bulk power system.

L. Maritimes Control Area. "Maritimes control area" means the area in which the New Brunswick Power Corporation operates the Maritimes bulk power system.

M. Residential and Small Commercial Customers. “Residential and small commercial customers” means customers subject to the consumer protection provisions in Chapter 305, section 4 of the Commission’s rules.

N. Standard Offer Provider. “Standard Offer Provider" means a provider of standard offer service chosen pursuant to Chapter 301 of the Commission's rules.

O. Transmission and distribution utility. "Transmission and distribution utility" means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

§ 2 UNIFORM INFORMATION DISCLOSURE REQUIREMENTS

A. Purpose and Scope

1. Purpose. The purpose of this section is to ensure that customers have access to consistent, accurate, and meaningful information by which to evaluate services offered by competitive electricity providers.

2. Scope. This section applies to competitive electricity providers, including standard offer providers, as specified in this section, except that this section does not apply to aggregators and brokers.

3. Applicability. This section applies only to generation service to residential and small commercial consumers. For purposes of this provision, residential and small commercial consumers are consumers subject to the customer protection provisions in Chapter 305, section 4 of the Commission’s rules. Upon the request of customers that are not residential or small commercial customers, competitive electricity providers shall make available information comparable to that required by this section.

B. Information Disclosure Label

1. General. Each competitive electricity provider shall prepare a label for each price or product offering in a form that is consistent with the current format established pursuant to section 2(B)(6). The label shall present information in accordance with this subsection, and shall conform to all applicable state rules and regulations. The label shall be made available in accordance with section 2(E).

2. Customer Information. The label shall contain a toll-free number of the competitive electricity provider for customer inquiries regarding the information displayed on the label. The competitive electricity provider customer representatives must have sufficient knowledge of the contents of the label to respond to reasonable customer inquiries.

3. Resource Portfolio. The label shall contain information on the fuel mix and emissions characteristics associated with the competitive electricity provider's resource portfolio.

a. Determining the resource portfolio. Unless otherwise specified in this Chapter, for service within the ISO-NE control area, the resource portfolio of a competitive electricity provider shall be determined based on GIS certificates. For purposes of this provision, each competitive provider shall have a Maine GIS sub-account. For service within the Maritimes control area, the resource portfolio of a competitive electricity provider shall be determined using market settlement data or other relevant market data, that match generating resources of a provider to the load obligation of that provider no less frequently than on a 12-month basis. For purposes of this section, a competitive electricity provider must combine resources used for service in the ISO-NE control area and the Maritimes control area into a single resource portfolio unless the provider disaggregates its resource portfolio pursuant to section 2(B)(4)(d).

b. Label reporting period. The label reporting period shall be stated on the label. Except as otherwise provided, the label reporting period shall be the most recent 12-month period for which the necessary information is available. If a competitive electricity provider has not operated in Maine for a long enough period to have 12-months of the necessary information available, but has operated such that more than 3-months of necessary information is available, the reporting period shall be the period for which the necessary information is available. If a competitive electricity provider has not operated in Maine for a long enough period to have more than 3-months of necessary information available, the competitive electricity provider shall report a reasonable projection of the resource portfolio and associated emissions characteristics that will be used to serve load in Maine over the following 12-month period.

c. Portfolio characteristics. For service within the ISO-NE control area, fuel mix and emission characteristics shall be determined based on GIS certificates. For service within the Maritimes control area, fuel mix and emission characteristics shall be those associated with generating units for unit specific entitlements or contracts and the system mix for system entitlements or contracts.

d. Disaggregation of resource portfolio. A competitive electricity provider may disaggregate its resource portfolio into segments or products and provide or make available differentiated labels to particular customer groups. For service within the ISO-NE control area, a competitive electricity provider must verify the disaggregation through a separate GIS sub-account for the disaggregated segment or product. For service within the Maritimes control area, a competitive electricity provider shall be required to demonstrate to the Commission’s satisfaction that its disaggregation is based on data that can be verified.

4. Fuel Mix. Each competitive electricity provider shall include on the label a list of each fuel sources in its resource portfolio and their corresponding percentages within the fuel mix. The following fuel sources shall be separately identified on the label: biomass (includes landfill gas), coal, fossil fuel cogeneration, fuel cells, geothermal, hydro, municipal solid waste, natural gas, nuclear, oil, solar, tidal power, wind. The fuel mix shall be displayed in a format substantially similar to the sample label adopted by the Commission or the Commission’s Director of Electric and Gas Industries pursuant to section 2(B)(6).

5. Emissions

a. The following emissions shall be separately identified on the label: carbon dioxide (CO₂), nitrogen oxides (NO_x), and sulfur dioxide (SO₂). The Commission may determine by order that additional emissions should be included on the label.

b. Emissions for each emission category shall be computed as an annual average emission rate in pounds per megawatt-hour over the label reporting period. For each emission category, the emission rate of the resource portfolio shall be compared to a reference emission rate. For service within the ISO-NE control area, the reference emission rate shall be the New England regional average emission rate as determined by the GIS. For service within the Maritimes control area, the reference emission rate shall be the regional average emission rate in the Maritimes control area. In the event this emission rate is not readily available, the New England regional average emission rate as determined by the GIS may be used.

c. Unless otherwise specified in this Chapter, for service within the ISO-NE control area, the emission characteristics of the resource portfolio shall be determined based on GIS certificates. For service within the Maritimes control area, the emission characteristics of the resource portfolio shall be calculated using the most accurate available data.

d. The Commission may determine by Order that CO₂ emitted by individual facilities or categories of facilities may be offset so that lower emission amounts or zero emissions may be displayed on the label.

6. Format of Information Disclosure Label. The label shall be presented in a format substantially similar to the sample label adopted by the Commission or the Commission’s Director of Electric and Gas Industries. The Commission or the Commission’s Director of Electric and Gas Industries will establish and may change the format of the information disclosure label by order. Upon petition by a competitive electricity provider, the Commission or the Commission’s Director of Electric and Gas Industries may approve a format that is different from the sample label.

7. Standard Offer Service. Each transmission and distribution utility shall prepare labels associated with standard offer service within its service territory. In the event there is more than one standard offer provider in a service territory, power source and air emissions information on the label shall be blended so that a single label is prepared. For this purpose, the label information shall be the weighted average of each provider’s power sources and air emissions. The weights used shall be each provider’s percentage of standard offer load. Transmission and distribution utilities shall charge standard offer providers for the costs of preparing the label pursuant to Commission approved rates.

C. Company Disclosure

Each competitive electricity provider that disaggregates its resource portfolio into price or product offerings pursuant to this section, shall prepare a company disclosure that aggregates the resource portfolio of all its price or product offerings within the ISO-NE or Maritimes control area, as applicable. The company disclosure shall contain the aggregated information in a form substantially similar to the "power sources" and "air emissions" portion of the label consistent with the label format established by section 2(B)(6). The company disclosure shall explain in plain language why the aggregate information is different from that of the customer's price or product offering. The company disclosure report shall be provided or made available to customers upon request. The competitive electricity provider shall notify customers of the availability of the company disclosure as part of the label information.

D. Availability of Disclosure Label

1. Prior to Initiation of Service. Each competitive electricity provider shall provide the label to customers or notify customers that the label is available on the competitive electricity provider’s website or through other means prior to the initiation of service. This provision does not apply to standard offer service.

2. After Initiation of Service. Each competitive electricity provider that provides generation service to residential and small commercial customers shall provide labels to those customers or notify those customers that the label is available on the competitive electricity provider’s website or through other means once each calendar year. Competitive electricity providers may provide or notify customers of the availability of labels to all its customers at the same time.

3. Upon request. The label shall be available upon request to any person eligible to obtain the associated service.

4. Standard offer service. Each transmission and distribution utility shall make available through the transmission and distribution utility’s website and, upon request, by mail to standard offer customers the labels associated with standard offer service within their service territory. The labels shall be made available to residential and small commercial standard offer customers within 3 months after the initiation of standard offer service by a new standard offer provider. Transmission and distribution utilities shall notify standard offer customers of the availability of the label once each calendar year. Transmission and distribution utilities may charge standard offer providers for the costs of making the label available pursuant to Commission approved rates, terms and conditions.

E. Information Disclosure in Advertising

A competitive electricity provider shall state the availability of the disclosure label prepared pursuant to this section in a prominent position in all written marketing materials promoting available generation service, including direct mail materials, newspaper, magazine, and other written advertisements, and in all electronically-published advertising including Internet materials. Where available generation services are marketed in non-print media, the marketing materials shall indicate that a disclosure label is available. Any competitive electricity provider website that promotes the availability of generation service must also contain access to the disclosure label.

F. Enforcement

Dissemination of inaccurate information, or failure to comply with the Commission’s regulations on information disclosure, may result in suspension or revocation of the competitive electricity provider's license or other sanctions in accordance with Chapter 305 §3.

G. Verification; Annual Reporting

1. Provider Obligation. Each competitive electricity provider has the obligation to verify compliance with the provisions of this section.

2. Verification Method. Beginning with service in the year 2002, competitive electricity providers must verify compliance with this Chapter as specified in this provision.

a. ISO-NE Control Area. Beginning in the year 2002, competitive electricity providers that serve customers in the ISO-NE control area, must verify the accuracy of the label information through GIS certificates. For purposes of compliance with this provision, all competitive electricity providers must have at least one Maine GIS sub‑account. The Commission may allow verification through means other than GIS certificates upon a showing that a competitive electricity provider reasonably relied on the Commission’s prior rules or for other good cause. Entities that have purchased the contractual rights to the output of transmission and distribution utility qualifying facility entitlements that have not been provided associated GIS certificates may use the contractual rights to the output of the entitlements to verify the accuracy of label information.

b. Maritimes Control Area. Competitive electricity providers that serve customers in the Maritimes control area must verify the accuracy of the label information through market settlement data and other documentation that reveal the resources used to serve customers and the emission characteristics of those resources.

3. Annual Reports. On or before July 1 of each year, each competitive electricity provider shall submit an annual report that contains information that supports the accuracy of disclosure labels provided or made available over the prior calendar year. At a minimum, the annual report must include the following information for the prior calendar year:

a. Copies of disclosure labels provided or made available to customers during the reporting period.

b. Reports from the GIS Administrator for service in the ISO-NE control area.

c. A description of the resources used to serve customers in the Maritimes control area and information verifying the accuracy of the resource portfolio and the emission characteristics associated with the resource portfolio.

d. Verification of the accuracy of the disaggregation of the company resource portfolio into segments or products, if applicable.

4. Additional Information. The Commission may at any time request and obtain information from a competitive electricity provider that the Commission determines is needed to verify the accuracy of the information contained on disclosure labels.

5. Audits. The Commission may at any time conduct an audit of any competitive electricity provider to verify the accuracy of the information contained on disclosure labels. Upon request by the Commission, a competitive electricity provider must provide any information that the Commission determines is needed to conduct the audit and verify compliance with this section.

6. Rejection of Certificates. The Commission may reject the use of certain GIS certificates for purposes of disclosure label information if it finds that the GIS certificates do not reflect accurate information, to avoid the double counting of electricity attributes or for other good cause.

7. Generation Facilities. The Commission may at any time conduct an investigation into whether GIS certificates represent accurate information. The Commission may request and obtain information from generation facilities that the Commission determines is needed to verify the accuracy of information contained on a disclosure label. The Commission may reject the use of GIS certificates pursuant to section 2(H)(6) of this Chapter if a generation facility does not comply with an information request made pursuant to this provision.

8. Confidentiality. The Commission may subject any information required pursuant to this subsection to appropriate protective orders.

§ 3 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301, 3203(3), 3203(4).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 30, 1999. It was filed with the Secretary of State on July 1, 1999 and became effective on July 31, 1999.
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on May 11, 2000. It was filed with the Secretary of State on May 12, 2000 and became effective on May 17, 2000.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 20, 2003. It was filed with the Secretary of State on June 20, 2003 and became effective on July 20, 2003.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 24, 2005. It was filed with the Secretary of State on June 27, 2005 and became effective on July 27, 2005 (filing 2005-254).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 12, 2011. It was filed with the Secretary of State on October 14, 2011 and became effective on October 19, 2011 (filing 2011-367).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 20, 2015. It was filed with the Secretary of State on January 21, 2015 and became effective on January 26, 2015 (filing 2015-011).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 307 Sale of Capacity and Energy; Extension for Divestiture of Deadline

Code Me. R. 65-407 Ch. 307 Sale of Capacity and Energy; Extensions for Divestiture of Assets {#sec-65-407-ch.-307 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 307}

SUMMARY - This rule implements 35-A M.R.S.A. § 3204(4)(sale of capacity and energy of generation assets and generation-related business activities that are not divested by investor-

owned electric utilities) and 35-A M.R.S.A. § 3204(3)(deadline for divestiture for certain assets).

§ 1 DEFINITIONS 4

§ 2 APPLICABILITY OF CHAPTER 4

A. Utilities Subject to this Chapter 4

B. Capacity and Energy Subject to this Chapter 4

C. Exception 5

D. Extension of Divestiture 5

§ 3 GENERAL REQUIREMENT FOR SALE OF CAPACITY AND ENERGY 5

§ 4 CONDITIONS APPLICABLE TO SALES AND UTILITY RENEGOTIATIONS DURING SALE PERIODS 5

A. Renegotiations by Utilities of Contracts for Capacity and Energy 5

B. Subsequent Divestiture by Utilities 5

C. Risk of Nonperformance; Damages 6

§ 5 DATES FOR ISSUANCE OF REQUESTS FOR BIDS; TERMINATION

OF BIDDING PROCESS 6

A. Initial Round 6

B. Subsequent Rounds 6

C. Additional Bidding 6

D. Termination of Bidding Process 6

§ 6 REQUIREMENTS FOR REQUESTS FOR BIDS; BIDDING AND SALE 7

A. Asset Categories 7

B. Contents of Requests for Bids; Commission Approval 7

1. Bidding Requirements 7

2. Information 7

3 Approval of Request for Bids and Standard Form Contract

by Commission 8

C. Bid Pricing 9

1. Separate Categories 9

2. Separate Pricing of Capacity and Energy 9

3. Bid Increments 9

§ 7 SELECTION OF BIDDERS; SALE 9

A. Eligible Bidders; Bidding Requirements; Time for Filing Bids; Noncompliance 9

B. Requirements Applicable to Utilities and Affiliated Competitive Providers 10

C. Financial Qualifications of Bidders 10

D. Selection 10

E. Effective Date of Sales; Length of Sales Periods 10

F. General Principles Applicable to Determination of Financial Qualifications

and Selection of Highest Bidders 11

G. Market Power 11

H. Submission of Information to Commission 11

I. Commission Review; Rejection of Bids 11

J. Stranded Costs 12

§ 8 PAYMENT BY PURCHASERS; DEFAULT 12

A. Payment 12

B. Default 12

§ 9 EXCEPTION TO BIDDING AND SALE REQUIREMENTS 12

§ 10 EXTENSION OF DATE FOR UTILITY TO DIVEST GENERATION ASSETS 13

A. Procedure; Order 13

B. Obligation to Sell Capacity and Energy 13

§ 11 WAIVER 13

§ 1 DEFINITIONS

A. Capacity and Energy. “Capacity and Energy” means the output from generation assets and includes any ancillary services (e.g., spinning reserve) which may be available from generation assets and generation-related business activities subject to this rule.

B. Facility. “Facility” means any specific facility which delivers capacity or energy to a utility under contract, or deliveries from the market in cases where the seller has the option to provide deliveries either from a specific facility or from the market.

C. Generation Assets. "Generation assets" means all real estate, fixtures and personal property owned, controlled, operated or managed in connection with, or to facilitate, the generation of electric power.

D. Utility. "Utility" means either an investor-owned electric utility or an investor-owned transmission and distribution utility, or both, depending on the context, including the date of a required event.

§ 2 APPLICABILITY OF CHAPTER

A. Utilities Subject to this Chapter

Prior to March 1, 2000, this Chapter shall apply to all investor-owned electric utilities. On and after March 1, 2000, this Chapter shall apply to investor-owned transmission and distribution utilities.

B. Capacity and Energy Subject to this Chapter

Except as noted in Section 2(C), Sections 3 through 9 and 11 of this Chapter apply to all interests held by a utility in electric capacity and energy from any generation assets and generation-related business activities, including purchased power contracts, that are not divested pursuant to 35-A M.R.S.A. § 3204(1), including:

1. Any contract with a qualifying facility, or any contract with a party other than a qualifying facility or affiliated interest entered into solely for the purpose of restructuring a contract with a qualifying facility;

2. Ownership interest in a nuclear power plant;

3. Ownership interest in a facility located outside the United States; and

4. Ownership interest or entitlement in a generation asset or generation-related business activity for which the Commission has granted an extension, pursuant to § 3204(3) and section 10 of this Chapter, that allows a utility to divest after March 1, 2000.

C. Exception

Sections 3 through 9 of this Chapter shall not apply to any capacity or energy for generation assets and generation business, as described in section 2(B) of this Chapter that a utility has sold pursuant to a long term power sales agreement entered into prior to July 1, 1998.

D. Extension of Divestiture

Section 10 of this Chapter applies to an application by a utility to the Commission for an extension to allow it to divest one or more generation assets or generation-related business activities after March 1, 2000.

§ 3 GENERAL REQUIREMENT FOR SALE OF CAPACITY AND ENERGY

Each utility subject to this Chapter shall offer for sale and shall sell its interests in the energy and capacity described in section 2(B) pursuant to the provisions of this Chapter.

§ 4 CONDITIONS APPLICABLE TO SALES AND UTILITY RENEGOTIATIONS DURING SALE PERIODS

A. Renegotiations by Utilities of Contracts for Capacity and Energy

Utilities subject to this Chapter shall have the right at any time to renegotiate any contract that entitles it to capacity and energy for the purpose of meeting its obligation to minimize stranded costs. No renegotiated contract shall become effective until the end of the current sale period for capacity and energy unless:

1. the amount and fuel source of the output available to the purchaser of the capacity and energy pursuant to this rule are unchanged ; or

2. the purchaser consents to a change in the output or fuel source type.

B. Subsequent Divestiture by Utilities

All sales shall be subject to the obligation of the utility to divest a generation asset on the date or within the time period specified by the Commission in an extension order issued pursuant to 35-A M.R.S.A. § 3204(3) and section 10 of this Chapter, and all purchasers shall be subject to the risk that the capacity and energy from that generation asset may not be available following the divestiture.

C. Risk of Nonperformance; Damages

Each utility subject to this Chapter shall choose between one of the following approaches to damages. The standard form contract required by section 6(B) shall include a provision implementing the portion of this subsection chosen by the utility.

1. A purchaser of capacity and energy shall have no recourse against the utility in the event that the owner or operator of the generation asset does not provide the expected amount of capacity or energy or otherwise defaults. In the event of a default by the owner or operator as a result of which the utility collects damages, the damages will be allocated between the utility and the purchaser(s) on a reasonable pro rata basis.

2. A utility may propose to the Commission other approaches to damages at the time it submits its request for bids and standard form contract pursuant to section 6(B)(3) of this Chapter.

§ 5 DATES FOR ISSUANCE OF REQUESTS FOR BIDS; TERMINATION OF BIDDING PROCESS

A. Initial Round

On August 2, 1999, each electric utility subject to this Chapter shall issue a request for bids for the electric capacity and energy required to be sold by this Chapter.

B. Subsequent Rounds

On dates thereafter as ordered by the Commission, each utility subject to this Chapter shall issue a new request for bids for the electric capacity and energy required to be sold by this Chapter.

C. Additional Bidding

The Commission may also order a utility to issue a request for bids, pursuant to section 8(B), consistent with section 8(B) or section 10(C). To expedite the selection of a new purchaser, the Commission may waive any of the requirements of section 5.

D. Termination of Bidding Process

When a utility subject to the provisions of this Chapter no longer has an interest in any assets or contracts that are subject to sale of energy and capacity requirements of this Chapter, the utility shall notify the Commission, and the utility will no longer be subject to the provisions of this Chapter.

§ 6 REQUIREMENTS FOR REQUESTS FOR BIDS, BIDDING AND SALE

A. Asset Categories

The Request for Bids shall permit bidders to provide separate bids for any of the following individual categories, or a single bid for any combination (including all) of the following categories:

1. Hydroelectric and biomass sources which qualify as a renewable resource under 35-A M.R.S.A. § 3210;

2. Other sources which qualify as a renewable resource under 35‑A M.R.S.A. § 3210;

3. Nuclear power entitlements;

4. Any other category or subcategory approved by the Commission pursuant to section 6(B)(3); or

5. All other generation sources.

B. Contents of Requests for Bids; Commission Approval

1. Bidding Requirements

Each request for bids shall state the bidding and pricing requirements contained in section 6(C).

2. Information

At a minimum, the following information shall be provided with each Request for Bids issued pursuant to this Chapter:

a. a list of the contracts, entitlements, and ownership interests, the capacity and/or energy to which the utility has an entitlement and the date through which the entitlement is held;

b. copies of all contracts enumerated; or, if providing copies of all contracts would be inconvenient because of their number and size, a statement describing a convenient location and times for viewing the contracts. Copies shall be provided or viewing permitted subject to any confidentiality requirements set forth in the contracts limiting bidders' use of any confidential information to the preparation of their bids;

c. the on-peak period which shall be Monday through Friday from 7 A.M. to 11 P.M., except for holidays recognized by ISO-NE or the equivalent entity in the Maritimes Control Area and the off-peak period which shall be all other hours.

d. for each facility whose output is subject to the bidding requirements of this Chapter, the facility’s monthly capacity and energy output, including any ancillary services provided, in the most recent 3-year period, provided individually by the facility and in aggregate by each of the categories of assets and generation-related business activities listed in the request for bids; the monthly capacity and energy data shall be provided separately for the peak and off-peak periods described in subparagraph c;

e. identification of the 12-month period that will be used for capacity and energy quantities used in the net present value calculation required by section 7(D);

f. to the extent the utility has such actual knowledge at the time it issues the Request for Bids, for each facility whose output is subject to the bidding requirements of this Chapter, a description of any contractual provision or other factor that will have the effect of substantially changing the output of a facility during the bid period as compared to the output amounts provided pursuant to subsection (B)(2)(d) and a description of any subsequent divestiture that may apply during the bid period pursuant to Section (4)(B).

g. a copy of the proposed standard contract between the utility and the purchaser of entitlements to capacity and energy required to be sold by this Chapter.

3. Approval of Request for Bids and Standard Form Contract by Commission

Each utility subject to this Chapter shall submit its proposed initial request for bids, including the proposed standard form contract and all other attachments, to the Commission on or before May 1, 1999. For subsequent requests for bids, each utility shall submit its proposed request three months prior to the issuance date of the request for bids. Approval and disapproval of the requests for bids is delegated to the Director of Technical Analysis. The Director shall provide notice to a utility of any questions, objections or grounds for rejection within 30 days after the filing of the proposed request for bids. The Director shall approve or disapprove the request for bids within 60 days after its filing and, if necessary, may order the utility to make specified changes.

C. Bid Pricing

1. Separate Categories

Bidders may provide multiple bids. Any individual bid shall be for an individual category, a group of categories specified in the bid, or all categories. Bidders shall provide separate prices for each month of the period for which bids are requested. Bidders shall provide absolute prices and shall not define prices by formulae or by reference to an index.

2. Separate Pricing of Capacity and Energy

Bids shall include separate prices for the capacity component in dollars per kilowatt month and the energy component in cents per kilowatt hour. Bids for both components shall include separate prices for peak and off-peak periods as defined in 6(B)(2)(c).

3. Bid Increments

Bids may be in increments of 20%, 40%, 60%, 80% or 100% of the entire category. Any bid for a percentage of the entire category that is greater than 20% shall also include a bid for each 20% multiple up to the highest bid percentage. Bid prices may be different for each 20% increment. Bids shall be for a stated percentage of the capacity and energy available in the entire category, and not for stated amounts of capacity and energy.

§ 7 SELECTION OF BIDDERS; SALE

A. Eligible Bidders; Bidding Requirements; Time for Filing Bids; Noncompliance

Any person, including an affiliated competitive provider of a utility subject to this Chapter, may bid. Bids for the first sale period shall be filed not later than noon on October 1, 1999. Bids for subsequent sale periods shall be filed not later than noon on the date established in the request for bids. Bids shall be sealed and shall comply with all requirements of the request for bids approved by the Commission, including the provision of all required pricing and other information. There shall be a single round of bids for each sale period. A bid that does not comply with any material requirement of the request for bids is disqualified, subject to review by the Commission of the utility’s decision that the requirement was material and that the bidder did not comply with the requirement. Within 7 days of being notified of a disqualification, the Commission will complete its review or notify the utility that it requires additional time for review.

B. Requirements Applicable to Utilities and Affiliated Competitive Providers

Utilities subject to this Chapter and affiliated competitive providers (as defined in 35-A M.R.S.A. § 3205(1)(A)) of those utilities shall comply with the standards of conduct contained in 35-A M.R.S.A. § 3205(3) and Chapter 304 of the Commission’s rules.

C. Financial Qualifications of Bidders

Prior to executing a contract with a winning bidder, the utility shall determine whether that bidder is financially qualified to meet the payment commitments of the contract for sale.

D. Selection

On or before November 1, 1999 for the first round of bids, and on dates thereafter as ordered by the Commission for subsequent rounds, utilities subject to this Chapter shall select the winning bidder(s) based on the highest price or combination of prices presented by financially qualified bidders. To determine the highest bid(s), a utility shall calculate the net present value of each bid. To determine net present values, a utility shall multiply each monthly bid price (including time-of-day prices) by the quantities (in kW and kWh) of capacity and energy provided to the utility in the applicable pricing category during the same month of the recent annual period identified in the information provided with the request for bids pursuant to Section 6(B)(2)(e), discounted by the utility's overall before-tax cost of capital as last found by the Commission. If, in the opinion of the utility, one or more months in a recent test period do not reasonably represent the output it expects to receive during the sale period, the utility may use an average of data from the same month of other recent test periods. The utility shall provide notice of its intent to use alternative data in the information provided with the request for bids pursuant to Section 6(B)(2)(e). Utilities shall not execute contracts with the winning bidder(s) until directed to do so by the Commission pursuant to section 7(I).

E. Effective Date of Sales; Length of Sales Periods

The effective date for the first sale period shall be March 1, 2000 and the sale of capacity and energy shall be for a 2-year period. For subsequent sale periods, the effective date for a sale shall be the day following the expiration of the preceding sale period.

By order issued not less than 4 months prior to the date for issuance of each request for bids, the Commission shall establish the duration of the period for the next sale of capacity and energy.

F. General Principles Applicable to Determination of Financial Qualifications and Selection of Highest Bidders

Utilities subject to this Chapter shall conduct all bidding processes, including determining the financial qualifications of and selecting the highest bidder, in a manner that does not discriminate among bidders and that is consistent with the purposes of maximizing the sale price of the capacity and energy sold pursuant to this Chapter and of minimizing stranded costs.

G. Market Power

If the Commission conducts a proceeding addressing the issue of market concentration or market power, and finds that no single purchaser should be allowed to purchase all of the capacity and energy from contracts with qualifying facilities and other renewable resources as described in section 6(A)(1), the Commission shall issue an order in that proceeding limiting the percentage of capacity and energy from qualifying facilities and other renewable resources that any single bidder may purchase pursuant to this Chapter. If the Commission in that proceeding finds that a specific entity would obtain an unacceptable level of market concentration if it purchased more than a specified percentage of the capacity and energy from qualifying facilities and other renewable resources available under this Chapter, the Commission by order in that proceeding may limit the percentage of such capacity and energy the entity may purchase pursuant to this Chapter.

H. Submission of Information to Commission

On or before November 1, 1999 for the first round of bids and on dates thereafter as ordered by the Commission, a utility subject to this Chapter shall notify the Commission of its determination of the winning bidder(s) made pursuant to section 7(D). At this time, the utility shall include the identities of the winning bidder(s), the bid price(s) and an explanation and documentation of the analyses it used to determine the winning bid(s), and a summary of the losing bids. Utilities shall inform the Commission of any grounds for which it believes the sale of capacity and energy to a winning bidder selected pursuant to section 7(D) would not be in the public interest.

I. Commission Review; Rejection of Bids

On or before December 1, 1999 for the first round of bids, and on dates thereafter as ordered by the Commission for subsequent rounds, the Commission shall inform utilities whether contracts with winning bidder(s) should be executed. Upon a finding that stranded costs would not be reasonably mitigated by acceptance of a winning bid, the Commission may order the utility to reject a winning bid, and to either accept an alternative bid or sell the rights to the capacity and energy in the regional wholesale bulk power markets until the selection of a new purchaser.

J. Stranded Costs

The Commission shall use the bid price(s) of the winning bid(s) in calculating a utility's stranded costs for the applicable generation assets or generation-related business activities, unless it finds, in a proceeding that addresses stranded costs, that the utility, in its bidding process or selection, did not act prudently to maximize the sales price or to minimize stranded costs. In any such proceeding addressing stranded costs, the Commission may issue appropriate orders necessary to protect confidential information of bidders, including non-winning bidders.

§ 8 PAYMENT BY PURCHASERS; DEFAULT

A. Payment

Purchasers of capacity and energy sold pursuant to this Chapter shall pay utilities for capacity and energy each month, not later than 20 days after the close of the billing period established in the contract between the utility and the purchaser unless the utility and the bidder agree upon a more rapid payment schedule.

B. Default

If a purchaser of capacity and energy fails to make required payments to the utility or otherwise defaults in its obligations, and such default is material, the utility shall immediately notify the Commission. The utility shall engage in reasonable business practices in addressing the default. In the event of a default, the utility may sell the capacity and energy to an alternative purchaser or in the regional wholesale bulk power markets. The utility may not sell to an alternative purchaser pursuant to a contract term that extends beyond the expiration of the current sales period as established in section 7(E) without the prior approval of the Commission.

§ 9 EXCEPTION TO BIDDING AND SALE REQUIREMENTS

The bidding and sale requirements of this Chapter shall not apply to any capacity or energy that the Commission, pursuant to 35-A M.R.S.A. § 3204(4), determines is necessary for the utility to perform its obligations as a transmission and distribution utility in an efficient manner. Any utility requesting an exception pursuant to this section shall file its request 2 months prior to the date that requests for bids must be issued.

§ 10 EXTENSION OF DATE FOR UTILITY TO DIVEST GENERATION ASSETS

A. Procedure; Order

A utility may apply to the Commission to exercise its authority under 35-A M.R.S.A. § 3204(3) to allow it to divest one or more generation assets or generation-related business activities after March 1, 2000. The application shall be filed on or before December 1, 1999, and shall include all information that justifies the request. A utility may file subsequent applications for additional extensions. The Commission shall provide an opportunity for interested persons to be heard on the application and shall rule on the application within 2 months after it is filed. The Commission shall grant an extension of the divestiture deadline if it finds that an extension would likely improve the sale value of the generation assets or the generation-related business activities or would be likely to reduce the level of the utility’s stranded costs. The Commission shall establish the length of the extension in its Order and shall specify whether the utility must divest the asset or business activity on the date specified in the Order or whether it may divest on or before that date. The Commission may order that any divestiture be subject to the right of a purchaser of the capacity and energy pursuant to this Chapter to make purchases from the new owner of the generation asset or generation-related business activity until the date specified in the contract between the purchaser and the utility.

B. Obligation to Sell Capacity and Energy

The granting of an extension under this section does not exempt a utility from the obligation to sell the capacity and energy from a generation asset whose divestiture date is extended. If an extension is granted reasonably in advance of August 1, 1999, the capacity and energy from the generation asset whose divestiture date is extended may be included in the utility’s request for bids issued on August 1, 1999. If the extension is granted on a date that is too late for the capacity and energy to be included in the request for bids issued on August 1, 1999, the Commission may order a separate bidding process for the sale of the asset’s capacity and energy. The Commission will determine the duration of the sale of the capacity and energy from a generation asset or generation-related business activity whose divestiture date is extended. The Commission may direct that the capacity and energy be sold in the regional wholesale bulk power markets until the selection of a purchaser or until the asset is divested.

§ 11 WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant this waiver.

AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 3203(9), 3204(3), 3204(4); Resolves 1999, ch. 38; P.L. 1999, ch. 398, Sec. N-2.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 30, 1999. It was filed with the Secretary of State on July 1, 1999 and will be effective on July 31, 1999.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 1, 1999. It was filed with the Secretary of State on October 5, 1999 and will be effective on November 4, 1999.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 22, 2025

Chapter 308 Standards of Conduct for Transmission and Distribution Utilities and Affiliated Generators

Code Me. R. 65-407 Ch. 308 Standards of Conduct for Transmission and Distribution Utilities and Affiliated Generators {#sec-65-407-ch.-308 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 308}

SUMMARY: This Chapter establishes standards of conduct applicable to investor-owned transmission and distribution utilities and affiliated generators

PURPOSE OF RULE; APPLICATION 4

DEFINITIONS 4

1. Affiliate 4
2. Affiliated Generator. 4
3. Affiliated Interest. 4
4. Commission. 4
5. Contractor. 4
6. Directly Interconnected. 4
7. FERC 5
8. FERC Standards of Conduct. 5
9. ISO-NE. 5
10. NEPOOL. 5
11. NMISA. 5
12. Nodal LMP 5
13. Service Territory 5
14. Transmission and Distribution Utility. 5

AFILIATED GENERATOR PROHIBITED 5

STANDARDS OF CONDUCT 5

1. No Preference 5
2. Service Provided Without Discrimination 5
3. Posting 6
4. Requests for Products. 6
5. No Tying 6
6. Requests for Information. 6
7. Promotion of Affiliate; Joint Marketing 6
8. Non-Public Information Sharing 6
9. Sharing of Employee; Contractors 7
10. Employee Compensation. 7
11. FERC Standards of Conduct. 7
12. Information Disclosure 7
13. Regional and Federal Forums 7
14. Transmission System Operation 8
15. Books and Records 8
16. No Subsidization 8
17. Reorganization Approval 8
18. Complaint Log 8

ANNUAL CHAPTER 330 REPORTS 8

1. Annual Chapter 330 Reports. 8
2. Investigation. 9

COMMISSION JURISDICTION 9

IMPLEMENTATION PLAN 9

1. Effective Date 10
2. Changes. 10
3. Commission Investigation. 10

AUDITS 10

ENFORCEMENT AND SANCTIONS 10

1. Sanctions and Administrative Penalties. 10
2. Divestiture 10
3. Complaints. 10

LONG-TERM CONTRACTS 11

WAIVER OR EXEMPTION 11

§ 1 PURPOSE OF RULE; APPLICATION

This Chapter establishes standards of conduct governing the relationships and interactions between a transmission and distribution utility and an affiliated generator that are intended to eliminate the potential for these relationships and interactions to lead to adverse effects on ratepayers and the competitive electricity market. This Chapter applies to an affiliated generator that:

A. Owns or develops generation or generation-related assets in the ISO-NE or NMISA, power system;

B. Imports generation into the ISO-NE or NMISA power system;

C. Is directly interconnected to the ISO-NE or NMISA power system;

D. Takes any action or makes any plans toward future ownership or development of generation or generation-related assets in the ISO-NE or NMISA power system; or

E. Takes any action or makes any plans to import generation or become directly interconnected to the ISO-NE or NMISA power system.

§ 2 DEFINITIONS

1. Affiliate. Affiliate means a person who has any direct or indirect ownership interest in, or is a direct or indirect subsidiary of a person who has any ownership interest in, the investor-owned transmission and distribution utility, but does not include a wholly owned or partially owned direct or indirect subsidiary of the investor-owned transmission and distribution utility.
2. Affiliated Generator. Affiliated generator means an affiliate of a transmission and distribution utility that owns or develops generation or generation-related assets in New England or that can import generation into New England.
3. Affiliated Interest. Affiliated Interest has the same meaning as contained in Title 35-A.
4. Commission. Commission means the Maine Public Utilities Commission.
5. Contractor. Contractor means entities or individuals that are not employees of the transmission and distribution utility, an affiliated generator or an affiliated interest, but provides legal, consulting or other services to a transmission and distribution utility, an affiliated generator or an affiliated interest on matters related to the development and operation of transmission or generation.
6. Directly Interconnected. Directly Interconnected means a physical electrical connection of a generator to a transmission and distribution utility's transmission and distribution assets that allows that generator to transport electric power across the transmission and distribution utility's electric plant.
7. FERC. FERC means the Federal Energy Regulatory Commission.
8. FERC Standards of Conduct. FERC standards of conduct means the regulations contained in 18 CFR Part 358.
9. ISO-NE. ISO-NE means the Independent System Operator of the New England bulk power system or successor organization.
10. NEPOOL. NEPOOL means the New England Power Pool or successor organization.
11. NMISA. NMISA means the Northern Maine Independent System Administrator or successor organization.
12. Nodal LMP. Nodal LMP means the locational marginal price within the ISO-NE energy market applicable to a generator.
13. Service Territory. Service Territory means the geographic area in which a transmission and distribution utility is authorized to provide service based on a finding of need by the Commission or a legislative finding of need.
14. Transmission and Distribution Utility. Transmission and distribution utility means an investor-owned transmission and distribution utility that has an affiliated generator.

§3. AFILIATED GENERATOR PROHIBITED

A. A transmission and distribution utility may not have an affiliate that owns generation or generation-related assets that are directly interconnected to any facilities owned or operated by the transmission and distribution utility or if the point of interconnection is within the service territory of the transmission and distribution utility.

A transmission and distribution utility may not wholly own or partially own a direct or indirect subsidiary that owns generation or generation-related assets.

§ 4 STANDARDS OF CONDUCT

No Preference. A transmission and distribution utility may not engage in preferential, discriminatory or other anticompetitive conduct, or in any way give an affiliated generator preference over other generators in matters relating to any product or service, including the generator interconnection process.

Service Provided Without Discrimination. All products and services provided by a transmission and distribution utility including the generation interconnection process, must be available to all generators on comparable terms and conditions and without undue or unreasonable discrimination.

Posting. A transmission and distribution utility may not sell or otherwise provide products or services to an affiliated generator without either simultaneously posting the offering electronically on the transmission and distribution utility's internet web site or otherwise making a sufficient offering to the market for that product or service. Provision of the product or service under the terms of a filed term and condition or tariff constitutes a sufficient offering.

Requests for Products. A transmission and distribution utility shall process all similar requests for a product or service related to generation or generation-related assets in the same manner and within the same period of time.

No Tying. A transmission and distribution utility may not condition or tie the provision of any product or service by the transmission and distribution utility to the provision of any other product or service in which an affiliated generator has an interest.

Requests for Information. A transmission and distribution utility shall process all similar requests for information from a generator in the same manner and within the same period of time. A transmission and distribution utility may not provide information to an affiliated generator without a request when information is made available to other generators only upon request. A transmission and distribution utility may not allow an affiliated generator preferential access to any nonpublic information regarding the transmission and distribution system, customers taking service from the transmission and distribution utility, or any other nonpublic information that the transmission and distribution utility has obtained that is not made available to all generators upon request. A transmission and distribution utility shall instruct all of its employees and contractors not to provide an affiliated generator preferential access to nonpublic information.

Promotion of Affiliate; Joint Marketing. Neither a transmission and distribution utility nor an affiliated generator may speak or give any appearance of speaking on behalf of the other. A transmission and distribution utility and an affiliated generator may not engage in joint advertising or marketing.

Non-Public Information Sharing. Employees or contractors of a transmission and distribution utility or an affiliated interest shall not share with employees or contractors of an affiliated generator any non-public information related to the development and operation of the transmission and distribution system or to the development or operation of generation or generation-related assets that was obtained through its operations unless the information is developed in connection with an ongoing generation interconnection request. Employees or contractors of an affiliated generator or an affiliated interest may not share any non-public information related to the development or operation of generation or generation-related assets with employees or contractors of the transmission and distribution utility. A transmission and distribution utility, an affiliated generator and an affiliated interest shall instruct their employees and contractors not to share such information prohibited by this subsection.

Sharing of Employee; Contractors. Employees of a transmission and distribution utility must be located in a separate building from the employees of an affiliated generator. Employees or contractors may not be shared between a transmission and distribution utility and an affiliated generator. An employee or contractor is considered to be shared if the employee or contractor performs work directly for both entities related to a particular transmission or distribution development or operation project or a generation development or operation project. The prohibition of sharing employees and contractors does not apply to general business support service such as billing, accounting, or other back-office functions. A transmission and distribution utility must provide, within 30 days, notice to the Commission of any employee transfers between the transmission and distribution utility and an affiliated generator. An employee who is transferred from an affiliated generator to the transmission and distribution utility cannot return to the affiliated generator for at least one year.

Employee Compensation. No component of a transmission and distribution utility employee compensation package (including bonuses) may be related to the financial performance of an affiliated generator. This provision does not prohibit employee compensation packages (including bonuses) that relate to the financial performance of the transmission and distribution utility’s parent company.

FERC Standards of Conduct. The FERC standards of conduct shall apply to all employees of transmission and distribution utilities and affiliated generators with respect to (1) non-public transmission operation, planning and development information and (2) non-public generation operation, planning and development information..

Information Disclosure. Transmission and distribution employees and contractors, affiliated interest employees and contractors may not disclose or use any conduit for the disclosure of non-public transmission and distribution information to any employee of an affiliated generator, nor use any such information to the undue advantage of an affiliated generator, regardless of whether those employees are considered market function employees under FERC standards of conduct. This provision does not apply in the event an affiliated generator makes an interconnection request to the transmission and distribution utility and the disclosure of confidential information is reasonably necessary to process the interconnection request. Any such information disclosed in connection with an interconnection request shall be used solely for the purpose of the interconnection request.

Regional and Federal Forums. The Commission may direct a transmission and distribution utility to provide information, including the rationale, for positions and votes taken in regional and federal forums including, but not limited to, the ISO-NE, NEPOOL, NMISA and FERC and associated committees.

N. Transmission System Operation. To the extent that a transmission and distribution utility, in its capacity as operator of the northern Maine transmission system, denies a transmission reservation request, orders a curtailment of a generator, or otherwise deviates from the NMISA balanced schedule, such activity must be reported to the Commission at the same time as reporting to NMISA. At the option of the Commission, after notice and opportunity for hearing, a transmission and distribution utility may be ordered to cease to serve as the operator of the Northern Maine transmission system.

O. Books and Records. A transmission and distribution utility, affiliated generators and affiliated interests shall keep separate books of account and records, which are subject to Commission review for the purpose of verifying compliance with this Chapter. Access to books and records pursuant to this provision includes books and records that predate the affiliated generator or affiliated interest becoming subject to this Chapter.

P. No Subsidization. A transmission and distribution utility may not subsidize the business of an affiliated generator.

Q. Reorganization Approval. Notwithstanding any prior Commission order to the contrary, a transmission and distribution utility must petition for reorganization approval pursuant to Title 35-A, section 708 for any reorganization that involves an affiliated generator.

R. Complaint Log. A transmission and distribution utility shall maintain a log of all resolved and pending complaints alleging violations of the standards of conduct contained in this Chapter, which are subject to Commission review.

§ 5 ANNUAL CHAPTER 330 REPORTS

Annual Chapter 330 Reports. A transmission and distribution utility that has one or more affiliated generators shall expand its Chapter 330 reports to include the following information:

1. identification of all planned transmission substation work at the 69 kV level and above;
2. identification of all planned construction or rebuilding (including reconductoring) of transmission lines at the 69 kV level and above;
3. identification of the most likely potential alternative to each item in (1) and (2) above;
4. identification of all existing generators or proposed generators that that would be materially affected by any projects referenced in the Report;
5. based on existing interconnection or planning studies, explanation and analysis of how the generators and proposed generators identified in (4) may be affected by any projects that are referenced in the Report, including but not limited to, to the extent available, interconnection timing and cost, applicable transmission charges and nodal LMPs, any other factors that affect the access to and prices for the generator or proposed generator in the wholesale markets;
6. a signed affidavit from the President and Chief Operating Officer of each transmission and distribution utility that he/she has reviewed the Chapter 330 Report with the person(s) responsible for its development and affirms that the utility has not planned or made any improvements to the transmission system with the intent of giving any existing or proposed generator preferential treatment nor with the intent of providing any ratepayer subsidy in terms of allocating the costs of any such improvements between generators and ratepayers.

Investigation. The Commission may commence a formal investigation into any project or planned improvement referenced in the Report if it determines that the project(s) could result in preferential treatment or other benefits for an affiliated generator or a financial interest generator. In the investigation, the Commission will determine whether the project(s) must receive prior approval or must be developed or owned by an affiliate and thus excluded from retail transmission rates. To the extent the Commission orders a transmission and distribution utility not to proceed with a project based on a finding of preferential treatment or other benefits for an affiliated generator of financial interest generator, the Commission may direct the transmission and distribution utility not to seek recovery of development costs associated with the project. To the extent the Commission finds that a project be cancelled or modified based on a finding of preferential treatment or other benefits for an affiliated generator or financial interest generator, the Commission may direct the transmission and distribution utility not to seek recovery of any costs from the FERC that resulted from the preferential treatment or other benefits.

§ 6 COMMISSION JURISDICTION

Affiliated generators and affiliated interests shall be subject to Commission jurisdiction with respect to compliance with this Chapter.

§ 7 IMPLEMENTATION PLAN

Implementation Plan. A transmission and distribution utility shall file with the Commission current written procedures implementing the standards of conduct established by this Chapter. The transmission and distribution utility, its affiliated generators and its affiliated interests shall provide every employee with a copy of the implementation plan and any amendments to the plan. The implementation plan must include procedures to train employees of the transmission and distribution utility, its affiliated generators and affiliated interests in procedures necessary to ensure compliance with this Chapter. For purposes of this provision, training requirements are limited to employees that have or may have access to confidential information that is subject to this Chapter.

Effective Date. An implementation plan takes effect 30 days after it is filed with the Commission unless the Commission suspends the effectiveness of all or part of the plan, in which case the suspended portion takes effect upon Commission approval .

Changes. A transmission and distribution utility shall file with the Commission any change to an implementation plan. A change to an implementation plan takes effect 30 days after the change is filed with the Commission unless the Commission suspends the effectiveness of all or part of the change, in which case the suspended portion takes effect upon Commission approval.

Commission Investigation. The Commission may open an investigation into a transmission and distribution utility's implementation plan or a transmission and distribution utility's compliance with its plan at any time and may order changes to be made in an implementation plan as a result of the investigation.

§ 8 AUDITS

An independent external audit of compliance with standards of conduct contained in this Chapter shall be completed every five years. The Commission shall develop the scope of the audit and select the auditor. The costs of the audit, including the Commission’s external costs of developing the scope of the audit shall not be recovered from ratepayers. In its discretion, the Commission may require audits more frequently.

§ 9 ENFORCEMENT AND SANCTIONS

Sanctions and Administrative Penalties. In the event that a transmission and distribution utility or an affiliated generator violates provisions of this Chapter, the transmission and distribution will be subject to sanctions and administrative penalties pursuant to the provisions of 35-A MRS Chapter 15.

Divestiture. The Commission may order divestiture of or by the transmission and distribution utility in the event the violation of provisions of this Chapter has resulted or will likely result in substantial injury to ratepayers or to the competitive generation market and upon a determination by the Commission after notice and opportunity to be heard that no other remedy is adequate to reasonably address the harm.

C. Complaints. A complaint may be brought for matters within the Commission's jurisdiction by an individual generator for acts or omissions of a transmission and distribution utility that are unreasonable, preferential, discriminatory or anticompetitive and the complaint will be treated in the same manner as a complaint otherwise brought by 10 persons as allowed by Title 35-A, section 1302;

§ 10 LONG-TERM CONTRACTS

An affiliated generator that does not have a Commission-approved long-term contract or term sheet pursuant to provisions contained in Title 35-A as of July 1, 2017 are ineligible for any long-term contract authorized in Title 35-A.

§ 11 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Adopting Provisional Rule and Statement of Factual and Policy Basis, Docket No. 2017-00262, issued on January 5, 2018, and Order Adopting Final Rule and Statement of Factual and Policy Basis, Docket No. 2017-00262, issued on May 24, 2018. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04330-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 3204(11) and Resolves 2017, Chapter 49
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 1, 2018. It was filed with the Secretary of State on June 4, 2018 (filing 2018-094), and becomes effective on July 4, 2018.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 310 Uniform System of Accounts for Electrical Utilities

Code Me. R. 65-407 Ch. 310 Uniform Systems of Accounts for Electric Utilities {#sec-65-407-ch.-310 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 310}

SUMMARY: This Rule establishes a uniform system of accounts for electric utilities.

A. Each electric utility shall keep its books in the manner and form prescribed by the Uniform System of Accounts for Electric Utilities Issue of 1923 Revised, or if the Commission expressly authorizes by the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission. The Commission may require additional accounting entries, sub-categories, or reports as are necessary for its regulation of electric utilities.

B. For the purpose of applying the requirement of Section 1 electric utilities are grouped as follows:

Class A - Utilities having annual electric operating revenues exceeding $100,000.

Class B - Utilities having annual electric operating revenues exceeding $25,000, but not more than $100,000.

Class C - Utilities having annual electric operating revenues less than $25,000.

C. Any electric utility may, unless or until otherwise ordered by the Commission or the Director of Finance, keep any subsidiary, divisional, or other records or accounts provided that such entries shall not impair the integrity of any account prescribed by this rule.

D. All accounts shall be closed annually on December 31. On or before the following first day of April, each electric utility shall prepare a report, verified by an officer or owner, on forms furnished by the Commission. This report shall contain such information as the Commission shall prescribe.

E. All accounts shall be audited in accordance with Chapter 710 of the Rules of the Maine Public Utilities Commission (65-407 C.M.R. 710). A copy of the auditor's report, accompanied by the audited financial statements, shall be filed with the Commission not later than the first day of the fourth month following the 12-month period for which the audit was conducted, except that audit reports based on a fiscal year ending December 31 must be filed by the following July 1. The utility shall file with the audited financial statements a cover sheet describing any discrepancies between the audited financial statements and the annual report or reports filed by the utility under section D, which cover the same 12-month period as the audit.

F. For good cause shown, the Commission may waive any of the requirements of this Rule, provided such waiver does not unduly undermine the purposes of this Rule. The Commission may also subsequently rescind, alter, or amend any such waiver for good cause. The Commission delegates to the Director of Finance the authority to issue, rescind, alter, or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Director of Finance of to issue, rescind, alter, or amend a waiver directly.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 501, 502, 504 and 505.
• EFFECTIVE DATE: December 14, 1988
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: November 9, 1999
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 310 page 2

Chapter 311 Portfolio Requirement

Code Me. R. 65-407 Ch. 311 Portfolio Requirement {#sec-65-407-ch.-311 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 311}

SUMMARY: This Chapter establishes requirements and standards for implementing the eligible resource new renewable resource, and thermal energy portfolio requirements.

§ 1 PURPOSE 4

§ 2 DEFINITIONS 4

§ 3 NEW RENEWABLE RESOURCES: CLASS I AND CLASS 1A 8

A. Class I Requirement 8

B. Class 1A Requirement 9

C. Commission Certification…………………………………………………… 9

Certification Process…………………………………………………... 10

Petition………………………………..………………………………..…… …10

D. Alternative Compliance Mechanism 10

1. Payment Amount 11

2. Payment Rate 11

3. Use of Funds 11

E. Suspensions 11

1. Alternative Compliance Payments 11

2. Insufficient Development 11

3. Resumption of Scheduled Increases 11

F. Exemption 11

G. Transmission and Subtransmission Customer Options…………………………………..12

H. Qualified Hydroelectric Output……………………………….…………………………12

Renewable Energy Credits………………………………………………..….…12

Aggregate Production……………………………………………………..…….12

§ 4 ELIGIBLE RESOURCE REQUIREMENT; CLASS II 12

A. Requirement 12

B. Multiplier 13

§ 5 THERMAL ENERGY RENEWABLE REQUIREMENT 13

A. Requirement 13

B. Commission Certification 13

1. Certification Process 13

2. Petition 13

C. Alternative Compliance Mechanism 14

1. Payment Amount 14

2, Payment Rate 14

Use of Funds 15

D. Exemption ……………………………………………………………………………… 15

§ 6 PROVIDER OBLIGATIONS 15

A. Annual Obligation 15

B. New Providers 15

C. Customer Representation 15

D. Resource Duplication 15

E. Aggregators and Brokers 15

F. Pine Tree Zones 15

G. Advisory Ruling 16

§ 7 VERIFICATION; REPORTING 16

A. Provider Demonstration 16

B. Verification Method 16

1. ISO-NE Area 16

2. NMISA Area 16

Compliance ………………………………………………………..……………16

C. Other Jurisdictions 16

D. Physical Deliverability 16

E. Multi-Fuel Facilities 16

F. Pumped-Storage Hydroelectric Facilities 16

G. Annual Reports 16

H. Officer Certification 17

I. Initial Demonstration Statements 17

J. Additional Information 17

K. Audits 17

L. Rejection of Certificates 17

M. Generation Facilities 17

N. Confidentiality 18

§ 8 NON-COMPLIANCE; SANCTIONS 18

A. Cure Period 18

B. Banked Compliance 18

C. Sanctions 18

1. License Revocation 18

2. Penalties 18

3. Other 18

4. Waiver 18

§ 9 WAIVER OR EXEMPTION 18

§ 1 PURPOSE

The purpose of this Chapter is to implement the State's policy to encourage the generation of electricity from renewable and efficient sources, the production of thermal energy from renewable resources and to diversify electricity production on which residents of this State rely.

§ 2 DEFINITIONS

Affiliate. “Affiliate” means any corporate affiliate or other entity that has a shared financial interest as determined by the Commission with a customer of a Maine transmission and distribution utility that receives service at the transmission or subtransmission voltage level.

Aggregator. "Aggregator" means an entity that gathers individual customers together for the purpose of purchasing electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

Alternative Compliance Payment Rate. “Alternative compliance payment rate” means a certain dollar amount per megawatt-hour set by the Commission that a competitive electricity provider may pay to the Commission to satisfy the portfolio requirements of this chapter.

D. Broker. "Broker" means an entity that acts as an agent or intermediary in the sale and purchase of electricity but that does not take title to electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

E. Class I Resource. “Class I resource” means a new renewable capacity resource.

F. Class IA Resource. "Class IA resource" means a Class I resource other than a Class I resource that for at least 2 years was not operated or was not recognized by the New England independent system operator as a capacity resource and, after September 1, 2005, resumed operation or was recognized by the New England independent system operator as a capacity resource.

G. Competitive Electricity Provider. "Competitive electricity provider" means a marketer, broker, aggregator, standard offer provider or any other entity selling electricity to the public at retail in Maine.

H. Compliance Period. "Compliance period" means the time period over which the portfolio requirement must be satisfied.

I. GIS. “GIS” means the NEPOOL Generation Information System or successor system.

J. GIS Certificates. “GIS certificates” mean certificates created pursuant to the NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

K. Efficient Resource. "Efficient resource" means a source of electrical generation that qualifies as a qualifying cogeneration facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997, was constructed prior to January 1, 1997 and, during any calendar year, the sum of the useful power output and the useful thermal energy output of the facility is no less than 60% of the total energy input to the facility.

L. Eligible Resource or Class II Resource. "Eligible resource" or “Class II resource” means a source of electrical generation that:

(1) Generates power that can physically be delivered to the control region in which the New England Power Pool, or its successor as approved by the Federal Energy Regulatory Commission, has authority over transmission, or to the Maritimes Control Area; and

(2) Is either a renewable resource or an efficient resource.

M. Multi-Fuel Facility. "Multi-fuel facility" means an electric generation facility that uses more than one fuel or technology in the production of electricity.

N. ISO-NE. "ISO-NE" means the Independent System Operator of the New England bulk power system or successor organization.

O. ISO-NE Control Area. "ISO-NE control area" means the area in which the ISO-NE operates the New England bulk power system.

P. Marketer. "Marketer" means an entity that as an intermediary purchases electricity and takes title to electricity for sale to retail customers.

Q. Nameplate Capacity. "Nameplate capacity" means the capacity rating of a generation facility as specified by the manufacturer.

R. NAR. “NAR” means the Northern American Renewables Registry.

S. NAR Certificates. NAR certificates mean certificates created pursuant to the Northern American Renewables Registry that represent attributes of electric power and that may be traded separately from the energy commodity.

T. New. "New" as applied to a renewable capacity resource means qualified hydroelectric output or a renewable capacity resource that:

(1) Has an in-service date after September 1, 2005;

(2) Was added to an existing facility after September 1, 2005;

(3) For at least 2 years was not operated or was not recognized by the New England independent system operator as a capacity resource and, after September 1, 2005, resumed operation or was recognized by the New England independent system operator as a capacity resource. For the purposes of this subparagraph, “capacity resource” has the same meaning as in 3210-C, subsection 1, paragraph A; or

(4) Was refurbished after September 1, 2005 and received certification from the commission:

(a) Before September 1, 2019, that it is operating beyond its previous useful life or is employing an alternate technology that significantly increases the efficiency of the generation process; or

(b) On or after September 1, 2019, that it is operating beyond its previous useful life as evidenced by a finding that the facility would be reasonably likely to cease operation if not for substantial capital investment made after September 1, 2018, except for capital investment required to meet state and federal fish passage standards.

U. NMISA. “NMISA” means the Northern Maine Independent System Administrator or successor organization.

V. Pumped-Storage Hydroelectric Facility. "Pumped-storage hydroelectric facility" means a hydroelectric generation facility that utilizes pumping facilities and a storage reservoir in the production of electricity.

W. Qualified Hydroelectric Output. "Qualified hydroelectric output" means the following annual percentages of the total electrical output of a hydroelectric generator licensed by the Federal Energy Regulatory Commission that is a renewable capacity resource and that on January 1, 2019 had a total nameplate capacity of at least 25 megawatts, as specified in the license issued by the Federal Energy Regulatory Commission, is located outside of the historic freshwater range of the Gulf of Maine Distinct Population Segment of Atlantic Salmon as defined by the National Oceanic and Atmospheric Administration, National Marine Fisheries Service in 74 Federal Register, 29299 (2009) and 29343 (2009), and is interconnected to an electric distribution system located in the State:

(1) In 2020, 40%, not to exceed an aggregate of 200,000 megawatt-hours for all qualified hydroelectric output;

(2) In 2021, 50%, not to exceed an aggregate of 250,000 megawatt-hours for all qualified hydroelectric output;

(3) In 2022, 60%, not to exceed an aggregate of 300,000 megawatt-hours for all qualified hydroelectric output;

(4) In 2023, 70%;

(5) In 2024, 80%;

(6) In 2025, 90%; and

(7) In 2026 and each year thereafter, 100%.

X. Refurbish. "Refurbished" means an investment has been made in equipment or facilities, other than for routine maintenance and repair, to renovate, reequip or restore the renewable capacity resource.

Y. Renewable Capacity Resource. "Renewable capacity resource" means a source of electrical generation:

(1) Whose total power production capacity does not exceed 100 megawatts and relies on one or more of the following:

(a) Fuel cells;

(b) Tidal power;

(d) Geothermal installations;

(e) Hydroelectric generators that meet all state and federal fish passage requirements applicable to the generator;

(f) Biomass generators that are fueled by wood, wood waste or landfill gas; or

(g) Anaerobic digestion of by-products of waste from animals or agricultural crops, food or vegetative material, algae or organic refuse; or

(2) That relies on wind power installations or solar power installations.

Z. Renewable Energy Credit. “Renewable energy credit” means a tradable instrument that represents an amount of electricity or thermal energy generated.

AA. Renewable Resource. "Renewable resource" means a source of electrical generation:

(1) That qualifies as a small power production facility under the Federal Energy Regulatory Commission rules, 18 Code of Federal Regulations, Part 292, Subpart B, as in effect on January 1, 1997; or

(2) Whose total power production capacity does not exceed 100 megawatts and that relies on one or more of the following:

(a) Fuel cells;

(b) Tidal power;

(c) Solar arrays and installations;

(d) Wind power installations;

(e) Geothermal installations;

(f) Hydroelectric generators;

(g) Biomass generators that are fueled by wood or wood waste, landfill gas or anaerobic digestion of agricultural products, by-products or wastes; or

(h) Generators fueled by municipal solid waste in conjunction with recycling.

BB. Standard Offer Provider. "Standard offer provider" means a provider of standard offer service chosen pursuant to Chapter 301 of the Commission's rules.

CC. Thermal Energy. "Thermal energy" means heat, steam, hot water or another form of thermal energy:

(1) Produced directly by a facility using sunlight, biomass, biogas or liquid biofuel or produced as a byproduct of electricity generated by a Class I or Class IA resource;

(2) That begins operation after June 30, 2019, as certified by the commission;

(3) Delivered to an end user in the State in a manner that can be verified by metering or other means certified by the commission to allow for auditable validation of useful thermal energy generated;

(4) Used for heating, cooling, humidity control, process use or other end use to meet a need of the end user that would otherwise be met using another energy source such as electricity or an on-site thermal energy system; and

(5) Generated or delivered in accordance with any efficiency performance standards established by the commission.

DD. Thermal Renewable Energy Credit. "Thermal renewable energy credit" means a tradable instrument that represents an amount of thermal energy equivalent to a unit of electricity. A thermal renewable energy credit of one megawatt represents 3,412,000 British thermal units of thermal energy, as verified by the commission.

EE. Useful Power Output. "Useful power output" means the electrical or mechanical energy made available for use, exclusive of any energy used in the power production process.

FF. Useful Thermal Energy. "Useful thermal energy" means heat energy made available to an industrial or commercial process, net of any heat contained in condensate return and makeup water, used in a heating application or used in a space cooling application.

§ 3 NEW RENEWABLE RESOURCES; CLASS I AND CLASS IA

A. Class I Requirement. Except as provided in subsection D, beginning January 1, 2008, each competitive electricity provider, including standard offer providers, must account for no less than the percentage specified below of its total kilowatt-hour sales to customers in Maine with electric energy associated with Class I resources in accordance with the provisions of this Chapter.

1. One percent for the period from January 1, 2008 to December 31, 2008;

2. Two percent for the period from January 1, 2009 to December 31, 2009;

3. Three percent for the period from January 1, 2010 to December 31, 2010;

4. Four percent for the period from January 1, 2011 to December 31, 2011;

5. Five percent for the period from January 1, 2012 to December 31, 2012;

6. Six percent for the period from January 1, 2013 to December 31, 2013;

7. Seven percent for the period from January 1, 2014 to December 31, 2014;

8. Eight percent for the period from January 1, 2015 to December 31, 2015;

9. Nine percent for the period from January 1, 2016 to December 31, 2016; and

10. Ten percent for the period from January 1, 2017 to December 31, 2017 and for each year thereafter.

Class I resources used to satisfy the requirements of this subsection may not be used to satisfy the requirements of Section 3(B) or Section 4.

B. Class IA Requirement. Except as provided in subsection D, beginning January 1, 2020, each competitive electricity provider, including standard offer providers, must account for no less than the percentage specified below of its total kilowatt-hour sales to customers in Maine with electric energy associated with Class IA resources in accordance with the provisions of this Chapter.

1. Two and one-half percent for the period from January 1, 2020 to December 31, 2020;

2. Five percent for the period from January 1, 2021 to December 31, 2021;

3. Eight percent for the period from January 1, 2022 to December 31, 2022;

4. Eleven percent for the period from January 1, 2023 to December 31, 2023;

5. Fifteen percent for the period from January 1, 2024 to December 31, 2024;

6. Nineteen percent for the period from January 1, 2025 to December 31, 2025;

7. Twenty-three percent for the period from January 1, 2026 to December 31, 2026;

8. Twenty-seven percent for the period from January 1, 2027 to December 31, 2027;

9. Thirty-one percent for the period from January 1, 2028 to December 31, 2028;

10. Thirty-five percent for the period from January 1, 2029 to December 31, 2029; and

11. Forty percent for the period from January 1, 2030 to December 31, 2030 and each year thereafter.

Class IA resources used to satisfy the requirements of this subsection may not be used to satisfy the requirements of Section 3(A) or Section 4.

C. Commission Certification. Except as otherwise provided, a generation facility may not be used to satisfy the Class I or Class IA requirements of this section unless the Commission certifies the generation facility as a Class I or Class IA resource. A resource may be classified as both a Class I and Class IA resource. A resource must be specifically certified as a qualified hydroelectric facility. All Class I generation facilities certified by the Commission as of September 19, 2019 are automatically certified as Class IA generation facilities without any filing requirements except those existing generation facilities that were certified as Class I resource on the basis that for at least 2 years the generation facility was not operated or was not recognized by the New England independent system operator as a capacity resource and, after September 1, 2005, resumed operation or was recognized by the New England independent system operator as a capacity resource.

1. Certification Process. An owner or operator of a generation facility may seek Commission certification through the submission of a petition for certification. The Commission shall either certify the generation facility as a Class I or IA resource, or both, or state the reasons for the denial of the certification within 90 days of the submission of a complete application. If additional time is required, the Administrative Director may extend the time period for review. The Commission shall provide an opportunity for public comment if the petitioner seeks certification as refurbished resource. The Commission may revoke a certification if there is a material change in circumstance that renders the generation facility ineligible as a Class I or Class IA resource.

2. Petition. The petition for certification shall include the following information:

Name and address of petitioner;

Location of the generation facility;

Description of the generation facility, including fuel type, capacity and initial commercial operation date;

The refurbish category for which certification is sought

Demonstration of qualification for a comparable portfolio requirement in another state, if applicable;

Historical output and means to determine incremental output, if certification is sought for a facility added to an existing facility;

The time period for which the facility did not operate, the reasons the facility did not operate, and the date operation resumed; if certification is sought for a facility that has resumed operations;

A description of facility refurbishment, the degree to which the useful life has been extended, and the use of an alternate technology and resulting efficiency increases, if certification is sought for a refurbished facility; and

Any other information that the Commission determines to be necessary or useful.

D. Alternative Compliance Mechanism. The Class I and Class IA requirements of this section may be satisfied by an alternative compliance payment according to this subsection. The payment for an applicable year shall be made to the Commission by July 1 of the following year.

1. Payment Amount. The amount of the alternative compliance payment shall equal the alternative compliance payment rate multiplied by the number of deficient kilowatt-hours. For purposes of this subsection, deficient kilowatt-hours are the number of kilowatt-hours required to be served by Class I or Class IA resources minus the number of kilowatt-hours that are actually served by Class I or Class IA resources .

2. Payment Rate. The alternative compliance base rate shall be $57.12 per megawatt-hour. Beginning in 2008, the Commission will adjust the alternative compliance payment rate by the annual change in the U.S. Bureau of Labor Statistics Consumer Price Index. For each year, the Commission will calculate and publish the alternative compliance payment rate no later than January 31 for applicability in that year. For RPS requirements on or after January 1, 2020, the alternative compliance payment rate shall be $50.00 per megawatt-hour.

3. Use of Funds. The Commission shall use all funds collected pursuant to this subsection to provide financial assistance for low-income households in accordance with 35-A M.R.S. § 3214(2).

E. Suspensions. Suspensions of scheduled increases in the Class IA requirement of this section are governed by this subsection.

1. Alternative Compliance Payments. The Commission shall temporarily suspend all or some of the scheduled percentage increases in the Class IA requirement if the Commission finds that alternative compliance payments made pursuant to subsection D account for more than 10% of the obligations required to satisfy the portfolio requirements for Class IA in 3 consecutive years.

2. Insufficient Development. The Commission may suspend all or some of a scheduled percentage increase in the Class IA requirement if by March 31^st of the year 2022 and every 2 years thereafter, the Commission determines that investment in Class IA resources over the preceding two years has not been sufficient for competitive electricity providers to meet the Class I and Class IA requirements and that the resulting use of GIS or NAR certificates or the alternative compliance payment mechanism, or both of these methods, has burdened electricity customers in the State without providing the benefits of Class IA resources. The Commission may suspend all or some of the future scheduled increases in the Class IA requirements.

3. Resumption of Scheduled Increases. Subsequent to any suspension pursuant to this subsection, the Commission may resume increases in the Class IA requirement but such increases are limited to no more than one percentage point per year over the previous year.

F. Exemption. Retail electricity sales pursuant to a supply contract or standard-offer service arrangement that is in effect on or before September 19, 2019, are exempt from the Class IA requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement. Retail electricity sales pursuant to a supply contract or standard-offer service arrangement that is in effect on or before September 20, 2007, are exempt from the Class I requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement.

G. Transmission and Subtransmission Customer Options. A customer receiving service at a transmission or subtransmission voltage level may elect to have its supply exempt from the requirements of the Class IA portfolio requirement contained in this section. The customer must provide the Commission with written notice of the election. The election becomes effective when notice is submitted to the Commission. The election must be made no later than December 31, 2019. If a customer makes an election under this subsection, the election applies through December 31, 2027. A customer may rescind the election by notifying the Commission in writing no later than 30 days after the Commission initiates the second solicitation under title 35-A, section 3210-G. The decision to rescind is effective six months after the date the notice is provided to the Commission. As long as the election remains in effect, all retail sales of electricity to that customer are exempt from the Class IA requirement and no electricity generation, GIS certificates or NAR certificates produced by the customer's or affiliate's generation facility may be used or applied to satisfy the Class IA requirement or participate in long-term contract procurement pursuant to Title 35-A, section 3210-G. Such customers or affiliates will not be subject to the costs or benefits that result from long-term contract procurements pursuant to Title 35-A, section 3210-G. Except for customers receiving standard offer service, a customer has the obligation to inform its competitive electricity provider of an election or rescission pursuant to this subsection. The transmission and subtransmission customer’s notification of an election, or subsequent rescission, pursuant to this section will occur through a Commission adopted proceeding.

H. Qualified Hydroelectric Output. Facilitiescertifiedas providingqualified hydroelectric output shall comply with the following provisions:

Renewable Energy Credits. Facilitiescertifiedas providingqualified hydroelectric output shall not seek to acquire or transfer Class I and Class 1A RECs associated with generation in excess of the limits specified in section 2(W) of this Chapter. Facilities may acquire or transfer Class II RECs

Aggregate Production. When the aggregate limit of production from qualified hydroelectric output has been reached for a particular year, facilitiescertifiedas providingqualified hydroelectric output shall not seek to acquire or transfer Class 1 and Class 1A GIS certificates or NAR certificates associated with generation from qualified hydroelectric output. Facilities may acquire or transfer Class II RECs.

§ 4 ELIGIBLE RESOURCE REQUIREMENT; CLASS II

A. Requirement. Each competitive electricity provider, including standard offer providers, must account for no less than 30% of its total kilowatt-hour sales to customers in Maine with electric energy associated with eligible resources in accordance with the provisions of this Chapter.

B. Multiplier. For the purposes of meeting the Class II requirement under this Section, during the period beginning on January 1, 2020 and ending on December 31, 2026, a 300% multiplier is applied to the output of a generator fueled by municipal solid waste in conjunction with recycling that has obtained a solid waste facility license from the Maine Department of Environmental Protection.

C. Alternative Compliance Mechanism. The Class II requirements of this section may be satisfied by an alternative compliance payment according to this subsection. The payment for an applicable year shall be made to the Commission by July 1 of the following year.

1. Payment Amount. The amount of the alternative compliance payment shall equal the alternative compliance payment rate multiplied by the number of deficient kilowatt-hours. For purposes of this subsection, deficient kilowatt-hours are the number of kilowatt-hours required to be served by Class II resources minus the number of kilowatt-hours that are actually served by Class II resources.

2. Payment Rate. Unless otherwise changed by Commission Order, the alternative compliance base rate shall be $5.00 per megawatt-hour.

3. Use of Funds. The Commission shall use all funds collected pursuant to this subsection to provide financial assistance for low-income households in accordance with 35-A M.R.S. § 3214(2).

§ 5 THERMAL ENERGY RENEWABLE REQUIREMENT

A. Requirement. Each competitive electricity provider, including standard offer providers, must demonstrate that it has purchased thermal renewable energy credits in an amount at least equal to the following percentages of its portfolio of supply sources for retail electricity sales in this State other than to customers who have elected to have their supply exempt pursuant to section 3(G) of this Chapter:

1. For calendar year 2021, 0.4%;

2. For calendar year 2022, 0.8%;

3. For calendar year 2023, 1.2%;

4. For calendar year 2024, 1.6%;

5 For calendar year 2025, 2%;

6. For calendar year 2026, 2.4%;

7. For calendar year 2027, 2.8%;

8. For calendar year 2028, 3.2%;

9. For calendar year 2029, 3.6%; and

10. For calendar year 2030, and each year thereafter, 4%.

B. Commission Certification. A facility may not be used to satisfy the thermal renewable energy requirements of this section unless the Commission certifies the facility as eligible pursuant to this section.

1. Certification Process. An owner or operator of a facility may seek Commission certification through the submission of a petition for certification. The Commission shall either certify the facility as eligible, or state the reasons for the denial of the certification within 90 days of the submission of a complete application. If additional time is required, the Administrative Director may extend the time period for review. The Commission may provide an opportunity for public comment prior to making an eligibility determination. The Commission may revoke a certification if there is a material change in circumstance that renders the facility ineligible as a thermal renewable resource.

2. Petition. The petition for certification shall include the following information:

Name and address of petitioner;

Location of the thermal energy facility;

Location of the end user entity;

Description of the thermal energy facility, including form of thermal energy and a means to verify the use of the form of thermal energy;

The initial commercial operations date, including verification of the commercial operations date;

The means by which the thermal energy will be delivered to the end user and the metering or other means certified by the commission necessary to validate the thermal energy generated and transmitted;

A demonstration and a means for verification that the thermal energy will be used for heating, cooling, humidity control, process use or other end use to meet a need of the end user that would otherwise be met using another energy source such as electricity or an on-site thermal energy system;

A demonstration that the thermal energy facility meets any existing efficiency standards in effect for the sale or installation of the facility or, if no efficiency standards exist, a showing as to the facility’s efficiency;

A demonstration and a means for verification that the thermal energy will be generated with any efficiency standards established by the Commission in this section;

(x) Demonstration of qualification for a comparable portfolio requirement in another state, if applicable;

(xi) Any other information that the Commission determines to be necessary or useful.

C. Alternative Compliance Mechanism. The thermal renewable requirements of this section may be satisfied by an alternative compliance payment according to this subsection. The payment for an applicable year shall be made to the Commission by July 1 of the following year.

1. Payment Amount. The amount of the alternative compliance payment shall equal the alternative compliance payment rate multiplied by the number of deficient thermal renewable energy credits. For purposes of this subsection, deficient thermal renewable energy credits are the number of thermal renewable energy credits required to be acquired pursuant to this section minus the number thermal renewable energy credits that are actually acquired.

2. Payment Rate. Unless otherwise changed by Commission Order, the alternative compliance payment rate shall be $25.00 per megawatt-hour.

3. Use of Funds. The Commission shall deposit all funds collected pursuant to this subsection in the Thermal Energy Investment Fund established pursuant to Title 35-A, section 10128(2).

Exemption. Retail electricity sales pursuant to a supply contract or standard-offer service arrangement that is in effect on or before September 19, 2019, are exempt from the thermal requirements of this section until the end date of the current term of the supply contract or standard-offer service arrangement.

§6 PROVIDER OBLIGATIONS

A. Annual Obligation. Except as provided for in subsection B, each competitive electricity provider must satisfy the portfolio requirements of this Chapter over a 12-month compliance period ending on December 31 of each year.

B. New Providers. The compliance period for competitive electricity providers that provide service to customers in Maine for less than a calendar year is as specified in this subsection.

1. Service Greater Than Six Months. For competitive electricity providers that begin service to customers in Maine prior to July 1 of any year, the portfolio obligations must be satisfied over a compliance period from the beginning of service until the following December 31.

2. Service Less Than Six Months. For competitive electricity providers that begin service to customers in Maine on or after July 1 of any year, the portfolio obligations must be satisfied over a compliance period from the beginning of service until the second December 31 following the initiation of service.

C. Customer Representation. If a competitive electricity provider represents to a customer that the provider is selling to the customer a portfolio of supply sources that includes more Class I, Class IA or eligible resources than is required by this Chapter, the resources used to supply the customers’ load may not be used to meet the aggregate requirements of this Chapter.

D. Resource Duplication. GIS certificates or NAR certificates may be used only once to satisfy the Class I requirement, the Class IA requirement or the eligible resource requirement of this Chapter and may not be used to satisfy any other state’s portfolio requirements or otherwise sold to customers or other entities.

E. Aggregators and Brokers. The obligations of this Chapter do not apply to aggregators and brokers.

F. Pine Tree Zones. The sale of electricity by a competitive electricity provider to a qualified Pine Tree Development Zone business established under Title 30-A is exempt from the requirements of this Chapter unless the qualified Pine Tree Development Zone business requests the Commission to waive the exemption for that qualified Pine Tree Development Zone business. This subsection is repealed by operation of statute on December 31, 2031.

G. Advisory Ruling. Any competitive electricity provider or interested person may request an advisory ruling from the Commission to determine whether a particular generation facility qualifies for the Class I requirement, the Class IA requirement or the eligible resource requirement of this Chapter or whether particular GIS certificates may be used to satisfy the requirements of this Chapter. The Commission shall provide interested persons with notice and an opportunity to be heard on requests for advisory rulings pursuant to this subsection.

§ 7 VERIFICATION; REPORTING

A. Provider Demonstration. Each competitive electricity provider has the obligation to demonstrate compliance with the portfolio requirements contained in this Chapter.

B. Verification Method. Competitive electricity providers must verify compliance with the portfolio requirements as specified in this subsection.

1. ISO-NE Control Area. For electricity or thermal energy generation in the ISO-NE control area, verification of compliance with the portfolio requirements must be through eligible GIS certificates. For purposes of compliance with this provision, all competitive electricity providers must have at least one Maine GIS sub‑account.

2. NMISA Area. For electricity or thermal energy generation in the NMISA area, verification of compliance with the portfolio requirement must be through eligible NAR certificates.

3. Compliance. Competitive electricity providersmay verify compliance through any combination of GIS and NAR certificates.

C. Other Jurisdictions. GIS certificates or NAR certificates used to satisfy obligations in other jurisdictions shall not be used to satisfy the portfolio requirements of this Chapter.

D. Physical Deliverability. The source of GIS certificates used to satisfy the portfolio requirements must be electric or thermal energy that is physically delivered to the ISO-NE control area or is located in the ISO-NE control area. The source of NAR certificate used to satisfy the portfolio requirements must be physically delivered to the NMISA area or is located in the NMISA area. For purposes of this Chapter, electric energy physically delivered is energy that is recognized pursuant to the rules of the ISO-NE or NMISA as serving load obligations in New England or is otherwise used to serve electricity load within the ISO‑NE or NMISA control areas.

E. Multi-Fuel Facilities. Multi-fuel facilities shall be treated in accordance with the GIS rules or NAR rules, as applicable.

F. Pumped-Storage Hydroelectric Facilities. Pumped-storage hydroelectric facilities shall be treated in accordance with the GIS rules or NAR rules, as applicable.

G. Annual Reports. On or before July 1 of each year, each competitive electricity provider must submit an annual report that contains information that documents compliance with the portfolio requirements of this Chapter over the previous compliance period. At a minimum, the annual report must include the following information for the compliance period:

1. total retail kilowatt-hour sales in Maine;

2. total retail kilowatt-hour sales in Maine served from Class I, Class IA and eligible resources;

3. the amount of thermal energy RECs obtained; and

4. reports from the GIS Administrator or NAR Administrator as applicable;

Any retail electricity sales for which a competitive electricity provider is claiming an exemption pursuant to the provisions of Sections 3 or 5 must be identified and supported with appropriate documentation in the report.

H. Officer Certification. Each annual report must contain a certification by a corporate officer that the competitive electricity provider has complied with the portfolio requirements of this Chapter and that all eligible GIS certificates or NAR certificates used to satisfy the portfolio requirements in Maine have not been used by the competitive electricity provider to satisfy any load obligations in other jurisdictions.

I. Initial Demonstration Statements. At the time of application for a license pursuant to Chapter 305, each competitive electricity provider must submit an initial demonstration statement. The initial demonstration statement shall contain an estimate of retail sales in Maine over the compliance period and a description of the means by which the competitive electricity provider will comply with the portfolio requirements, including contracts or entitlements to eligible generation facilities.

J. Additional Information. The Commission may at any time request and obtain information from a competitive electricity provider that the Commission determines is needed to monitor or enforce compliance with this Chapter.

K. Audits. The Commission may at any time conduct an audit of any competitive electricity provider to verify compliance with the portfolio requirements of this Chapter. Upon request by the Commission, a competitive electricity provider must provide any information that the Commission determines is needed to conduct the audit and verify compliance with this Chapter.

L. Rejection of Certificates. The Commission may reject the use of certain GIS certificates or NAR certificates as a means to satisfy the portfolio requirements of this Chapter if it finds that the source of GIS certificates or NAR certificates is not a qualifying Class I, Class IA, an eligible resource, or thermal energy, that rejection is necessary to avoid the double counting of electricity attributes or for other good cause.

M. Generation Facilities. The Commission may at any time conduct an investigation into whether a designated generation or thermal energy source is a qualifying Class I, Class IA, an eligible resource, for purposes of this Chapter. The Commission may request and obtain information from a generation or thermal energy facility that the Commission determines is needed to verify qualification pursuant to this Chapter. The Commission may reject the use of GIS certificates or NAR certificates if a generation or thermal energy facility fails to comply with a request for information made pursuant to this provision.

N. Confidentiality. The Commission may subject any information required by this section to appropriate protective orders.

§ 8 NON-COMPLIANCE; SANCTIONS

A. Cure Period. A competitive electricity provider that does not satisfy the Class I, Class IA, eligible resource or thermal energy requirements of this Chapter during a compliance period, but has obtained eligible GIS or NAR certificates that together correspond to at least two-thirds of the Class I, Class IA, eligible resource, or thermal energy portfolio requirements, may cure the deficiency over the next compliance period, so that over the two compliance periods the portfolio requirements of this Chapter are satisfied.

B. Banked Compliance. A competitive electricity provider may satisfy up to one-third of the portfolio requirements of this Chapter in any year through eligible GIS or NAR certificates associated with electricity or thermal energy production in the prior year. GIS or NAR certificates used for compliance pursuant to this provision must be in excess of the prior year requirements and have not been previously used to satisfy a portfolio requirement in another jurisdiction.

C. Sanctions. A competitive electricity provider that does not satisfy the portfolio requirements of this Chapter, allowing for the cure period provided for in subsection A, is subject to one or more of the following sanctions:

1. License Revocation. The Commission may revoke the competitive electricity provider's license pursuant to the procedures established in Chapter 305.

2. Penalties. The Commission may impose monetary penalties pursuant to the procedures established in Chapter 305.

3. Other. The Commission may impose any other sanction authorized by law that it determines appropriate, taking into account the facts and circumstances that resulted in the failure to satisfy the portfolio requirement.

4. Waiver. The Commission may waive the imposition of sanctions upon a showing that the competitive electricity provider made good faith efforts but could not reasonably satisfy the portfolio requirements of this Chapter due to market conditions. The Commission shall provide interested persons with notice and an opportunity to be heard prior to waiving the imposition of sanctions pursuant to this paragraph.

§ 9 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Electric and Gas Division, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2023-00225, issued on November 1, 2023. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301, 3203(9), 3210; P.L. 2021 c. 199, P.L. 2023 c. 361.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on 11/21/2023. It was filed with the Secretary of State on 11/27/2023 and became effective on 12/2/2023.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 1, 1999. It was filed with the Secretary of State on October 5, 1999 and became effective on November 4, 1999.
• NON-SUBSTANTIVE CORRECTIONS: November 9, 1999 - APA Office Note added.
• AMENDED: This rule was approved as to form and legality by the Attorney General on June 20, 2003. It was filed with the Secretary of State on June 20, 2003 and became effective on July 20, 2003.
• AMENDED: This rule was approved as to form and legality by the Attorney General on November 5, 2004. It was filed with the Secretary of State on November 9, 2004 and became effective on November 14, 2004. A new Section 6 was inserted and the following sections renumbered.
• AMENDED: This rule was approved as to form and legality by the Attorney General on October 31, 2007. It was filed with the Secretary of State on November 1, 2007and became effective on November 6, 2007 (filing 2007-468).
• AMENDED: This rule was approved as to form and legality by the Attorney General on November 27, 2019. It was filed with the Secretary of State on December 2, 2019 and became effective on December 7, 2019 (filing 2019-216).
• AMENDED: The Section 4(B) rule provision was approved as to form and legality by the Attorney General on April 7, 2020. It was filed with the Secretary of State on April 7, 2020 and became effective on May 7, 2020 (filing 2020-091).
• AMENDED: This rule was approved as to form and legality by the Attorney General on December 9, 2020. It was filed with the Secretary of State on December 10, 2020 and became effective on December 15, 2020 (filing 2020-245).
• AMENDED: This rule was approved as to form and legality by the Attorney General on November 10, 2021. It was filed with the Secretary of State on November 16, 2021 and became effective on November 21, 2021 (filing 2021-235).
• AMENDED: December 2, 2023 – filing 2023-241
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 312 Distributed Generation Procurement

Code Me. R. 65-407 Ch. 312 Distributed Generation Procurement {#sec-65-407-ch.-312 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 312}

SUMMARY: This rule establishes the requirements for procurements and related measures for distributed generation.

§ 1 PURPOSE 3

§ 2 DEFINITIONS 3

§ 3 MEASURES TO SUPPORT DISTRIBUTED GENERATION 6

A. Procurements 6

B. Participation in Wholesale Markets 6

C. Change in Tax Treatment 6

§ 4 STANDARD BUYER 6

A. Designation 6

B. Obligations 6

C. Rights 7

D. Treatment of the output of distributed generation resources 7

E. Cost and benefit allocation 7

§ 5 PROJECT SPONSOR 7

A. Designation 7

B. Obligation 7

§ 6 BILL CREDIT PROTOCOLS AND PROJECT SPONSOR REQUIREMENTS 8

Commercial or Institutional Distributed Generation 8

Shared Distributed Generation 8

§ 7 PROCUREMENT PARAMETERS, STANDARDS METHODS, AND PROCESSES 10

Procurement Sectors and Aggregate Target Amounts 10

Procurement Rounds, Targets, and Schedule 10

Procurement Announcement 10

Qualification 11

E. Standard Contract 12

F. Milestones 12

G. Bidding Fees 12

H. Ensuring competition 12

I. Bid evaluation and selection 13

J. Initial Procurement Round (Block 1) 13

K. Subsequent Procurement Rounds (Blocks 2-5) 14

L. Failure to complete timely procurement 15

§ 8 RENEWABLE ENERGY CREDITS 15

Standard disclosure 15

Purchase of renewable energy credits 15

§ 9 CONSUMER PROTECTION 16

Applicability 16

Trade Practices 16

Registration 16

Financial Security 16

Standard Disclosures 16

F. Sanctions 17

§ 10 DISPUTE RESOLUTION 17

§ 11 WAIVER PROVISIONS 18

§ 1 PURPOSE

The purpose of this Chapter is to establish the requirements and processes for procurement of energy, capacity, and renewable attributes from distributed generation resources in the State and other related measures.

§ 2 DEFINITIONS

Bid offer rate. “Bid offer rate” means the rate proposed under a qualified bid for the output of a distributed generation resource in response to a procurement solicitation conducted pursuant to this Chapter.

Block rate. “Block rate” means the applicable rate established for a procurement block pursuant to this Chapter, including the block base rate and any applicable block incentive rates.

Block base rate. “Block base rate” means the base rate established for a procurement block pursuant to this Chapter.

Block incentive rates. “Block incentive rates” means a set of rates, which may be positive or negative values, established for a procurement block and applicable to distributed generation resources with certain attributes.

Clearing price. “Clearing price” means the highest bid offer rate accepted by the Commission in the initial procurement rounds pursuant to this Chapter.

Commercial or institutional customer. “Commercial or institutional customer” means a nonresidential customer of an investor-owned transmission and distribution utility in the State.

Commercial or institutional customer distributed generation resource. “Commercial or institutional customer distributed generation resource” means a distributed generation resource that is associated with a commercial or institutional customer.

Commercially operable. “Commercially operable” means that the distributed generation resource in issue is operational and placed in service and that the project has been constructed, tested, and is fully capable of operating for the purpose of generating electrical energy as contemplated in this Chapter.

Credit rate. “Credit rate” means the rate per kilowatt-hour used to calculate the bill credits for subscribers of a shared distributed generation resource or for commercial or institutional customers. The credit rate for subscribers of a shared distribution resource or for commercial or institutional customers shall equal the per kilowatt-hour price in the long-term contract with that resource’s project sponsor and must be the same for all subscribers of a particular shared distributed generation resource.

Discrete electric generating facility. “Discrete electric generating facility” means a facility that is not co-located with or otherwise in geographic proximity to (i) another distributed generation resource as defined by this Chapter, or (ii) an eligible facility as defined in Chapter 313 of the Commission’s rules in which there is a common financial or other interest that is contrary to the purpose of Title 35-A, sections 3209-A, 3209-B, chapter 34-C.

Distributed generation resource. “Distributed generation resource” means a discrete electric generating facility, to be installed pursuant to this Chapter, with a nameplate capacity of less than five (5) megawatts that uses a renewable fuel or technology under 35-A M.R.S. section 3210, subsection 2, paragraph B-3 and is located in the service territory of an investor-owned transmission and distribution utility in the State. A distributed generation resource participating in programs under this Chapter may not participate in programs under Chapter 313.

Energy produced. “Energy produced” means the energy produced by the distributed generation resource and any associated energy storage system.

Energy storage system. “Energy storage system” means a system that stores energy produced by an associated distributed generation resource for use at a later time.

Household with low or moderate income. “Household with low or moderate income” means a household that (1) participates in a utility, municipal, state or federal income-based assistance program or (2) has household income of up to 80% of the median income for the county or metropolitan area where the household is located.

Investor-owned transmission and distribution utility. “Investor-owned transmission and distribution utility” has the same meaning as in 35-A M.R.S. section 3104, subsection 1, paragraph A.

Kilowatt. “Kilowatt” means 1,000 watts. When used in reference to a generation resource, a kilowatt is measured by the generator’s nameplate capacity.

Kilowatt-hour. “Kilowatt-hour” means one kilowatt of power sustained for one hour.

Megawatt. “Megawatt” means 1,000 kilowatts. When used in reference to a generation resource, a megawatt is measured by the generator’s nameplate capacity.

Nameplate capacity. “Nameplate capacity” means the installed or rated capacity of a distributed generation resource in Alternating or Direct Current (AC/DC), as applicable to the resource.

Offer. “Offer” means a proposal to install, operate and provide the output of a distributed generation resource pursuant to a contract with a standard buyer designated pursuant to this Chapter.

Output. “Output” means the energy, capacity, renewable energy certificates and all other environmental attributes and market products that are available or may become available from a distributed generation resource and any associated energy storage systems.

Procurement announcement. “Procurement announcement” means the formal announcement of the initiation of a procurement round pursuant to this Chapter.

Project sponsor. “Project sponsor” means an entity or its successor or assignee that develops, markets, owns, manages, operates or is otherwise the responsible entity for:

A shared distributed generation resource on behalf of subscribers; or

A commercial or institutional distributed generation resource.

Qualified Bid. “Qualified bid” means a bid that meets the qualification requirements established by this Chapter and the applicable procurement announcement.

Rate. “Rate” means a price per kilowatt-hour for delivered energy as measured by a revenue-quality meter at a distributed generation resource’s delivery point as specified in the standard agreement.

Renewable energy credit. “Renewable energy credit” means a credit or certificate that represents renewable attributes of electric power that may be traded separately from the energy commodity.

Revenue Quality Meter. “Revenue Quality Meter” means an electric meter that meets the applicable standards and requirements of the investor-owned transmission and distribution utility and the ISO-NE or NMISA, as applicable, in the service territory where the distributed generation resource is located.

Shared distributed generation resource. “Shared distributed generation resource” means a distributed generation resource for which the value of the output is owned by, allocated to, or otherwise shared by subscribers.

Subscriber. Subscriber means a retail customer of an investor-owned transmission and distribution utility that owns, has the rights to, or otherwise possesses a subscription in a shared distributed generation resource and that has identified an account to which the subscription is attributed. Subscribers of a given shared distributed generation resource must be located in the same investor-owned transmission and distribution utility service territory as the location of the resource.

Subscribed Output. “Subscribed Output” means (1) for a shared distributed resource, the portion of the output of the resource in a given month that corresponds to the portion of the nameplate capacity of the resource for which there are subscriptions and (2) for a commercial or institutional distributed resource, all of the output of the resource.

Subscription. “Subscription” means a proportional interest in a shared distributed generation resource in kilowatts. Each subscription must be sized to represent at least one kilowatt of the resource’s nameplate generating capacity.

Unsubscribed Output. “Unsubscribed Output” means, for a shared distributed generation resource, the portion of the output of the resource in a given month that corresponds to the portion not subscribed.

§ 3 MEASURES TO SUPPORT DISTRIBUTED GENERATION

Procurements. The Commission shall administer processes to procure the output from distributed generation resources in accordance with this Chapter.

Participation in Wholesale Markets. The Commission and investor-owned transmission and distribution utilities shall take all commercially reasonable steps to promote the participation of distributed generation resources in serving the State’s energy needs and in the regional wholesale electricity, capacity and ancillary service markets.

Change in Tax Treatment. If the Commission is informed by a project sponsor or subscriber, a transmission and distributed utility, or other entity, or the Commission otherwise becomes aware of a change in federal tax laws, regulations or policy that materially modifies the burdens or costs to customers or utilities associated with the procurements under this Chapter, the Commission shall issue a report to the joint standing committee of the Legislature having jurisdiction over energy matters describing the impact of these changes and recommending any actions necessary to maintain the benefits of the procurements under this Chapter.

§ 4 STANDARD BUYER

The standard buyer(s) shall aggregate and purchase the output of shared distributed generation

resources procured in accordance with this Chapter and sell or use the output in a manner that maximizes value for ratepayers.

Designation. Unless another entity is designated by the Commission pursuant to Section (4)(D) of this Chapter, the investor-owned transmission and distribution utility shall serve as the standard buyer for distributed generation resources located in its service territory.

An entity other than an investor-owned transmission and distribution utility may request to be a standard buyer. The Commission shall consider such requests, pursuant to a process and schedule established by the Commission and may grant a request upon a finding that the other entity serving as the standard buyer is in the public interest. To the extent the Commission designates another entity as the standard buyer, the Commission may require the rights and obligations between the standard buyer and the investor-owned transmission utility to be reflected in a contract.

Obligations. A standard buyer shall:

Serve as the counterparty to long-term contracts with project sponsors;

If the standard buyer is not an investor-owned transmission and distribution utility, reimburse the applicable investor-owned transmission and distribution utility for administrative expenses and bill credits or payments to subscribers or project sponsors and provide to the investor-owned transmission and distribution utility the information set forth in this subsection;

Establish reasonable measurement and verification protocols for distributed generation resources;

Collect and provide to the Commission, using a transparent mechanism, information needed to allocate costs and benefits pursuant to this Chapter;

Provide to the Commission facility-specific and aggregate data regarding the output of distributed generation resources procured pursuant to this Chapter; and

Manage and monetize the output of distributed generation resources pursuant to the provisions of this Chapter.

Rights. A standard buyer shall retain rights to all of the output of distributed generation resources to which it is the contractual counterparty in accordance with this section.

D. Treatment of the output of distributed generation resources.

Unless otherwise ordered by the Commission, the standard buyer shall sell, use, manage, monetize, transfer, or otherwise dispose of the subscribed output of distributed generation resources in a manner that maximizes its value to ratepayers. Each standard buyer shall file a plan, subject to Commission review, that documents how it will comply with this provision.

All value associated with (1) the output of a commercial or institutional distributed generation resource and (2) the subscribed output of a shared distributed generation resource shall inure to the benefit of ratepayers. All value associated with the unsubscribed output of a shared resource shall inure to the benefit of the project sponsor.

E. C ost and benefit allocation.

The costs and benefits incurred or realized by the standard buyer(s) shall be reviewed by the Commission on an annual basis for inclusion in the stranded cost rates of customers of the investor-owned transmission and distribution utilities. The process established by the Commission shall be similar to the allocation of costs and benefits of long-term energy contracts in section 3210-F of Title 35-A.

Eligible costs and benefits include: (1) the incremental administrative costs to serve as the standard buyer; (2) payments or bill credits to customers, subscribers and project sponsors; and (3) revenue from the sale of the output of distributed generation resources.

§ 5 PROJECT SPONSOR

Designation. A project sponsor shall be designated for each distributed generation resource. A commercial or institutional customer shall be the project sponsor for its distributed generation resource unless the customer designates another entity as the project sponsor.

Obligations. A project sponsor must comply with the applicable provisions of this Chapter, the requirements of the applicable procurement round, and the terms of its contract(s) with the standard buyer. Failure to do so may result in the imposition of penalties and/or requirements to make restitution payments in accordance with this Chapter and/or the provisions of Maine statute, and may result in termination of the project sponsor’s contract(s).

§ 6 BILL CREDIT PROTOCOLS AND PROJECT SPONSOR REQUIREMENTS

Commercial or Institutional Distributed Generation

Bill Credit. The bill credit for a commercial or institutional customer pursuant to this Chapter shall reflect the energy produced by the customer’s distributed generation resource in the prior month. For each billing month, the dollar value of the customer’s credit shall be the product of the energy production in kilowatt-hours and the block contract rate for the applicable block, subject to the provisions of this Chapter. Investor-owned transmission and distribution utilities may adjust commercial or institutional customers’ billing cycles to administer the provisions of this Chapter.

If the value of a credit to be applied to a customer's bill under this Chapter is less than the amount owed by the customer at the end of the applicable billing period, the customer shall be billed for the difference between the amount shown on the bill and the value of the available credit. If the value of the credit to be applied to a customer's bill under this Chapter is greater than the amount owed by the customer at the end of the billing period, the remaining value of the credit shall be carried to the next month. Any credits carried forward that remain unused after 24 months shall have expired.

Metering. The monthly energy production of a commercial or institutional distributed generation resource must be determined by a revenue-quality meter, the cost of which shall be paid by the participating customer or project sponsor.

Shared Distributed Generation

Payment. The project sponsor or subscribers of a shared distributed generation resource that receives a contract under this Chapter shall receive the value of the applicable contract rate for the output of a shared distributed generation resource for the portion of the resource that is subscribed. For any portion not subscribed, the project sponsor shall receive the value obtained by the standard buyer for the output of the shared distributed generation resource.

Minimum Subscription Requirements

Each project sponsor of a shared distributed generation resource must verify pursuant to a sworn affidavit submitted in accordance with the procurement announcement and the milestones or other requirements set forth in the project sponsor’s contract that the minimum subscription requirements of this Chapter will be or have been met. The Commission may require project sponsors to update this verification on a periodic basis.

Requirements for minimum subscriptions include:

1. At least 50% of the total nameplate capacity of a shared distributed generation resource must be subscribed by (1) subscriptions of 25 kilowatts or less or (2) at least 20% of the total nameplate capacity must be subscribed by subscriptions of 25 kilowatts or less if subscriptions from a municipality or units of municipal government account for more than 30% but not more than 50% of the total nameplate capacity of a shared distributed generation resource; and
2. At least 10% of the total nameplate capacity of a shared distributed generation resource must be subscribed by households with low or moderate income or by organizations serving households with low or moderate income if the subscriptions serve to directly reduce the electricity costs for households with low or moderate income except that, if a municipality or unit of municipal government accounts for more than 50% of the subscriptions to a shared distributed generation resource, 5% of the total nameplate capacity of the shared distributed generation resource must be subscribed by households with low or moderate income or by organizations serving households with low or moderate income if the subscriptions serve to directly reduce the electricity costs for households with low or moderate income.
3. Subscriptions from municipalities or units of municipal government may not account for more than 70% of the nameplate capacity of a shared distributed generation resource.

Determination of subscriber bill credit. The bill credit allocated to each subscriber of a shared distributed generation resource shall be based on the subscriber’s percentage interest in the shared distributed generation resource for the applicable month. The percentage interest shall be calculated as the subscriber’s subscription in kilowatts divided by the nameplate capacity of the resource. For each billing month, the value of the credit allocated to each subscriber shall be calculated as the energy produced by the resource in the prior month in kilowatt-hours multiplied by the subscriber’s percentage interest multiplied by the applicable contract rate, subject to the provisions of this Chapter.

If the value of a credit to be applied to a customer’s bill under this Chapter is less than the amount owed by the customer at the end of the applicable billing period, the customer shall be billed for the difference between the amount shown on the bill and the value of the available credit. If the value of the credit to be applied to a customer’s bill under this Chapter is greater than the amount owed by the customer at the end of the billing period, the remaining value of the credit shall be carried to the next month. Any credits carried forward that remain unused after 24 months shall have expired.

The project sponsor must provide to the applicable investor-owned transmission and distribution utility in a standardized and electronic format no later than 3 business days following each calendar month a list of subscribers, account numbers, and all subscriber information required to calculate the bill credits. A credit to a subscriber shall be applied against the subscriber’s monthly electricity bill in accordance with this Chapter no later than one billing month following the month during which the energy was generated by the shared distributed generation resource. The investor-owned transmission and distribution utility shall provide a monthly record to the project sponsor of the credit applied to a subscriber within a month after the credits are applied to the subscriber’s bill. Investor-owned transmission and distribution utilities may place subscriber customers on the same billing cycle, or make other adjustments, to implement the provisions of this Chapter.

Metering. The monthly output available for allocation as subscribed or unsubscribed energy must be determined by a revenue quality meter the cost of which shall be paid for by the project sponsor.

Transfer of subscriptions. A subscriber may transfer or assign its subscription or any portion thereof to the project sponsor or to any person or entity that qualifies to be a subscriber in the shared distributed generation resource, subject to the requirement that a subscription must represent at least one (1) kilowatt of the resource’s capacity. A project sponsor must provide a process for assignment or transfer of a subscription and include a description of the process in the disclosures required by this Chapter. A project sponsor may not impose transfer fees on a subscriber that moves to a different location within the same utility service territory.

6 . Project sponsor report. One year after commercial operation of a shared distributed generation resource commences, the project sponsor shall submit to the Commission a report detailing compliance with the provisions of this Chapter. By order, the Commission may require a project sponsor to submit additional and/or more frequent reports to the Commission detailing compliance with the provisions of this Chapter.

7. Utility costs paid by project sponsor. If a project sponsor pays an investor-owned transmission and distribution utility’s costs associated with billing and collection from a subscriber, at the request of a project sponsor the utility shall bill the subscriber on behalf of the project sponsor. Costs under this provision are subject to review by the Commission at the request of either a subscriber or project sponsor.

§ 7 PROCUREMENT PARAMETERS, STANDARDS, METHODS, AND PROCESSES

Procurement Sectors and Aggregate Target Amounts. The Commission shall administer procurement processes in accordance with this Chapter for, in the aggregate, 125 megawatts of commercial or institutional and 250 megawatts of shared distributed generation resources.

B . Procurement Rounds, Targets, and Schedule. The Commission shall conduct five procurement rounds for each of the two resource sectors. The target amount to be procured in each round shall be one-fifth (20%) of the aggregate target amount for each sector. Pursuant to the initial procurement round (Block 1), bids shall be accepted for thirty (30) calendar days beginning on or before July 1, 2020. Each subsequent procurement round (Blocks 2-5) shall be conducted sequentially, immediately following completion of the prior block.

C . Procurement Announcement. The Commission shall initiate each procurement round by issuing a procurement announcement, which shall: (1) establish the schedule and process for the procurement block, including the bid date or time period during which bids may be submitted; (2) establish the requirements, process and schedule for qualification of bidders and projects intending to submit an offer in the procurement round; (3) establish the standards by which the Commission will determine whether the procurement round has a sufficient number of unique and qualified bidders and is sufficiently competitive; (4) establish the amount of any bidding fee and financial security requirements; (5) establish bid evaluation and selection criteria; (6) describe any attribute-based incentives and disincentives offered in the procurement round; (7) provide the applicable block base rate and any block incentive rates; (8) establish the method(s) by which a bidder can demonstrate the capacity to make a financial assurance deposit at the time a contract is signed; (9) provide the standard contract; and (10) provide other information relevant to the procurement round.

Qualification. Prior to the bid offer rate submission date or period for each procurement round, the Commission shall qualify bidders and projects. Only bidders and projects that meet the minimum requirements of this Chapter may submit bids in the corresponding procurement round.

The minimum requirements for qualification must be sufficiently demonstrated and documented by a bidder pursuant to the qualification process conducted by the Commission.

The Commission will conduct the qualification process in accordance with the procurement announcement and will complete the qualification process no less than five business days prior to the bid offer rate submission date or period for the procurement round. Qualification of a bidder or project by the Commission is valid only for that procurement round. A project that is qualified by the Commission in a procurement round may not automatically carry forward the qualification to any subsequent procurement round.

The minimum requirements for qualification include:

Demonstration of site control;

A fully executed interconnection service agreement with an investor-owned transmission and distribution utility;

Demonstration that all required federal, state and local approvals and nonministerial permits for the project have been obtained. For the purposes of this paragraph, “nonministerial permit” means a permit for which one or more officials consider various factors and exercise discretion in deciding whether to issue or deny the permit;

The capacity to make a financial assurance deposit at the time a contract is signed;

For a commercial or institutional distributed generation resources procurement, if a participating commercial or institutional customer is not the party making the bid, an agreement from a customer that would receive bill credits associated with the project;

For a shared distributed generation resources procurement, demonstration of experience fulfilling the obligations to subscribers of shared distributed generation resources.

Demonstration of compliance with any other requirements of this Chapter that the Commission determines to be applicable to qualification.

Standard contract. At the time the procurement announcement is issued for a procurement round, the Commission shall make the standard contract or contracts applicable for that procurement available. The standard contract shall be substantially similar to the applicable form included as Attachment A to this Chapter. The standard contract shall be developed in consultation with the standard buyer(s). The standard contract shall include provisions that commit the standard buyer and project sponsor to commercially reasonable behavior and shall establish milestones for projects. The standard contract shall also include an interconnection fee list and schedule to ensure that a project can proceed to commercial operation on a reasonable timeline.

Milestones. A project must comply with the milestones contained in the applicable standard contract. At a minimum, the milestones must include a requirement that a project be commercially operable within 18 months of being awarded a contract. The Commission may grant an extension for failure to meet a milestone for good cause. If a project fails to meet a milestone, and an extension is not granted, the project sponsor is in default and the contract shall be cancelled. Any capacity associated with a cancelled project shall be added to the currently open procurement block or, if none is open, the capacity shall be added to the next procurement block. If a cancellation occurs after the end of the Block 5 procurement, Block 5 shall be reopened to procure the capacity amount associated with the cancelled contract.

Bidding Fees. The Commission may require bidders to pay a reasonable and non-refundable bidding fee to defray the Commission’s administrative costs. The bidding fee, which shall not exceed $5 per kW of the project’s nameplate capacity, or $12,500 per project, shall be set forth in the procurement announcement for the applicable procurement round and shall be provided by bidders at the time their bid is submitted or as otherwise required by the procurement announcement.

Ensuring competition. In the procurement announcement for each procurement round, the Commission shall set forth standards by which it will evaluate whether the solicitation is sufficiently competitive. If the Commission concludes that a solicitation is not sufficiently competitive, the Commission may procure an amount that is less than the procurement target, including not procuring any amounts in the round. To the extent the amount procured is less than the target for a given round, the difference shall be procured in subsequent procurement rounds.

If an insufficient number of unique bidders or projects is qualified for a procurement round, as determined by the Commission, the Commission may delay or cancel the procurement.

Bid evaluation and selection. An offer, including the proposed distributed generation resource and bid offer rate, submitted in response to a procurement announcement is firm and binding upon the bidder.

Following a review of bids received in each of the procurement rounds pursuant to this Chapter, the Commission shall select one or more winning bids that, in the aggregate, meet the target procurement quantity for the block, subject to the provisions of this Chapter that allow for less than the target amounts to be procured. If there are multiple qualified and equivalent bids at the same bid offer rate, the Commission shall give preference to the bids that minimize the cost to the standard buyer or, if there is no difference in cost, preference shall be given to the bid that was submitted first.

The Commission shall evaluate a qualified bid for a project that is located on previously developed or impacted land at 90% of the offered rate. For the purposes of this subsection, “previously developed or impacted land” means areas covered by impervious surfaces, capped landfills or brownfield sites as defined by the Department of Environmental Protection. If a bid under this provision is accepted, the contract rate shall equal the contract rate for the block.

For any procurement round after the initial procurement round (Blocks 2-5), the Commission may establish additional incentives, including block incentive rates, for certain attributes of distributed generation resources including, but not limited to, incentives to support resources that pair with energy storage systems, development of dual-use projects, siting of resources that provide locational benefits to the distribution system and other siting criteria developed in consultation with the Department of Environmental Protection and the Department of Agriculture, Conservation and Forestry. Any such incentives shall be described in the procurement announcement for the block.

Initial Procurement Round (Block 1). For the initial procurement round for (1) commercial and institutional and (2) shared distribution resources, the Commission shall accept bids for thirty (30) calendar days beginning on or before July 1, 2020 and review the bids based on the standards and requirements of this Chapter and the applicable procurement announcement. The Commission may select qualified bids in excess of the first block target for the resource sector if the Commission determines that the incremental procurement amount is in the public interest. If the Commission selects qualified bids in excess of the first block target, the target quantity to be procured in subsequent block procurements for that resource sector shall be reduced by the difference between the amount procured and the first block target. If the Commission selects bids totaling less than the first block target in the initial competitive procurement, the target quantity to be procured in subsequent block procurements for that resource sector shall be increased by the difference between the first block target and the amount procured.

The Commission shall structure the initial procurement round to ensure that the policy objectives of this Chapter are achieved in such a manner to maximize economic efficiency and minimize costs to ratepayers.

The Commission shall issue a public notice of the initial procurement results, which may be a Commission order or other form of notice, no later than thirty (30) calendar days after the end of the bid acceptance period. The notice shall include the name, sponsor, size and location of each selected project, as well as the procurement round clearing price.

The applicable standard buyer shall enter into a contract with the project sponsor of each project procured in Block 1 for a term of 20 years at a contract rate equal to the applicable block rate. The block rate shall be applied as a bill credit to the commercial or institutional customer or to the subscribers of a shared distributed generation resource, as applicable, in accordance with this Chapter. For the unsubscribed output of a shared resource, a contract rate shall be paid to the project sponsor and shall reflect the value obtained by the standard buyer.

If, pursuant to this Chapter, no bids are accepted in the initial procurement round, the Commission shall:

Conduct a new initial round procurement within 9 months;

Study the reasons no bids were accepted and submit a report of its findings and any recommended legislation to the joint standing committee of the Legislature having jurisdiction over energy matters.

Subsequent Procurement Rounds (Blocks 2-5). Subsequent to the initial procurement round (Block 1), the Commission shall conduct four additional procurement rounds for Blocks 2 – 5 for (1) commercial or institutional and (2) shared distributed generation resources. The target amount for each round shall be one-fourth (25%) of the difference between the aggregate target for the sector and amount procured in the initial procurement round. The Commission shall initiate each additional procurement round by issuing a procurement announcement for that round.

The block base rate for procurement Block 2 shall equal 97% of the clearing price determined by the initial procurement round. Each successive procurement block must have a block base rate equal to 97% of the block base rate for the preceding block.

The procurement process for Block 2 shall be commenced immediately following the completion of the Block 1 procurement process, and each subsequent block shall be commenced immediately following completion of the prior block process.

The applicable standard buyer shall enter into a contract with each project procured in Blocks 2 - 5 for a term of 20 years at a contract rate equal to the applicable block rate for the portion of the project output to which the block rate is applicable. The block rate shall be applied as a bill credit to the commercial or institutional customer or to the subscribers of a shared distributed generation resource, as applicable, in accordance with this Chapter. For the unsubscribed output of a shared resource, a contract rate shall be paid to the project sponsor and shall reflect the value for the output obtained by the standard buyer.

If, in order to meet a block target, the last contract to be awarded would result in a procurement amount that would exceed the capacity of that block’s target, the contract may be awarded at the block contract rate for that block. The block is then closed and the above-target amount procured in the block is subtracted from the quantity available in the next block. If this occurs in Block 5, the contract may be awarded at the Block 5 contract rate and no further contracts may be awarded except pursuant to this Chapter.

L. Failure to complete timely procurement. If any procurement block remains unfilled after more than 12 months from the date the previous block was filled, the Commission shall suspend further procurements pending completion of the process described below:

The Commission shall review and may amend this Chapter or the standard contract and conduct a new competitive procurement for contract amounts equal to or greater than the Block 1 targets. The Commission shall publish any amendments to its rules or the standard contract and establish a new bid acceptance period for not less than 6 months and not more than 9 months.

The Commission shall accept bids for 30 calendar days from the bid acceptance date established in the preceding paragraph and review the bids in accordance with the provisions of this Chapter. The Commission may select qualified bids in excess of the Block 1 target if it determines that the incremental procurement is in the public interest. Any amounts selected in excess of the Block 1 target shall reduce the procurement targets in the subsequent block.

The Commission shall issue a public notice of the procurement results no later than 30 calendar days after the bid acceptance period has ended. The public notice shall include the name, sponsor, size and location of each selected project and the awarded contract price.

The applicable standard buyer shall enter into a contract with the project or projects selected under this subsection in accordance with this Chapter.

The Commission shall continue with procurements unless no contracts are awarded pursuant to this subsection. If no contracts are awarded pursuant to the first solicitation conducted pursuant to this subsection, the Commission shall conduct another solicitation under this subsection with the bid acceptance period to open approximately 12 months after the bid acceptance period for the first solicitation. In this event, the Commission shall also examine the reasons for the inability of the procurement to secure the target amount and submit a report of its findings and any recommended legislation to the joint standing committee of the legislature having jurisdiction over energy matters.

§ 8 RENEWABLE ENERGY CREDITS

Standard disclosure. The Commission shall adopt by order standard disclosure forms to be distributed by a project sponsor to all subscribers and potential subscribers that provides a description of the effect of selling the renewable attributes and an explanation of how a subscriber may participate in the voluntary renewable energy credit market. The Commission may approve modifications to the standard disclosure forms. The Commission delegates to the Director of Electric and Gas Industries the authority to adopt standard renewable energy credits disclosure forms and modifications to the standard REC disclosure forms.

Purchase of renewable energy credits. The Commission shall establish a mechanism to allow a subscriber with a share of less than 25 kilowatts to purchase renewable energy credits up to the amount of and of a substantially equivalent type to that which the subscriber has sold to the standard buyer at a price equal to 80% of market value.

§ 9 CONSUMER PROTECTION

Applicability. This section applies to shared distribution generation projects. A project sponsor shall comply with the consumer protection provisions of this Chapter and all applicable provisions of Maine law. For purposes of this Chapter, the obligations and requirements of a project sponsor in this regard shall also apply to representatives or agents that act on behalf of a project sponsor. Project sponsors are responsible for violations of the provisions of this section by representatives or agents acting on their behalf.

Trade Practices. Individuals or entities subject to this section must comply with the provisions of the Maine Unfair Trade Practices Act , Title 5, chapter 10 and related consumer protection statutes. Any finding by an entity of competent jurisdiction that any such individual or entity violated either the Maine or Federal Unfair Trade Practices Act is deemed to be a violation of this subsection.

Registration. Individuals or entities subject to this section shall register with the Commission. The Commission shall adopt standard registration forms and specific filing requirements and delegates this task to the Director of Electric and Gas Industries.

Financial Security. The Commission may establish a financial security requirement for individuals or entities subject to this section. Any such financial security shall be held by the transmission and distribution utility in whose service territory the project is located. Upon a finding that an individual or entity has violated provisions of this section, the Commission may direct that amounts from the financial security be distributed to (1) subscribers for a refund of security deposits or advanced payments; (2) to subscribers for restitution of amounts paid in error or charges assessed in violation of this Chapter; and (3) to the Commission for payment of administrative penalties or any other sanction pursuant to this Chapter or applicable statutes. Prior to establishing financial security requirements pursuant to this provision, the Commission will provide an opportunity for interested persons to comment on whether a financial security requirement should be established, the amount of any such financial security requirement, and the type of security that should be allowed.

Standard Disclosures. Prior to the sale or resale of a subscription in a shared distributed generation resource, a project sponsor must provide a disclosure that, at a minimum, contains the following:

A good faith estimate of the annual kilowatt-hours to be received from the shared distributed generation resource based on the size of and expected output from the resource and a subscriber’s subscription;

A plain language explanation of how a subscriber’s bill credit will be calculated and applied;

A plain language explanation of requirements relating to the disposition or transfer of a subscription; and

A plain language explanation of the costs and benefits to a potential subscriber, based on the subscriber’s current electricity usage, for the term of the proposed subscription agreement.

The Commission shall adopt by order standard disclosure forms to be used by a project sponsor when marketing subscriptions to customers. The Commission may approve modifications to the standard disclosure forms. The Commission delegates to the Director of Electric and Gas Industries the authority to adopt standard disclosure forms and modifications to the standard disclosure forms.

Sanctions. Individuals or entities that violate the provisions of this section are subject to sanctions. Sanctions may be imposed following a hearing before the Commission in conformance with Title 5 M.R.S., Chapter 375, subchapter IV ( Maine Administrative Procedure Act ) and Chapter 110 of the Commission's rules.

Participation in Distributed Generation Procurement. The Commission may prohibit individuals or entities subject to this section from participating in any distributed generation procurements under this Chapter.

Cease and Desist Orders. The Commission may issue a cease and desist order if the Commission finds that any individual or entity subject to the requirements of this section has engaged or is engaging in any act or practice in violation of any law or rule administered or enforced by the Commission or any lawful order issued by the Commission. A cease and desist order is effective when issued unless the order specifies a later effective date or is stayed pursuant to Title 5, section 11004.

3. Restitution. The Commission may order restitution to be provided by an individual or entity to any party injured by a violation of this section.

4. Administrative Penalties. The Commission may impose administrative penalties pursuant to Title 35-A, Chapter 15 that it determines appropriate taking into account the facts and circumstances related to the violation.

Waiver. The Commission may waive the imposition of sanctions upon a showing that the violation was immaterial, unintentional, or that the individual or entity acted in good faith to comply with all applicable statutory and regulatory requirements.

§ 10 DISPUTE RESOLUTION

An investor-owned transmission and distribution utility, commercial or institutional customer, project sponsor, or subscriber may dispute any matter governed by this Chapter by filing a Notice of Dispute with the Commission. A transmission and distribution utility, a customer or a project sponsor must engage in good faith efforts to resolve the dispute before a Notice of Dispute is filed. The Commission or the Consumer Assistance and Safety Division shall resolve disputes filed pursuant to this section.

§ 11 WAIVER PROVISIONS

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director Electric and Gas Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301, 3488; Public Law 2019 ch. 478.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 23, 2019. It was filed with the Secretary of State on December 24, 2019 and became effective on December 29, 2019 (filing 2019-271).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 313 Customer Net Energy Billing

Code Me. R. 65-407 Ch. 313 Customer Net Energy Billing {#sec-65-407-ch.-313 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 313}

SUMMARY: This rule establishes the requirements for net energy billing.

§ 1 PURPOSE 4

§ 2 DEFINITIONS 4

§ 3 NET ENERGY BILLING REQUIREMENTS 7

A. Customer Qualification 9

B. Contact Person 9

1. Single Customer Facilities 9

2. Shared financial interest customer facilities 9

3. Timeframes 9

4. Record Maintenance 9

C. Shared Financial Interest Provisions 9

Transfer 9

Shared financial interest customer classes 10

Competitive Electricity Provider 10

Consumer-owned Utility Exemption 10

D. Application 10

Customer identities 10

Financial interest 10

Contact information 10

Accounts 11

Allocation specification 11

Facility 11

Affidavit 11

E. Allocation Methodology 11

F. Micro Combined Heat and Power Systems 11

G. Service Territory 11

H. Number of Accounts 11

I. Net Energy Billing – Kilowatt-Hour Credits Requirements 11

Excess Generation 11

Excess Usage 12

Unused Credits 12

Non-usage Charges 13

Billing 13

Generation Providers 13

Treatment of Facility Output 13

J. Net Energy Billing-Tariff Rate Requirements 13

Bill Credit 13

Unused Credits 14

Billing 14

Establishment of Tariff Rate 14

Registration and Treatment of Facility Output 16

Renewable Energy Credits 16

K. Additional Meters 16

L. Interconnection Requirements 16

M. Standard Contract and Application 16

N. Dispute Resolution 17

O. Reporting and Commission Review 17

Commission Review 17

Quarterly Report 17

P. Determination, Allocation, and Reporting of Costs and Benefits 17

Determination of Costs and Benefits 17

Allocation of Costs and Benefits 18

Reporting of Costs and Benefits 18

Q. Net Energy Billing Project Charge 18

Initial Net Energy Billing Project Charge 19

Adjustment of Net Energy Billing Project Charge 19

Billing and Failure to Pay Net Energy Billing Project Charge 19

Exemption from Net Energy Billing Project Charge 19

§ 4 CONSUMER PROTECTIONS 20

Applicability 20

Trade Practices 20

Registration 20

Financial Security 20

Standard Disclosures 20

Affirmative Authorization 21

Letter of authorization 21

Third-party verification 21

Electronic authorization 21

Rescission 22

Collections 22

Marketing 22

Subscription Size 22

Utility Provision of Customer Usage Information 22

Prohibition on Retaining Unused Credits 22

Sanctions 22

Participation in Net Energy 22

Cease and Desist Orders 23

Restitution 23

Other 23

Administrative Penalties 23

Waiver 23

§ 5 WAIVER OR EXEMPTION …………………………………...……………………………… 23

§ 1 PURPOSE

The purpose of this Chapter is to implement the State's policy to encourage electricity generation from renewable resources through the adoption of requirements and standards for customer net energy billing.

§ 2 DEFINITIONS

Benefits of Distributed Generation Under Net Energy Billing. “Benefits of distributed generation under net energy billing” means all benefits determined by the Commission to be attributable to distributed generation projects under 35-A M.R.S. §§ 3209-A and 3209-B, including but not limited to:

Avoided energy and capacity costs. In determining avoided energy and capacity costs, the Commission must use reasonable estimates of energy and capacity market prices and account for transmission and distribution line losses. The Commission may determine different avoided costs for different time periods, including but not limited to peak and off-peak periods and summer and winter periods;

Avoided transmission and distribution costs. In determining avoided transmission and distribution costs, the Commission must use estimates of the marginal transmission and distribution costs and may determine different avoided costs for different time periods;

Avoided fossil fuel costs. The Commission must determine avoided fossil fuel costs based on estimated reductions in oil, gas or other fossil fuel use and estimated market prices for these fuels;

Avoided transmission and distribution line losses;

Demand reduction induced price effects;

Transmission and distribution plant extensions or upgrades funded by net energy billing customers; and

Any other benefits identified by the Commission.

Collocated. “Collocated” means an eligible facility that is located on the same premise, property, or development area, of a net energy billing customer facility or facilities that are subscribed to that eligible facility. The eligible facility must be located on the same parcel of land, or a contiguous parcel of land owned by the same individual or entity, where all of the customers who are subscribed to receive credits resulting from the output of the facility are physically located.

C. Commercial or Institutional Customer. “ Commercial or institutional customer” means a nonresidential customer of an investor-owned transmission and distribution utility in Maine.

D. Competitive Electricity Provider. “Competitive electricity provider” means a supplier, marketer, broker, aggregator, or any other entity selling electricity supply that is not standard offer service to the public at retail in Maine.

E. Consumer-owned Transmission and Distribution Utility. “Consumer-owned transmission and distribution utility” has the same meaning as specified in Title 35-A, section 3201(6).

F. Continuous On-site Construction Efforts. “Continuous on-site construction efforts” means on-site physical work of a significant nature that occurs in every month until mechanical completion, except for delays in construction due to weather and ground conditions that prevent access by construction vehicles or equipment.

G. Customer. “Customer” means a person or an entity that takes electricity service through a transmission and distribution utility in Maine.

H. Discrete Electric Generating Facility. “Discrete electric generating facility” means a facility that is not sited at the same location or otherwise in geographic proximity to (i) another eligible facility or (ii) a distributed generation resource as defined in Chapter 312 of the Commission's rules in which there is a common financial or other interest that is contrary to the purpose of Title 35-A, sections 3209-A, 3209-B, chapter 34-C.

I. Effective Transmission and Distribution rate. “Effective transmission and distribution rate” for a rate class means a rate per kilowatt-hour calculated as the sum of (a) all transmission and distribution revenue collected from customers in the rate class over a given period of time divided by the total kilowatt-hour usage of customers in that rate class over the same period of time.

J. Eligible Facility. “Eligible facility” means a discrete electric generating facility that:

Has a nameplate of less than 5 megawatts except as provided below;

Uses a renewable fuel or technology as specified in Title 35-A, section 3210(2)(B-3), with the additional requirement that a fuel cell must derive its energy from a renewable fuel or technology;

Is located in the service territory of a transmission and distribution utility in Maine; and

Qualifies as eligible to participate in net energy billing pursuant to Title 35-A M.R.S. section 3209-A or section 3209-B.

Exceptions. The following exceptions apply regarding the nameplate capacity of an eligible facility.

Municipal Exception. If a municipality is a customer participating in a net energy billing-kilowatt-hour credit arrangement, the nameplate capacity of an eligible facility located in that municipality that may be used for the net energy billing may be 5 megawatts or more, as long as less than 5 megawatts of metered electricity from the resource is used for net energy billing.

Consumer-owned Transmission and Distribution Utility Exception. An eligible facility located in a service territory of a consumer-owned transmission and distribution utility must have an installed capacity of 100 kilowatts or less unless the consumer-owned transmission and distribution utility elects to allow facilities with an installed capacity less than 5 megawatts.

Facility Account. “Facility Account” means the account that a Project Sponsor must set up with the transmission and distribution utility at the time that it executes a net energy billing agreement. The Facility Account is the retail service account representing the physical location of the facility and any associated retail usage, as measured by a bi-directional meter or by an in meter and an out meter. The Facility Account is also the repository for unallocated credits as provided in sections 3(E), 3(I)(3) and 3(J)(3) of this Chapter.

L. Financial Interest. “Financial interest” means, with respect to an eligible facility, facility ownership or shared ownership, a lease agreement, a power purchase agreement, or other arrangements sufficient to represent a financial interest in an eligible facility.

M. Investor-owned transmission and distribution utility. “ Investor-owned transmission and distribution utility” has the same meaning as in Title 35-A, section 3104, subsection 1, paragraph A.

N. ISO-NE. “ISO-NE” means the Independent System Operator of the New England bulk power system.

O. Mechanical Completion. “Mechanical completion” means that the eligible facility has been fully physically constructed and is ready for operation.

P. Micro-Combined Heat and Power System. “Micro-Combined Heat and Power System” means a system that:

Produces heat and electricity from one fuel input, without restriction to specific fuel or generating technology;

Has an electric generating capacity rating of at least one kilowatt and not more than 30 kilowatts and a fuel system efficiency of not less than 80% in the production of heat and electricity or has an electric generating capacity of at least 31 kilowatts and not more than 660 kilowatts and a fuel system efficiency of not less than 65% in the production of heat and electricity;

May work in combination with supplemental or parallel conventional heating systems;

Is manufactured, installed and operated in accordance with applicable government and industry standards; and

5. Is connected to the electric grid and operated in conjunction with the facilities of a transmission and distribution utility.

O. Net Energy. “Net energy” is the difference between the kilowatt-hours consumed by a customer or shared financial interest customers and the kilowatt-hours generated by the customer's or shared financial interest customers’ eligible facility over a billing period.

R. Net Energy Billing. “Net energy billing” means net energy billing arrangements under Title 35-A M.R.S. sections 3209-A or 3209-B.

S. Net Energy Billing Costs. “Net energy billing costs” means all legitimate and verifiable costs incurred by a transmission and distribution utility directly attributable to net energy billing. “Net energy billing costs” does not include any costs incurred by a Project Sponsor, a net energy billing customer or any other entity.

T. Net Energy Billing – Kilowatt-Hour Credit. “Net energy billing-kilowatt-hour credit" is a billing and metering practice under which a customer or shared financial interest customers are billed on the basis of net energy taking into account unused kilowatt-hour credits from the previous billing period, subject to the provisions of this Chapter.

U. Net Energy Billing – Tariff Rate. “Net energy billing-tariff rate” is a billing and metering practice under which a customer or shared financial interest customers receive dollar-valued bill credits calculated and applied in accordance with Section 3(J) of this Chapter.

V. Net Energy Billing Project Charge. “Net energy billing project charge” means a monthly fee as determined by this Chapter, that a transmission and distribution utility must use to offset distribution costs associated with net energy billing costs associated with net energy billing arrangements under sections 3209-A and 3209-B of Title 35-A that would otherwise be paid by ratepayers.

W. NMISA. “NMISA” means the Northern Maine Independent System Administrator of the electricity market in northern Maine.

X. On-site Physical Work of a Significant Nature. “On-site physical work of a significant nature” means the installation of apparatus or equipment meant to support generating equipment, such as racking, groundscrews, pilings, ballasts, or grounding systems and the installation of any electricity generating equipment, such as photovoltaic modules or panels, turbines, or boilers.

Y. Project Sponsor. “ Project Sponsor” means an entity or its successor or assignee that develops, owns, manages, operates, solicits customers or is otherwise the responsible entity for a shared financial interest eligible facility.

Z. Renewable Energy Credit. “ Renewable energy credit” means a credit or certificate that represents renewable attributes of electric power that may be traded separately from the energy commodity.

AA. Shared financial Interest. “Shared financial interest” means a financial interest in an eligible facility that is shared among a group of customers.

BB. Shared Financial Interest Customers. “Shared financial interest customers” mean customers that have a financial interest in an eligible facility.

CC. Shared Financial Interest Facility. “Shared financial interest facility” means an eligible facility in which more than one customer has shared financial interest.

DD. Standard Offer Provider. “Standard offer provider” means a provider of standard offer service chosen pursuant to Chapter 301 of the Commission's rules.

EE. Tariff Rate. “ Tariff rate” means the applicable rate established in accordance with section 3(J).

FF. Transmission and Distribution Utility. “Transmission and distribution utility” has the same meaning as specified in Title 35-A, section 102(20-B).

§ 3 NET ENERGY BILLING REQUIREMENTS

A. Customer Qualification. Any customer of a transmission and distribution utility that has a financial interest or a shared financial interest in an eligible facility may elect net energy billing.

B. Contact Person

Single customer facilities. A single customer participating in net energy billing, or the customer’s designee, must be the contact person responsible for all communications with the transmission and distribution utility regarding the net energy billing arrangement. The contact person will be responsible for requesting, executing, and complying with the provisions of a net energy billing agreement. In the event that the customer designates more than one applicable meter or accounts to receive credits from its eligible facility, the contact person must inform the transmission and distribution utility of the allocation of net energy or bill credits among that customer's meters and accounts subject to net energy billing. The contact person must promptly inform the transmission and distribution utility of any subsequent needed changes to the net energy billing agreement, including changes to the allocation of net energy or bill credits among meters or accounts subject to net energy billing must be communicated to the transmission and distribution utility 30 days prior to the change in allocation taking effect.

2. Shared financial interest customer facilities. A project sponsor or the project sponsor’s designee must be the contact person responsible for all communications with the transmission and distribution utility regarding the net energy billing agreement. The contact person must be responsible for requesting, executing, and complying with the provisions of a net billing agreement and must inform the transmission and distribution utility of the allocation of net energy or bill credits among the meters and accounts of the participating shared financial interest customers. The contact person must promptly inform the transmission and distribution utility of any changes to the financial interests or arrangements of the shared financial interest customers, including any changes in the meters or accounts of participating customers or the allocation of interest shares among meters or accounts.

3. Timeframes. The specific timeframes for the exchange of information between the contact person and the transmission and distributionutility and the effective date of any related changes must be contained in the applicable net energy billing agreement.

4. Record maintenance. The transmission and distribution utility and the contact person must maintain all records related to the net energy billing agreement for the term of the agreement.

C. Shared Financial Interest Provisions

1. Transfer. Any person or entity may transfer or assign a shared financial interest to the associated project sponsor or to any person or entity eligible to participate in the shared financial interest facility. A project sponsor must provide a process for assignment or transfer of shared financial interests among participating customers or entities. A project sponsor may not impose transfer fees on a person or entity that moves to a different location within the same utility service territory.

Shared financial interest customer classes. A shared financial interest net energy billing – kilowatt-hour credit arrangement may include both residential and non-residential customers. A residential customer participating in a net energy billing arrangement for a interest is prohibited from participating in more than one shared financial interest net energy billing arrangement simultaneously. If a residential customer has more than one shared financial interest net energy billing arrangement, the utility must cease providing credits to the residential customer for any shared financial interest net energy billing arrangements except the shared financial interest net energy billing arrangement from which the customer first began receiving credits. Any unused credits remaining in a customer’s bank from a shared financial interest net energy billing arrangement terminated pursuant to this subsection must remain on the customer’s account and be treated in accordance with subsection 3(I) and 4(L) of this rule. The utility must notify the customer and the project sponsor that it will cease providing credits for the shared financial interest net energy billing arrangements terminated pursuant to this section. A project sponsor may not charge a termination fee to a residential customer who terminates a shared financial interest net energy billing arrangement to satisfy this subsection. A shared financial interest net energy billing-tariff rate arrangement may only include commercial and institutional customers. A single shared financial interest net energy billing arrangement may not include both net energy billing-kilowatt-hour credit customers and net energy billing-tariff rate customers, unless allowed by the applicable market rules.

Competitive Electricity Provider. A project sponsor or its representative or agent that participates in a shared financial interest net energy billing arrangement pursuant to this section is not a competitive electricity provider under Title 35-A, chapter 32.

Consumer-owned Utility Exemption. Consumer-owned transmission and distribution utilities are not required to provide shared financial interest net energy billing arrangements pursuant to this section. Consumer-owned transmission and distribution utilities may elect to provide shared financial interest ownership net energy billing arrangements in accordance with this Section.

D. Application. The contact person must submit to the transmission and distribution utility an application for a net energy billing agreement that contains the information specified in this subsection and other information that the transmission and distribution may reasonably require.

1. Customer identities. The names, addresses, telephone numbers and account numbers for all participating customers.

2. Financial interest. Documentation that the shared financial interest customers have a valid financial interest in the shared financial interest facility as required by this Chapter.

3. Contact information. The name, mailing address, telephone number, and e-mail address of the contact person.

4. Accounts. A designation of the meters and accounts that will be subject to the net energy billing agreement.

5. Allocation specification. A designation of the share of the output of the eligible facility to be allocated between and among meters or accounts. The allocation must be consistent with the provisions of section 3(E) of this Chapter.

6. Facility. A description of the eligible facility, including the facility’s location, capacity, and fuel type or generating technology.

7. Affidavit. The application required under this subsection must be accompanied by an affidavit attesting to the truth of the information provided.

E. Allocation Methodology. Fornet energy billing agreements that include multiple meters or accounts, kilowatt-hours or bill credits may be allocated as follows; 1) a cascading allocation in which kilowatt-hours or bill credits are allocated in the priority order specified in the application; 2) a fixed percentage allocation in which kilowatt-hours or bill credits are allocated on a fixed percentage as specified in the application; or 3) any other allocation methodology that can be reasonably accommodated by the transmission and distribution utility. The allocation of credits must account for 100 percent of the output of the eligible facility. If the eligible facility does not have subscribers for 100 percent of the output, the remaining credits will be allocated to the Facility Account of the eligible facility. The credits allocated to a Facility Account will expire within 12 months, as set forth in subsections 3(I)(3) or 3(J)(2) of this chapter.

F. Micro Combined Heat and Power Systems. Micro combined heat and power systems that have a net energy arrangement on the effective date of this Chapter may continue net energy billing under that agreement for a period of twenty years.

G. Service Territory. The eligible facility and the customer accounts subject to net energy billing must be located within a service territory of a single transmission and distribution utility.

H. Number of Accounts. Customers or shared financial customers of an investor-owned transmission and distribution utility may designate any number of accounts or meters to participate in net energy billing, except that the number of accounts or meters is limited to 10 for customers or shared financial interest customers located in a service territory administered by the Northern Maine System Administrator or any successor of the independent system administrator for northern Maine unless the Commission determines through an Order that the investor-owned transmission and distribution utility's billing system can accommodate more than 10 accounts or meters for the purpose of net energy billing. Consumer-owned utilities may limit the number of accounts or meters to ten.

I. Net Energy Billing – Kilowatt-Hour Credits Requirements. A customer or shared financial interest customers qualifying under this section must be billed by transmission and distribution utilities on a net energy basis as follows:

Excess Generation. If the electricity generated during the billing period by the eligible facility plus any kilowatt-hour credits from prior billing periods exceed the customer's or the shared financial interest customers’ kilowatt-hour usage during the billing period, the excess must be applied to the customer's bill or the shared financial interest customers’ bills for the following billing period as a reduction in the customer's kilowatt-hour usage.

Excess Usage. If the customer's or the shared financial interest customers’ kilowatt-hour usage exceeds the electricity generated by the eligible facility during the billing period plus any kilowatt-hour credits pursuant to subparagraph 1, the customer or the shared financial interest customers must be billed for the excess kilowatt-hour usage at the applicable retail rate for electricity service.

Unused Credits. A customer or shared financial interest customers may accumulate unused kilowatt-hour credits and apply them against kilowatt-hour usage over a 12-month rolling period. At the end of each 12-month rolling period, any accumulated unused kilowatt-hour credits may not be applied against any future kilowatt-hour usage. The customer or the shared financial interest customers will receive no compensation from the transmission and distribution utility for unused kilowatt-hour credits. By April 1 of each year, transmission and distribution utilities must remit the value of unused kilowatt-hour credits during the prior calendar year using the method described in subsections 3(I)(3)(i) and (ii) to the administrators of the statewide low-income assistance programs as designated by the Commission pursuant to Title 35-A, section 3214(2) for the benefit of individuals receiving low-income assistance. For purposes of this section, unused or expired credits do not include credits that have been allocated to the Facility Account of the eligible facility.

Calculation of Monetary Value. To calculate the monetary value of the expired credits, the transmission and distribution utilities must use the following methodology:

For expired credits for residential customers, the transmission and distribution utilities must multiply the transmission and distribution rate as well as the standard offer rate in effect as of December 31 of the calendar year for residential customers and multiply that rate times the total kilowatt hour credits that expired during that calendar year.

For expired credits for commercial and industrial customers who are participating in the kilowatt hour program, the transmission and distribution utilities must multiply the transmission and distribution rate in effect as of December 31 of the calendar year for such customers, as well as the average standard offer rate in effect during the calendar year, and multiply that rate times the total kilowatt hour credits that expired during the calendar year.

Reporting Requirement. By April 1 of each year, the transmission and distribution utilities must report to the Commission the number of unused kilowatt-hour credits, by customer class, that were accumulated by all customers of the utility with net energy billing kilowatt-hour arrangements during the prior calendar year and that expired during the prior calendar year and the monetary value of those credits.

4. Non-usage Charges. Net energy billing-kilowatt-hour credits only applies to kilowatt-hour usage charges. Net energy billing customers or the shared ownership customers are responsible for all other charges applicable to the customer's rate class and recovered either through fixed amounts or over units other than kilowatt-hours.

5. Billing. The transmission and distribution utility may place net energy billing accounts on the same billing cycle. The transmission and distribution utility must allocate the generation output during the billing period and any kilowatt-hour credits from prior billing periods between and among the net energy billing accounts based on the allocation methodology specified pursuant to Section 3(D)(5) of this Chapter.

6. Generation Providers. Customers or the shared financial interest customers that elect net energy billing-kilowatt-hour credits may obtain generation service from any competitive electricity provider that agrees to provide service on a net energy basis. If the customer or the shared financial interest customers receives standard offer service, the standard offer provider must provide service on a net energy basis

Treatment of Facility Output. The transmission and distribution utility must apply the facility output of the eligible facility against supplier load obligations or, as applicable, to otherwise maximize the value of the output. Each transmission and distribution utility must, at least monthly, provide the project sponsor a report showing the generation from their facility. The transmission and distribution utility and project sponsor are jointly responsible for identifying errors. For project sponsors with generators participating in the kilowatt-hour program, the project sponsor must review the total generation in the billing cycle and report any suspected meter data errors to the transmission and distribution utility within 10 business days of the invoice. Once the transmission and distribution utility receives an email from the project sponsor regarding a potential meter data error, the transmission and distribution utility will investigate and communicate findings to the project sponsor. Errors that are identified and brought to the transmission and distribution utility’s attention as described in this paragraph will be corrected within the time period set forth in the ISO-NE tariff or market rules. Meter data errors that are discovered after the 10-day period will only be corrected if the utility is able to correct within the ISO-NE resettlement deadline. The respective obligations of the transmission and distribution utilities, project sponsors and NEB customers must be contained in the standard net energy billing agreement.

J. Net Energy Billing-Tariff Rate Requirements. A commercial or institutional customer or commercial or institutional shared financial interest customers qualifying under this section must receive a bill credit as follows:

1. Bill Credit. Commercial or institutional customers must receive a bill credit equal to the applicable tariff rate multiplied by the customer’s share of the facility output during the applicable period. The bill credit must apply against the total amount of the bill issued to the customer by the transmission and distribution utility. The bill credit may not result in a negative customer bill.

2. Unused Credits. Commercial or institutional customers may accumulate unused bill credits and apply them against their bill over a 12-month rolling period. At the end of each 12-month rolling period, any accumulated unused bill credits must be eliminated and may not be applied against any future bill. The customer will receive no compensation for unused bill credits.

3. Billing. The transmission and distribution utility may place net energy billing-tariff rate accounts on the same billing cycle. The transmission and distribution utility must allocate the generation output during the billing period and any bill credits from prior billing periods between and among net energy billing accounts based on the allocation methodology specified by customers pursuant to and as required by Section 3(E) of this Chapter. The allocation of credits must account for 100 percent of the output of the eligible facility. If the eligible facility does not have subscribers for 100 percent of the output, the remaining credits will be allocated to the Facility Account of the eligible facility.

4. Establishment of Tariff Rate. The Commission must establish the initial tariff rates by December 1, 2019 and subsequent tariff rates prior to January 1 of each year. The Commission delegates to the Director of Electric and Gas Industries the authority to establish the tariff rates in accordance with the provisions of this rule.

5. For eligible facilities that comply with the requirements of this paragraph, the tariff rate must equal the standard offer service rate established under Title 35-A, section 3212 that is applicable to the net energy billing-tariff rate customer receiving the bill credit plus 75% of the effective transmission and distribution rate for the rate class that includes the smallest commercial customers of the customer's investor-owned transmission and distribution utility.

6. The effective transmission and distribution rate must be established for a 12-month period. In the event that the applicable standard offer rate varies by month, the standard offer rate for purposes of the tariff rate will be a single rate based on the average over the twelve-month period. In the event that the applicable standard offer rate is set based on an index or otherwise unknown, the standard offer rate for purposes of the tariff rate will be a single rate based on the average rate over the prior twelve-month period.

7. The tariff rate established in accordance with subparagraph (a) of this section applies to:

i. eligible facilities with a nameplate capacity of 1 megawatt or less;

ii. eligible facilities that are greater than 1 megawatt if the eligible facility has (a) achieved mechanical completion prior to September 1, 2022 or (b) before September 1, 2022, the project sponsor has commenced on-site physical work of a significant nature on the eligible facility and, since then, the project sponsor has made continuous on-site construction efforts. Eligible facilities that achieve mechanical operation by September 1, 2023 will be considered to have engaged in continuous on-site construction efforts. Project sponsors of eligible facilities that have not achieved mechanical completion by September 1, 2023 may submit a petition to the Commission for determination of whether the continuous on-site construction efforts regarding the eligible facility has occurred.

iii. eligible facilities that are collocated with the facility or facilities of a net energy billing customer or customers that are subscribed to at least 50% of the facility’s output.

1. To demonstrate eligibility for the tariff rate established in accordance with section 3(J)(4)(a), an eligible facility with nameplate capacity of greater than 1 MW that has not achieved mechanical completion prior to September 1, 2022 must provide (i) a sworn affidavit and supporting documentation by October 31, 2022, signed by a duly authorized officer or other legally authorized representative of the eligible facility certifying that on-site physical work of a significant nature commenced prior to September 1, 2022 and (ii) a sworn affidavit and supporting documentation after mechanical completion. The affidavit and supporting documentation must be consistent with an affidavit form and content approved by the Commission. The Commission delegates to the Director of Electric and Gas Industries the authority to approve the affidavit form and content.

2. For eligible facilities that do not satisfy the requirements of Section 3(J)(4)(a)(b), (c) and (d), the tariff rate for credits received in 2022 must be the applicable tariff rate that was established by the Commission for NEB credits received during calendar year 2020 established in accordance with subsection 3(J)(4)(a). Beginning on January 1, 2023 and for each subsequent year, the tariff rate must be that rate increased by 2.25% each year.

3. Beginning January 1, 2026, the tariff rate for a customer participating in net energy billing pursuant to section 3209-B of Title 35-A with a facility eligible for the tariff rate set forth in subsection 3(J)(4)(a), (b), (c) and (d) is as follows: - 1. For a facility with a nameplate capacity of at least 3 megawatts and less than 5 megawatts, the tariff rate equals the tariff rate calculated by the Commission in accordance with subsection 3(J)(4)(e) that would have been applicable in 2026 to the rate class of the customer receiving the credit. This rate will increase by 2.25% on January 1 of each year, beginning January 1, 2027. 2. For a facility with a nameplate capacity of less than 3 megawatts, the tariff rate equals the tariff rate calculated by the Commission in accordance with subsection 3(J)(4)(a) that was applicable in 2025 to the rate class of the customer receiving the credit. This rate will increase by 2.25% on January 1 of each year, beginning January 1, 2027.

4. The Commission will publish the tariff rates established in accordance with subsections 3(J)(4)(e) and (f) applicable in each of the next twenty years on its publicly available website.

5. Registration and Treatment of Facility Output. The commercial or institutional customer, or project sponsor, or a representative or agent must, if required by the market rules, register the eligible facility in the ISO-NE or NMISA market, as applicable, and provide for and pay the costs of required meters and associated equipment. The project sponsor, or the transmission and distribution utility, as designated by the net energy billing agreement, must use commercially reasonable efforts to monetize the value of the energy, capacity, and all other market products relating to the facility output in a manner that maximizes the value of the output of the resource to ratepayers. Each transmission and distribution utility must, at least monthly, provide the project sponsor a report showing the generation from their facility. The transmission and distribution utility and project sponsor are jointly responsible for identifying errors. The transmission and distribution utility will email the hourly readings to the project sponsor within one business day of reporting the generation to the ISO-NE. Project sponsors must review the readings and report any suspected meter errors to the transmission and distribution utility within 7 business days of receipt. Once the transmission and distribution utility receives an email from the project sponsor regarding a potential meter data error, the transmission and distribution utility will investigate and communicate findings to the project sponsor. Errors that are identified and brought to the transmission and distribution utility’s attention as described in this paragraph will be corrected within the time period set forth in the ISO-NE tariff or market rules. Meter data errors that are discovered after the 7-day period will only be corrected if the transmission and distribution utility is able to correct within the ISO-NE resettlement deadline. The respective obligations of the project sponsor and transmission and distribution utility in this regard must be established by the net energy billing agreement.

6. Renewable Energy Credits. Renewable energy credits may not be transferred to the transmission and distribution utility.

K. Additional Meters. Nothing in this section prohibits a utility from installing additional meters to record purchases and sales separately, provided, however, that unless requested by the customer or shared financial interest customers or required by the allocation methodology contained in Section 3(E) of this Chapter, no customer or the shared financial interest customers may be charged for the cost of the additional meters or other necessary equipment. A customer or shared financial interest customer may request that additional meters be installed if required by the allocation methodology designated by the customer or shared ownership customers. The transmission and distribution utility must maintain Terms and Conditions that set forth the requirements and charges associated with this metering.

L. Interconnection Requirements. A customer or project sponsor that elects net energy billing must comply with all interconnection, safety and reliability requirements of the transmission and distribution utility applicable to the eligible facility.

M. Standard Contract and Application. Each investor-owned transmission and distribution utility must develop a separate standard contract and application form for both net energy billing-kilowatt-hour credits and net energy billing-tariff rate consistent with the provisions of this Chapter. The standard contracts must allow project sponsors or individual customers to choose a contract with a term length of up to twenty years. The standard contract must include a provision that obligates the parties to negotiate in good faith to revise the contract terms if there is a change in statute or rule that materially alters any right or obligation of a contracting party. Each investor-owned transmission and distribution utility must submit draft standard contracts and application forms for Commission approval. The submission of the draft standard contracts and application forms must occur by December 15, 2019. Additional submissions of draft standard contracts and application forms must be made within 30 days of the effective date of any rule amendments that require the documents to be modified. The Commission may approve deviations from the standard contracts. The Commission delegates to the Director of Electric and Gas Industries the authority to approve the standard contracts and application forms, and any deviation from the standard contracts or application forms.

N. Dispute Resolution. A transmission and distribution utility, a customer, or a project sponsor may dispute any matter governed by this Chapter by filing a Notice of Dispute with the Commission. If a transmission and distribution utility is disputing any aspect of an application for a net energy billing agreement, it must file a Notice of Dispute within 21 days of the submission of the application. A transmission and distribution utility, a customer or a project sponsor must engage in good faith efforts to resolve the dispute before a Notice of Dispute is filed. The Commission or the Consumer Assistance and Safety Division will resolve disputes filed pursuant to this provision.

O. Reporting and Commission Review

Commission Review. A transmission and distribution utility must notify the Commission if the cumulative capacity of generating facilities subject to the provisions of this Chapter reaches ten percent of its peak demand. Upon such notification or by September 19, 2022, the Commission will initiate a review of this Chapter to consider the effectiveness of net energy billing in achieving State policy goals and providing benefits to ratepayers. Upon the conclusion of the review, the Commission must submit a report to the Legislature.

Quarterly Report. On the 15^th day following each calendar quarter, or otherwise upon request from the Commission, investor-owned transmission and distribution utilities must file with the Commission a net energy billing report. The net energy billing report must at a minimum, include: (1) a list of all net energy billing agreements in the transmission and distribution utility’s service territory; (2) the capacity, energy output and fuel type or generating technology of each eligible facility; (3) the number of accounts or meters associated with each net energy billing arrangement; (4) an estimate of (i) the actual revenue loss from net energy billing-kilowatt-hour credit arrangements and (ii) the cost of bill credit amounts from net energy billing-tariff rate arrangements; and other costs incurred to implement the requirements of this Chapter including, but not limited to, billing system upgrades and administrative costs.

P. Determination, Allocation, and Reporting of Costs and Benefits of Net Energy Billing. The Commission must determine the benefits of distributed generation under net energy billing and the net energy billing costs for the previous year on an annual basis and must allocate such costs and benefits as follows:

Determination of costs and benefits. When determining benefits of net energy billing, the Commission must use available regional avoided energy supply cost studies that are applicable to the determination and have been developed through a transparent process with input from state agencies, ratepayer or consumer public advocates, utilities, or energy efficiency administrators from at least three other New England states. When relevant information specific to Maine is not provided in such regional study, the Commission may use the regional information in the regional study or information from other sources supported by evidence, as determined by the Commission.

The Commission will determine the annual costs of net energy billing on a calendar-year basis as part of the annual proceedings conducted pursuant to Title 35-A, section 3208 to determine and allocate stranded costs. Any costs of net energy billing will be reduced by net energy billing project charges collected.

Allocation of costs and benefits. The Commission must allocate to each investor-owned transmission and distribution utility its pro rata share of net energy billing costs. If the Commission finds that a benefit of distributed generation under net energy billing provides a monetized net financial benefit to an investor-owned transmission and distribution utility that the Commission does not otherwise account for when setting rates for the utility, the net financial benefit must be applied to offset the net energy billing costs allocated under this section. The allocation must be based on each utility's total retail kilowatt-hour energy sales to ratepayers that pay net energy billing costs. The commission may determine the means to be used for the allocation required under this subsection, and those means may include the direct transfer of funds between transmission and distribution utilities.

Notwithstanding the preceding paragraph, net energy billing costs and benefits for investor-owned transmission and distribution utilities through calendar year 2027 will be aggregated and allocated to each customer class group based on each group’s pro rata share of statewide post-restructuring stranded costs based on total retail kilowatt-hour energy sales to those customers pursuant to section 3209(5) of Title 35-A. Each investor-owned transmission and distribution utility’s allocated share of net energy billing costs is equal to the sum of the amounts allocated to each of its customer class groups.

Reporting of costs and benefits. The Commission will submit an annual report to the joint standing committee of the Legislature having jurisdiction over utility matters by March 31 of every year describing the net energy billing costs and benefits. The report must include but is not limited to costs authorized to be collected by the utilities in rate proceedings or benefits directly received by ratepayers. The report will distinguish costs and benefits that are monetized from costs and benefits that are not monetized. To the extent costs or benefits are monetized, the report must specify the entities, including but not limited to utilities, ratepayers, and generators, that will experience the costs and benefits.

Q. Net Energy Billing Project Charge

To offset the costs of net energy billing, the transmission and distribution utility will assess a monthly charge to a distributed energy resource participating in net energy billing with a shared financial interest customer pursuant to section 3209-A of Title 35-A as follows:

Initial Net Energy Billing Project Charge. Beginning on January 1, 2026, a transmission and distribution utility will assess the following monthly charge:

For a distributed generation resource with a nameplate capacity of 3 megawatts or more and less than 5 megawatts, the charge will be $6.00 multiplied by the nameplate capacity of the resource in kilowatts;

For a distributed generation resource with a nameplate capacity of one megawatt or more and less than 3 megawatts, the charge will be $2.80 multiplied by the nameplate capacity of the resource in kilowatts; and

For a distributed generation resource with a nameplate capacity of less than one megawatt, there will be no charge.

Adjustment of Net Energy Billing Project Charge. The Commission will, on a periodic basis, adjust the initial net energy billing project charge to account for increases in transmission and distribution rates such that compensation to an eligible facility related to transmission and distribution rate credits does not increase by more than 2.25% per year.

The Commission will annually evaluate whether an increase to the Net Energy Billing Charge applicable to the next calendar year is necessary. Notwithstanding the foregoing, nothing in this subsection shall prevent the Commission from adjusting the Net Energy Billing Charge at different frequencies or at different times during a calendar year if deemed necessary to ensure that compensation to an eligible facility related to transmission and distribution rate credits does not increase by more than 2.25% per year.

Billing and Failure to Pay Net Energy Billing Project Charge. The transmission and distribution utility will assess the net energy billing project charge with each billing cycle. If the project sponsor fails to pay the net energy billing project charge within 15 days after the due date shown on the bill, the transmission and distribution utility must discontinue providing credits to customers subscribed to the project. If the payment is made more than 15 days from the due date shown on the bill, the utility is prohibited from applying credits accrued during the period of non-payment.

Exemption from Net Energy Billing Project Charge. A distributed generation resource is exempt from the net energy billing project charge if it can demonstrate to the Commission that it is:

Wholly owned by the customer or customers receiving the net energy billing credits associated with the output of the distributed generation resource; or

Wholly owned by a cooperative corporation organized pursuant to Chapter 85 of Title 13 of the Maine Revised Statutes.

A distributed generation resource seeking an exemption from the net energy billing project charge must file an affidavit with the utility and the Commission stating their eligibility for the exemption. The Commission delegates to the Director of Electric and Gas Industries the authority to approve the affidavit form and content.

§ 4 CONSUMER PROTECTIONS

Applicability. A project sponsor, or a representative or agent of the project sponsor and any entity that markets a shared financial interest to residential or small commercial customers must comply with provisions of this section. Project sponsors are responsible for violations of the provisions of this section by representatives or agents acting on their behalf.

Trade Practices. Individuals or entities subject to this section must comply with the provisions of the Maine Unfair Trade Practices Act, Title 5, chapter 10 and related consumer protection statutes. Any finding by an entity of competent jurisdiction that an individual or entity violated either the Maine or Federal Unfair Trade Practices Act is deemed to be a violation of this section.

C. Registration. Individuals or entities subject to this section must register with the Commission. The Commission will adopt standard registration forms and specific filing requirements and delegates this task to the Director of Electric and Gas Industries.

D. Financial Security. The Commission may establish a financial security requirement for individuals or entities subject to this section. Any such financial security must be held by the transmission and distribution in whose service territory the eligible facility is located. Upon a finding that an individual or entity has violated provisions of this section, the Commission may direct that amounts from the financial security be distributed to (1) customers for a refund of security deposits or advanced payments; (2) to customers for restitution of amounts paid in error or charges assessed in violation of this Chapter; and (3) to the Commission for payment of administrative penalties or any other sanction pursuant to this Chapter or applicable statutes. Prior to establishing financial security requirements pursuant to this provision, the Commission will provide an opportunity for interested persons to comment on whether a financial security requirement should be established, the amount of any such financial security requirement, and the type of security that should be allowed.

E. Standard Disclosures. Prior to the sale, resale or lease of a financial interest in the output of an eligible facility, individuals or entities subject to this section must provide a disclosure that, at a minimum, contains the following:

A good faith estimate of the annual kilowatt-hours to be received by the shared eligible generation resource based on the size of the subscriber's shared financial interest;

A plain language explanation of the terms under which the kilowatt-hour or bill credit will be calculated;

A plain language explanation of requirements relating to the disposition or transfer of a shared financial interest;

A plain language explanation of the costs and benefits to the potential shared financial interest customer, based on the customer’s current usage for the term of the term of the shared financial interest; and

A plain language explanation of renewable attributes represented by renewable energy credits and the effect of selling the renewable attributes.

The Commission will adopt by order standard disclosure forms to be used by individuals or entities subject to this section when marketing a shared financial interest in an eligible facility to customers. The Commission may approve modifications to the standard disclosure forms. The Commission delegates to the Director of Electric and Gas Industries the authority to adopt standard disclosure forms and modifications to the standard disclosure forms.

F. Affirmative Authorization. Individuals or entities subject to this section must obtain affirmative authorization from a potential customer prior to the sale or transfer of a financial interest in the output of an eligible facility that would result in a commitment by the customer in the enrollment or participation of the customer. For the purposes of this subsection, the customer's affirmative choice may be evidenced by a customer-signed letter of authorization, third-party verification, or through electronic authorization. Individuals or entities subject to this section must maintain a record of the affirmative authorization for a twelve-month period and provide such records to the Commission upon request.

1. Letter of authorization. For the purposes of this provision, the term "letter of authorization" means an easily separable document whose sole purpose is to authorize individuals or entities subject to this section to initiate the sale or transfer of a financial interest in the output of an eligible facility. The letter of authorization must be signed and dated by the customer and must not be combined with a check, prize or other document that intends to confer any benefit on the customer as a result of the customer’s sale or transfer of a financial interest in the output of an eligible facility. The document may be transmitted electronically by the customer to the provider if the provider maintains a security system sufficient to identify the customer and prevent fraudulent use of the letter of authorization by any person.

2. Third-party verification. For the purposes of this provision, the term "third-party verification" means an appropriately qualified and independent third party operating in a location physically separate from the marketing representative who has obtained the customer's oral authorization for the sale or transfer of a financial interest in the output of an eligible facility. The authorization must include appropriate verification data, such as the customer's date of birth or other voluntarily submitted information; provided, however, any such information or data in the possession of the third party verifier or the marketing company may not be used, in any instance, for commercial or other marketing purposes, and may not be sold, delivered, or shared with any other party for such purposes.

3. Electronic authorization. For purposes of this provision, the term “electronic authorization” refers to a verification of agreement through electronic means. Individuals or entities subject to this section must acknowledge receipt and confirmation of the sale or transfer of a financial interest in the output of an eligible facility within one business day. The confirmation may be provided to the customer by e-mail.

G. Rescission. Individuals or entities subject to this section must allow a customer to rescind its authorization in the event such recission is requested orally or in writing within five days of the customer’s receipt of its first bill or invoice. The first bill or invoice must contain a notice that the customer may rescind its authorization and information stating how to proceed to rescind its authorization. The customer is responsible for payment in full of the first bill or invoice. The customer may not be charged any fees if the customer rescinds its authorization pursuant to this provision.

H. Collections. Individuals or entities subject to this section may not collect or seek to collect unreasonable costs from a customer who is in default of its financial interest contract or arrangement. For purposes of this provision, unreasonable costs are those in excess of actual out-of-pocket expenses incurred by the project sponsor, including reasonable attorney fees and actual court costs.

I. Marketing. In any marketing or promotional activities, individuals or entities subject to this section may not in any manner state, suggest or imply that the product that is being marketed is provided or endorsed by a transmission and distribution utility.

J. Subscription Size. A project sponsor providing service to a customer participating in a net energy billing arrangement based upon a shared financial interest must establish a subscription size for a customer that is based on annual historical customer usage, while taking into account anticipated increases in usage. The project sponsor must adjust the customer’s subscription size as needed to match changes in anticipated, annual usage.

K.. Utility Provision of Customer Usage Information. A transmission and distribution utility will provide a project sponsor billing information for a customer who is participating in a net energy billing arrangement. The project sponsor may only use the provided information to administer the customer’s net energy billing arrangement and is prohibited from sharing this information with a third party without the customer’s written permission.

L. Prohibition on Retaining Unused Credits. A project sponsor providing service to a customer participating in a net energy billing arrangement pursuant to section 3209-A of Title 35-A is prohibited from retaining any portion of a customer’s payment that is for unused kilowatt-hour credits that have expired. The project sponsor must calculate the value of the expiring credits pursuant to subsection 3(I)(3)(a) of this Chapter and credit the customer for the value of the expiring credits within 60 days of the credits’ expiration.

J . Sanctions. Individuals or entities that violate the provisions of this section are subject to sanctions. Sanctions may be imposed following a hearing before the Commission in conformance Title 5 M.R.S., Chapter 375, subchapter IV ( Maine Administrative Procedure Act ) and Chapter 110 of the Commission's rules.

Participation in Net Energy Billing. The Commission may prohibit individuals or entities subject to this section from participating in net energy billing under this Chapter.

2. Cease and Desist Orders. The Commission may issue a cease and desist order, if the Commission finds that any individual or entity subject to this section has engaged or is engaging in any act or practice in violation of any law or rule administered or enforced by the Commission or any lawful order issued by the Commission. A cease and desist order is effective when issued unless the order specifies a later effective date or is stayed pursuant to Title 5, section 11004.

3. Restitution. The Commission may order restitution for any party injured by a violation for which a penalty may be assessed pursuant to this subsection.

4. Other. The Commission may impose any other sanction authorized by law that it determines appropriate taking into account the facts and circumstances that resulted in the violation.

5. Administrative Penalties. The Commission may impose administrative penalties pursuant to Title 35-A, Chapter 15 that it determines appropriate taking into account the facts and circumstances that resulted in the violation.

Waiver. The Commission may waive the imposition of sanctions upon a showing that the violation was immaterial, unintentional, or that the individual or entity acted in good faith to comply with all applicable statutory and regulatory requirements.

§ 5 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director Electric and Gas Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2025-00264, issued on February 3, 2026. Copies of this Statement and Order have been filed with this Rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Maine Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301, 3209, 3209-A, 3209-B, 3209-C, 3209-F, 3209-G.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 15, 1998. It was filed with the Secretary of State on December 15, 1998 and became effective on December 20, 1998.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 10, 2009. It was filed with the Secretary of State on June 15, 2009 as filing 2009-249, and became effective on July 15, 2009.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 20, 2012. It was filed with the Secretary of State on January 24, 2012 as filing 2012-7, and became effective on January 29, 2012.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 22, 2017. It was filed with the Secretary of State on March 24, 2017 as filing 2017-051, and became effective on March 29, 2017.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 22, 2019. It was filed with the Secretary of State on April 22, 2019 as filing 2019-066 (Emergency), and became effective on April 22, 2019.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 7, 2019. It was filed with the Secretary of State on August 7, 2019, and became effective on August 12, 2019 (filing 2019-145).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 7, 2019. It was filed with the Secretary of State on December 2, 2019 and became effective on December 7, 2019 (filing 2019-217).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 9, 2021. It was filed with the Secretary of State on December 9, 2021 and became effective on December 14, 2021 (filing 2021-245).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 11, 2022. It was filed with the Secretary of State on October 17, 2022 and became effective on October 17, 2022 (filing 2022‑207).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 3, 2024 It was filed with the Secretary of State on July 3, 2024 and became effective on July 8, 2024 (filing 2024-143).
• EFFECTIVE DATE: NONSUBSTANTIVE CORRECTIONS (cross-references) made to filing 2024-143 – September 30, 2024
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 27, 2025. It was filed with the Secretary of State on March 27, 2025 and became effective on April 1, 2025 (filing 2025-055).
• APAO ACCESSIBILITY CHECK (Word): February 18, 2026 (no issues detected)
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 17, 2026. It was filed with the Secretary of State on February 18, 2026 and became effective on February 23, 2026 (filing 2026-049).

Chapter 314 Statewide Low-Income Assistance Plan

Code Me. R. 65-407 Ch. 314 Statewide Low-Income Assistance Plan {#sec-65-407-ch.-314 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 314}

SUMMARY: This Chapter establishes the standard design, as well as the administration and funding criteria, for a Statewide Low-Income Assistance Plan to assist qualified low-income customers to pay their electric bills. This Chapter also creates a central fund to finance the statewide plan and apportions the fund to transmission and distribution utilities based on the financial need that exists in each transmission and distribution service territory. The Maine State Housing Authority (MSHA) will administer the statewide plan and the individual Low-Income Assistance Programs (LIAPs) and the Department of Human and Health Services (DHHS) will provide client information to the transmission and distribution utilities so they may determine eligibility for the LIAP.

§1 GENERAL PROVISIONS AND DEFINITIONS 3

Scope of Rule 3

Definitions 3

§2 PURPOSE OF THE STATEWIDE LOW-INCOME ASSISTANCE PLAN AND LIAPs 6

§3 MODIFICATION OF LIAPS 6

§4 REQUIRED DESIGN FEATURES OF A LIAP 6

Eligible Customers 6

LIAP Administration 7

Native American Participation in LIAPs 7

Transfer of Certification Information 7

Benefit Levels 7

Lump Sum Benefit Program and Discount Rate Program 7

Discount Rate Program…………………………………………………………………..8

Enrollment 8

Statewide Low-Income Assistance Plan Funding 8

Relationship to Energy Management Services 9

Impact on Means-Tested Assistance Programs 9

Continuing Applicability of Chapter 815 9

Benefits Provided to Customers Using Oxygen Pumps or Ventilators 9

§5 STATEWIDE LOW-INCOME ASSISTANCE PLAN FUNDING 11

Creation of a Statewide Low-Income Assistance Plan Fund 11

Transmission and Distribution Utilities' Funding Obligation for the

Statewide Low-Income Assistance Plan for LIAP Program 12

Modifications to Assessment Level 13

Apportionment of Funds 13

Transfer of Funds 13

§6 STATEWIDE LOW-INCOME ASSISTANCE PLAN AND LIAP ADMINISTRATION: ROLE OF THE MSHA AND THE DHHS 14

Role of MSHA 14

Role of DHHS 18

§7 OBLIGATIONS OF TRANSMISSION AND DISTRIBUTION UTILITIES 18

Notice to Customers 18

Enrollment of DHHS Program Eligible Customers 18

Providing Information to MSHA, Community Action Agencies, or other

MSHA Designated Entities 18

Energy Management Measures 19

Reporting 19

§8 WAIVER 20

§1 GENERAL PROVISIONS AND DEFINITIONS

Scope of Rule

This Chapter applies to all transmission and distribution utilities in the State except those transmission and distribution utilities exempt from electric restructuring pursuant to Title 35-A M.R.S. §3202(6).

Definitions

1. Apportionment

"Apportionment" is the amount of money that a transmission and distribution utility shall spend annually on its LIAP. The amount of each transmission and distribution utility's apportionment is established by Commission order.

Apportionment Rate

"Apportionment rate" is the percentage of the Statewide Low-Income Assistance Plan fund to which a transmission and distribution utility is entitled.

Apportionment rates are established by Commission order.

Assessment

"Assessment" is the amount of revenue that each transmission and distribution utility must contribute annually to the cost of the Statewide Low-Income Assistance Plan. Each transmission and distribution utility's assessment is established by Commission order.

4. CASD

“CASD” is an acronym that stands for the “Consumer Assistance and Safety Division” of the Commission.

Carry-Forward Amount

“Carry-forward amount” is the total amount of apportioned funds that were unspent or uncommitted in one LIAP program year and are available for use in a future LIAP program year.

Commission

“Commission” is the Maine Public Utilities Commission.

Community Action Agency

“Community Action Agency” is a private nonprofit agency that is designated by and authorized to accept funds from the Federal Community Services Administration under the Federal Economic Opportunity Act of 1964 .

DHHS

“DHHS” is an acronym that stands for the Maine Department of Health and Human Services.

Discount Rate Program

“Discount Rate Program” is a LIAP that provides a discount on a particular rate, rates, or the overall amount that a customer pays for their electricity each month.

Federal Poverty Guidelines

“Federal Poverty Guidelines” are guidelines established by the Secretary of the United States Department of Health and Human Services adjusted annually on the basis of the Consumer Price Index for All Urban Consumers (CPI-U). The poverty guidelines are used as an eligibility criterion by Medicaid and a number of other Federal programs. The federal poverty guidelines are a simplified version of the federal poverty thresholds that the Census Bureau uses to prepare its estimates of the number of individuals and families in poverty.

LIAP

“LIAP” is an acronym that stands for "Low-Income Assistance Program," which is a program to assist qualified low-income customers pay their electric bills.

Collectively, the LIAPs constitute the Statewide Low-Income Assistance Plan. An existing Low-Income Assistance Program is a LIAP.

LIAP Program Year

“LIAP program year” is the period between October 1st and the following September 30th.

LIHEAP

“LIHEAP” is an acronym that stands for “Low-Income Home Energy Assistance Program,” which is a federally funded program that provides financial assistance grants to needy households for home energy bills and is implemented by the Maine State Housing Authority.

Lump Sum Benefit Program

A “Lump Sum Benefit Program” is a LIAP that uses a formula to calculate an annual customer benefit amount.

Means-Tested Program

A “means-tested program” is an assistance program that measures a family's income against the federal poverty line to determine eligibility for participation in the program.

MSHA

“MSHA” is an acronym that stands for the Maine State Housing Authority.

Oxygen Pump

An “oxygen pump,” also referred to as an “oxygen concentrator,” is an electrical device used to provide oxygen to a person for breathing at substantially higher concentrations than those of ambient air.

Participant

A “participant” is a customer who is enrolled in a LIAP.

Percentage of Income Program

A “percentage of income program” or “PIP” is a LIAP under which a customer’s transmission and distribution utility costs are based on a predetermined percentage of the customer’s total household income. Transmission and distribution utility costs that exceed the predetermined percentage of total household income are paid as a benefit.

Physician

"Physician" is any natural person authorized by law to practice medicine or osteopathy in Maine.

Residential Customer

“Residential Customer” is any person who has applied for, been accepted for, and is receiving residential service from a transmission and distribution utility or has agreed to be billed for residential service from a transmission and distribution utility. This term also includes a person who was a customer of the same transmission and distribution utility within the past thirty days and who requests service at the same or a different location.

Statewide Low-Income Assistance Plan

"Statewide Low-Income Assistance Plan" comprises the individual LIAPs that are being offered by the transmission and distribution utilities in the State in accordance with this Chapter.

Transmission and Distribution Utility

“Transmission and distribution utility” means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State, except where the electricity is distributed by the entity that generates the electricity through private property alone solely for that entity’s own use or the use of the entity’s tenants and not for sale to others.

Ventilator

“Ventilator” means equipment used to mechanically assist breathing by delivering air to the lungs. Ventilators, as defined, do not include Continuous Positive Airway Pressure (CPAP) or Bi-Level Positive Airway Pressure (Bi-Pap) machines.

Continuous Positive Airway Pressure (CPAP)

CPAP machine provides air at one continuous prescribed pressure to the patient so that unobstructed breathing becomes possible. It does not breathe for the patient.

Bi-Level Positive Airway Pressure (Bi-Pap)

Bi-Pap machine provides air at two levels of pressure: one for inhalation and a lower pressure during exhalation. It does not breathe for the patient.

§2 PURPOSE OF THE STATEWIDE LOW-INCOME ASSISTANCE PLAN AND LIAPs

The purpose of the Statewide Low-Income Assistance Plan and the individual LIAPs is to establish a series of bill payment assistance programs which collectively cover the State for low- income residential customers that will:

Make participants’ electric bills more affordable;

Make assistance available to low-income customers throughout the State; and

Ensure that each transmission and distribution utility in the State has the funds necessary to implement a LIAP that addresses the need that exists in that particular transmission and distribution utility's service territory.

§3 MODIFICATION OF LIAPS

Each transmission and distribution utility, except those exempted from electric restructuring

under 35-A M.R.S. §3202(6), must offer a LIAP to their customers. Each transmission and

distribution utility that currently offers a LIAP must continue to offer its LIAP.

Each transmission and distribution utility modifying its LIAP must submit terms and conditions

for its proposed LIAP to the Commission for review. The Director of CASD is delegated

authority to review and approve each transmission and distribution utility’s LIAP. Each

transmission and distribution utility proposing to modify its LIAP must submit its request for

approval of such changes to the Commission by May 1 for modifications to the forthcoming LIAP

program year.

§4 REQUIRED DESIGN FEATURES OF A LIAP

Each LIAP must have the following design features:

Eligible Customers

Each transmission and distribution utility's LIAP must be available to its customers who are taking residential electric service on a continuing year-round basis who meet the following eligibility criteria:

1. The customer or a member of the customer’s household is eligible for LIHEAP administered by MSHA or any means-tested program administered by DHHS and the customer’s household income is found to be at or below 150% of the

federal poverty guidelines.

1. The customer is not receiving a housing subsidy that limits the household’s total housing cost, including utilities, to a fixed percentage of the household’s income, with the exception of customers who qualify for participation in the oxygen pump or ventilator program pursuant to section 4(L)(3). These customers are eligible to participate in both the LIAP, as well as the oxygen pump and ventilator programs; and
2. The customer qualifies for the transmission and distribution utility’s LIAP.

LIAP Administration

Collectively, the LIAPs will be administered by the transmission and distribution utilities, the MSHA and other entities that may contract with the MSHA. This includes eligibility certification, benefit determination, and any other administrative duty necessary to carry out the intent of this Chapter.

Native American Participation in LIAPs

Each transmission and distribution utility will enroll in its LIAP any customer that is certified to be eligible for LIHEAP by a tribal organization that is approved by the Federal Government to administer LIHEAP in the State of Maine.

Transfer of Certification Information

Certification and enrollment information should be transferred in the most efficient, cost effective way possible between the utility and the agency responsible for certification and calculation of the benefit.

Benefit Levels

Each LIAP must vary benefits paid to ensure that participants more in need receive higher benefits than participants less in need, as measured by income level and expressed as a percentage of the federal poverty guidelines. For example, participants between 0% and 75% of the federal poverty guidelines must receive a higher benefit than those between 76% and 100%. Similarly, participants between 101% and 125% of federal poverty guidelines must receive a higher benefit than those over 125%. Each transmission and distribution utility's LIAP must have a minimum of four separate categories of benefits based on federal poverty guidelines, with the exception of percentage of income programs, which by design complies with the intent of this section.

Lump Sum Benefit Program and Discount Rate Program

1. Consumer-owned Utilities’ Lump Sum Benefit Program 1. Default Lump Sum Benefit allocation method. Transmission and distribution utilities utilizing a Lump Sum Benefit Program must establish the annual benefit amount for each benefit level as described in subsection E above using a default allocation model provided annually by the Commission. 2. Minimum benefit amount. Transmission and distribution utilities must establish an annual “minimum benefit amount” that eligible participants will receive. This will ensure that all customers who are eligible for the

LIAP receive a benefit. Transmission and distribution utilities must file a

tariff to be reviewed and approved by the Commission to establish the minimum benefit amount.

• 1. Alternative Lump Sum Benefit allocation method. Upon application by a transmission and distribution utility made pursuant to section 3 above, the Director of CASD may approve an alternative Lump Sum Benefit allocation methodology that is consistent with the requirements of subsection E above.

1. Investor-Owned Utilities Discount Rate Program 1. Discount Rate Program allocation method. Transmission and

distribution utilities utilizing a Discount Rate Program must establish

the monthly benefit amount for each benefit level as described in subsection E above using a discount rate program model provided annually by the Commission.

• 1. Minimum benefit amount. Transmission and distribution utilities

must provide the monthly “minimum discount rate percentage” using the discount rate program model. This will ensure that all customers who are eligible for LIAP receive a benefit.

G. Discount Rate Program

Investor-owned transmission and distribution utilities must provide a Discount Rate Program to their eligible LIAP customers beginning October 1, 2026. Under the Discount Rate Program, each utility must annually, using a discount rate program model provided annually by the Commission, establish a discount rate for each of the four participant income levels relative to the federal poverty guidelines, i.e., 0-75%, 76%-100%, 101%-125%, >125%. The discount rate for each income level must be in effect from October 1 through the following September 30. Participants must be enrolled throughout the program year for a 12-month period from their enrollment date, with a new discount rate taking effect each October 1. The “discount” must be a percentage reduction to the customer’s entire bill amount for transmission, distribution and supply charges, including fixed charges, and may appear on a participant’s monthly bill as either an actual discounted rate or rates or as a “credit” amount.

Enrollment

For LIAPs that provide a monthly benefit, the enrollment process must be designed so that the participant receives a benefit on the next bill after the transmission and distribution utility's receipt of the participant's certification. If the bill will be issued within five business days after receipt of the certification, enrollment must be completed before the following bill is issued. If enrollment is delayed, enrollment must be retroactive to the first bill issued after certification. For LIAPs that provide benefits collectively on an annual basis, the benefit or partial benefit for utilities that provide their lump sum benefits in two installments must be credited to the participant's bill no later than 45 days after the customer is enrolled. Nothing in this section limits benefit disbursements to a monthly or an annual basis.

Statewide Low-Income Assistance Plan Funding

The Statewide Low-Income Assistance Plan will be funded by an assessment on each

transmission and distribution utility as described in Section 5 of this Chapter.

Relationship to Energy Management Services

As a condition of enrollment, a LIAP participant must agree to accept energy management measures and programs offered at no cost by the participant's transmission

and distribution utility, the Efficiency Maine Trust, the MSHA, or other federally or state-funded programs, for the participant’s dwelling or rental unit, unless the participant is a renter and the landlord withholds the required consent.

Impact on Means-Tested Assistance Programs

The intent of this Chapter is that benefits provided will not be counted as income or as a resource in other means-tested assistance programs for low-income households. Each LIAP must therefore be administered in a way that ensures that benefits will not result in the loss of other federal assistance dollars.

Continuing Applicability of Chapter 815

Except as specifically varied by this Chapter or by terms and conditions approved by the Commission, the provisions of Chapter 815 will continue to apply.

Benefits Provided to Customers Using Oxygen Pumps or Ventilators

1. Purpose of Oxygen Pump and Ventilator Benefits

The Oxygen Pump and Ventilator Benefits provide financial assistance to low- income customers who, for health-related reasons, must use an oxygen pump or ventilator at least 8 hours each day. The benefit is intended to cover the full cost of operating an oxygen pump or ventilator, and must not reduce benefits provided under existing LIAPs required by this Chapter.

Certification of Need

• 1. Each transmission and distribution utility must provide customers who use an oxygen pump or ventilator with a form approved by the Commission that documents the information listed below. The completed form must be signed and dated by the customer’s physician (or the patient’s physician, if the patient is not the customer), or the physician’s agent or designee. The form must, at a minimum, include the following information: 1. The name of the patient using an oxygen pump or ventilator; 2. The number of hours each day the patient must use an oxygen pump or ventilator; 3. The period of time in days or months that it is anticipated the patient will need an oxygen pump or ventilator; 4. The physical address (service location) at which the patient using an oxygen pump or ventilator resides; and 5. Whether the customer is receiving a housing subsidy that limits the

household’s total housing costs, including utilities, to a fixed percentage of the household’s income; and

• • 1. The name and utility account number of the eligible customer. 1. Use of a form provided by the Commission will be considered in compliance with the information requirements of Section 4(L)(2)(a)(i)-(vi). 2. Each time a transmission and distribution utility provides a customer with a form pursuant to this section, the transmission and distribution utility must also provide notice that the form must be completed on an annual basis. The notice can either be part of the form or can be included as an attachment to the form.

Eligibility

1. Transmission and distribution utilities must provide a credit to each participant who annually qualifies to participate in the utility’s LIAP pursuant to section 4(A) and who submits certification as specified in Section 4(L)(2) that a member of the household must use an oxygen pump or ventilator at least 8 hours each day.
2. Certification to receive the Oxygen Pump or Ventilator Benefit must be renewed for each LIAP program year. The certification form may be submitted prior to October 1 but no earlier than September 1 each year.
3. The Oxygen Pump or Ventilator Benefit must be applied to only one account per customer.
4. In the event a customer receiving the Oxygen Pump or Ventilator Benefit moves to a new location either within or outside the same transmission and distribution utility’s service territory, the customer’s eligibility to receive the Oxygen Pump or Ventilator Benefit must transfer to the new account. In these situations, the benefit at the second or subsequent location must reflect the remaining amount of time in that program year at the first or previous location, the customer is not eligible to receive an additional benefit at a subsequent location. In the event that a customer moves to a new transmission and distribution territory and requests eligibility for the Oxygen Pump or Ventilator Benefit, the transmission and distribution utility must ask the customer if they have received a benefit from their previous transmission and distribution utility.

Effect on Other LIAP Benefits

1. The benefit for use of an oxygen pump or ventilator must not reduce benefits provided, nor increase co-payments, under any other section of this Chapter.
2. The following requirements apply to transmission and distribution utilities operating a percentage of income program (PIP): 1. An eligible customer’s benefit will be recalculated in accordance with Section 4(L)(5) to consider the increased usage associated

with the operation of the oxygen pump or ventilator beginning on

the date the transmission and distribution utility receives the appropriately completed form specified in Section 4(L)(2);

• 1. An eligible customer’s co-payment cannot increase due to the usage associated with an oxygen pump or ventilator, and the

overall benefit provided to eligible customers must reflect the usage associated with the oxygen pump or ventilator, even if that usage causes the total benefit amount to exceed a pre-established ceiling for a total benefit amount; and

• 1. If the PIP bases the benefit amount on a customer’s electric usage for the previous 12 months and there is less than

12 months of oxygen pump or ventilator usage reflected in the historic consumption, an estimate of usage will be used until 12 months oxygen pump or ventilator usage is accumulated.

Amount of Credit

1. The Oxygen Pump or Ventilator Benefit should be equivalent to the total cost of electricity to run the oxygen pump or ventilator, including both the supply cost and the delivery cost, for the number of hours and the duration indicated by the physician. The amount of the credit must not exceed the total household usage. The cost of electricity for operating an oxygen pump or ventilator will be calculated by multiplying the applicable monthly kWh in Table 1 or Table 2 by the appropriate price per kWh. For customers who enroll in the oxygen pump or ventilator assistance programs or terminate use of an oxygen pump or ventilator part way through a billing cycle, the daily kWh in Table 1 or Table 2 will be used to calculate the benefit for the partial month.
2. Customers who submit the certification form specified in Section 4(L)(2) at the time they are enrolled in a transmission and distribution utility’s LIAP will receive a full year of the Oxygen Pump Benefit or the entire period of time specified by the patient’s physician, whichever time

period is less.

1. The benefit for customers who submit the certification form specified in Section 4(L)(2) during a LIAP program year will be calculated from the date the transmission and distribution utility receives the appropriately completed form to the end of that LIAP program year, the period of time for which the benefit is calculated, or the entire period of time specified by the patient’s physician, whichever time period is less.
2. For transmission and distribution utilities providing a grace period for customers to recertify LIHEAP eligibility, the Oxygen Pump or

Ventilator Benefit must continue along with the LIAP benefit provided that the certification form specified in Section 4(L)(2) is submitted by October 1.

§5 STATEWIDE LOW-INCOME ASSISTANCE PLAN FUNDING

Creation of a Statewide Low-Income Assistance Plan Fund

1. Purpose of the Fund

A Statewide Low-Income Assistance Plan fund (the Fund) must be established by the MSHA to: 1) reimburse each transmission and distribution utility whose funding obligation for the operation of its LIAPs exceeds its assessment; 2)

reimburse each transmission and distribution utility for funds expended for the Oxygen Pump and Ventilator Benefit Program; and 3) fund the MSHA's costs to administer the Statewide Low-Income Assistance Plan and the individual LIAPs pursuant to Section 6 of this Chapter.

Sources for the Fund

The Fund will consist of contributions by transmission and distribution utilities as directed by this Chapter; all money appropriated by the State for inclusion in the Fund; all interest, dividends and pecuniary gains from the investment of money in the Fund; and any other monies deposited in the Fund to implement the provisions of this Chapter.

Separate Accounts of Fund

The Fund will consist of three separate accounts: one dedicated to LIAP benefits; one dedicated to Oxygen Pump and Ventilator benefits; and one dedicated to administrative expenses. Funds may not be exchanged between the accounts unless approved by the Commission.

Transmission and Distribution Utilities' Funding Obligation for the Statewide Low- Income Assistance Plan for LIAP Program

1. LIAP Benefits

The total statewide spending for the LIAP benefits for the program years beginning October 1, 2024 and October 1, 2025, is $22,500,000. The total statewide spending for the LIAP benefits for the program year beginning October 1, 2026, will be $33,000,000. Future overall funding for the program will be adjusted as needed in the annual assessment and apportionment dockets. Funds owed to the MSHA pursuant to Section 5(E) must be transferred in a form specified by the MSHA and will be forwarded in two installments, the first on December 15

and the second on March 15, annually for the program year that begins October 1 and placed into the "benefits account" within the Fund. The Commission will, by November 1 of each program year, specify the amounts to be contributed by transmission and distribution utilities to the MSHA on December 15 and March 15 of each program year. Transmission and distribution utilities may also choose to forward the entire amount owed to MSHA pursuant to Section 5(E) on December 15.

Oxygen Pump and Ventilator Benefits

The annual statewide spending for Oxygen Pump and Ventilator benefits will be based upon the spending for the last completed program year for this program and will be established by Commission Order. Funds transferred pursuant to this section must be remitted to the MSHA by October 7 of each program year and placed in the “Oxygen Pump and Ventilator benefit account” of the fund.

Administrative Costs

The total statewide spending for administrative costs for the LIAPs for the year beginning October 1, 2001, was $291,164.. This funding amount continues each year thereafter unless modified by the Commission pursuant to this section. All funds transferred pursuant to this section must be remitted to the MSHA by

October 7 of each program year and placed in the "administrative account" of the

Fund. The Commission may adjust the transmission and distribution utilities'

contribution for administrative costs during a program year as necessary to ensure that the MSHA has sufficient funds to fully administer the LIAPs.

Modifications to Assessment Level

1. Overall Program Costs

The Commission will monitor the needs of Maine’s low-income electric customers and will evaluate annual LIAP funding and expenditure levels and program design features. The Commission may, by April 1 of each year, adjust the overall assessment, each transmission and distribution utility's assessment, and the Lump Sum Benefit Allocation Model as necessary to ensure that the assistance provided by the LIAPs is consistent with the provisions of 35-A

M.R.S. §3214.

Oxygen Pump and Ventilator Benefit Costs

The Commission will, by April 1 of each year, set the funding level for the Oxygen Pump and Ventilator Benefit Program. When setting the funding level, the Commission will consider the level of spending for the previous completed program year, as well as any other factors affecting the cost of electricity. The assessment process for this program will use the same methods as used to determine the assessment of the overall LIAP fund by multiplying the percentage of residential customers residing in each transmission and distribution utility’s service territory by the total statewide benefit.

Apportionment of Funds

Each transmission and distribution utility will be apportioned a specific funding amount for its LIAP pursuant to this section. The apportionment amount will be calculated by multiplying the percentage of LIAP eligible people in the State residing in each transmission and distribution utility’s service territory by the total LIAP funding amount for benefits (established in Section 5(B)(1)). A transmission and distribution utility may petition the Commission by March 1 for the upcoming program year to modify the apportionment rates used to establish the apportionments due to demographic changes in the LIAP eligible populations. The Commission may itself order a change in the apportionment rates if LIAP eligible demographic statistics indicate that the percentage of the State’s LIAP eligible customers residing in each transmission and distribution utility’s service territory has changed or actual LIAP participation rates experienced by each transmission and distribution utility indicate a change is appropriate.

Transfer of Funds

1. For Each Transmission and Distribution Utility whose LIAP Assessment

Exceeds its Apportionment

Each transmission and distribution utility whose LIAP assessment exceeds its

apportionment pursuant to this section must transfer the difference to the MSHA pursuant to Section 5(B)(1) of this Chapter.

For Each Transmission and Distribution Utility whose LIAP Assessment is Less than its Apportionment

Each transmission and distribution utility whose LIAP assessment is less than its apportionment is entitled to receive funds from the MSHA in an amount equal to the amount of actual expenditures for LIAP benefits that exceed the transmission and distribution utility’s assessment level, up to, but not exceeding, the transmission and distribution utility’s apportionment level. No transmission and distribution utility will be eligible to receive reimbursement from the MSHA until its LIAP expenditures exceed its assessment amount. Transmission and distribution utilities will receive reimbursement from the MSHA on a quarterly basis, to the extent that the MSHA has sufficient funding for the individual transmission and distribution utility expenditures available for this purpose.

Reimbursement will be on a quarterly basis. The MSHA is not responsible or liable for a lack of funding and no transmission and distribution utility shall have any right or cause of action against the MSHA as a result of a lack of funding.

Any shortfalls in funding will be considered by the Commission in its review of funding needs for the Statewide Low-Income Assistance Plan as described in Section 5(C)(1).

For Each Transmission and Distribution Utility whose LIAP Expenditures Exceed its Apportionment

No transmission and distribution utility will be reimbursed from the Fund for LIAP expenditures that exceed the transmission and distribution utility’s apportionment. Each transmission and distribution utility whose LIAP

expenditures exceed its apportionment may make adjustments to its LIAP program to reduce spending levels pursuant to Section 3.

Oxygen Pump and Ventilator Benefits

Transmission and distribution utilities may request reimbursement from the MSHA on a quarterly basis for expenditures incurred in the previous quarter. Transmission and distribution utilities will receive reimbursement from the

MSHA on a quarterly basis, to the extent that the MSHA has sufficient funding available for this purpose. Any shortfalls in funding will be considered by the Commission in reviewing funding needs for the Oxygen Pump and Ventilator Benefits as described in Section 5(C)(2).

§6 STATEWIDE LOW-INCOME ASSISTANCE PLAN AND LIAP ADMINISTRATION: ROLE OF THE MSHA AND THE DHHS

Role of MSHA

The MSHA will administer the LIAPs, and coordinate the administration of the LIAPs with the delivery of LIHEAP in Maine. Specifically, the MSHA (operating through the Community Action Agencies or other designated entities) will determine eligibility to participate in a LIAP and inform the transmission and distribution utility serving the

customer of the customer’s eligibility. The MSHA will be responsible for negotiating agreements with the Community Action Agencies or other designated entities necessary to carry out the intent of this section. Each transmission and distribution utility is responsible for making the necessary arrangements with the MSHA for administering its LIAP.

Fiscal Oversight

• 1. Management of the Statewide Low-Income Assistance Plan Fund

The MSHA shall create and manage the Statewide Low-Income Assistance Plan Fund pursuant to Section 5 of this Chapter. Funds submitted to MSHA pursuant to Section 5 will be placed in an interest-bearing account in accordance with the MSHA's standard investment policies pertaining to funds held in trust.

Contributions to and Reimbursements from the Statewide Low-Income Assistance Plan Fund

During each program year, the MSHA will monitor and track payments made by transmission and distribution utilities, as well as contributions from other funding sources, to the "benefits" and "administrative" accounts of the Statewide Low-Income Assistance Plan fund to ensure the transmission and distribution utility’s compliance with Section 5 of this Chapter. The MSHA will notify the Commission of any transmission and distribution utility that fails to make its required contribution. The MSHA will not be responsible for enforcing a transmission and distribution utility’s obligations under this section.

LIAP Benefits

During each program year, the MSHA will monitor and track benefits paid by transmission and distribution utilities to ensure that:

• • 1. Transmission and distribution utilities spend their specified apportionments on LIAP benefits pursuant to Section 5(E); 2. Transmission and distribution utilities contribute their specified assessments to fund benefits pursuant to Section 5(E); and 3. A transmission and distribution utility seeks reimbursement from the Fund for only those costs incurred for LIAP benefits to its customers above the transmission and distribution utility’s assessment and up to the transmission and distribution utility’s apportionment, pursuant to Section 5(E).

Statewide Low-Income Assistance Plan Administrative Expenses Incurred by the MSHA

The MSHA must be reimbursed for its costs incurred for the administration of the Statewide Low-Income Assistance Plan in an amount not to exceed $291,164 or other amount established pursuant to Section 5(B)(3). In the event this amount does not fully cover the MSHA's costs to administer the Statewide Low-Income Assistance Plan, the Commission may increase the transmission and distribution utilities' contributions to the administrative account of the Fund pursuant to

Section 5(B)(3) of this Chapter. Included in this amount shall be costs incurred by the Community Action Agencies and other MSHA-designated entities that are associated with the implementation and administration of the Statewide Low-Income Assistance Plan. Reimbursement for administrative costs pursuant to this section shall come from the "administrative account" of the Statewide Low-Income Assistance Plan fund. The MSHA will maintain records accounting for the costs it has incurred in administering the Statewide Low-Income Assistance Plan, including those costs incurred by the Community Action Agencies and other

MSHA-designated entities. The Commission or its agents will have the authority to inspect and examine MSHA’s records of its administrative costs.

Disputes Between the MSHA and its Designees

Any disagreements between the MSHA and entities designated by MSHA to administer the Statewide Low-Income Assistance Plan regarding compensation from the Fund for administrative duties carried out pursuant to this section must be brought to the Commission for resolution.

Reports to Commission

The MSHA will file reports annually with the Commission covering the program year October 1 through September 30. The reports will be filed with the Commission by the immediately following January 1 and will be in an

electronic data format satisfactory to the Commission and the MSHA. The reports will summarize and update program information including at a minimum the following information for each quarter of the program year:

Total Number of Participants

The total number of households participating in each transmission and distribution utility’s LIAP.

Reimbursement to Transmission and Distribution Utilities

The amount reimbursed from the fund in response to each transmission and distribution utility's statement of actual LIAP benefit amounts paid to eligible customers over the transmission and distribution utility’s assessment amount.

Funds Received from Transmission and Distribution Utilities

The amount received from each transmission and distribution utility, separately listing funds received to the "administrative account" and funds received to the "benefits account."

d. Funds received from Other Funding Sources

The amount of funding provided by each non-T&D utility funding source.

Benefits Paid

The amount of benefits paid by each transmission and distribution utility, as well as total benefits paid.

Fund Information

The amount of LIAP funds held by the MSHA, the interest earned by the fund, and projected spending for the pending program year.

Oxygen Pump and Ventilator Benefit

The number of customers receiving a benefit for the use of an oxygen

pump or ventilator pursuant to Section 4(L) of this Chapter, and the total amount of the benefits paid. Customers receiving a housing subsidy that limits the household’s total housing costs, including utilities, to a fixed percentage of the household’s income, must be stated separately.

Other Information

Any other information concerning the administration and implementation of the LIAPs that the MSHA or the Commission believes would be useful for the Commission’s ongoing oversight of funding levels and

program design. Reports filed by the MSHA pursuant to this section will be in an electronic data format satisfactory to the MSHA and the Commission.

Record Maintenance

The MSHA will maintain records that include at least the following information:

Number of Customers Evaluated

The number of eligible customers evaluated for participation in the Statewide Low-Income Assistance Plan by each Community

Action Agency or other entity authorized to determine eligibility for the applicable LIAPs.

Income and Usage

The household income, electric usage, and dollar amount of the annualized LIAP benefit (for LIAPs where this information is available) for each customer determined to be eligible by a Community Action Agency or other MSHA-designated entity, the date of such determination, and the identity of the transmission and distribution utility notified of the eligibility and benefit amount (for programs where this information is available).

Oxygen Pump and Ventilator Benefit

The number of customers receiving a benefit for the use of an oxygen pump or ventilator pursuant to Section 4(L) of this Chapter.

6. Coordination with Community Action Agencies

The MSHA may contract with Community Action Agencies or other entities throughout the State to administer the individual LIAPs. If circumstances require, the MSHA may, in its discretion, administer a LIAP locally or may contract with other entities, such as municipalities, to administer a LIAP in

cooperation with LIHEAP and similar programs. The MSHA may establish application procedures, education and counseling, record retention, and reporting requirements applicable to ensure that entities administering the LIAPs do so locally in a manner that is cost effective and coordinated with the implementation of LIHEAP. The MSHA will provide notice of the individual transmission and distribution utility’s LIAPs, including the Oxygen Pump and Ventilator Benefit, to customers applying for LIHEAP as well as in its mailings to clients about low-income assistance.

Role of DHHS

DHHS will, on a quarterly basis, exchange client information relating to its means-tested programs with the transmission and distribution utilities so the transmission and

distribution utilities may enroll eligible customers in their respective LIAPs. DHHS

will also provide transmission and distribution utilities with real-time access to its client information so they may determine eligibility for the LIAP on an individual customer basis.

§7 OBLIGATIONS OF TRANSMISSION AND DISTRIBUTION UTILITIES

Notice to Customers

1. New Customers

In its summary of rights and responsibilities provided to new customers pursuant to section 5 of Chapter 815, a transmission and distribution utility must explain to customers how they may become eligible and apply for credit for the use of an

oxygen pump or ventilator. Transmission and distribution utilities must also advise customers that the certification form required by Section 4(L)(2) must be submitted to the transmission and distribution utility on an annual basis.

Notice in Association with the Winter Disconnection Rule

Each transmission and distribution utility must include information regarding the existence of and eligibility criteria for the LIAP in any mailings by the transmission and distribution utility to comply with the Commission’s Winter Disconnection Rule. The information must include, at a minimum, the eligibility criteria for the LIAP, how to apply for the LIAP, and how to apply for credit for the use of an oxygen pump or ventilator. The information must also appear on the transmission and distribution utility’s web pages with other relevant customer service information targeted to residential customers.

Enrollment of DHHS Program Eligible Customers

Each transmission and distribution utility must enroll customers determined eligible for a means-tested program administered by the DHHS, whose household income is found to be at or below 150% of the federal poverty guidelines, and who otherwise qualifies for participation in the LIAP pursuant to section 4(A) above, upon receipt of the information provided by the DHHS referenced in section 6(B) above. A transmission and distribution utility must also enroll customers who notify the transmission and distribution utility that they are or may be eligible for LIAP on an individual customer basis as described in

section 6(B) above.

Providing Information to MSHA, Community Action Agencies, or other MSHA Designated Entities

Upon the request of the MSHA, Community Action Agencies, or other MSHA designated entities, each transmission and distribution utility must provide:

1. The prior 12 months usage for the customer's dwelling or the information necessary for the MSHA, Community Action Agency, or other MSHA-
2. designated entity to estimate the usage for the upcoming 12 months for the

dwelling;

1. The estimated cost of electric service for the 12-month period specified by the MSHA or Community Action Agency for each eligible customer; and
2. Any information needed to administer the transmission and distribution utility’s LIAP. This information must be transmitted electronically by the transmission and distribution utility to the MSHA, Community Action Agency, or other MSHA- designated entity in a format acceptable to the MSHA, unless the MSHA and the transmission and distribution utility agree that an alternative method of data transmission is acceptable. The MSHA or MSHA-designated entity will obtain customer authorization to release account information prior to requesting such information from the transmission and distribution utilities. This may be accomplished by including language necessary to release the account information in the LIAP application form.

Energy Management Measures

Each transmission and distribution utility must coordinate its funding and delivery of energy management programs with the implementation of its LIAP with respect to any such programs available to low-income electric customers through the MSHA, Community Action Agencies, or other MSHA designated entities.

Reporting

Each transmission and distribution utility must file quarterly reports with the MSHA and the Commission within 30 days of the closing of the quarter or year. The reports must cumulatively summarize and update program information including the following minimum information for each month of the program year:

Number of Participants in LIAP

The number of participants enrolled in its LIAP each month.

Number of Participants Dropped from the LIAP

The number of participants dropped from the program by month.

Number of Participants Receiving Oxygen Pump Benefits

The number of participants enrolled in its LIAP each month receiving a benefit for the use of an oxygen pump. Customers receiving a housing subsidy that limits

the household’s total housing costs, including utilities, to a fixed percentage of the household’s income, must be stated separately.

4. Number of Participants Receiving Ventilator Benefits.

The number of participants enrolled in its LIAP each month receiving a benefit for the use of a ventilator. Customers receiving a housing subsidy that limits the household’s total housing costs, including utilities, to a fixed percentage of the household’s income, must be stated separately.

Oxygen Pump Benefit Amounts

The total benefit amount provided to customers each month for the use of an oxygen pump, pursuant to Section 4(L) of this Chapter. The amount attributable

to customers receiving a housing subsidy that limits the household’s total

housing costs, including utilities, to a fixed percentage of the household’s income, must be stated separately.

6. Ventilator Benefit Amounts

The total benefit amount provided to customers each month for the use of a ventilator, pursuant to Section 4(L) of the Chapter. The amount attributable to customers receiving a housing subsidy that limits the household’s total housing costs, including utilities, to a fixed percentage of the household’s income, must be stated separately.

LIAP Program Benefit Amounts

The total dollar amount of benefits provided to participants by month.

Payments to the MSHA

The amount of program funding provided to the MSHA, separately listing LIAP benefits, Oxygen Pump and Ventilator Benefits, and administrative costs.

Reimbursements Received from the MSHA

The amount of funds received from the MSHA for reimbursement of LIAP and Oxygen Pump and Ventilator expenditures.

Reimbursement Requests made to the MSHA

The amount of funds requested for reimbursement from the MSHA.

Projected LIAP Benefits

The projected amount of LIAP benefits to be paid for the remainder of the program year and the difference between projected costs and the LIAP funding amount for the program year.

Administrative Funds Provided to MSHA

Funds provided to the MSHA for administrative costs pursuant to Section 5(B)(3).

The reports required in this subsection must be filed in Excel format and be filed within 30 days of the conclusion of each quarter and the end of each program year.

§8 WAIVER

Upon the request of any person subject to this Chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance and Safety Division, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

TABLE 1

Oxygen Pump Usage

Hours/Day Oxygen Pump is Used

Daily kWh

Monthly kWh

8

2.80

84

9

3.17

95

10

3.50

105

11

3.87

116

12

4.20

126

13

4.57

137

14

4.90

147

15

5.27

158

16

5.60

168

17

5.97

179

18

6.30

189

19

6.67

200

20

7.00

210

21

7.37

221

22

7.70

231

23

8.07

242

24

8.40

252

TABLE 2

Ventilator Usage

Hours/Day Ventilator is Used

Daily kWh

Monthly kWh

8

1.77

53

9

1.97

59

10

2.20

66

11

2.43

73

12

2.63

79

13

2.87

86

14

3.07

92

15

3.30

99

16

3.53

106

17

3.73

112

18

3.97

119

19

4.17

125

20

4.40

132

21

4.63

139

22

4.83

145

23

5.07

152

24

5.27

158

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 704, 1308 and 3214
• BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Commission Docket No. 2025-00241, issued on December 17, 2025. Copies of this Order and Statement have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General August 7, 2001. It was filed with the Secretary of State on August 9, 2001 and became effective on August 14, 2001 (filing 2001-357).
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on March 27, 2006. It was filed with the Secretary of State on March 28, 2006 and became effective April 2, 2006 (filing 2006-132).
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on September 25, 2007. It was filed with the Secretary of State on September 25, 2007, and became effective on October 1, 2007 (filing 2007-417).
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on July 25, 2013. It was filed with the Secretary of State on July 26, 2013, and became effective on July 31, 2013 (filing 2013-181).
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on July 19, 2017. It was filed with the Secretary of State on July 20, 2017, and became effective on July 25, 2017 (filing 2017-110).
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on May 23, 2022. It was filed with the Secretary of State on May 23, 2022 and became effective on May 28, 2022 (filing 2022-096).
• APAO ACCESSIBILITY CHECK (Word): February 13, 2026 (no issues detected by agency of jurisdiction)
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 12, 2026. It was filed with the Secretary of State on February 13, 2026 (filing 2026-046) and became effective on February 18, 2026.

Chapter 315 Small Generator Aggregation

Code Me. R. 65-407 Ch. 315 Small Generator Aggregation {#sec-65-407-ch.-315 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 315}

SUMMARY - This rule establishes the requirements for standard offer providers to purchase the electricity from small generators.

§ 1 PURPOSE 2

§ 2 DEFINITIONS 2

§ 3 PURCHASE OBLIGATION 2

A. Purchase Requirement 2

B. Purchase Price 2

C. Multiple Providers 3

D. Northern Maine 3

§ 4 ADMINISTRATION 3

§ 5 FINANCIAL NEUTRALITY 3

§ 6 NET ENERGY BILLING 3

§ 7 STANDARD CONTRACTS 4

§ 8 GIS CERTIFICATES 4

§ 9 TECHNICAL SPECIFICATIONS 4

§ 10 WAIVER OR EXEMPTION 4

§ 1 PURPOSE

The purpose of this Chapter is to ensure that small generators have reasonable access to the regional wholesale market.

§ 2 DEFINITIONS

A. Eligible Generator. “Eligible generator” means a generator with a nameplate capacity of 5 megawatts or less.

B. GIS Certificates. “GIS certificates” means certificates created pursuant to the NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

C. ISO-NE. “ISO-NE” means the Independent System Operator of the New England bulk power system or successor organization.

D. Northern Maine. “Northern Maine” means the area of Maine that is part of the Maritimes control area.

E. Real-Time Nodel Clearing Price. “Real-time nodal clearing price” means the wholesale price for electric energy received or furnished at the applicable nodal location, as determined by ISO-NE for settlement in the New England real-time energy market.

F. Standard Offer Provider. “Standard offer provider” means a provider of standard offer service chosen pursuant to Chapter 301 of the Commission’s rules.

§ 3 PURCHASE OBLIGATION

A. Purchase Requirement. The standard offer provider designated pursuant to Chapter 301 of the Commission’s rules to serve residential customers within the ISO-NE control area shall purchase any electricity available from any eligible generator located in the transmission and distribution service territory in which the standard offer provider is obligated to provide service, if requested to do so by the entity who own or controls the eligible generator. Requests for a standard offer provider to purchase electricity pursuant to this subsection shall be made through the transmission and distribution utility charged with administering the transaction between the eligible generator and the standard offer provider.

B. Purchase Price. The standard offer provider shall purchase the energy from an eligible generator at the ISO-NE real-time nodal clearing price for the node on which the generator is located. The purchase price under this subsection shall be reduced for any incremental ISO-NE system administrative costs charged to the purchasing standard offer provider as a result of the requirements of this Chapter. The Commission by order may change the applicable purchase price upon a finding that another price would result in the transaction being financially neutral to the standard offer provider consistent with the purposes of this Chapter.

C. Multiple Providers. If there are multiple standard offer providers serving residential customers within a transmission and distribution utility service territory, the purchase obligation shall be apportioned according to each provider’s share of the standard offer load obligation.

D. Northern Maine. The purchase requirements of this Chapter shall become applicable to entities in northern Maine upon a finding by the Commission that the market design in northern Maine will accommodate the purchase of electricity from eligible generators by a standard offer provider in a manner that is financially neutral to the standard offer provider. In the event the Commission makes the requisite finding, it shall determine the appropriate means of establishing the purchase price.

§ 4 ADMINISTRATION

Transmission and distribution utilities shall administer the purchase and sale of electricity required by this Chapter for eligible generators located within their service territories. Eligible generators shall pay the utility’s administrative costs pursuant to a rate schedule approved by the Commission. Each transmission and distribution utility within the ISO-NE control area shall file a proposed rate schedule within 30 days of the effective date of this Chapter.

§ 5 FINANCIAL NEUTRALITY

The Commission shall issue an order suspending the operation of this Chapter if it finds that the purchase and sale of electricity from eligible generators cannot be accomplished in a manner that is financially neutral to the standard offer provider.

§ 6 NET ENERGY BILLING

A customer that has elected net energy billing pursuant to Chapter 313 of the Commission’s rules may opt to sell its monthly excess generation to the standard offer provider pursuant to this Chapter rather than applying excess kilowatt-hour credits against future kilowatt-hour usage pursuant to section 3(D) of Chapter 313. A customer that opts to sell generation pursuant to this section must affirmatively elect the option through the execution of a contract with the transmission and distribution utility. Net energy billing customers may not change between the sale of excess generation option and the application of excess kilowatt-hour credits against future usage option more than once in a calendar year.

§ 7 STANDARD CONTRACTS

Each transmission and distribution utility within the ISO-NE control area shall develop a standard contract to govern interactions with eligible generators that is consistent with the provisions of this Chapter. Any interested person may request that the Commission order a modification to the standard contract. Nothing in this Chapter exempts eligible generators from other legal requirements regarding the execution of contracts.

§ 8 GIS CERTIFICATES

An eligible generator that sells electricity pursuant to this Chapter is not required to transfer GIS certificates to the purchasing standard offer provider.

§ 9 TECHNICAL SPECIFICATIONS

The Director of Technical Analysis may adopt technical specifications that are necessary or useful in implementing the requirements of this Chapter. All technical specifications adopted pursuant to this section shall be consistent with applicable ISO-NE requirements. Any interested person may request that the Director of Technical Analysis adopt technical specifications pursuant to this section.

§ 10 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301 and 3210-A.
• EFFECTIVE DATE: This rule, filing 2004-397, was approved as to form and legality by the Attorney General on September 10, 2004. It was filed with the Secretary of State on September 13, 2004 and will be effective on September 18, 2004.
• EFFECTIVE DATE: 65-407 Chapter 315 page 2

Chapter 316 Long-term Contracting and Resource Adequacy

Code Me. R. 65-407 Ch. 316 Long-Term Contracting and Resource Adequacy {#sec-65-407-ch.-316 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 316}

SUMMARY: This Chapter establishes the requirements, standards and procedures governing the authorization of long-term contracts for capacity resources and associated energy and establishes an electric resource adequacy plan.

§ 1 PURPOSE 3

§ 2 POLICIES 3

§ 3 DEFINITIONS 3

§ 4 CONTRACTING AUTHORITY 5

A. General Authority 5

B. Contracting Limits 5

C. Contract Type 5

§ 5 COMPETITIVE SOLICITATION PROCESS 6

A. Periodic Solicitations 6

B. Requests for Proposals: Standard Form Contracts 6

C. Evaluation of Proposals and Bidder Negotiations 6

D. Evaluation Criteria 7

1. Ratepayer Value 7

2. Resource Priority 7

3. Greenhouse Gas Reduction Policy 8

E. Energy Efficiency Programs 8

1. Long-Term Contract 8

2. Process 8

F. Customer Benefits 9

1. Financial Security 9

2. Lower Cost Capacity and Energy Resources 9

§ 6 CONTRACTING 9

A. Utilities 9

B. Commission 10

C. Contract Term 10

D. Contract Payments 10

E. Commercial Reasonableness 10

§ 7 DISPOSITION OF RESOURCES 10

§ 8 COST RECOVERY 11

A. Contract Costs 11

B. Administration Costs 11

C. Capital Costs 11

§ 9 ELECTRIC RESOURCE ADEQUACY PLAN 11

A. Report and Plan 11

Contents 11

B. Plan Development 12

C. Public Participation 12

D. Plan Implementation 12

E. Utility Reports 13

§ 10 WAIVER OR EXEMPTION 13

§ 1 PURPOSE

The purpose of this Chapter is to implement the State’s policy to use long-term contracts for capacity resources and a resource adequacy plan to ensure grid reliability and minimize electricity costs for Maine consumers.

§ 2 POLICIES

In implementing this Chapter, the Commission shall be guided by the following statutory policies:

A. That the share of new renewable capacity resources as a percentage of the total capacity resources in this State on December 31, 2007 increase by 10% by 2017 and that, to the extent possible, the increase occur in uniform annual increments;

B. To reduce electric prices and price volatility for the State's electricity consumers and to reduce greenhouse gas emissions from the electricity generation sector; and

C. To develop new capacity resources to reduce demand or increase capacity so as to mitigate the effects of any regional or federal capacity resource mandates.

§ 3 DEFINITIONS

A. Capacity Resource. "Capacity resource" means any renewable capacity resource, nonrenewable capacity resource or interruptible, demand response or energy efficiency capacity resource.

B. Commission. “Commission” means the Maine Public Utilities Commission.

C. Contract for Differences. "Contract for differences" means a contractual arrangement between a buyer and a seller in which cash payments are made based on the actual or relative difference between a target price for energy or a capacity resource and the market value of the energy or capacity resource. Under a contract for differences, the seller pays to the buyer the positive difference between the market value and the target price and the buyer pays to the seller the negative difference between the market value and the target price. "Contract for differences" does not include a contract for the physical delivery of energy or capacity resources.

D. FERC. “FERC” means the Federal Energy Regulatory Commission.

E. Financial Transaction. “Financial transaction” means a contractual arrangement between a program participant and a transmission and distribution utility in which money is exchanged among the contracting parties, rather than a physical delivery of the capacity, energy or renewable energy credit commodity, and which results in the same or similar financial consequences as a physical transaction.

F. GIS. “GIS” means the NEPOOL Generation Information System or successor system.

G. GIS Certificates. “GIS certificates” mean certificates created pursuant to the NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

H. Interruptible, demand response or energy efficiency capacity resource. "Interruptible, demand response or energy efficiency capacity resource" means a resource that has demand response, interruptible or energy efficiency capacity recognized by the Commission.

I. ISO-NE. “ISO-NE” means the Independent System Operator of the New England bulk power system or successor organization.

J. NERC. “NERC” means the North American Electric Reliability Council or successor organization.

K. New. "New" as applied to any capacity resource means a capacity resource that:

1. has an in-service date after September 1, 2005;

2. was added to an existing facility after September 1, 2005;

3. for at least 2 years was not operated or was not recognized by the New England independent system operator as a capacity resource and, after September 1, 2005, resumed operation or was recognized by the New England independent system operator as a capacity resource; or

4. was refurbished after September 1, 2005 and is operating beyond its previous useful life or is employing an alternate technology that significantly increases the efficiency of the generation process.

L. NBSO. “NBSO” means the New Brunswick System Operator or successor organization.

M. NMISA. “NMISA” means the Northern Maine Independent System Administrator or successor organization.

N. Nonrenewable capacity resource. "Nonrenewable capacity resource" means an electric generation resource other than a renewable capacity resource.

O. NPCC. “NPCC” means the Northeast Power Coordinating Council or successor organization.

P. Renewable capacity resource. "Renewable capacity resource" means a renewable resource, as defined in Maine Revised Statutes, Title 35-A, section 3210, subsection 2, paragraph C, except "renewable capacity resource" does not include:

1. a generator fueled by municipal solid waste in conjunction with recycling; or

2. a hydroelectric generator unless it meets all state and federal fish passage requirements applicable to the generator.

Q. Renewable energy credit. “Renewable energy credit” means a tradable instrument that represents an amount of electricity generated from resources that are eligible to satisfy the portfolio requirements in Maine or the other New England states. For purposes of this Chapter, renewable energy credit means either a GIS certificate, or a tradable instrument that represents the attributes of electric power generated in the region of the State administered by the NMISA that is authorized by the Commission through order.

§ 4 CONTRACTING AUTHORITY

A. General Authority

When in the best interests of ratepayers, the Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts for:

1. Capacity resources;

2. Any available energy associated with capacity resources contracted for under this Chapter:

a. To the extent necessary to fulfill the policy specified in section 2(A) of this Chapter; or

b. If the Commission determines appropriate for purposes of supplying or lowering the cost of standard-offer service or otherwise lowering the cost of electricity for the ratepayers in the State. Available energy contracted pursuant to this subparagraph may be sold into the wholesale electricity market in conjunction with solicitations for standard-offer supply bids; and

3. Any available renewable energy credits associated with capacity resources contracted under paragraph A. The price paid by the investor‑owned transmission and distribution utility for the renewable energy credits must be lower than the price received for those renewable energy credits at the time they are sold by the investor‑owned transmission and distribution utility.

B. Contracting Limits

Capacity resources contracted for under this Chapter may not exceed the amount necessary to ensure the reliability of the electric grid of this State or to lower customer costs. Unless the Commission determines the public interest requires otherwise, a capacity resource may not be contracted for under this Chapter unless the Commission determines that the capacity resource is recognized as a capacity resource for purposes of any regional or federal capacity requirements.

C. Contract Type

A long-term contract authorized under this section may be for physical delivery of the products or may be a financial transaction. The Commission may permit, but may not require, investor-owned transmission and distribution utilities to enter into contracts for differences that are designed and intended to buffer ratepayers in the State from potential negative impacts from transmission development.

§ 5 COMPETITIVE SOLICITATION PROCESS

A. Periodic Solicitations

The Commission shall periodically conduct a competitive solicitation process for capacity resources, available energy and renewable energy credits. The Commission shall solicit bids for capacity resources no less often than every three years, unless it determines that the likely benefits to ratepayers from any contracts that might result from the solicitation process will not exceed the likely costs.

B. Requests for Proposals; Standard Form Contracts

The Commission shall solicit bids for capacity resources, available energy and renewable energy credits through the issuance of a request for proposals that contains standards, procedures and requirements for the bid solicitation process, and a description of any resource needs identified in the electric resource adequacy plan developed pursuant to section 9 of this Chapter. The request for proposals may contain a standard form contract. As part of the solicitation and selection process, the Commission may accept modifications to the standard form contracts. The request for proposals shall indicate that the proposals contain:

1. a description of the capacity resource and its resource priority category under subsection D(2);

2. a statement as to whether the resource is recognized as a capacity resource by the ISO-NE;

3. a statement of the projected value, if any, of energy production or reductions in energy associated capacity resources;

4. a demonstration that the proposed contract is within the contracting authority of section 4 of this Chapter;

5. a statement explaining the extent to which the proposed contract would promote the policies and objectives of this Chapter; and

6. the unit price and quantity bid for the capacity resource, any associated energy, and any renewable energy credits.

C. Evaluation of Proposals and Bidder Negotiations

The Commission shall evaluate submitted proposals to determine compliance with the standards, procedures and requirements contained in the request for proposals. Following review of proposals, the Commission may engage in negotiations or discussions with bidders or a subset of bidders to clarify, refine or improve the proposals. When only one bid has been offered, the Commission shall ensure that negotiations are based on full project cost disclosure by the bidder. The Commission may accept one or more of the proposals or none of the proposals based on its assessment of whether proposals meet the requirements of the request for proposals, satisfy the policies, objectives and selection criteria of this Chapter, and are within the contracting authority of this Chapter.

D. Evaluation Criteria

1. Ratepayer Value

The Commission shall consider and evaluate long-term contracts for capacity resources, any available energy, and any available renewable energy credits in terms of their potential to provide benefits to ratepayers. For purposes of this provision, long-term contracts that provide benefits to ratepayers may include, but are not limited to:

a. Contracts that provide capacity, energy or renewable energy credits at costs that are reasonably likely to be below their market value;

b. Contracts that are reasonably likely to reduce price volatility without increasing costs to ratepayers;

c. Contracts that enable generation resources to be constructed or operated that offset or negate transmission-related costs in a cost-effective manner; and

d. Contracts that enable generation resources to be constructed or operated that improve or maintain the reliability of the electric grid in Maine in a cost-effective manner.

2. Resource Priority

In the event the bid price of proposals are effectively the same, a limited amount of capacity resources is required, or the Commission exercises subjective judgment in evaluating the value or risk of non-price portions of proposals, the Commission shall give preference to capacity resources in the following order of priority:

a. interruptible, demand response or energy efficiency capacity resources located in Maine;

b. new renewable capacity resources located in Maine;

c. new capacity resources with no net emission of greenhouse gases as determined in consultation with the Maine Department of Environmental Protection;

d. new nonrenewable capacity resources located in Maine with preference given to new nonrenewable capacity resources with no net emission of greenhouse gases as determined in consultation with the Maine Department of Environmental Protection;

e. capacity resources that enhance the reliability of the electric grid of this State with preference given to capacity resources with no net emission of greenhouse gases as determined in consultation with the Maine Department of Environmental Protection; and

f. other capacity resources.

3. Greenhouse Gas Reduction Policy

The Commission shall ensure that any long-term contract authorized under this Chapter is consistent with the State's goals for greenhouse gas reduction under Title 38, section 576 and the regional greenhouse gas initiative as described in the state climate action plan required in Title 38, section 577.

E. Energy Efficiency Programs

1. Long-Term Contracts

If the Commission determines that the assessments on transmission and distribution utilities under Title 35-A, section 10110, subsections 4 and 5 will not provide sufficient funds to meet the energy efficiency program budget allocations articulated in the triennial plan or any annual update plan approved by the Commission pursuant to Title 35-A, section 10104, subsection 4 or any annual update plan approved by the Commission pursuant to Title 35-A, section 10104, subsection 6, the Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts for energy efficiency capacity resources and any available energy associated with such resources to the extent necessary to meet the energy efficiency program budget allocations articulated in the triennial plan or annual update plan. If those contracts result in a fee or assessment on ratepayers, the Commission may only direct an investor-owned transmission and distribution utility to enter into those contracts if:

a. the Commission provides notification to the joint standing committee of the Legislature having jurisdiction over utilities and energy matters of the proposed contract or contracts; and

b. The Legislature specifically authorizes the contract or contracts; or allocates an amount of funds from the account established under Title 35-A, section 3210-C, subsection 12, paragraph B that is no less than the total funds that will be deposited in the account under all proposed contracts over the full terms of those contracts.

2. Process

In the event that the Commission acts pursuant to this provision, it will solicit bids for energy efficiency capacity resources and any available energy associated with such resources through the issuance of a request for proposals that contains standards, procedures and requirements for the bid solicitation process and a description of the resource needs or the Commission will contract with the Efficiency Maine Trust, established pursuant to Title 35-A, section 10103, to deliver the energy efficiency capacity resources through a competitive solicitation process administered by the Efficiency Maine Trust.

F. Customer Benefits

1. Financial Security

To the extent the benefits to ratepayers of a long‑term contract are projected to occur in the later years of the contract term, the Commission shall ensure that adequate financial security is in place so that it is reasonably likely ratepayers will obtain the projected benefits of the long‑term contract. The purpose of financial security is to protect ratepayers from economic losses arising from a seller’s breach of a long-term contract. For purposes of this provision, adequate financial security includes, but is not limited to, an irrevocable letter of credit, a corporate guarantee from a credit-worthy corporate parent or affiliate, a security interest in the generation project or cash. In determining the adequacy of the financial security and the amounts required, the Commission may consider: the potential costs, benefits and risks of the long-term contracts for ratepayers; the amount of capacity, energy and renewable energy credits purchased under the long-term contract; industry standards for financial security; and the cost of the financial security to the seller. The Commission may waive the requirement for financial security for energy efficiency contracts entered into pursuant to subsection E if it finds that financial security is not necessary to protect the interests of ratepayers.

2. Lower Cost Capacity and Energy Resources

To the extent practicable, the Commission shall ensure that ratepayers obtain the benefit of lower cost capacity resources of energy associated with those resources or of any renewable energy credits that may exist after the term of primary financing or subsequent replacement financing necessary for the development and construction of a generation project is completed. For purposes of this provision, primary financing or subsequent replacement financing means the permanent financing arrangements that fund the development and construction of a generation project. The Commission may obtain this benefit for ratepayers through a contract term of sufficient length, contract renewal or extension options or any other reasonable commercial means.

§ 6 CONTRACTING

A. Utilities

The Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts as agents for their customers for capacity resources and any available energy associated with capacity resources contracted for under this Chapter. The investor-owned transmission and distribution utilities shall, at the Commission’s request, assist in the negotiation of the terms of long-term contracts. The investor-owned transmission and distribution utilities shall be responsible for administering contracts entered into pursuant to this provision.

B. Commission

The Commission may enter into long-term contracts for interruptible, demand response or energy efficiency capacity resources.

C. Contract Term

A contract entered into pursuant to the Chapter may not be for more than ten years, unless the Commission finds that a contract for a longer term to be in the ratepayers’ interest.

D. Contract Payments

Contracts for capacity, associated energy, and renewable energy credits entered into pursuant to this Chapter must provide that payments will be made only after contracted amounts of capacity, available energy, or renewable energy credits have been provided.

1. Contracts with the Efficiency Maine Trust established in Title 35-A, section 10103 for energy efficiency capacity resources and related energy entered into pursuant to this Chapter may provide that up to 20% of the total payment be made at the start of the contract. Such contracts must provide that the remaining payments will be made only after the supplier has demonstrated, according to measurement and verification protocols specified in rules adopted by the Efficiency Maine Trust Board pursuant to Title 35-A, section 10105(5), that physical installations have been completed and contracted amounts of capacity resources and related energy have been substantiated.

2. Contracts with any entity other than the Efficiency Maine Trust established in Title 35-A, section 10103 for energy efficiency capacity resources and related energy must provide that payments will be made only after the supplier has demonstrated, according to measurement and verification protocols specified in rules adopted by the Efficiency Maine Trust Board pursuant to Title 35-A, section 10105(5), that physical installations have been completed and contracted amounts of capacity resources and related energy have been substantiated.

E. Commercial Reasonableness

Contracts entered into pursuant to this Chapter shall be commercially reasonable and commit all parties to commercially reasonable behavior.

§ 7 DISPOSITION OF RESOURCES

At the direction of the Commission, investor-owned transmission and distribution utilities shall:

A. dispose of capacity resources, available energy, and renewable energy credits through periodic competitive auctions supervised by the Commission;

B. use capacity resources, available energy, and renewable energy credits to meet the supply requirements of Maine ratepayers; or

C. take other action relative to capacity resources and available energy, and renewable energy credits as determined by Commission rule or order.

§ 8 COST RECOVERY

A. Contract Costs

Investor-owned transmission and distribution utilities shall recover in rates through full reconciliation all costs paid for capacity resources, available energy, and renewable energy credits contracted for under this Chapter net of any value realized from the disposition of the resources pursuant to section 7 of this Chapter.

B. Administration Costs

Investor-owned transmission and distribution utilities shall be allowed to defer and recover in rates all prudently incurred incremental costs associated with the administration of long-term contracts authorized pursuant to this Chapter.

C. Capital Costs

Investor-owned transmission and distribution utilities shall recover in rates any impacts on their costs of capital that result from long-term contracts entered into pursuant to this Chapter.

§ 9 ELECTRIC RESOURCE ADEQUACY REPORT AND PLAN

A. Report and Plan

The Commission may periodically prepare an Electric Resource Adequacy Report and Plan. The Commission shall prepare an Electric Resource Adequacy Report and Plan when it determines that such action would be necessary or useful in the solicitation and evaluation of long-term contracts under this Chapter. In the event that the Commission prepares an Electric Resource Adequacy Report and Plan, it shall submit the Report and Plan to the Joint Standing Committee on Utilities and Energy.

The Plan may include, but not be limited to, the following information:

1. an assessment of the adequacy of bulk level grid reliability;

2. the amount, type and preferred location of capacity resources and transmission development necessary to ensure adequate bulk level grid reliability, minimize the cost of federal capacity requirements, or lower the cost of electricity for Maine consumers;

3. the identification of capacity resources whose continued operation is necessary to ensure adequate grid reliability, minimize the cost of federal capacity requirements, or lower the cost of electricity for Maine consumers;

4. Commission action to facilitate the development or maintain the operation of capacity resources and transmission necessary to ensure adequate grid reliability, minimize the cost of federal capacity requirements, or lower the cost of electricity for Maine consumers; and

5. recommended legislation.

Plan Development

In developing the plan, the Commission may consider and, to the extent appropriate, incorporate the following:

1. existing forecasts of load and capacity requirement needs produced by the ISO-NE, the NMISA, the NBSO and other applicable entities;

2. forecasts by transmission and distribution utilities of peak demands and load growth; and

3. reports from transmission and distribution utilities on bulk level grid reliability within their service territories and the need for the development of new resources.

Public Participation

The Commission shall seek comment from interested persons in developing the Report and Plan.

Plan Implementation

The Commission shall implement the Plan by taking the following actions, as appropriate:

1. authorize long-term contracts for capacity resources pursuant to the provisions of this Chapter;

2. order transmission and distribution utilities to develop or facilitate the development of capacity resources or transmission;

3. participate in proceedings of other agencies as a resource for information on the need for capacity resources or transmission; and

4. advocate in the processes or proceedings of the FERC, ISO-NE, NEPOOL, NMISA, NBSO, NERC, NPCC or other entities that relate to or that may have an impact on grid reliability in Maine or the cost of federal capacity requirements for Maine consumers.

Utility Reports

In the event that the Commission decides to prepare an Electric Resource Adequacy report and Plan pursuant to the is Section, it may require investor-owned transmission and distribution utilities to file service territory bulk level grid reliability reports no less frequently then every two years. The grid reliability report may include an assessment of resource adequacy and grid reliability within the utility’s service territory, an evaluation of whether the current system meets established grid reliability criteria or objectives, an analysis of whether established grid reliability criteria or objectives are likely to be met over the following five year period, and a discussion of the costs and benefits of viable alternatives to address any identified grid reliability need.

§ 10 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 3210-C, 3210-D, Resolves 2011, ch. 138
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 27, 2007. It was filed with the Secretary of State as filing 2007-263 (major substantive final adoption) on June 28, 2007, and became effective on July 28, 2007.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 25, 2011. It was filed with the Secretary of State as filing 2011-166 (major substantive final adoption) on May 31, 2011, and became effective on June 30, 2011.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 9, 2012. It was filed with the Secretary of State as filing 2012-150 (major substantive final adoption) on May 10, 2012 and became effective on June 9, 2012.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 317 Statewide Arrearage Management Program

Code Me. R. 65-407 Ch. 317 Statewide Arrearage Management Program {#sec-65-407-ch.-317 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 317}

SUMMARY: This Chapter establishes a process and regulations by which each electric transmission and distribution utility must implement an Arrearage Management Program (AMP) to assist eligible low-income residential customers who are in arrears with their electricity bills. An AMP implemented pursuant to this section is a plan under which a transmission and distribution utility works with eligible low-income residential customers to establish an affordable payment plan and provide credit towards a customer’s accumulated arrears as long as that customer remains in compliance with the terms of the program.

§1 GENERAL PROVISIONS AND DEFINITIONS 4

Scope of Rule 4

Purpose of Rule 4

Definitions 4

1. Applicant 4
2. Arrearage Management Program 4

Commission 5

Competitive Electricity Provider 5

Efficiency Maine Trust 5

Electricity Usage Assessment 5

Eligible Customer 6

Forgiveness 6

LIAP 6

LIHEAP 6

Program Participant 6

Residential Customer 6

Standard Intake Form 6

Special Payment Arrangement 7

Transmission and Distribution Utility 7

§2 CREATION AND IMPLEMENTATION OF AMPs 7

Creation and Implementation of the AMPs 7

Review and Approval by Commission 7

§3 REQUIRED DESIGN FEATURES OF AMP 7

Eligibility Criteria 8

Administration 8

Required Provisions 8

Incentives 10

Enrollment Process 10

Fees and Down Payments Prohibited 10

Default 10

Voluntary Withdrawal 10

Reinstatement after Default 11

Energy Efficiency 11

Term of the AMP 11

Continuing Applicability of Chapter 815 11

§4 OBLIGATIONS OF TRANSMISSION AND DISTRIBUTION UTILITIES 11

Notice to Customers 11

1. Initial Notice to Eligible Customers 11
2. Ongoing Notice 12

Coordination with Community Action Programs 12

Customer Billing 12

Collection Activity Prohibited 13

Electricity Usage Assessment 13

Coordination with Efficiency Maine Trust 14

Reporting 14

Tracking Metrics 15

§5 COST RECOVERY 15

§6 WAIVER 16

§1 GENERAL PROVISIONS AND DEFINITIONS

Scope of Rule

This Chapter applies to all electric transmission and distribution utilities in the State.

Purpose of Rule

The purpose of this rule is to implement the provisions of P.L. 2013, ch. 556, “An Act To Assist Electric Utility Ratepayers” by requiring each electric transmission and distribution utility to create and administer an AMP. The purpose of the AMP is to assist eligible low income customers who are in arrears on their electricity bills by requiring transmission and distribution utilities to work with eligible low- income residential customers to establish an affordable payment plan and provide credit towards a customer’s accumulated arrears as long as that customer remains in compliance with the terms of the program.

Definitions

Applicant

“Applicant” means any person or business that applies for utility service and who has not been a customer of the utility within the past 30 calendar days.

Arrearage Management Program

An “Arrearage Management Program” or “AMP” or “Program” provides financial assistance and on-time bill payment incentives to eligible residential electricity consumers by establishing an affordable payment plan and providing a credit each month towards that customer’s accumulated arrears as long as that customer remains in compliance with the terms of the AMP. The term AMP refers to both the AMP of a particular T&D Utility and the overall Arrearage Management Program created by this Chapter.

AMP Year

“AMP year” is the period between October 1 and the following September 30.

Arrearage Amount

“Arrearage Amount” is an amount of a transmission and distribution customer’s bill that is past due at the time of an eligible customer's

enrollment in an AMP. This amount is limited to charges associated with transmission and distribution service and standard offer service and does not include CEP charges.

Commission

“Commission” is the Maine Public Utilities Commission.

Competitive Electricity Provider

“Competitive Electricity Provider (CEP)” is a marketer, broker, aggregator, or any entity selling electricity to the public at retail.

Community Action Agency

“Community Action Agency” or “CAA” is a private nonprofit agency that is designated by and authorized to accept funds from the Federal Community Services Administration under the Federal Economic Opportunity Act of 1964.

Default

“Default” is an event where a Program Participant has missed a payment required as a condition of participation in an AM P. A Default may be cured as provided for in section 3(I) of this Rule. An Eligible Customer who is in Default may not continue to participate in an AMP until such Default has been cured. In the event a Program Participant misses consecutive monthly payments, each monthly payment missed represents a separate and discreet “Default.”

Efficiency Maine Trust

“Efficiency Maine Trust” or “EMT” is the independent administrator for energy efficiency programs in Maine.

Electricity Usage Assessment

“Electricity Usage Assessment” or “Usage Assessment” is an analysis of a Program Participant’s electricity usage completed by the EMT.

Eligible Customer

An “Eligible Customer” is a residential transmission and distribution utility customer or applicant who is taking or has applied to take residential electric service on a continuing year-round basis, is eligible for HEAP or LIAP in the State of Maine, and has carried an Arrearage Amount of $500 or more for at least 90 days.

Forgiveness

“Forgiveness” is a designated Arrearage Amount for which a customer is no longer responsible for paying and which is permanently removed from the customer's account. Once an amount is forgiven, it cannot be reinstated to customer's account.

LIAP

“LIAP” is the “Low-Income Assistance Program,” which is a program established pursuant to Chapter 314 of the Commission's rules to assist qualified low-income customers pay their electric bills.

HEAP

“HEAP” is the “Home Energy Assistance Program,” which is a federally funded program that provides financial assistance grants to households in need for home energy bills and is implemented by the Maine State Housing Authority.

Program Participant

A “Program Participant” or “Participant” is an Eligible Customer who is enrolled in an AMP.

Residential Customer

“Residential Customer” is any person who has applied for, been accepted for, and is receiving residential service from a transmission and distribution utility or has agreed to be billed for residential service from a transmission and distribution utility.

Standard Intake Form

The Standard Intake Form is attached as Appendix A to this rule. The Standard Intake Form is the default intake format for enrolling Eligible Customers in an Arrearage Management Program. T&D Utilities wishing

to use an alternative form need to submit that form with their AMP for Commission approval.

The Standard Intake Form must be designed to gather information on the applicant’s existing usage pattern to allow the EMT and the CAAs s to identify opportunities for energy usage reduction and conservation.

Special Payment Arrangement

“Special Payment Arrangement” or “SPA” means a payment arrangement in which the customer may pay less than the full amount of bills as they become due. Special Payment Arrangements must require that the customer make regular monthly payments established according to the guidelines set forth in Section 9 of Chapter 815 of the Commission’s rules.

Transmission and Distribution Utility

“Transmission and distribution utility” or “T&D Utility” means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing an electric transmission and distribution plant for compensation within the State, except where the electricity is distributed by the entity that generates the electricity through private property alone solely for that entity’s own use or the use of the

entity’s tenants and not for sale to others.

§2 CREATION AND IMPLEMENTATION OF AMPs

Creation and Implementation of the AMPs

Each T&D Utility must implement an AMP approved by the Commission by October 1, 2015.

Review and Approval by Commission

Each T&D Utility must submit terms and conditions for its AMP pursuant to this Chapter by May 15, 2015. The AMPs are subject to Commission review and approval. The review and approval is delegated to the Director of the Consumer Assistance and Safety Division.

§3 REQUIRED DESIGN FEATURES OF AMP

Each AMP must be designed in accordance with the provisions of this Section.

Eligibility Criteria

Each T&D Utility's AMP must be available to its Eligible Customers who meet the following eligibility criteria:

1. The Residential Customer must meet the eligibility criteria for HEAP or LIAP;
2. The Residential Customer must have an Arrearage Amount equal to or greater than $500, where a portion of the arrearage amount is at least 90 days in arrears;
3. The account in arrears must be a residential electric account that is taking service on a continuing year-round basis; and
4. A Residential Customer is not eligible for an AMP if the customer has previously participated in an AMP in the previous six years, voluntarily withdrawn from an AMP in the previous six years, or is in Default under an AMP in the previous six years. The six year calculation starts from the time of Program completion, withdrawal, or Default. In situations where a Residential Customer is in Default under an AMP, the customer is eligible to participate in the AMP only if the customer meets the requirements of section 3(I) of this chapter.

Administration

Each AMP will be administered by the T&D Utility with oversight by the Commission. AMP administration includes eligibility certification, benefit determination, coordination with the EMT, and any other administrative duty necessary to carry out the intent of this Chapter.

Required Provisions

Each T&D Utility will implement and administer an AMP that:

1. Is structured in a way that incentivizes on-time bill payment with the intention of developing positive payment habits in Program Participants that will continue beyond Program completion;
2. Requires each Program Participant to pay the current amount due for each of their monthly bills on-time to receive Forgiveness and to continue participating in the AMP. For customers on a Payment Arrangement at the time of their enrollment, the Payment Arrangement may be discontinued and instead the customer will be required to pay each month's current amount due on-time to participate in the AMP. An AMP must be designed to ensure that a new Program Participant pay only the current amount due

in the month that the customer is enrolled to ensure that a customer is not required to pay more than a single month’s worth of service. This may require a utility to withhold enrollment until the next billing cycle. An AMP may allow a Program Participant to stay on an existing Payment Arrangement or enter into a new Payment Arrangement to pay more than the current amount due each month and receive additional Forgiveness through an incentive program, if such a program is offered by the T&D Utility, pursuant to section 3(D) below. With respect to SPA’s that are structured to allow customers to pay less than the current amount due in the winter months to be made up by the customer paying more than the current amount due in the non-winter months, an AMP should allow a Program Participant to enter into an SPA and continue to participate in the AMP. In this event, the monthly amount due for the Program Participant under the terms of the AMP, both during the winter period and the summer period, will be the amount due pursuant to the terms of the SPA and the Program Participant will not be eligible receive additional Forgiveness through an incentive program for payments made pursuant to the SPA;

1. Allows residential applicants who qualify for the AMP at the time they apply for service to apply to participate in the T&D Utility’s AMP prior to the actual provision of service. In these situations, if the applicant is approved to participate in the T&D Utility’s AMP, the utility may require the applicant to pay any applicable deposit and reconnection fees and may require the applicant to pay up to 10% of the applicant’s arrearage amount or $500, whichever amount is less, as a prerequisite for receiving service and participating in the AMP. If the T&D Utility requires the applicant to pay a deposit, it must follow the process described in section 12(B)(1)(b) of Chapter 815. Once the applicant pays this amount, the T&D Utility will provide service to the applicant and enroll the applicant in its AMP. If the applicant fails to pay this amount, the utility may require the applicant to pay the amount necessary to receive service as allowed by Chapter 815 of the Commission’s rules as a prerequisite for receiving service;
2. Is structured so that once enrolled, a Program Participant will be eligible for Forgiveness of up to 100% of their Arrearage Amount at the time of their enrollment, subject to the monthly cap and duration of the AMP term. Forgiveness will be applied to the Arrearage Amount in monthly amounts equal to one-twelfth of the Program Participant’s Arrearage Amount at the time of enrollment, each time a Program Participant pays their current amount due on time, up to a maximum of $500 a month until either: (i) a Program Participant Defaults; (ii) 12 monthly Forgiveness applications are made; or (iii) the Arrearage Amount has been fully Forgiven. Consumer-owned T&D Utilities may propose an alternative monthly cap which the Commission may approve with good cause shown;
3. Runs for a 12-month period from the date upon which the Program Participant was enrolled. Participants with Arrearage Amounts that are greater than $6,000, or that otherwise are not fully forgiven after a 12- month period, and who successfully complete a full year of the AMP may reapply to continue participating in the AMP in subsequent years until the earlier of when: (i) the Program terminates; or (ii) the Participant's full Arrearage Amount is forgiven; and
4. Includes an Electricity Usage Assessment performed by the EMT at no cost to the Program Participant.

Incentives

Subject to Commission approval, T&D Utilities may propose AMP design features and provisions that provide additional incentives for improved and sustained customer bill payment performance and electricity usage reductions. These incentives may include arrearage Forgiveness amounts greater than those included in subsection C(4) above.

Enrollment Process

Eligible Customers may enroll in an AMP at any time during the AMP year. Eligible Customers must affirmatively enroll into an AMP program and may not be enrolled by a T&D Utility without the Eligible Customer’s authorization.

Enrollment must be done using the Standard Intake Form, unless an alternative form or process is approved by the Commission. A CAA responsible for HEAP or LIAP administration in the customer's service area may complete and submit the form on behalf of a customer to the T&D Utility for enrollment.

Fees and Down Payments Prohibited

Eligible Customers may not be charged any additional administrative fees or be required to make a down payment on any Arrearage Amount as a condition of enrollment in an AMP.

Default

When a required monthly payment is not made on time, a Program Participant will be considered in Default and removed from the AMP. Reinstatement is allowed as provided in subsection I below.

Voluntary Withdrawal

Program Participants may withdraw from the AMP at any time. Such withdrawal will disqualify a customer from future participation for six years starting from the date of withdrawal.

Reinstatement after Default

Each AMP must provide a mechanism to allow Eligible Customers who have Defaulted to be reinstated into the AMP by payment in full of the missed monthly payment(s), including all late-payment fees. Each AMP must allow a maximum of two Defaults. Once the maximum number of Defaults is exceeded, the customer is no longer eligible to participate in the AMP for six years starting from the date of the second Default, even if the Defaults are cured.

Energy Efficiency

As a condition of enrollment and ongoing eligibility, a Program Participant must agree to accept energy management measures, tools, technology and programs offered at no cost by the Participant's T&D Utility, the EMT, the MSHA, or other federally or state-funded programs and complete the Usage Assessment for the Program Participant’s dwelling or rental unit, to the extent such acceptance is within the Program Participant’s control.

Term of the AMP

The term for customer enrollment in AMPs must be from October 1, 2023, through September 30, 2024, which is the effective date upon which Ch. 556 is repealed No new Program Participants will be enrolled after this date. Customers enrolled in an AMP on or before September 30, 2024, will be eligible for arrears Forgiveness under the AMP for 12-months following the customer’s enrollment date.

Continuing Applicability of Chapter 815

Except as specifically varied by this Chapter or by terms and conditions approved by the Commission, the provisions of Chapter 815 must continue to apply.

§4 OBLIGATIONS OF TRANSMISSION AND DISTRIBUTION UTILITIES

Notice to Customers

1. Initial Notice to Eligible Customers

Each T&D Utility must initially notify all of its Residential Customers that have an Arrearage Amount equal to or greater than $500 that is at least 90- days in arrears of the availability of the AMP, the eligibility requirements, and the enrollment process on the date that this Chapter becomes effective.

Ongoing Notice

On an ongoing basis throughout the duration of the AMP, a T&D Utility must notify each Residential Customer who reaches the $500 and 90-day arrearage criteria of the availability of the AMP, the eligibility requirements, and the enrollment process. Notice must be provided within two billing cycles from when a customer reaches these arrearage criteria. T&D Utilities must also notify each applicant for service that has an arrearage amount that meets the $500 and 90-day arrearage criteria at the time they submit their completed application for service of the existence of the AMP program, the required payment under the AMP to obtain service pursuant to section 3(C)(3) of this Chapter, and the process for enrolling in the AMP.

Recurring Notice

Once a Residential Customer has been provided notice of the AMP pursuant to either subsection 1 or 2 above, a T&D Utility may, but is not required to, provide the Residential Customer with subsequent notices.

1. Default Notice

Once a Program Participant is in Default, a T&D Utility must contact the Participant, in a manner of the T&D Utility’s choosing, to notify the Program Participant of the Default and the Program Participant’s ability to cure a first Default.

Coordination with Community Action Programs

The T&D Utility must coordinate with each of the CAAs that serve customers in its service territory to ensure that Eligible Customers are made aware of the AMP when they are enrolling in HEAP, LIAP or seeking related assistance.

The T&D Utility must develop procedures to ensure that the CAAs are able to intake Eligible Customers' information using the Standard Intake Form (or other Commission approved method) and that the T&D Utility is able to enroll Eligible Customers using forms supplied by the CAAs into the AMP.

Customer Billing

The T&D Utility must remove any Arrearage Amount from the current amount due for Program Participants on their monthly bill. In addition, the T&D Utility must provide sufficient information to each Program Participant, either on the bill or in a bill insert, to allow the Program Participant to track their progress in

paying off their Arrearage Amount. This information may include information such as the Arrearage Amount remaining and the cumulative amount of arrearage Forgiven to date. Each T&D Utility must specify in its filing made pursuant to section 2(B) of this chapter the information it proposes to include on its bills or bill inserts to satisfy this requirement.

Collection Activity Prohibited

T&D Utilities must not attempt to collect an Arrearage Amount from a Program Participant while the Program Participant is enrolled in an AMP. If a Program Participant Defaults or withdraws from an AMP, a T&D Utility may resume normal collection activity. Any Arrearage Amount forgiven pursuant to this Chapter, however, prior to a Program Participant's Default cannot be reinstated to the customer's bill.

Electricity Usage Assessment

During the enrollment process, the T&D Utility or CAA must gather information to aid the EMT in completing a Usage Assessment of the Program Participant’s electricity use at no cost to the Program Participant. Where available, the T&D Utility will make accessible to EMT interval data of the Program Participant’s

electricity usage from the Program Participant’s current residence. Where interval data is not available, the T&D Utility will record the Program Participant's electricity usage data on the Standard Intake Form and forward the completed form to the EMT. The T&D Utility or the CAA must inform the applicant that the information gathered will be utilized by EMT to perform the Usage Assessment, recommend potential energy saving opportunities and programs, and analyze the effectiveness of the installed measures and programs.

For T&D Utilities requesting an alternative form or process for customer enrollment, the following information for the Usage Assessment must be obtained during the intake process:

1. The Eligible Customer’s monthly electricity usage;
2. The Eligible Customer’s heating source;
3. Information on the Eligible Customer’s hot water heater including fuel source and, if possible, model and age;
4. Information regarding the Eligible Customer’s use of electrical appliances and incandescent lighting;
5. Information on the Eligible Customer’s previous participation with the EMT or other weatherization or energy efficiency programs, if any; and
6. Whether the Eligible Customer owns or rents their home.

Coordination with Efficiency Maine Trust

The T&D Utility is obligated to provide the Standard Intake Form or the information required by the form to the EMT by a mutually agreed upon method so that the EMT may complete the Usage Assessment upon the enrollment of an Eligible Customer, as well as the analysis following the implementation of recommended energy savings measures. In submitting its proposed AMP for Commission approval, each T&D Utility must propose specific approaches for coordination with the EMT as required by this section.

Reporting

Each T&D Utility must file a report with the Commission within 30 days of the closing of each quarter of each AMP year that includes the following minimum information for each month of the program year:

1. The number of Program Participants enrolled in its AMP, separated by rate class if the T&D Utility has more than one residential rate.
2. The total number of Eligible Customers as defined by section 1(C)(12) of this chapter in the utility’s service territory as of the last day of the quarter.
3. The number of Program Participants that Defaulted and were removed from the AMP.
4. The number of Program Participants that were re-enrolled in the AMP after a Default.
5. The number of Program Participants who successfully completed the full 12-month AMP.
6. The number of Program Participants who had their entire Arrearage Amount forgiven.
7. Average Arrearage Amount of Program Participants at the time of enrollment.
8. A distribution chart or table depicting Program Participants’ Arrearage Amounts at the time of enrollment in $500 increments, i.e., four customers between $0 and $500, one customer between $501 and $1,000, five customers between $1001 and $1500, etc. If this information is provided in a chart, each $500 segment of the chart must list the specific number of Program Participants it includes.
9. The same chart required in subsection 8 above that depicts all Eligible Customers as defined by section 1(C)(12) of this chapter in the utility’s service territory that did not participate in the AMP as of the last day of the quarter.
10. Total amount of arrears Forgiven.

Tracking Metrics

To evaluate the effectiveness of the AMP in terms of improved customer payment performance and electricity usage reductions, the T&D Utilities must also collect data on the following metrics and supply it to the Commission as requested.

1. Payment performance of each Program Participant, before, during, and after program participation. Payment performance before AMP participation must be provided for a time period that is the shorter of (i) two-years; or (ii) the entire period for which the Program Participant was a customer of the T&D Utility;
2. Monthly kW usage (weather normalized) for each Program Participant for the same time period as required in subsection 1 above.
3. Information about each Program Participant’s participation with the EMT or other energy efficiency programs.
4. Payment patterns of Residential Customers that meet the $500 and 90-day arrearage criteria but do not participate in the AMP from the effective date of this rule until all Program Participants complete the program.
5. The completion date when the program participation has ended, regardless of whether the Program Participant has successfully completed the Program, voluntarily withdrawn, or removed for Default.
6. For Program Participants who have their entire arrearage amount forgiven, whether they paid 12 months of bills on-time or whether they received an assistance payment.

§5 COST RECOVERY

A T&D Utility may recover in rates all costs of its AMP, including incremental costs, reconnection fees and administrative and marketing costs, but not including the amount of any arrearage forgiven that is treated as bad debt for purposes of cost recovery by the T&D Utility. Each utility must collect sufficient information and properly document costs associated with its AMP for which it will seek reimbursement, including sufficient

information and analysis to determine whether and to what extent the AMP increased or decreased its total bad debt expenses compared to the amounts included in rates.

§6 WAIVER

Upon the request of any person subject to this Chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance Division, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 3214, 10110
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 13, 2015. It was filed with the Secretary of State on April 14, 2015 (filing 2015-073) and became effective on April 19, 2015.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 10, 2024. It was filed with the Secretary of State on January 10, 2024 (fling 2024- 008) and became effective on January 15, 2024.
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 319 Criteria to Exclude Small Transmission Projects and Distribution Projects from Investigation by the Nonwires Alternative Coordinator

Code Me. R. 65-407 Ch. 319 Criteria to Exclude Small Transmission Projects and Distribution Projects from Investigation by the Nonwires Alternative Coordinator {#sec-65-407-ch.-319 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 319}

SUMMARY: This Chapter establishes criteria to exclude small transmission projects and distribution projects from investigation by the nonwires alternative coordinator.

§1 PURPOSE 2

§2 DEFINITIONS 2

§3 EXCLUSIONS FROM NONWIRES ALTERNATIVES COORDINATOR

INVESTIGATIONS 2

Projects Necessary for Redundant Supply to a Radial Load 2

Projects Necessary to Address Maintenance, Asset Condition or Safety Needs 3

Projects Necessary to Address Stability or Short Circuit Problems 3

Projects Required to be in Service within One Year Based on the

Controlling Load Forecast 3

Customer or Generator Funded Interconnection Related Projects 3

Automation Projects …………………………………………………………...………… 4

§4 PROCESS FOR DETERMINING ADDITONAL PROJECTS AND/OR EXCLUSION CATEGORIES 4

§5 WAIVER 4

§ 1 PURPOSE

The purpose of this Chapter is to establish criteria to exclude from investigation by the nonwires alternative coordinator small transmission projects and distribution projects best suited to transmission and distribution investments pursuant to Title 35-A, section 3132-B.

§ 2 DEFINITIONS

Commission. “Commission” means the Maine Public Utilities Commission.

Controlling load forecast. “Controlling load forecast” means the load forecast currently used by the transmission and distribution utilities for transmission and distribution planning purposes.

Cost-effective. "Cost-effective" with respect to nonwires alternatives has the same meaning as in Title 35-A, section 3131, subsection 8.

Nontransmission alternative. “Nontransmission alternative” has the same meaning as in Title 35-A, section 3131, subsection 4-B.

Nonwires alternative. “Nonwires alternative” has the same meaning as in Title 35-A, section 3131, subsection 4-C.

F. Nonwires alternatives coordinator. “Nonwires alternatives coordinator” has the same meaning as in Title 35-A, section 3131, subsection 4-D.

G. Small transmission project. “Small transmission project" has the same meaning as in Title 35-A, section 3132-B.

§ 3 EXCLUSIONS FROM NONWIRES ALTERNATIVES COORDINATOR INVESTIGATIONS

This section of the rule lays out the criteria to exclude from investigation by the nonwires alternative coordinator small transmission projects and distribution projects best suited to transmission and distribution investments.

Projects Necessary for Redundant Supply to a Radial Load

This exclusion category includes, but is not limited to:

Transmission and/or distribution facility upgrades required to establish redundant supply or additional circuit backup capabilities;

Upgrades to facilities inside an existing substation necessary for redundant supply; and

New or upgraded transmission lines or distribution circuits necessary for redundant supply.

Projects Necessary to Address Maintenance, Asset Condition or Safety Needs

This exclusion category includes, but is not limited to:

Emergency replacement projects as part of outage restoration;

Relocation projects that require temporary or permanent physical relocation of existing infrastructure to accommodate public works projects;

Maintenance projects that involve equipment replacement as a result of maintenance inspections, asset condition or to avoid outage and/or catastrophic failure;

Projects necessary to meet the Northeast Power Coordinating Council (NPCC), North American Electric Reliability Corporation (NERC), Independent System Operator – New England (ISO-NE) or Commission approved utility specific compliance requirements to ensure safety and security standards or correct identified safety code violations including, but not limited to, the National Electric Safety Code (NESC).

Projects Necessary to Address Stability or Short Circuit Problems

This exclusion category includes, but is not limited to:

Projects that are deemed necessary to avoid system-level voltage collapse or large network instability;

Transmission and distribution facility upgrades required to address protection system deficiencies;

Dynamic reactive device installations;

Projects to mitigate power quality issues; and

Circuit breaker upgrade projects.

This exclusion category applies to stability or short circuit problems that exist under current load conditions and identified by the utility’s planning need with reasonably anticipated fluctuations in load.

Projects Required to be in Service within One Year Based on the Controlling Load Forecast

This exclusion category applies to projects that are required to be in service within one year from the publication date of the utilities annual transmission and distribution plan based on the controlling load forecast.

Customer or Generator Funded Interconnection Related Projects

This exclusion category includes, but is not limited to:

Transmission and/or distribution facility upgrades driven by a request for new or upgraded service, or a generator interconnection, and which would be funded by the interconnecting customer or generator.

Automation Projects

This exclusion category includes, but is not limited to:

Transmission and/or distribution automation projects necessary to improve system resiliency.

§ 4 PROCESS FOR DETERMINING ADDITIONAL PROJECTS AND/OR EXCLUSION CATEGORIES

Upon request, and following appropriate process, the Commission, by Order or rule, may determine other projects, or categories of projects, that qualify for exclusion from investigation by the nonwires alternative coordinator.

§ 5 WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the Commission

may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas division, or the Hearing Examiner/Presiding Officer assigned to a proceeding related to the Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301 and Public Law 2019 c. 298
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 13, 2020. It was filed with the Secretary of State on April 15, 2020 and became effective on April 15, 2020 (filing 2020-096 – EMERGENCY).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 15, 2020. It was filed with the Secretary of State on July 16, 2020 and became effective on July 21, 2020 (filing 2020-161).

Chapter 320 Electric Transmission and Distribution Utility Service Standards

Code Me. R. 65-407 Ch. 320 Electric Transmission and Distribution Utility Service Standards {#sec-65-407-ch.-320 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 320}

SUMMARY: This Chapter establishes service standards and service quality metrics and reporting requirements for electric transmission and distribution utilities.

§ 1. SCOPE AND PURPOSE 2

§ 2. DEFINITIONS 2

§ 3. GENERAL PROVISIONS 4

§ 4. QUALITY OF SERVICE 5

§ 5. SERVICE INTERRUPTIONS 8

§ 6. RELIABILITY METRICS……...……………………………………………………………… 8

§ 7. CUSTOMER SERVICE METRICS……………………………………………..…………….. 9

§ 8. BILLING PERFORMANCE METRICS……………………………………………...…....... 10

§ 9. CUSTOMER SATISFACTION METRIC SURVEY…..……………………………………. 11

§ 10. REPORTING ON METRICS…………………………………………………………….…… 11

§ 11. METERING REQUIREMENTS, STANDARDS,

AND TESTING PROTOCOLS 12

§ 12. INDEPENDENT AUDITS OF METERING AND BILLING SYSTEMS 13

§ 13. WAIVER OR EXEMPTION 13

§ 1. SCOPE AND PURPOSE

A. Scope

Unless otherwise specified, this Chapter applies to all Transmission and Distribution Utilities.

B. Purpose

This Chapter establishes system standards and associated protocols for record keeping and reporting requirements for Transmission and Distribution Utilities. It also establishes for the investor-owned utitlities metrics and reporting requirements for system reliability, Call answering, billing and customer satisfaction.

§ 2. DEFINITIONS

The following words and terms, when used in this Chapter, shall have the following meanings, unless the context clearly indicates otherwise.

A. “Annual Report” means the final cumulative quarterly report each Investor-Owned T&D Utility is required to file under this Chapter on an annual basis to report metrics information.

B. “Applicable Codes, Standards and Requirements” means any codes standards or requirements identified by the American National Standards Institute (ANSI), Institute of Electrical and Electronics Engineers (IEEE), Independent System Operator – New England (ISO-NE), National Electric Safety Code (NESC), North American Electric Reliability Corporation (NERC), Northern Maine Independent System Administrator (NMISA) or Northeast Power Coordinating Council, Inc. (NPCC). The version that applies to a device will be the version in effect at the time the device is initially put into service.

C. “Call” means a telephone Call received on the utility’s customer service line as specified on customer bills. Call time begins when a Customer opts to speak to a live person and ends when the Call is answered by a live person.

D. “Case Management System” or “CMS” means the Commission’s online electronic filing system.

E. "Commission" means the Public Utilities Commission of the State of Maine.

F. “Consumer-Owned T&D Utility” means any transmission and distribution utility wholly owned by its consumers, including, but not limited to:

1. The transmission and distribution portion of a rural electrification cooperative organized under chapter 37 of Title 35-A;

2. The transmission and distribution portion of an electrification cooperative organized on a cooperative plan under the laws of the State;

3. A municipal or quasi-municipal transmission and distribution utility;

4. The transmission and distribution portion of a municipal or quasi-municipal entity providing generation and other services; and

5. A transmission and distribution utility wholly owned by a municipality.

G. “Customer” means a person or entity that receives service from a T&D Utility.

H. “Customer Average Interruption Duration Index” or “CAIDI” is the average time required to restore service to the average customer per Sustained Interruption. It is measured in minutes or hours of interruption.

CAIDI = ∑ customer Sustained Interruption durations

Total number of customer Sustained Interruptions

I. “Flicker” means noticeable illuminations changes from lighting equipment caused by fluctuations in power demands.

J. “Harmonics” means, a sinusoidal component of the 60 Hertz fundamental wave having a frequency that is an integral multiple of the fundamental frequency.

K. “IEEE 2.5 Beta Method” is used for identifying outlying service performance, usually caused by major storms, when calculating service quality metrics. The IEEE 2.5 Beta Method identifies “major event days,” which is a day in which daily SAIDI exceeds a threshold value T_med.These “major event days” are then removed from the calculation of a particular service quality metric.

L. “Investor-Owned T&D Utility” means a transmission and distribution utility that is not a Consumer-Owned T&D Utility.

M. “IVR” means Interactive Voice Response telephone answering system.

N. “Major Event Days” means a day in which the daily system SAIDI exceeds a threshold value that is determined by using the IEEE 2.5 beta method.

O. “Major Outage Event” means a disruption of utility service to more than 500 customers or one percent of a utility's customers, whichever is greater, for a period of longer than 30 minutes.

P. “Meter” means a device that measures the amount of energy consumption or real and reactive demand by a Customer from a T&D Utility.

Q. “Momentary Interruption” means the brief loss of power delivery to one or more Customers caused by the opening and closing operation of an interrupting device. A Momentary Interruption does not exceed five minutes.

R. “New Service Build (simple service only)” means a field service that involves running a section of overhead secondary line, connecting to a designated point on the customer’s premises, inspecting the electrical service, installing and activating a meter, and, if necessary, installing a transformer. It does not involve pole installation or other pole work. The calculation of target days (business days) for this metric begins when the Investor-Owned T&D Utility’s planner orders the project to be released to the Investor-Owned T&D Utility’s line department for completion.

S. “Nominal System Voltage” means the voltage by which a portion of the system is designed, and to which certain operating characteristics of the system are related. Each Nominal System Voltage pertains to a portion of the system bounded by transformers or utilization equipment.

T. “Sustained Interruption” means any service interruption that lasts longer than five minutes.

U. “System Average Interruption Duration Index or “SAIDI” is the average time that customers are interrupted. It is measured in minutes or hours of interruption.

SAIDI = ∑ Customer Sustained Interruption durations

Total number of customers served

V. “System Average Interruption Frequency Index” or “SAIFI” is the average frequency of Sustained Interruptions per customer over a predefined area.

SAIFI = Total number of customer Sustained Interruptions

Total number of customers served

W. “Service Voltage” means the voltage at the point where the electrical system of the T&D Utility and electrical system of the Customer are connected.

X. “Temporary to Permanent Service (no line appointment needed)” means a field service that involves converting a temporary electrical service, typically used for construction, into a permanent service. This type of field service involves running a section of overhead secondary line to the customer’s permanent service point and moving the meter from the temporary service point to the permanent service point. The calculation of target days (business days) for this metric begins when the Investor-Owned T&D Utility’s planner orders the project to be released to the Investor-Owned T&D Utility’s line department for completion.

Y. “Terms and Conditions” are the provisions filed by the public utility with the Commission which show the basis on which various utility services will be provided to Customers, or which in any manner affect the rates charged for any service. 35-A M.R.S.A. § 304 requires that public utility schedules which were formerly designated as “rules” shall be designated as “terms and conditions”.

Z. "Transmission and Distribution Utility" or “T&D Utility” means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating, or managing electric transmission and/or distribution plant for compensation within the State.

§ 3. GENERAL PROVISIONS

A. Each T&D Utility must construct, maintain, and operate its T&D system such that it provides safe and adequate T&D service to its Customers.

B. All new construction, reconstruction, maintenance, design, and operation of T&D Systems must comply with the provisions of this Chapter and with all Applicable Codes, Standards, and Requirements.

C. Each Investor-Owned T&D Utility must collect all information required by this Chapter that is necessary to comply with Sections 5, 6, 7, and 8.

D. Each T&D Utility must maintain Terms and Conditions to implement the provisions of this Chapter. The Terms and Conditions must be approved by the Commission and must be periodically reviewed and modified or updated as necessary by each T&D Utility to conform to any changes or updates to, or replacements of, the applicable standards and requirements set forth in this Chapter, or to any other Applicable Codes, Standards, and Requirements. Modifications or updates to the Terms and Conditions must be approved by the Commission.

E. Unless otherwise indicated in this Chapter, T&D Utilities must keep all records required by this Chapter for a period of at least ten years. All such records must be available to the Commission upon request.

§ 4. QUALITY OF SERVICE

A. Frequency

Each T&D Utility must design and operate its T&D system such that alternating current service is supplied at 60 cycles per second (Hertz or Hz) under normal, steady state conditions and may vary only in accordance with Applicable Codes, Standards, and Requirements. The system must operate within a +/-0.5 Hertz limit.

B. Voltage

1. Nominal System and Service Voltages

Each T&D Utility must establish and maintain Nominal System and Service Voltages as may be required by the design of its T&D System and the service to be provided to its Customers. The Nominal System and Service Voltages must conform with the standard nominal system voltages established by ANSI C84.1.

2. Voltage Variation; Limits

a. Each T&D Utility must maintain and operate its system to conform to the voltage variation ranges established by ANSI C84.1 for Voltage Range A and Voltage Range B. Figure IV.B.2.a and Figure IV.B.2.b below set forth the voltage variation limit requirements specified by the current version of ANSI C84.1 (ANSI C84.1-2016), Range A and Range B.

b. T&D Systems must be designed, maintained, and operated so that Service Voltages will generally be within the Range A limits. Infrequent and limited periods during which Service Voltages are outside of the Range A limits but are within the Range B limits are acceptable. When Service Voltages occur that are outside of Range B, T&D Utilities must take prompt corrective action to restore the Service Voltages to acceptable levels.

Figure IV.B.2.a (Range A)

Established Standard Service Voltage

Minimum Voltage

Maximum Voltage

Type of Service

120

114

126

Single Phase

120/240

114/228

126/252

Single or Polyphase

208Y/120

197Y/114

218Y/126

Single or Polyphase

240

228

252

Single or Polyphase

480Y/277

456Y/263

504Y/291

Single or Polyphase

480

456

504

Single or Polyphase

600

570

630

Single or Polyphase

2400

2340

2520

Single or Polyphase

4160Y/2400

4050Y/2340

4370Y/2520

Single or Polyphase

12470Y/7200

12160Y/7020

13090Y/7560

Single or Polyphase

Figure IV.B.2.b (Range B)

Established Standard Service Voltage

Minimum Voltage

Maximum Voltage

Type of Service

120

110

127

Single Phase

120/240

110/220

127/254

Single or Polyphase

208Y/120

191Y/110

220Y/127

Single or Polyphase

240

220

254

Single or Polyphase

480Y/277

440Y/254

508Y/293

Single or Polyphase

480

440

508

Single or Polyphase

600

550

635

Single or Polyphase

2400

2280

2540

Single or Polyphase

4160Y/2400

3950Y/2280

4400Y/2540

Single or Polyphase

12470Y/7200

11850Y/6840

13200Y/7620

Single or Polyphase

3. Voltage Testing and Records

Each T&D Utility must sufficiently test voltage levels within its service territory to assess and ensure compliance with voltage requirements set forth in this Chapter. The voltage testing protocols must be specified in the T&D Utility’s Terms and Conditions, subject to Commission review and approval. Test results must be maintained and made accessible in accordance with Subsection 3(D) of this Chapter.

4. Harmonics

Each T&D Utility must maintain and operate its system in a manner consistent with the IEEE 519 Standard: Recommended Practice and Requirements for Harmonic Control in Electric Power Systems. In accordance with the IEEE 519 recommendations, current distortion limits are determined by the short-circuit ratio, or the ratio of short-circuit current at the point of common coupling (PCC) to the maximum load or demand current.

5. Flicker

T&D Utilities must limit the frequency and magnitude of Flicker events in accordance with IEEE Recommended Practice 1453.

§ 5. SERVICE INTERRUPTIONS

A. General

In the event of a Sustained Interruption, each T&D Utility must employ reasonable utility practices to restore service in a timely manner, consistent with appropriate consideration of safety and costs.

B. Sustained Interruption/Outage Reporting

In the event of a Sustained Interruption affecting more than 500 customers or one percent of a T&D Utility’s customers, whichever is greater, the T&D Utility must provide immediate notification to the Commission. The notification must include the date and time of the Sustained Interruption; the number of customers affected in each service center or county, and town; the cause of the Sustained Interruption; and any other information descriptive of or relevant to the event. The T&D Utility must provide periodic updates no less frequently than daily for the duration of the Sustained Interruption. This reporting requirement does not apply to Momentary Interruptions.

C. Major Outage Event Response

For each Major Outage Event, each Investor-Owned T&D Utility must calculate the percentage of customers that experience one or more Sustained Interruptions in each hour of the event. The Investor-Owned T&D Utility must quarterly provide to the Commission a graph for each Major Outage Event showing the number of customers experiencing one or more Sustained Interruptions for every hour of the event. The Commission may ask utilities to provide reports that support the reasonableness of its restoration response for Major Outage Events.

§ 6. RELIABILITY METRICS

A. Each Investor-Owned T&D Utility must collect and maintain the following Sustained Interruption and outage metrics information:

a. Monthly and annual CAIDI.

b. Monthly and annual SAIFI

c. Monthly and annual SAIDI.

d. For each service area, on a monthly and annual basis, a classification of Sustained Interruptions by the identified cause. Information in this Subsection (d) shall not be included in the Subsection 10(B) customer report cards.

B. The Commission will set individual benchmarks for SAIFI and CAIDI metrics for each Investor-Owned T&D Utility through Commission order that may be revised from time to time in accordance with Title 35-A. The benchmarks will be based on the historic performance of each utility, or otherwise at levels that reflect reasonable service quality. The Commission may, by Commission order (1) direct the T&D Utility to take corrective actions if benchmarks are not met, or, (2) impose financial penalties established by the order.

C. The CAIDI, SAIFI, and SAIDI metrics will be calculated and reported with and without “major event days.” The IEEE 2.5 Beta Method will be used to determine “major event days.”

§ 7. CUSTOMER SERVICE METRICS

A. Utility Call Response Metrics

1. Each Investor-Owned T&D Utility must collect and maintain the following annual Call answering metrics information for the purpose of this metric. For the purpose of this Chapter a “live person” is someone working for or on behalf of the Investor-Owned T&D Utility who is qualified to assist the Customer in the subject area of the metric.

a. Speed of Answer for Calls to Business Office. The formula for this metric is:

Number of Calls answered ≤30 seconds

Total number of Calls answered by a live person

2. The benchmark for each metric in this Subsection is 80 percent of Calls answered by a live person in 30 seconds or less. Compliance with the benchmark for these metrics must be calculated excluding major event days.

B. Call Abandonment Rate

1. Each Investor-Owned T&D Utility must collect and maintain the following annual Call abandonment metrics information for the purpose of this metric. A Call is considered “abandoned” if the caller hangs up after the Call is received by the utility’s IVR system (or other automated Call answering system) and after the Customer makes a choice to speak with a live person. The “Call abandonment rate” is calculated by the following formula:

Number of abandoned Calls

Total number of business Calls received

2. The benchmark for this metric is seven percent and must be calculated excluding major event days.

C. Blocked Call Rate

1. Each Investor-Owned T&D Utility must collect and maintain the following annual blocked Call metrics information for the purpose of this metric. A Call is considered “blocked” if the caller receives a busy signal, automated message asking to Call back later, or the Call is terminated by the system prior to the Call reaching the utility’s IVR (or other automatic call distribution system). A busy signal condition is only recognized under this Subsection if all phone line trunks into the utility’s telephone phone system are being utilized. The “blocked Call rate” is calculated by the following formula:

Number of blocked Calls

Total number of business Calls received

2. The benchmark for this metric is three percent and must be calculated excluding major event days.

D. Field Services

Beginning on the effective date of this Subsection but in any event no earlier than January 1, 2025, each Investor-Owned T&D Utility must track and maintain the days to complete each of the following five field services tasks. Each time the Investor-Owned T&D Utility performs one of the five tasks, the action must be measured as an individual observation and each of the observations must be totaled to evaluate the Investor-Owned T&D Utility’s overall performance regarding the metric.

Task Target Days (business days)

Reconnection of Customer at pole 3 days

Temporary to permanent service

(no line appointment needed) 10 days

New service build (simple service only) 15 days

Customer requested meter test 12 days

Customer requested field planner appointment 15 days

The 15-day period to complete customer requested field planner appointments begins to run from the time the utility determines the customer’s service location is ready for inspection.

The “field services” metric is calculated using the following formula:

Number of tasks completed by target date

Total number of tasks completed

2. The benchmark for this metric is 85 percent and must be calculated excluding major event days.

§ 8. BILLING PERFORMANCE METRICS

A. Bill Error

1. Each Investor-Owned T&D Utility must measure the number of erroneous bills. For purposes of this Chapter, a bill is considered erroneous if: (1) it contains an incorrect rate or charge or is issued to the wrong Customer, account or address; (2) it lacks a proper charge, fee, or tax; (3) the total amount due is not correct; or (4) it is not sent to the Customer within ten days of the scheduled monthly billing date for that Customer. Estimated bills are not considered erroneous. The calculation is based on actual bills and not on accounts. The “Bill Error” rate is calculated by the following formula:

Number of erroneous bills

Total number of bills

2. The benchmark for this metric is 0.4 percent.

B. Percentage of Bills Based on Estimated Meter Reads

1. Each Investor-Owned T&D Utility must measure the annual number of estimated bills issued. A bill is considered estimated when an actual meter read is not obtained, either through the utility’s AMI system or through a manual read and the utility estimates usage. A utility may exclude from this calculation meter reads that fall on “major event days” to be determined using the IEEE 2.5 Beta method, estimated reads that meet the conditions specified in Chapter 815, Section 8(M), and estimated reads for Customers that have declined to have remote meter reads. This calculation is based on actual bills issued and not on accounts. The “Bills Based on Estimated Meter Reads” rate is calculated by the following formula:

Total number of estimated bills

Total number of bills issued

2. The benchmark for this metric is measured as a percentage of the utility’s bills based on estimated meter reads over a one-year period. The benchmarks are no more than 1) one percent for utilities using automatic meter reads, or 2) five percent for utilities using manual meter reads.

§ 9. CUSTOMER SATISFACTION METRIC SURVEY

Each Investor-Owned T&D Utility annually must contract with a third party not affiliated with the Investor-Owned T&D Utility to randomly survey a statistically valid sample of customers who have contacted the utility with a report, request, inquiry, complaint, or request for work. The purpose of the survey is to assess the level of customer satisfaction with the utility’s response. Surveys will be conducted by email, follow-up cards sent through the U.S. Postal Service, or via a phone Call. The unaffiliated, third-party contractor will process completed surveys and report results. The administrative process and question format for the survey will be established by Commission order. The utility may add more questions to the list of prescribed questions.

§ 10 REPORTING ON METRICS

A. Quarterly and Annual Reports to the Commission

Each year, every Investor-Owned T&D Utility must open a new docket in the Commission’s CMS and file quarterly reports not later than 30 days after the close of the quarter and the last quarter report, the Annual Report, no later than January 31.

Each quarterly report must provide the cumulative calculations and underlying information for the prior quarter or quarters for that calendar year for each of the metrics listed in Sections 6, 7, and 8. Each quarterly report must provide information on a monthly basis.

The Annual Report must contain the cumulative calculations and the underlying information for each of the metrics listed in Sections 6, 7, and 8 for the calendar year provided on a monthly basis.

B. Customer Report Cards

Each year each Investor-Owned T&D Utility must, on or before June 1, issue a customer report card to each of its residential customers with information regarding the utility’s performance and rates. The customer report card must include explanations in non-technical, plain language of the individual performance benchmarks described in Sections 6, 7, and 8 including an explanation of how each is measured and providing the utility’s performance score in the previous calendar year with respect to each benchmark. The customer report card must be in substantial conformance with a template to be reviewed and approved by Commission order for each utility. The customer report card must be sent to each customer in either a U.S. Postal Service mailing, or in an email, depending on how the customer is billed. The utility must also post the customer report card on its website.

§ 11. METERING REQUIREMENTS, STANDARDS, AND TESTING PROTOCOLS

A. General

All T&D Service provided by a T&D Utility must be measured by Meters owned and maintained by the utility, except where it is impracticable to do so.

Each T&D Utility must keep a complete set of records of its Meters by customer account, including the meter type, unique meter identification code, and date of installation. The records should include all Meter repairs and upgrades, including all physical, hardware, software, or firmware repairs, modifications, upgrades, and updates, as well as all notifications or other relevant information provided by the Meter Manufacturers that could potentially affect meter registration.

B. Performance and Accuracy Standards

Each T&D Utility must ensure that its Meters comply with the performance criteria and other applicable standards set forth in ANSI C12.1 (American National Standard for Electric Meters – Code for Electricity Metering).

1. Testing Protocols and Processes

Each T&D Utility must conform to the testing protocols and processes set forth in ANSI C12.1 for new and in-service metering devices.

2. Testing Upon Customer Request

a. Each T&D Utility must test the accuracy of a Customer’s Meter upon request of the Customer. The test must be done at no charge to the Customer, provided that the Customer has not requested such a test within the past 12 months, or the Meter has not otherwise been tested within the past 12 months.

b. If a Customer requests a Meter test within 12 months of the date of the most recent test of its Meter, the T&D Utility may charge the Customer for the reasonable cost of the test. The charge must be refunded or credited to the Customer if the Meter does not meet the Performance and Accuracy Standards of this Chapter.

c. A Customer may be present when the T&D Utility conducts the requested test of its Meter or, the Customer may send another person as its representative. The T&D Utility must provide a written report to the Customer that provides the results of the Meter test and must retain a copy of the report for a period of no less than five years.

C. Audits Performed by the T&D Utility

The results of any audits evaluating the accuracy or performance of a T&D Utility’s billing or metering systems, performed by or for the T&D Utility, must be provided to the Commission within 60 days of the completion of the audit.

§ 12. INDEPENDENT AUDITS OF METERING AND BILLING SYSTEMS

A. The Commission may administer periodic audits by an independent auditor of the billing and metering systems of Investor-Owned T&D Utilities. The audits must be conducted pursuant to 35-A M.R.S. § 113.

B. The Commission will select the independent auditor pursuant to the applicable rules and processes of the State of Maine Division of Procurement Services, or any successor entity. In selecting an independent auditor, the Commission will ensure that the methodologies to be used by the auditor are sufficiently objective, thorough and rigorous, and that any statistical sampling and analyses will be sufficiently robust to represent the relevant population and range of systems being audited.

C. Each Investor-Owned T&D Utility must conduct an audit once every five years, or as otherwise deemed necessary by the Commission. The Commission may focus the audit on only residential and small commercial customers, or the Commission may include other customer groups in the audit.

D. The Commission will determine the allocation of the cost of the periodic audit between the utility and its ratepayers based on the results of the audit.

§ 13. WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of Electric and Natural Gas Industries, the Director of Consumer Assistance and Safety, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2024-00236, issued on December 3, 2024. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 301(1-A), 2305-A, 3104-A, 3106, 3108.
• EFFECTIVE DATE: This major substantive rule adoption was approved as to form and legality by the Attorney General on June 12, 2019. It was filed with the Secretary of State on June 14, 2019, and became effective on July 14, 2019 (filing 2019-098).
• EFFECTIVE DATE: This routine technical rule adoption was approved as to form and legality by the Attorney General on May 1, 2020. It was filed with the Secretary of State on May 1, 2020, and became effective on May 6, 2020 (filing 2020-113).
• EFFECTIVE DATE: This routine technical rule adoption was approved as to form and legality by the Attorney General on August 22, 2022. It was filed with the Secretary of State on August 22, 2022, and became effective on August 27, 2022 (filing 2022-158).
• EFFECTIVE DATE: This routine technical rule adoption was approved as to form and legality by the Attorney General on January 7, 2025 and became effective on January 14, 2025 (filing 2025-oo6).
• EFFECTIVE DATE: NONSUBSTANTIVE CORRECTIONS (formatting, punctuation, grammar): July 10, 2026

Chapter 321 Load Obligation and Settlement Calculations for Competitive Providers of Electricity

Code Me. R. 65-407 Ch. 321 Load Obligation and Settlement Calculations for Competitive Providers of Electricity {#sec-65-407-ch.-321 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 321}

SUMMARY - This Chapter establishes requirements governing the calculation of hourly and monthly loads by transmission and distribution utilities for competitive electricity providers operating in Maine, for purposes of determining their retail load obligations within bulk power systems operating in the region.

§ 1 DEFINITIONS 3

§ 2 TRANSMISSION AND DISTRIBUTION UTILITY OBLIGATION 5

A. Obligation for Compliance 5

B. Aggregators and Brokers 5

C. Standard Offer Provider 5

D. Consumer-Owned Utility Obligations 5

§ 3 TELEMETERING 6

A. Customers with Maximum Load in Excess of Large

Commercial and Industrial Profile Group 6

B. All Other Customers 6

C. Phase-In of Telemetering 6

§ 4 LOAD PROFILES 6

A. Load Profiles for Customer Groups 6

B. Profiling Methodology 7

§ 5 DAILY ESTIMATION OF COMPETITIVE ELECTRICITY

PROVIDER HOURLY LOADS 8

A. Calculation of Customers' Hourly Loads 8

B. Calculation of Competitive Electricity Providers’

Hourly Load Responsibilities 9

§ 6 MONTHLY SETTLEMENT OF COMPETITIVE ELECTRICITY

PROVIDER ENERGY USE 10

A. Recalculation of Competitive Electricity Provider Hourly Loads 10

B. Calculation of Hourly Load or Monthly Energy Differences 10

§ 7 INFORMATION ACCESS 11

A. Access to Each Day's Hourly Load Estimates 11

B. Access to Month-End Energy Differences 12

C. Access to Load Profiles 12

§ 8 DATA TRANSFER 12

§ 9 REPORTING 13

A. Methodology Report 13

B. Annual Report 13

C. Line Loss Study 13

§ 10 WAIVER OR EXEMPTION 13

§ 1 DEFINITIONS

A. Aggregator. "Aggregator" means an entity that gathers individual customers together for the purpose of purchasing electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

B. Broker. "Broker" means an entity that acts as an agent or intermediary in the sale and purchase of electricity but that does not take title to electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that customers contract for electricity directly with a competitive electricity provider.

C. Bulk Power System Administrator. "Bulk power system administrator" means ISO-NE or Northern Maine ISA.

D. Competitive Electricity Provider. “Competitive electricity provider” means a marketer, broker, aggregator or any other entity selling electricity to the public at retail in Maine.

E. Consumer-owned Utility. "Consumer-owned utility" means any transmission and distribution utility wholly owned by its consumers, as described in 35‑M.R.S.A. § 3201(6).

F. Deemed Load Profile. “Deemed load profile” means a load profile defined by engineering estimates.

G. Dynamic Load Profile. "Dynamic load profile" means a load profile whose hourly load levels are assigned no less frequently than daily based on actual conditions.

H. Investor-Owned Utility. "Investor-Owned Utility" means a large investor-owned transmission and distribution utility or a small investor-owned transmission and distribution utility, as described in 35-M.R.S.A. § 3201(12) and 35-M.R.S.A. § 3201(16).

I. ISO-NE. “ISO-NE” means the Independent System Operator of the New England bulk power system.

J. ISO-NE Control Area. “ISO-NE control area” means the area in which the ISO-NE operates the New England bulk power system.

K. Load Profile. “Load profile” means an estimate of the hourly load levels of a group of customers during a specified time period such as a day or a month, at the point of delivery, measured with either static metering or telemetering.

L. Maritimes Control Area. “Maritimes control area” means the area in which the New Brunswick Power Corporation operates the Maritimes bulk power system

M. Northern Maine ISA. “Northern Maine ISA” means the Independent System Administrator of the northern Maine retail markets.

N. Static Metering. “Static metering” means the reading or gathering of metered load data less frequently than daily, such as at the end of each month, to obtain hourly loads.

O. Static Load Profile. "Static load profile" means a load profile whose hourly load levels are assigned in advance.

P. Standard Offer Provider. "Standard offer provider" means a provider of standard offer service chosen pursuant to Chapter 301 of the Commission's rules.

Q. Summer. “Summer” means the months not defined as winter for a transmission and distribution utility's seasonally differentiated core rate classes. If a transmission and distribution utility has no seasonally differentiated core rate classes, "summer" means the months between and including April and October.

R. Telemetering. “Telemetering” means the remote reading or gathering of metered load data no less frequently than daily, to obtain hourly loads.

S. Transmission and Distribution Utility. “Transmission and distribution utility” means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the state.

T. Winter. “Winter” means the months defined as winter for a transmission and distribution utility's seasonally differentiated core rate classes. If a transmission and distribution utility has no seasonally differentiated core rate classes, "winter" means the months between and including November and March.

§ 2 TRANSMISSION AND DISTRIBUTION UTILITY OBLIGATION

A. Obligation for Compliance. Each transmission and distribution utility shall ensure that the provisions of this Chapter are carried out in its service territory.

B. Aggregators and Brokers. The provisions of this Chapter that refer to competitive electricity providers do not apply to aggregators and brokers.

C. Standard Offer Provider. The provisions of this Chapter that refer to competitive electricity providers apply to standard offer providers.

D. Consumer-Owned Utility Obligations. A consumer-owned utility may carry out the provisions of this Chapter by any of the following methods. The consumer-owned utility shall compensate the investor-owned utility its reasonable costs of carrying out the provisions in this Section.

1. All retail electricity sales to customers of a consumer-owned utility may be treated as if they were made within an adjacent investor-owned transmission and distribution utility for purposes of complying with all provisions of this Chapter.

2. A consumer-owned utility may adopt the load profiles of an adjacent investor-owned transmission and distribution utility to represent customers in the consumer-owned utility’s service territory for purposes of complying with Section 4 of this Chapter.

3. A consumer-owned utility may adopt a single load profile per day for all customers receiving standard offer service using the following procedure:

a. The consumer-owned utility shall require all customers who receive generation service from a competitive electricity provider other than the standard offer provider to be telemetered. The transmission and distribution utility shall, at its option, waive the charge to the competitive electricity provider determined pursuant to Section 3.B of this Chapter.

b. The consumer-owned utility shall calculate a single load profile per day for all non-telemetered customers that is equal in each hour to the hourly bulk power meter reading attributable to retail sales, less the sum of the hourly telemetered loads adjusted for line losses attributable to the telemetered customers between the customer delivery point and the point of bulk system metering for purposes of complying with Section 4 of this Chapter.

4. A consumer-owned utility may petition the Commission to use any other method for load profiling or for hourly and monthly load calculations that reasonably complies with the goals of this Chapter.

§ 3 TELEMETERING

A. Large Non-Residential Customers. For the purposes of this Chapter, transmission and distribution utilities shall use telemetering to measure hourly loads of all non-residential customers that are not within the small non-residential or medium non-residential profiling classes as they are defined in subsection 4.A.2. For transmission and distribution utilities that have a core customer class with a breakpoint of 500 kW, all customers with maximum demands of 500 kW or greater shall be considered Large Non-Residential Customers. For transmission and distribution utilities that have a core customer class with a breakpoint of 400 kW, all customers with maximum demands of 400 kW or greater shall be considered Large Non-Residential Customers. The transmission and distribution utilities shall recover the reasonable costs of equipment and data processing required by this provision. These costs will be recovered from the classes containing customers affected by this provision.

B. All Other Customers. Competitive electricity providers may request that a transmission and distribution utility use telemetering to measure the hourly loads of any customer that receives generation service from that competitive electricity provider and that is not telemetered pursuant to subsection 3.A. The transmission and distribution utility shall charge the requesting competitive electricity provider the resulting incremental cost of equipment and data processing. The transmission and distribution utility shall accommodate requests for telemetering as quickly as practicable. The transmission and distribution utility shall telemeter hourly loads of all customers as long as the telemetering equipment remains installed.

C. Phase-In of Telemetering. Upon a finding that transmission and distribution utilities cannot accommodate requests for telemetering in a reasonably timely manner, the Commission shall implement a phase-in approach that shall limit telemetering requests to customers using a prioritizing process to be determined by the Commission.

§ 4 LOAD PROFILES

A. Load Profiles for Customer Groups.

1. Each transmission and distribution utility shall develop a set of load profiles for each of the three customer profile groups defined in Section 4.A.2. Each customer profile group’s load profile set will contain 24-hour profiles that may be used to represent each day of a year. Each daily profile will represent an average per-customer load, at the point of retail delivery. Each profile will represent a 24-hour day that may be identified through some indicator such as month, day of the week, weather condition, or any other indicator that significantly affects load. Profiles may be created by combining the metered loads from more than one day. Each customer profile group will be used to represent those customers not telemetered.

2. The three customer profile groups shall be:

a. Residential. This profile group shall contain all customers defined as residential by the terms and conditions of the transmission and distribution utility. The profile group shall exclude customers with deemed load profiles and customers who are telemetered.

b. Small Non-Residential. This profile group shall contain all non-residential customers that meet the availability criteria to take service under a core customer class of the transmission and distribution utility that does not include a demand charge. The profile group shall exclude customers with deemed load profiles and customers who are telemetered.

c. Medium Non-Residential. This profile group shall contain all non-residential customers that do not meet the criteria for a small non-residential customer and that meet the availability criteria to take service under a core customer class of the transmission and distribution utility that includes a demand charge and in which a customer’s maximum demand shall not exceed 500 kW, or the kW breakpoint that is closest to but does not exceed 500 kW. The profile group shall exclude customers with deemed load profiles and customers who are telemetered.

3. Deemed load profiles are permissible but not required for customers whose loads are easily estimated through engineering characteristics.

B. Profiling Methodology

1. For each transmission and distribution utility, samples in each customer profile group will be designed to produce the following accuracy:

a. a 90% confidence level with plus or minus 10% error margin in hourly load at the time of the transmission and distribution utility's summer peak for utilities operating in the ISO-NE control area; or a 90% confidence level with plus or minus 10% error margin in hourly load at the time of the transmission and distribution utility's winter peak for utilities operating in the Maritimes control area .

b. to the extent that it is practicable, a high level of accuracy in the peak hours of all months in the year should be achieved, while maintaining the provisions in Section B.1.a; and

c. to the extent that it is practicable, a high level of accuracy in all hours of the year should be achieved, while maintaining the provisions in Section B.1.a.

2. Transmission and distribution utilities shall re-sample each customer profile group no less frequently than every two years. This provision will be waived if the transmission and distribution utility demonstrates to the Commission that the current sample represents the customer profile group with reasonable accuracy.

3. Transmission and distribution utilities shall use either simple random sampling or stratified random sampling to select samples of each customer profile group.

4. Transmission and distribution utilities shall use either ratio analysis or mean-per-unit analysis to create load profiles from the samples of each customer profile group.

§ 5 DAILY ESTIMATION OF COMPETITIVE ELECTRICITY PROVIDER HOURLY LOADS

A. Calculation of Customers’ Hourly Loads. After each day, the transmission and distribution utility shall estimate hourly loads in that day for each customer at the point of delivery.

1. For customers that are telemetered, the estimate shall equal the customer’s telemetered usage.

2. For customers that are not telemetered, including those with deemed load profiles, the estimates shall be equal to a load profile, from the appropriate customer profile group's set of profiles, that represents the day being estimated, based on the indicator(s) used to create the load profiles pursuant to Section 4.A.1; adjusted for the customer’s estimated daily energy use. The profiles may be adjusted, as appropriate, in accordance with the approved profiling methodology to account for weather or other conditions that significantly affect load.

B. Calculation of Competitive Electricity Providers’ Hourly Load Responsibilities

1. After each day, transmission and distribution utilities shall estimate hourly load responsibilities in that day for each competitive electricity provider. The estimate shall equal:

a. the sum of the telemetered hourly loads of the competitive electricity providers’ telemetered customers, calculated pursuant to Section 5.A, and adjusted for line losses attributable to those customers between the customer delivery point and the point of bulk system metering; plus

b. the sum of the estimated hourly loads of the competitive electricity providers’ profiled customers, calculated pursuant to Section 5.A, and adjusted for line losses attributable to those customers between the customer delivery point and the point of bulk system metering; plus

c. the hourly difference between the portion of the bulk system hourly metered loads attributable to retail sales and the total system estimated hourly loads calculated pursuant to Sections 5.B.1.a and 5.B.1.b, allocated to competitive electricity providers based on sales to profiled customers.

2. The calculations described in Section 5.B.1 shall be used to determine regional load obligation settlements.

a. Each transmission and distribution utility located in the ISO-NE control area shall report the hourly load responsibilities of each competitive electricity provider operating in its territory to ISO-NE in conformance with ISO-NE requirements as they may be changed from time to time.

b. Each transmission and distribution utility located in the Maritimes control area shall use the hourly load responsibilities of each competitive electricity provider operating within its territory to the Northern Maine ISA in conformance with Northern Maine ISA requirements as they may be changed from time to time.

c. All hourly load responsibility reported to the ISO-NE and Northern Maine ISA pursuant to this paragraph shall be differentiated by Load Asset I.D. Number or other unique identifying number used by the ISO-NE or Northern Maine ISA. All competitive electricity providers operating within the ISO-NE control area must be assigned at least one valid ISO-NE Load Asset I.D. Number or other identifying number. All competitive electricity providers operating within the Maritimes control area must be assigned at least one valid Northern Maine ISA Load Asset I.D. Number or other identifying number.

3. Line losses that occur when delivering a competitive electricity provider's energy within a transmission and distribution utility's local network are the sole responsibility of the competitive electricity provider, and will be allocated in a manner consistent with this principle. Line losses will reflect, at a minimum, variation between summer and winter and variation among voltage levels.

§ 6 MONTHLY SETTLEMENT OF COMPETITIVE ELECTRICITY PROVIDER ENERGY USE

A. Recalculation of Competitive Electricity Provider Hourly Loads. After each calendar month, transmission and distribution utilities shall re-estimate the hourly load responsibilities for each competitive electricity provider, to reflect monthly energy use most recently metered for billing purposes. The re-estimate shall be done in a manner that duplicates the hourly load responsibilities calculated pursuant to Section 5 in all respects except that customers’ estimated daily energy use used in each day's calculations shall reflect the most recent meter reading done for billing purposes.

B. Calculation of Hourly Load or Monthly Energy Differences.

1. After each calendar month, the transmission and distribution utility shall be capable of calculating two energy difference estimates for each competitive electricity provider:

a. the hourly load differences between hourly loads estimated pursuant to Section 6.A and hourly loads estimated pursuant to Section 5; and

b. the monthly energy differences, equal to the sum of the hourly load differences within the month calculated pursuant to Section 6.B.1.a.

2. The calculations described in Section 6.B.1 shall be used to adjust the financial settlement associated with each competitive electricity provider’s regional load obligation and generation delivery. The bulk power system administrator will determine whether hourly load data or monthly energy data will be used for this purpose.

a. Each transmission and distribution utility located in the ISO-NE control area shall report the hourly load data or monthly energy data of each competitive electricity provider operating in its territory to ISO-NE in conformance with ISO-NE requirements as they may be changed from time to time.

b. Each transmission and distribution utility located in the Maritimes control area shall report the hourly load data or monthly energy data of each competitive electricity provider operating in its territory to the Northern Maine ISA in conformance with Northern Maine ISA requirements as they may be changed from time to time.

c. All load data reported to the ISO-NE and Northern Maine ISA pursuant to this paragraph shall be differentiated by Load Asset I.D. Number or other unique identifying number used by the ISO-NE or Northern Maine ISA.

§ 7 INFORMATION ACCESS

A. Access to Each Day’s Hourly Load Estimates.

1. After each day, the transmission and distribution utility shall provide an estimate of each competitive electricity provider’s hourly loads, within 36 hours of the end of the day or at such time as the bulk power system administrator requires, to the bulk power system administrator, as specified in Section 5.B.2.

2. The transmission and distribution utility shall provide to each competitive electricity provider its estimated hourly loads as reported to the bulk power system administrator as soon as practicable, but no later than two business days after providing that data to the bulk power system administrator.

3. Upon request by a competitive electricity provider, the transmission and distribution utility shall provide to the competitive electricity provider its customer's estimated hourly loads for any days within the previous 12 months, for any customer receiving service from that competitive electricity provider. Before issuing a request to receive estimated hourly loads, a competitive electricity provider must obtain authorization pursuant to Chapter 322, Section 9.A. of the Commission’s Rules.

B. Access to Month-End Energy Differences

1. After each month, the transmission and distribution utility shall provide an estimate of each competitive electricity provider’s monthly or hourly energy data (s) to the bulk power system administrator, within 45 days of the end of the month or at such time as the bulk power system administrator requires, as specified in Section 6.B.2.

2. The transmission and distribution utility shall provide to each competitive electricity provider its estimated monthly or hourly data as reported to the bulk power system administrator as soon as practicable, but no later than two business days after providing those data to the bulk power system administrator.

3. Upon request by a competitive electricity provider, the transmission and distribution utility shall provide to the competitive electricity provider its customer's estimated monthly or hourly data within the previous 12 months, for any customer receiving service from that competitive electricity provider. Before issuing a request to receive estimated data, a competitive electricity provider must obtain authorization pursuant to Chapter 322, Section 9.A. of the Commission’s Rules.

C. Access to Load Profiles

The transmission and distribution utility shall make public the load profiles of each customer profile group. This provision does not apply when publication may reasonably reveal an individual customer’s load characteristics.

§ 8 DATA TRANSFER

Each transmission and distribution utility and each competitive electricity provider shall transfer data among one another in accordance with procedures and formats specified in the Electronic Business Transaction (EBT) Standards contained in Chapter 323 of the Commission’s Rules. Each transmission and distribution utility and each competitive electricity provider shall pay for the data transfer pursuant to Chapter 322, Section 9.B. of the Commission’s Rules.

§ 9 REPORTING

A. Methodology Report

1. Prior to December 1, 1998, each transmission and distribution utility shall file a report that will allow the Commission to verify compliance with this Chapter. The report will describe the methods by which sampling and data validation will be performed.

2. Prior to February 1, 2000, each transmission and distribution utility shall file a report that will allow the Commission to verify compliance with this Chapter. The report will describe the methods by which the utility will create profiles from samples, estimate daily supplier loads, and estimate month-end energy difference.

B. Annual Report. Annually on June 1, each transmission and distribution utility shall file a report that describes its benefits and costs of complying with this Chapter and that recommends changes to methods or procedures.

C. Line Loss Study. Each transmission and distribution utility shall file a line loss study before March 1, 1999 and a revised study before March 1, 2001. The Commission shall approve line loss values to be used in calculations made pursuant to this Chapter no later than four months after each filing.

§ 10 WAIVER OR REVISIONS

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter that are not required by the statute. Where good cause exists, the Commission, the Director of Technical Analysis, or Presiding Officer in a proceeding related to this Chapter may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Title 35-A.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 111, 1301, 3202(1) and (2), and 3203 (9).
• EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on October 30, 1998. It was filed with the Secretary of State on October 30, 1998 and will be effective on November 4, 1998.
• EFFECTIVE DATE (AMENDMENT): This Chapter was approved as to form and legality by the Attorney General on December 22, 1999. It was filed with the Secretary of State on December 23, 1999 and will be effective on December 28, 1999.
• EFFECTIVE DATE (AMENDMENT): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 18, 2025

Chapter 322 Metering, Billing, Collections, and Enrollment Interactions among Transmission and Distribution Utilities and Competitive Electricity Providers

Code Me. R. 65-407 Ch. 322 Metering, Billing, Collections, and Enrollment Interactions Among Transmission and Distribution Utilities and Competitive Electricity Providers {#sec-65-407-ch.-322 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 322}

SUMMARY: This Chapter establishes terms and standards governing metering, billing and collections by transmission and distribution utilities and by competitive electricity providers operating in Maine. The Chapter also establishes procedures governing customer enrollment for generation service, transfers among generation service providers, and termination of generation service.

§ 1 DEFINITIONS 5

§ 2 SCOPE 7

A. Applicability 7

B. Exceptions to the Rule by Contract 7

§ 3 BILL ISSUANCE FOR GENERATION SERVICE AND FOR TRANSMISSION AND DISTRIBUTION SERVICE AND FOR AGGREGATOR AND BROKER SERVICE 8

A. Transmission and Distribution Service Billing 8

B. Generation Service Billing 8

1. Consolidated Utility Billing 8

2. Provider Billing 8

C. Bill Content for Generation Services 8

D. Bill Format under Consolidated Utility Billing 8

E. Prior Competitive Electricity Provider Past Due Charges under Consolidated Utility Billing 9

F. Charge for Consolidated Utility Billing 9

G. Agency Billing 9

H. Aggregator and Broker Service Billing 9

§ 4 BILL CALCULATION FOR GENERATION SERVICE AND FOR TRANSMISSION AND DISTRIBUTION SERVICE 10

A. Standard Rate Structure under Consolidated Utility Billing 10

B. Rate Testing under Consolidated Utility Billing 10

C. Implementing Rate Changes under Consolidated Utility Billing 10

D. Bill Adjustments 11

1. Transmission and Distribution Service 11

2. Generation Service Bill under Consolidated Utility Billing 11

3. Bulk Power System Administrator Settlement Data 11

E. Non-generation Service Billing 11

§ 5 METERING FOR GENERATION SERVICE AND FOR TRANSMISSION AND DISTRIBUTION SERVICE 11

A. Meter Equipment 11

1. Standard Meter Installation 11

2. Nonstandard Meter Installation 11

B. Meter Standards 12

C. Meter Reading 12

1. Meter Reading by Transmission and Distribution Utilities 12

2. Meter Reading by Competitive Electricity Providers 12

3. Estimated Meter Reads 13

§ 6 COLLECTION AND PAYMENTS 13

A. Collections under Provider Billing 13

B. Collections under Consolidated Utility Billing 13

C. Allocation of Partial Payments under Consolidated Utility Billing 13

§ 7 ENROLLMENT FOR GENERATION SERVICE 14

A. Enrollment by Competitive Electricity Provider 14

1. Notice to Transmission and Distribution Utility 14

2. Enrollment Date 14

3. Multiple Enrollments 14

4. Notification to Enroll by Competitive Electricity Provider Required 15

B. Arranging for Standard Offer Service 15

C. Arranging for Transmission and Distribution Service 15

D. Procedure When Delivery Service Changes 15

1. New Service 15

2. Customer Moves to New Location 16

§ 8 CANCELLATION OF GENERATION SERVICE 16

A. Notice to Transmission and Distribution Utility 16

B. Cancellation Date 16

§ 9 TRANSFER OF CUSTOMER DATA 17

A. Transfer of Customer-Specific Data 17

1. Applicability 17

2. Provision of Customer-Specific Information 17

3. Charges 17

4. Transfer of Additional Data 17

5. Authorization 18

B. Routine Business Data 18

1. Applicability 18

2. Transfer of Routine Business Data 18

3. EBT Standards 19

4. EBT Training 19

5. Authorization 19

§ 10 CONTRACT 19

§ 11 WAIVER 20

§ 1 DEFINITIONS

A. Aggregator. "Aggregator" means an entity that gathers individual customers together for the purpose of purchasing electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

B. Broker. "Broker" means an entity that acts as an agent or intermediary for a customer in the sale and purchase of electricity but that does not take title to electricity, provided such entity is not engaged in the purchase or resale of electricity directly with a competitive electricity provider, and provided further that such customers contract for electricity directly with a competitive electricity provider.

C. Bulk Power System Administrator. "Bulk power system administrator" means the Independent System Operator of the New England bulk power system (ISO-NE) or an equivalent functional organization that carries out financial settlement with competitive electricity providers operating in the portion of Maine that is not in ISO-NE's territory.

D. Competitive Electricity Provider. “Competitive electricity provider” means a marketer, broker, aggregator, or any other entity selling electricity to the public at retail in Maine.

E. Customer. "Customer" means any person who has applied for, been accepted for or is receiving generation service from a competitive electricity provider for retail use. This term includes an applicant for generation services when the context addresses the process of application for generation service in this Chapter.

F. Customer-Specific Information. “Customer-specific information” is information that describes the usage, technical configuration or type of utility service subscribed to by a particular customer of a transmission and distribution utility and is available to the utility solely by virtue of the utility-customer relationship.

G. Consumer-owned Utility. "Consumer-owned utility" means any transmission and distribution utility wholly owned by its consumers, as described in 35-A M.R.S.A. § 3201(6).

H. Current Charge. “Current charge” means an amount that a transmission and distribution utility or a competitive electricity provider has billed to a customer and whose due date has not yet passed.

I. Due Date. “Due date” means the last day a transmission and distribution or a competitive electricity provider bill must be paid to avoid payment of late fees or the initiation of collection action for a past due amount.

J. EBT Standards. "EBT Standards" means the standards, established by the Electronic Business Transactions Standards working group and adopted by rule, that govern the procedures, electronic protocols, and data formats for transferring data electronically among transmission and distribution utilities and competitive electricity providers.

K. Enroll. “Enroll” means the assignment of a customer to a competitive electricity provider.

L. Generation Service. "Generation service" means the provision of electric power to a retail consumer through a transmission and distribution utility but does not encompass any activity related to the transmission or distribution of that power.

M. Investor-Owned Utility. "Investor-owned utility" means a large investor-owned transmission and distribution utility or a small investor-owned transmission and distribution utility, as described in 35-M.R.S.A. § 3201(12) and 35-M.R.S.A. § 3201(16).

N. Marketer. "Marketer" means an entity that as an intermediary purchases and takes title to electricity for sale to retail customers.

O. Notification to Cancel. "Notification to cancel" means notification from a competitive electricity provider to a transmission and distribution utility that the competitive electricity provider will no longer provide generation service to a customer.

P. Notification to Enroll. "Notification to enroll" means notification from a competitive electricity provider to a transmission and distribution utility that the competitive electricity provider has agreed to provide generation service to a customer.

Q. Past Due Charge. "Past due charge" means an amount that a transmission and distribution utility or a competitive electricity provider has billed to a customer that has not been paid in full by the due date of the bill.

R. Prior Competitive Electricity Provider. "Prior competitive electricity provider" means a competitive electricity provider that had provided generation service to a customer but no longer does so.

S. Residential and Small Non-Residential Customers. “Residential and Small Non-Residential Customers” means customers defined as residential by the terms and conditions of the transmission and distribution utility and non-residential customers that meet the availability criteria to take service under a core customer class of the transmission and distribution utility that does not include a demand charge.

T. Standard Offer Provider. "Standard offer provider" means an entity selected pursuant to Chapter 301 or by a COU pursuant to 35-A M.R.S.A. § 3212 to provide all or a specified portion of electric generation service to consumers receiving standard offer service.

U. Standard Offer Service. "Standard offer service" means electric generation service provided to any electricity consumer who does not obtain electric generation service from a competitive electricity provider.

V. Transmission and Distribution Utility. “Transmission and distribution utility” means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the state.

§ 2 SCOPE

A. Applicability

Unless otherwise stated, provisions in this Chapter that are applicable to competitive electricity providers do not apply to aggregators, brokers, and standard offer providers.

B. Exceptions to the Rule by Contract

When specifically provided in this Chapter, a transmission and distribution utility and a competitive electricity provider may agree in a written contract to provisions different from those stated in this Chapter. The contract shall include all agreed to revisions to the provisions in this Chapter, including time frames for implementation. The contract shall not remove any consumer protections contained in the Commission's rules. The transmission and distribution utility may charge its reasonable costs of implementing the revised terms and shall state all such charges in the contract. Upon request by a competitive electricity provider for revised provisions, the transmission and distribution utility shall state the price and time frame for completion within 15 business days of the request.

§ 3 BILL ISSUANCE FOR GENERATION SERVICE, FOR TRANSMISSION AND DISTRIBUTION SERVICE, AND FOR AGGREGATOR AND BROKER SERVICE

A. Transmission and Distribution Service Billing

The transmission and distribution utility shall be responsible for calculating and issuing bills to customers for transmission and distribution services.

B. Generation Service Billing

Competitive electricity providers shall have two options for calculating and issuing generation service bills to their customers.

1. Consolidated Utility Billing

The transmission and distribution utility shall calculate and issue bills for generation service upon request of a competitive electricity provider. The transmission and distribution utility shall calculate and issue bills for generation service for all customers receiving standard offer service.

2. Provider Billing

Competitive electricity providers may calculate and issue bills for generation service for their own customers.

C. Bill Content for Generation Services

Chapter 301 and Chapter 305 of the Commission's rules govern the content of bills for standard offer service. Chapter 305 governs the content of competitive electricity provider bills and consolidated utility bills.

D. Bill Format under Consolidated Utility Billing

1. For each competitive electricity provider for which a transmission and distribution utility provides consolidated utility billing, the format of the utility-provided standard bill shall be identical, except for provider logo, price level and structure, and message area. The bill for generation service shall appear on a separate page or be otherwise clearly separated from the bill for transmission and distribution service.

2. A transmission and distribution utility may provide a nonstandard bill format at the request of a competitive electricity provider in conformance with Section 2(B).

3. The bill for generation service and for transmission and distribution service shall cover the same time period.

4. This subsection applies to standard offer providers.

E. Prior Competitive Electricity Provider Past Due Charges under Consolidated Utility Billing

Past due charges owed by a customer to a prior competitive electricity provider shall be collected by the transmission and distribution utility for one bill following issuance of the final bill for generation service. At the end of this collection period, the transmission and distribution utility shall inform a competitive electricity provider of a customer's past due charges and shall no longer be responsible for collection. This provision does not apply to past due charges associated with standard offer service.

F. Charge for Consolidated Utility Billing

A transmission and distribution utility shall charge a competitive electricity provider the utility’s incremental cost of providing basic bill issuance, bill calculation, and collections pursuant to Sections (3), (4) and (6). On or before June 1, 1999, the utility shall file a proposed term and condition containing the terms and the amount of this charge. This provision applies to standard offer providers.

G. Agency Billing

At the request of a customer, the transmission and distribution utility shall send a customer's bill to the customer's competitive electricity provider, including aggregators and brokers, using the method that would be used to send the bill to the customer. This provision does not apply to residential and small non-residential customers. The competitive electricity provider shall provide to the customer all of the information provided on or enclosed with the transmission and distribution utility bill, if Commission rules require that such information be provided to customers. Except as provided in this subsection or other provisions in the Commission's rules, no entity may act as a customer's agent for purposes of receiving transmission and distribution utility bills, unless the transmission and distribution utility consents.

H. Aggregator and Broker Service Billing

At the request of an aggregator or broker, a transmission and distribution utility shall negotiate in good faith to provide bill calculation, bill issuance and collections services. The transmission and distribution utility shall charge the aggregator or broker the utility’s incremental cost of providing the agreed-upon services. If the aggregator or broker and the transmission and distribution utility are unable to agree to the terms of bill calculation, bill issuance and collection services, either party may petition the Commission to establish the terms for provision of the services. The aggregator or broker and the transmission and distribution utility shall enter a contract for services provided pursuant to this paragraph and the contract shall be filed with the Commission for approval. Approval of contracts pursuant to this section is delegated to the Director of Technical Analysis.

§ 4 BILL CALCULATION FOR GENERATION SERVICE AND FOR TRANSMISSION AND DISTRIBUTION SERVICE

A. Standard Rate Structure under Consolidated Utility Billing

The standard rate structure for generation service shall be identical to or less complex than the rate structure for transmission and distribution service. A less complex structure is defined as a structure in which multiple transmission and distribution rate elements are combined into one rate element.

B. Rate Testing under Consolidated Utility Billing

The transmission and distribution utility shall test and approve a competitive electricity provider's standard rate structure within 20 business days of the time the competitive electricity provider requests the structure and shall implement the rate change in accordance with section 4(C). A transmission and distribution utility may provide a nonstandard rate structure at the request of a competitive electricity provider, in conformance with section 2(B).

C. Implementing Rate Changes under Consolidated Utility Billing

The transmission and distribution utility shall implement a tested and approved change to a customer's rate level or rate structure on the customer's next normally scheduled meter read date if that customer's competitive electricity provider notifies the transmission and distribution utility of the change to the rate level or rate structure no less than 5 business days before the customer's next normally scheduled meter read date. Otherwise, the transmission and distribution utility shall implement the tested and approved change on the following normally scheduled meter read date for that customer.

D. Bill Adjustments

1. Transmission and Distribution Service

The procedures for adjusting prior usage and charges for transmission and distribution service and standard offer service shall be governed by the provisions of Chapter 81 of the Commission's rules.

2. Generation Service Bill under Consolidated Utility Billing

The transmission and distribution utility shall adjust the usage of all prior generation service and the charges contained in all prior bills it issued for generation service, under provisions identical to those governing adjustments to transmission and distribution service usage and charges.

3. Bulk Power System Administrator Settlement Data

Adjustments to data sent to the bulk power system administrator shall be made by the transmission and distribution utility in conformance with terms determined by the administrator, as they may change from time to time.

E. Non-generation Service Billing

The transmission and distribution utility may provide billing for non-generation services or products at the request of a competitive electricity provider including an aggregator or broker, in conformance with Section 2(B).

§ 5 METERING FOR GENERATION SERVICE AND FOR TRANSMISSION AND DISTRIBUTION SERVICE

A. Meter Equipment

1. Standard Meter Installation

The transmission and distribution utility shall determine the standard meter to be installed for billing purposes at each customer's location and shall be solely responsible for its installation.

2. Nonstandard Meter Installation

a. The transmission and distribution utility shall install a nonstandard meter at the request of a competitive electricity provider. The transmission and distribution utility shall comply with requests for nonstandard meters and shall charge its reasonable incremental costs of owning, maintaining, and installing the nonstandard meter to the competitive electricity provider.

b. The transmission and distribution utility shall accommodate requests for nonstandard meters as quickly as practicable. The transmission and distribution utility shall prioritize installation requests by considering the order of requests, the complexity of implementation, and equity among customer groups.

c. A competitive electricity provider may install metering equipment at its customer's location in addition to the meter installed for billing purposes. Additional metering equipment shall be prohibited at the generation side of the customer's billing meter. The additional metering equipment shall not interfere with or in any way affect the operation of the meter installed for transmission and distribution billing purposes.

B. Meter Standards

Transmission and distribution utilities and competitive electricity providers shall comply with all national, state and company standards when owning, installing and maintaining meters.

C. Meter Reading

1. Meter Reading by Transmission and Distribution Utilities

The transmission and distribution utility shall read each customer's meter for the purpose of calculating transmission and distribution service bills, generation service bills, including standard offer service bills, and load estimations required by bulk power system administrators. The transmission and distribution utility shall provide to a competitive electricity provider the customer's usage since the last meter reading within 5 business days of the most recent meter reading.

2. Meter Reading by Competitive Electricity Providers

A competitive electricity provider may read its customer's meter, but, for the purpose of provider billing, it shall calculate and issue bills for generation service using the customer's usage provided by the transmission and distribution service in accordance with Section 5(C)(1).

3. Estimated Meter Reads

When a customer enrolls for generation service, including standard offer service, the transmission and distribution utility shall determine the customer's usage by performing a read of the meter unless physical circumstances make it impractical to do so. In all other instances, the transmission and distribution utility may estimate the usage since the last meter reading pursuant to the provisions in Chapter 81 of the Commission's rules.

§ 6 COLLECTIONS AND PAYMENTS

A. Collections under Provider Billing

The transmission and distribution utility shall collect payments for its issued bills and a competitive electricity provider shall collect payments for its issued bills.

B. Collections under Consolidated Utility Billing

1. Except as provided under Section 3(E), the transmission and distribution utility shall collect all bill payments it issued under a consolidated utility billing contract with a competitive electricity provider.

2. Within 5 business days of recording a customer's payment, the transmission and distribution utility shall transfer to a competitive electricity provider funds equal to the portion of the provider's customers' payments that are allocated to the competitive electricity provider pursuant to Section 6(C) of this Chapter.

C. Allocation of Partial Payments under Consolidated Utility Billing

1. When a customer’s payment is less than the total amount of the customer’s bill, the partial payment shall be allocated in the following order:

a. Past due transmission and distribution and standard offer charges with the oldest charge paid first. When transmission and distribution charges and standard offer charges are of the same age, the transmission and distribution charge shall be paid first.

b. Past due competitive electricity provider charges with the oldest charge paid first.

c. Current transmission and distribution charges.

d. Current standard offer charges.

e. Current competitive electricity provider charges.

2. Notwithstanding subsection C(1), when a Special or Regular Payment Arrangement or Budget Payment Plan is in effect on an account, payment shall be allocated first to the amount due under the arrangement or plan and then to the competitive electricity provider charges, with the oldest competitive electricity charges paid first.

3. Consumer-owned utilities may petition the Commission for authority to use a different method for allocating partial payments.

§ 7 ENROLLMENT FOR GENERATION SERVICE

A. Enrollment by Competitive Electricity Provider

1. Notice to Transmission and Distribution Utility

A competitive electricity provider shall provide the transmission and distribution utility with a notification to enroll a customer for generation service. For residential and small non-residential customers, notification shall not occur until the end of the rescission period specified in Section 4(C) of Chapter 305.

2. Enrollment Date

If the transmission and distribution utility receives from the competitive electricity provider a notification to enroll a customer no less than 2 business days before the customer's next normally scheduled meter read date, the transmission and distribution utility shall enroll the customer with the provider on the customer's next normally scheduled meter read date. Otherwise, enrollment will occur on the following normally scheduled meter read date, except for enrollments occurring March 1, 2000.

3. Multiple Enrollments

At the time of a customer's normally-scheduled read date, if the transmission and distribution utility has received a notification to enroll the customer from more than one competitive electricity provider, the first notification received by the transmission and distribution utility shall be carried out even if the enrollment notification by the competitive provider is received subsequent to the customer's request for standard offer service or the customer's current competitive electricity provider's notification to the utility of its intent to drop the customer.

4. Notification to Enroll by Competitive Electricity Provider Required

A transmission and distribution utility may not enroll a customer to receive generation service from a competitive electricity provider unless that provider has provided notification to enroll the customer pursuant to this section.

B. Arranging for Standard Offer Service

Pursuant to Chapter 301 of the Commission's rules, the transmission and distribution utility shall arrange for a customer to receive standard offer service if the customer has provided notice to the transmission and distribution utility pursuant to the provisions in Chapter 301. Pursuant to Chapter 301, the transmission and distribution utility shall arrange for the customer to receive standard offer service if the customer has not chosen a competitive electricity provider. The transmission and distribution utility shall transfer the customer to standard offer service on the customer's next normally scheduled meter read date pursuant to procedures contained in Chapter 301. If the customer requests to transfer to standard offer service on a date other than the normally scheduled meter read date, the transmission and distribution utility shall transfer the customer pursuant to the provisions of Chapter 301.

C. Arranging for Transmission and Distribution Service

Chapter 81 governs a customer's application to receive transmission and distribution service. A competitive electricity provider may not arrange for its customer to receive transmission and distribution service.

D. Procedure When Delivery Service Changes

1. New Service

If the transmission and distribution utility has received a notification to enroll for generation service from a competitive electricity provider at the time a customer's transmission and distribution service begins, the transmission and distribution utility shall enroll the customer with the competitive electricity provider. Otherwise, the transmission and distribution utility shall arrange for the customer to receive standard offer service.

2. Customer Moves to New Location

If a customer moves to a new location within its existing transmission and distribution utility service territory and does not interrupt transmission and distribution utility service, and the transmission and distribution utility has not received a notification to enroll from a new competitive electricity provider, the transmission and distribution utility shall retain the customer's enrollment with its competitive electricity provider at the customer's new location. This provision only applies if the meter at the new location is compatible with the competitive electricity provider’s rates. If the meter is not compatible with the competitive electricity provider’s rates, the transmission and distribution utility shall arrange for the customer to receive standard offer service.

§ 8 CANCELLATION OF GENERATION SERVICE

A. Notice to Transmission and Distribution Utility

A competitive electricity provider shall provide the transmission and distribution utility with a notification to cancel a customer's generation service as soon as practicable after determining that the cancellation should occur. For residential and small non-residential customers, the competitive electricity provider shall follow the provisions of Chapter 305. If the transmission and distribution utility has received a notification to enroll the customer for generation service from a new competitive electricity provider pursuant to Section 7(A) of this Chapter by the cancellation date, and the cancellation date is a normally scheduled meter read date pursuant to section 8(A)(2), the transmission and distribution utility shall enroll the customer with the new competitive electricity provider. Otherwise, the transmission and distribution utility shall arrange for the customer to receive standard offer service.

B. Cancellation Date

1. If the transmission and distribution utility has received a notification to cancel or a customer requests cancellation of generation service for which it is enrolled no less than 2 business days before the customer's next normally scheduled meter read date, the transmission and distribution utility will cancel the customer's generation service on the next normally scheduled meter read date. Otherwise, cancellation will occur on the following normally scheduled meter read date.

2. If a competitive electricity provider or a customer requests cancellation of the competitive electricity provider’s service on a date other than the next normally scheduled meter read date, the transmission and distribution utility shall accommodate the request as soon as practicable and shall enroll the customer for standard offer service. The transmission and distribution utility shall calculate the customer's usage and charge for competitive generation service and for standard offer service by prorating the customer's usage or by performing an unscheduled meter read pursuant to the provisions of Chapter 301 and shall charge a transfer fee as provided in Chapter 301.

§ 9 TRANSFER OF CUSTOMER DATA

A. Transfer of Customer-Specific Data

1. Applicability

For purposes of this subsection, competitive electricity providers include aggregators, brokers, and standard offer providers.

2. Provision of Customer-Specific Information

Upon request by a competitive electricity provider, the transmission and distribution utility shall provide to the competitive electricity provider a customer's kWh usage, maximum monthly demands (if recorded for billing purposes), and other customer-specific information, agreed upon by the competitive electricity provider and the transmission and distribution utility, related to the customer's identity and usage, for each billing period in the previous 12 months, to the extent that it is available.

3. Charges

The transmission and distribution utility shall charge a competitive electricity provider its incremental costs of providing all data described in Section 9(A)(2) to the competitive electricity provider. These costs shall not include development, installation, maintenance, or training needs carried out by the transmission and distribution utility in support of electronic data transfer. The costs and terms of payment shall be contained in the contract between the transmission and distribution utility and the competitive electricity provider.

4. Transfer of Additional Data

The transmission and distribution utility may provide a competitive electricity provider with information not specified in Section 9(A)(2) and Section 9(B) at the request of the competitive electricity provider in accordance with Section 2(B). The transmission and distribution utility shall comply with such requests to the greatest extent practicable.

5. Authorization

a. Before issuing a request to receive customer-specific information, a competitive electricity provider must obtain customer authorization . Customer authorization may be in writing, provided electronically, or occur through a notification in the competitive provider’s terms of service document issued pursuant to Chapter 305. The notification shall specify that by becoming a customer of the competitive electricity provider, the customer authorizes the transmission and distribution utility to provide customer-specific information to the competitive electricity provider. The notification in the terms of service document must be conspicuous and precisely identify the information that may be provided. If customer authorization is provided electronically, the competitive electricity provider must maintain a security system sufficient to confirm the identify the customer.

b. Before providing customer-specific information to the competitive electricity provider, the transmission and distribution utility must obtain written evidence that the provider has complied with the customer authorization requirement. This requirement is satisfied by a contractual provision or a written certification that obligates the competitive electricity provider to seek customer-specific information from the utility only after complying with the customer authorization requirements contained in Commission rules.

c. This customer authorization provision does not apply to routine business data transferred pursuant to section 9(B).

B. Routine Business Data

1. Applicability

For purposes of this subsection, competitive electricity providers include standard offer providers.

2. Transfer of Routine Business Data

The transmission and distribution utility shall provide to the competitive electricity providers serving customers in its territory, and competitive electricity providers shall provide to the transmission and distribution utility, the data necessary to carry out routine business transactions as specified in the EBT Standards.

3. EBT Standards

Each transmission and distribution utility and each competitive electricity provider shall transfer data between each other in accordance with procedures and formats specified in the EBT Standards, except, however, consumer-owned utilities may carry out alternative transfer procedures subject to approval by the Commission. Any costs or charges of sending data pursuant to this subsection shall be paid by the entity that sends the data. Any costs or charges of receiving data shall be paid by the entity that receives the data.

4. EBT Training

Each competitive electricity provider and each transmission and distribution utility shall be capable of complying with the data transfer provisions in Section 9(B)(1). An individual with responsibility for compliance with these provisions shall attend a training session(s) as established in the EBT Standards. A competitive electricity provider must attend training and demonstrate successful data transaction capability with a transmission and distribution utility using the procedures established in the EBT Standards before providing a notification to enroll a customer with the transmission and distribution utility. Transmission and distribution utilities shall share the responsibility and costs for conducting the training required in this provision in proportions related to their annual kWh sales.

5. Authorization

For purposes of routine business data, the enrollment of a customer shall be considered authorization for the transmission and distribution utility to provide routine business data to the competitive electricity provider.

§ 10 CONTRACT

The transmission and distribution utility shall enter into a contract with competitive electricity providers, including standard offer providers, that defines the terms, procedures, and prices associated with implementing the provisions of this Chapter. Contracts that conform to a Commission-approved standard form contract do not require Commission approval. Contracts that do not conform to a Commission-approved standard form contract shall be filed with the Commission for approval. The Commission shall inform the transmission and distribution utility and the competitive electricity provider within 30 days of the filing date whether the contract has been approved, rejected, or will be subject to further Commission investigation. This provision applies to standard offer providers. Approval of contracts pursuant to this section is delegated to the Director of Technical Analysis.

§ 11 WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 3202(1) and (2), 3203(9), (14) and (16-A).

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on April 15, 1999. It was filed with the Secretary of State on April 16, 1999 and became effective on April 21, 1999.

EFFECTIVE DATE (AMENDMENT): This Chapter was approved as to form and legality by the Attorney General on December 22, 1999. It was filed with the Secretary of State on December 23, 1999 and became effective on December 28, 1999.

EFFECTIVE DATE (AMENDMENT): This Chapter was approved as to form and legality by the Attorney General on August 14, 2002. It was filed with the Secretary of State on August 14, 2002 and became effective on August 19, 2002.

NON-SUBSTANTIVE CORRECTIONS: October 28, 2002 - Table of Contents only

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 323 Electronic Business Transactions Standards

Code Me. R. 65-407 Ch. 323 Electronic Business Transactions Standards {#sec-65-407-ch.-323 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 323}

SUMMARY: This rule establishes business processes and defines electronic transactions necessary to support retail competition as of March 1, 2000. The rule adopts the Maine Electronic Business Transactions (EBT) Standards appended to this rule.

1. EBT Standards

The Maine Electronic Business Transactions (EBT) Standards appended to this rule apply to transactions between competitive electricity providers and transmission and distribution utilities.

2. Filing Requirements

The Maine Electronics Business Transactions Working Group shall file at the Commission technical specifications necessary to implement the EBT Standards. These technical specifications will be available through the Commission’s web page. Any updates or revisions to these technical specifications shall be filed at the Commission. The Commission will ensure that the revised or updated technical specifications are available through its web page.

3. Waiver

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 3202(1) and (2), and 3203(9).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 29, 2005. It was filed with the Secretary of State on August 30, 2005 (filing 2005-358), and became effective on September 4, 2005.
• EFFECTIVE DATE: This amendment was approved as to form and legality by the Attorney General on April 26, 2007. It was filed with the Secretary of State on May 1, 2007, and became effective on May 6, 2007, filing 2007-177.
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 324 Small Generator Interconnection Standards

Code Me. R. 65-407 Ch. 324 Small Generator Interconnection Procedures {#sec-65-407-ch.-324 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 324}

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SUMMARY: This Chapter establishes procedures for small generator interconnections to utility systems.

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§ 1. SCOPE 1

§ 2. DEFINITIONS 1

§ 3. COST RESPONSIBILITY 8

§ 4. STANDARD FORMS 9

§ 5. STANDARDS FOR THE CERTIFICATION OF GENERATORS AND

INTERCONNECTION EQUIPMENT 10

§ 6. PRE-APPLICATION REPORT 11

§ 7. GENERAL TECHNICAL SCREENING CRITERIA 13

§ 8. EXPORT CONTROL…………………………………………………………………. 14

§ 9. SPECIAL SCREENING CRITERIA FOR INTERCONNECTION TO

DISTRIBUTION NETWORKS 17

§ 10. ENERGY STORAGE SYSTEMS 17

§ 11. LEVEL 1 SCREENING CRITERIA AND PROCESS: INVERTER-BASED

GENERATORS NOT GREATER THAN 25 KW 18

§ 12. LEVEL 2 SCREENING CRITERIA AND PROCESS: GENERATORS

NOT GREATER THAN 2 MW 20

§ 13. LEVEL 3 SCREENING CRITERIA AND PROCESS: NON-EXPORTING

GENERATORS NOT GREATER THAN 10 MW 22

§ 14. LEVEL 4 SCREENING CRITERIA AND PROCESS: ALL GENERATORS

NOT SUBJECT TO FERC JURISDICTION 24

§ 15. GENERAL PROVISIONS AND REQUIREMENTS AFTER

INTERCONNECTION APPROVAL 35

§ 16. PENALTIES 38

§ 17. DISPUTE RESOLUTION 39

§ 18. WAIVER OR EXEMPTION 40

65-407 PUBLIC UTILITIES COMMISSION

Chapter 324: SMALL GENERATOR INTERCONNECTION PROCEDURES

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§ 1. SCOPE

This Chapter establishes procedures and requirements related to generators that are subject to Commission jurisdiction that are seeking to interconnect to a Transmission and Distribution (T&D) Utility’s Distribution System (which, as defined below, includes the T&D Utility’s transmission and distribution systems). Each T&D Utility and Applicant shall follow the review procedures set forth in this Chapter for the level applicable to the generating facility to be interconnected.

§ 2. DEFINITIONS

The following words and terms, when used in this Chapter, shall have the following meanings, unless the context clearly indicates otherwise.

Aggregated Generation. “Aggregated Generation” means, as of the date of the Applicant’s application, the following ICGF projects, in addition to the project proposed by the Applicant, that are or would be interconnected to the Radial Distribution Circuit: (i) all existing projects that are in-service; and (ii) all ICGFs with a fully executed Interconnection Agreement.

Allocated Capacity. “Allocated Capacity” means existing aggregate generation capacity in megawatts (MW) interconnected to a substation/area bus, bank or circuit (i.e., amount of generation online).

Applicant. "Applicant" means a person who has filed an application to interconnect a generating facility to a T&D Utility System

Area Network. "Area Network" means a type of T&D Utility System served by multiple transformers interconnected in an electrical network circuit generally used in large, densely populated metropolitan areas in order to provide high reliability of service and having the same definition as the term "secondary grid network" as defined in IEEE standard 1547.

Automatic Sectionalizing Device. “Automatic Sectionalizing Device” means an interrupting device, such as a line recloser, that can automatically re-energize a line. A fuse is not an automatic sectionalizing device. If there are no line reclosers upstream of an ICGF, then the substation circuit breaker is the next automatic sectionalizing device.

Business Day. “Business Day” means any day except a Saturday, Sunday, a Federal Reserve Bank Holiday, or a holiday recognized by the State of Maine. A Business Day shall open at 8:00 a.m. and close at 5:00 p.m. Eastern Prevailing Time.

Certified Generator. “Certified Generator” means an Interconnection Customer whose ICGF complies with the IEE 1547 and UL 1741 standards.

Circuit Protection and Coordination Study. “Circuit Protection and Coordination Study” means an analysis to ensure that any fault currents resulting from a short circuit do not exceed the interruptive rating of protective equipment. The study ensures the coordination of protective devices for proper sequencing of tripping.

Commercially Reasonable Efforts. “Commercially Reasonable Efforts” means, with respect to an action required to be attempted or taken under this Chapter, efforts that are timely and consistent with Good Utility Practice and are otherwise substantially equivalent to those a party would use to protect its own interests.

Commissioning Test. “Commissioning Test” means a test performed during the commissioning of all or part of an ICGF to do one or more of the following: (a) verify specific aspects of its performance; (b) calibrate its instrumentation; or (c) establish instrument or protective function set points.

Competitive Electricity Provider. "Competitive Electricity Provider" or “CEP” means a marketer, broker, aggregator, and any entity selling electricity to the public at retail who is licensed pursuant to Chapter 305 of the PUC’s rules. This term does not include T&D Utilities, as defined herein.

Company. "Company" means a T&D Utility.

Contingent Upgrades. “Contingent Upgrades” shall mean (i) proposed Interconnection Facilities or Distribution Upgrades that are required to accommodate an earlier-queued Interconnection Request or (ii) modifications planned or proposed by the T&D Utility, where (i) or (ii) are dependent upon the Interconnection request’s costs, timing, and study findings and if delayed or not built, could cause a need for restudies of the Interconnection Request or a reassessment of the cost, timing, or extent of Interconnection Facilities and/or Distribution Upgrades.

Customer. "Customer" means any entity interconnected to the utility Company system for the purpose of receiving or exporting electric power from or to the T&D Distribution System.

Distribution Upgrades. “Distribution Upgrades” means the additions, modifications, and upgrades to the Interconnecting T&D Utility’s Distribution System at or beyond the utility-owned infrastructure side of the Point of Common Coupling to accommodate interconnection of the ICGF. Distribution Upgrades do not include: (1) Interconnection Facilities; or (2) service transformers for single-phase Level 1 Interconnection Customers and single-phase On-Site-Load Interconnection Customers.

Energy Storage System (ESS). “Energy Storage System” means a commercially available technology that uses mechanical, chemical, or thermal processes for absorbing energy and storing it for a period of time for use at a later time.

Equipment Package. "Equipment Package" means a group of components connecting an electric generator with a T&D Utility’s Distribution System, and includes all interface equipment including switchgear, inverters or other interface devices. An Equipment Package may include an integrated generator or electric source.

Export Capacity. “Export Capacity” means the amount of power that can be transferred from the ICGF to the T&D Distribution System. Export Capacity is either the Nameplate Rating, or a lower amount if limited using an acceptable export control method.

Facilities Study. “Facilities Study” is an analysis, performed at election of the Applicant, of the Substantial System Modifications necessary to interconnect the Interconnection Customer Generator Facility. A Facilities Study report (1) shall provide a description, estimated cost of, and schedule for required facilities to interconnect the ICGF to T & D Distribution System and (2) shall address the short circuit, instability, and power flow issues identified in the Impact Study.

Feasibility Study. “Feasibility Study” means a preliminary evaluation of the system impact and cost of interconnecting the ICGF to the T&D Utility’s system.

FERC. "FERC" means the U.S. Federal Energy Regulatory Commission.

Fault Current. "Fault Current" means electrical current that flows through a circuit and is produced by an electrical fault, such as to ground, double-phase to ground, three-phase to ground, phase-to-phase, and three-phase. A Fault Current is several times larger in magnitude than the current that normally flows through a circuit.

Generating Capacity. “Generating Capacity” is the nameplate rating of the generator to be interconnected. When the generator is a Direct Current (DC) generator, the Generating Capacity will be the measured based on the Alternating Current (AC) ratings of the inverters proposed by the Interconnection Customer.

Good Utility Practice. “Good Utility Practice” means any of the practices, methods and acts engaged in or approved by a significant portion of the electric utility industry during the relevant time period, or any of the practices, methods and acts which, in the exercise of reasonable judgement in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act to the exclusion of all others, but rather includes all acceptable practices, methods, or acts generally accepted in the New England region.

IEEE. "IEEE" means the "Institute of Electrical and Electronic Engineers."

IEEE Standards. "IEEE standards" means the standards published by the Institute of Electrical and Electronic Engineers, available at www.ieee.org.

Impact on System Operation. “Impact on System Operation” is any disruption or deterioration of service to T&D Utility’s customers, or damage to T&D Utility’s system caused by operating the ICGF that is documented in the course of an Impact Study.

Impact Study. “Impact Study” means the engineering study conducted by the T&D Utility to determine the scope of the required modifications to the T&D Utility’s System and/or the ICGF to accommodate the requested interconnection.

Inadvertent Export. “Inadvertent Export” means the unscheduled export of active power from an ICGF that exceeds a specified magnitude and lasts for a limited duration.

In-Kind Modification. “In-Kind Modification” means a change to any of (1) the Interconnection Customer side DC equipment, (2) the inverters that does not increase the kW and kVA export capacity (and resulting in no change to the AC export capability, voltage profile, or utility equipment thermal ratings), (3) relays/reclosers that do not alter trip settings, (4) transformer changes that do not alter the MVA rating, primary voltage, or primary winding, (5) equivalent change to AC fuses, or (6) equivalent change to the grounding configuration.

Interconnection Agreement. "Interconnection Agreement" means an agreement between an entity and a T&D Utility which governs the connection of the ICGF to the T&D Utility’s system, as well as the ongoing operation of the ICGF after it is connected to the system. An Interconnection Agreement shall adhere to the standard form agreement approved by the PUC and posted on the PUC's website, unless modifications are approved pursuant to this Chapter.

Interconnection Customer. “Interconnection Customer” mean any entity interconnected to the T&D Distribution System for the purpose of receiving or exporting electric power to or from the T&D Distribution System.

Interconnection Customer Generator Facility. "Interconnection Customer-Generator Facility", or “ICGF” means the equipment used by an Interconnection Customer to generate, manage and monitor electricity. An Interconnection Customer Generator Facility includes ESS. An Interconnection Customer Generator Facility typically includes an electric generator and/or an Equipment Package, as defined herein.

Interconnection Facilities. “Interconnection Facilities” means facilities and equipment located on the customer-owned infrastructure side of the Point of Common Coupling that are necessary to physically and electrically interconnect the ICGF to the T&D Distribution System. Interconnection Facilities do not include: (1) Distribution Upgrades; or (2) service transformers for single-phase Level 1 Interconnection Customers and single-phase On-Site-Load Interconnection Customers.

Interconnection Request. “Interconnection Request” means the request of an Applicant to interconnect an ICGF to the T&D Distribution System.

Level 1. “Level 1” means certified, inverter-based facilities that: (a) pass the applicable screens; and (b) have a Nameplate Rating of twenty-five kilowatts (25 kW) or less on Radial or Spot Network systems. For Level 1 facilities the T&D Utility and Applicant shall follow the procedures set forth in § 11.

Level 2. “Level 2” means certified generating facilities that: (a) pass the applicable specified screens; (b) do not qualify for Level 1; and (c) have a Nameplate Rating of two megawatts (2MW) or less. For Level 2 facilities the T&D Utility and Applicant shall follow the procedures set forth in § 12.

Level 3. “Level 3” means certified generating facilities that: (a) pass the applicable screens; (b) do not qualify for Level 1 or Level 2; (d) have a Nameplate Rating of ten megawatts (10MW) or less; and (e) do not export power to the T&D Distribution System. For Level 3 facilities the T&D Utility and Applicant shall follow the procedures set forth in § 13.

Level 4. “Level 4” means all generating facilities that do not qualify for Level 1, Level 2 or Level 3. For Level 4 facilities the T&D Utility and Applicant shall follow the procedures set forth in § 14.

Licensed Professional Engineer. “Licensed Professional Engineer” means a professional engineer licensed to practice in Maine.

Limited-Export ICGF. “Limited-Export ICGF” means an ICGF that implements an acceptable export control method to set its maximum export power to a specified amount lower than the full Nameplate Rating.

Line Section. “Line Section” means that portion of the T&D Utility’s system connected to a Customer bounded by Automatic Sectionalizing Devices or the end of the distribution line.

Load Flow Study. “Load Flow Study” is an analysis to determine if system voltages remain within specified limits under normal or emergency operating conditions, and whether equipment such as transformers and conductors are thermally overloaded.

Maine Public Utilities Commission. “Maine Public Utilities Commission” or "PUC" means the state regulatory authority over T&D Utilities or any successor agency.

Minor System Modifications. "Minor System Modifications" means Distribution Upgrades that entail less than thirty-two (32) hours of work and less than thirty thousand dollars ($30,000) in materials. Minor System Modifications include activities such as, but not limited to, changing the fuse in a fuse holder cut-out, upgrading a service transformer, changing out a pole, upgrading the line, and changing the settings on a circuit recloser. Interconnection Facilities do not constitute Minor System Modifications.

Nameplate Rating. “Nameplate Rating” means the sum total of maximum rated power output of all of an ICGF’s constituent generating units and/or ESS as identified on the manufacturer nameplate, regardless of whether the ICGF is limited by any approved means.

Net Energy Billing – Kilowatt Hour Credit. “Net Energy Billing – Kilowatt-Hour Credit” means the same as that term is defined in Section 2 of Chapter 313 of the Commission’s Rules.

Net Energy Billing – Tariff Rate. “Net Energy Billing – Tariff Rate” means the same as that term is defined in Section 2 of Chapter 313 of the Commission’s Rules.

Non-Exporting ICGF. “Non-Exporting ICGF” means an ICGF that is designed and operated such that the output is used only behind the meter and no electrical energy is transferred from the ICGF to the T&D Distribution System.

On - Site Load. “On-Site Load” means electricity consumed behind the same Point of Common Coupling as an ICGF.

On - Site-Load ICGF. “On-Site-Load ICGF” means a Level 2 ICGF between 25 kW and 250 kW that only serves to offset On-Site Load. On-Site-Load ICGF includes an ICGF that exports generation for Net Energy Billing – Kilowatt-Hour Credits to offset On-Site Load. On-Site-Load ICGF does not include an ICGF that exports generation under the Net Energy Billing—Tariff Rate.

Parties. “Parties” means a T& D Utility, Applicant, Interconnection Customer or other entity (i) involved in a process or (ii) signatory to an agreement in accordance with this Chapter.

Power Control System. “Power Control System” means a system or device that electronically limits or controls steady state currents to a programmable limit.

Point of Common Coupling. "Point of Common Coupling" means the point at which the T&D Utility-owned infrastructure and Customer-owned infrastructure interface occurs.

Pre-Application Report. “Pre-Application Report” is a report that may be requested by potential applicants developing projects of 500 kW in size and greater. The report provides Applicants information about system conditions at a proposed Point of Common Coupling.

Queue. “Queue” meansa list depicting the current status of requests for the interconnection of new or uprated (increased capacity) generating facilities.

Queue Position. “Queue position” means the order for the purposes of interconnection study and cost allocation. Queue Position is established based on the date of receipt of a completed application.

Radial Distribution Circuit. “Radial Distribution Circuit” means a portion of the T&D Distribution System consisting of one primary circuit extending from a single substation or transmission supply point arranged such that the primary circuit serves an ICGF in a particular local area.

Short-Circuit Study. “Short-Circuit Study” is an analysis of an electrical system that determines the magnitude of the currents that flow during an electrical fault.

Site Control. “Site Control” means (1) ownership of, a leasehold interest in, or a right to develop a site for the purpose of constructing the ICGF; (2) an option to purchase or acquire an easement, a license or a leasehold interest in the site for the purpose of constructing the ICGF with an initial term of at least 12 months from the date of the Application submission to the T&D Utility; (3) an exclusivity or other business relationship between the Interconnection Customer and the entity having the right to sell, lease, or grant the Interconnection Customer the right to possess or occupy a site for the purpose of constructing the ICGF; or (4) filed applications for required permits to site the Facility on federal or State property. Site Control shall not include letters of intent or, with the exception of (4), other arrangements that are not binding on the entity having the right to sell, lease, or grant the Interconnection Customer the right to possess or occupy a site for the purpose of constructing the ICGF.

Spot Network. "Spot Network" means a type of system that uses two or more inter-tied transformers to supply an electrical network circuit. A Spot Network is generally used to supply power to a single Customer or to a small group of Customers and has the same meaning as the term is used in IEEE standard 1547.

Stability Study. “Stability Study” is an analysis to identify any instability or inadequately damped response to system disturbances resulting from the interconnection.

Substantial System Modifications. “Substantial System Modifications” are electric system modifications required to accommodate the proposed interconnection which exceed Minor System Modifications.

T&D Distribution System. “T&D Distribution System” is the interconnecting T&D Utility’s transmission and distribution facilities and equipment used to transmit and distribute electricity.

Transmission and Distribution Utility. "Transmission and Distribution Utility" or "T&D Utility" means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

UL. “UL” means Underwriters Laboratories, which has established standards available at http://ulstandardsinfonet.com/ that relate to components of ICGF.

Voltage Collapse Study. “Voltage Collapse Study” is part of the load flow study. It is typically when the model does not converge and results are not available as there is no solution.

Witness Test. “Witness Test” shall mean the T&D Utility’s option to witness the Commissioning Test per IEEE Standard 1547.

§ 3. COST RESPONSIBILITY

A. Interconnection Facilities. An Interconnection Customer shall be responsible for (1) the actual construction cost of its Interconnection Facilities, as may be adjusted for Contingent Upgrades pursuant to § 14(F), and (2) all expenses, including overheads, associated with owning, operating, maintaining, repairing and replacing its Interconnection Facilities.

B. Distribution Upgrades.

1. Level 1 Interconnection Customers. All Level 1 Interconnection Customers shall pay a cost-sharing fee at the time of returning the executed Interconnection Agreement. The cost-sharing fee shall be $150. The T&D Utility shall use the cost-sharing fee to pay for all costs associated with Distribution Upgrades, including travel and labor, for Level 1 Interconnection Customers only. In addition to the cost-sharing fee, a Level 1 Interconnection Customer is responsible for all costs associated with Distribution Upgrades in excess of $5,000, as may be adjusted for Contingent Upgrades pursuant to § 14(F). The Commission may adjust the cost-sharing fee and the $5,000 cap in an outside proceeding.

2. On-Site-Load Interconnection Customers. Interconnection Customers with On-Site-Load ICGFs sized above 25 kW and up to 250 kW shall pay a shall pay a per-kW cost-sharing fee at the time of returning the executed Interconnection Agreement. The-per kW cost-sharing fee shall be $25 per kW. The T&D Utility shall use the per-kW cost-sharing fee to pay for all costs associated with Distribution Upgrades, including travel and labor, for Interconnection Customers with On-Site-Load ICGFs sized above 25 kW and up to 250 kW. In addition to the per-kW cost-sharing fee, an Interconnection Customer with an On-Site-Load ICGF is responsible for the actual construction costs of Distribution Upgrades in excess of $10,000, as may be adjusted for Contingent Upgrades pursuant to § 14(F). The Commission may adjust the per-kW cost-sharing fee and the $10,000 cap for each T&D Utility’s service territory in an outside proceeding.

3. Interconnection Customers not described in §§ 3(B)(1) and 3(B)(2).

Interconnection Customers not describedin §§ 3(B)(1) and 3(B)(2) shall be responsible for (1) all costs associated with Distribution Upgrades, as may be adjusted for Contingent Upgrades pursuant to § 14(F), and (2) all incremental expenses incurred to operate and maintain (O&M) the Distribution Upgrades. In determining what O&M expenses are incremental, the T&D Utility shall include an offset for the O&M expenses that the utility would otherwise incur on the existing facilities. Specific O&M charges will be established by Commission Order for each T&D Utility.

§ 4. STANDARD FORMS

A. Applications and Agreements. Standard forms adopted by order of the Maine Public Utilities Commission shall be used for all interconnection applications, Interconnection Agreements, and feasibility, impact and facilities study agreements unless modified in accordance with this section. These standard forms will be available from the T&D Utility and posted on the Commission’s website at www.maine.gov/mpuc. The approval of standard forms is delegated to the Director of Electric and Gas Utility Industries. If an Interconnection Customer or T&D Utility wishes to use an application or agreement that deviates from the standard form, the Interconnection Customer or T&D Utility shall submit the application or agreement to the Commission for approval. Approval of any deviation from the standard form is delegated to the Director of Electric and Gas Utility Industries.

B. Interconnection Application. Each T&D Utility shall allow applications to be submitted electronically and shall accept electronic signatures. The application form must include the following information and the standard form shall be designed to meet this purpose:

1. Basic information regarding the Applicant

2. Information regarding the type, size, location and other relevant specifications of the ICGF;

3. Information regarding the entity that will install the ICGF;

4. Certifications and agreements regarding utility access by the T&D Utility to the property on which the ICGF will be located, or documentation of Site Control for a Level 4 application;

5. Identification of the Licensed Professional Engineer that reviewed and approved the design of the Interconnection Customer- Generator facility, if applicable;

6. Information regarding any associated ESS, as described in § 10; and

7. Other similar information as needed to determine the compliance of the Applicant with this Chapter.

§ 5. STANDARDS FOR THE CERTIFICATION OF GENERATORS AND INTERCONNECTION EQUIPMENT

A. In order to qualify as "certified" for any interconnection procedures, generators shall comply with the following codes and standards:

1. IEEE 1547 Standard for Interconnecting Distributed Resources with Electric Power Systems; and

2. UL 1741 Inverters, Converters and Controllers for Use in Independent Power Systems.

B. Interconnection equipment shall be considered “certified” for interconnected operation if the equipment has been tested and listed by a nationally recognized testing and certification laboratory (NRTL) for continuous interactive operation with a utility grid and meets the definition for certification under FERC Order 2006.

C. Project Designs for Level 2, Level 3 and Level 4 generators greater than 50 kW shall be reviewed and approved by a Licensed Professional Engineer.

§ 6. PRE-APPLICATION REPORT

A. Pre-Application Report Request

1. A potential Applicant may request a Pre-Application Report from the T&D Utility. The request shall include:

a. The potential Applicant’s contact information (name, address, phone and email);

b. A proposed Point of Common Coupling. The proposed Point of Common Coupling shall be defined by latitude and longitude, site map, street address, utility equipment number (e.g., pole number), meter number, account number or some combination of the above sufficient to clearly identify the location of the Point of Common Coupling;

c. Generation technology and fuel type and size in kW; and

d. A $300 non-refundable processing fee.

2. In requesting a Pre-Application Report, a potential Applicant understands that:

a. The existence of available capacity in no way implies that an interconnection up to this level may be completed without impacts due to the many variables studied as part of the interconnection review process.

b. The distribution system is dynamic and subject to change.

c. Data provided in the Pre-Application Report may become outdated and not useful at the time of submission of the complete interconnection request.

B. Pre-Application Report

Within fifteen (15) Business Days of receipt of a completed Pre-Application Report Request, the T&D Utility shall provide a Pre-Application Report. The Pre-Application Report shall include the following information, if available:

1. Total Capacity (MW) of substation/area bus or bank and circuit likely available at the proposed site.

2. Allocated Capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site.

3. Queued Capacity (MW) of substation/area bus or bank and circuit likely to serve proposed site.

4. Available Capacity (MW) of substation/area bus or bank and circuit most likely to serve proposed site.

5. Whether the proposed generating facility is located on an Area, Spot or Radial Network.

6. Substation nominal distribution voltage or transmission nominal voltage if applicable.

7. Nominal distribution circuit voltage at the proposed site.

8. Approximate circuit distance between the proposed site and the substation.

9. Relevant line section(s) peak load estimate, and minimum load data, when available.

10. Number of protective devices and number of voltage regulating devices between the proposed site and the substation/area.

11. Whether or not three-phase power is available at the site and/or distance from three-phase service.

12. Limiting conductor rating from proposed Point of Common Coupling to distribution substation.

13. Existing or known constraints such as, but not limited to, electrical dependencies at the proposed Point of Common Coupling, short circuit interrupting capacity issues, power quality or stability issues on the circuit, capacity constraints, or secondary networks.

The Pre-Application Report need only include existing data or information available to the T&D Utility without conducting studies or analyses. A Pre-Application Report request does not obligate the utility to conduct a study or other analysis of the proposed project in the event that data is not available. If the T&D Utility cannot complete all of a Pre-Application Report due to lack of available data, the utility will provide the potential Applicant with a Pre-Application Report that includes the information that is available and identify the information that is unavailable.

In complying with this Section, the utility shall in good faith provide Pre-Application Report data that represents the best available information at the time of the reporting.

§ 7. GENERAL TECHNICAL SCREENING CRITERIA

A. For interconnection of a proposed generator to a Radial Distribution Circuit, the Export Capacity of the Aggregated Generation shall not exceed fifteen percent (15%) of the line section’s annual peak load as most recently measured or calculated at the substation. A line section is that portion of a distribution system connected to a Customer bounded by automatic sectionalizing devices or the end of the distribution line. The T&D Utility shall be permitted to apply this screen at each automatic sectionalizing device upstream of the ICGF, including the substation circuit breaker.

B. The Aggregated Generation on the distribution circuit, shall not contribute more than ten percent (10%) to the distribution circuit's maximum fault current at the point on the high-voltage (primary) level nearest the proposed Point of Common Coupling.

C. The Aggregated Generation on the distribution circuit, shall not cause any Customer equipment on the system or distribution protective devices and equipment (including but not limited to substation breakers, fuse cutouts, and line reclosers), to exceed ninety percent (90%) of the short circuit interrupting capability. The proposed ICGF may not interconnect to a circuit that already exceeds ninety percent (90%) of the short circuit interrupting capability.

D. The proposed ICGF is interconnected to the T&D Utility System as shown in the table below:

Primary Distribution Line Configuration

Interconnection to Primary Distribution Line

Three-phase, three-wire

If a three-phase or single-phase generator, interconnection must be phase-to-phase

Three-phase, four-wire

If a three-phase (effectively grounded) or single-phase generator, interconnection must be line-to-neutral

E. If the proposed ICGF is to be interconnected on a single-phase shared secondary, then the Export Capacity of the Aggregated Generation on the shared secondary shall not exceed sixty-five percent (65%) of the transformer’s Nameplate Rating.

F. If the proposed ICGF is single-phase and is to be interconnected on a transformer center tap neutral of a 240-volt service, its addition shall not create an imbalance between the two sides of the 240-volt service of more than twenty percent (20%) of Nameplate Rating of the service transformer.

G. The Aggregated Generation interconnected to the distribution low-voltage side of the substation transformer feeding the distribution circuit where the generator proposes to interconnect shall not exceed ten megawatts (10 MW) in an area where there are known or posted transient stability limitations to generating units located in the general electrical vicinity (e.g., three or four transmission voltage level busses from the Point of Common Coupling).

H. The proposed ICGF's Point of Common Coupling will not be on a transmission line unless the Interconnection Request falls under an authorized exemption under Schedule 23 of the ISO-NE Small Generator Interconnection Procedures.

Voltage regulation within the proposed ICGF’s line section shall be maintained in compliance with the criteria set forth in Section 4(B) of Chapter 320 of the Commission’s Rules.

J. For interconnection of a proposed ICGF that can introduce Inadvertent Export, where the Nameplate Rating of the ICGF minus the Export Capacity is greater than 250 kW, the following threshold must be met. With a power change equal to the Nameplate Rating minus the Export Capacity, the change in voltage at the point on the medium voltage (primary) level nearest the point of interconnection does not exceed three percent (3%). Voltage change will be estimated applying the following formula:

Formula

(R_SOURCE × Δ P ) – (X_SOURCE × Δ Q )

V²

Where:

Δ P = (DER apparent power Nameplate Rating – Export Capacity) × PF,

Δ Q = (DER apparent power Nameplate Rating – Export Capacity) × √(1- PF ² ),

R _SOURCE is the grid resistance, X_SOURCEis the grid reactance, V is the grid voltage, PF is the power factor

§ 8. EXPORT CONTROL

If an ICGF uses an export control method described in this Section to limit the export of electrical power across the Point of Common Coupling, then the Export Capacity of the ICGF shall be only the amount the ICGF is capable of exporting (not including any Inadvertent Export). To prevent impacts on system safety and reliability, any Inadvertent Export from an ICGF must comply with the limits identified in this Section. The Export Capacity specified by the Interconnection Customer in the application will subsequently be included as a limitation in the Interconnection Agreement.

An Application proposing to use a configuration or operating mode to limit the export of electrical power across the Point of Common Coupling shall include proposed control and/or protection settings.

Acceptable Export Control Methods

Non-Exporting ICGF

Limited-Export ICGF

Reverse Power Protection (Device 32R*)

Yes

Minimum Power Protection (Device 32F*)

Yes

Relative ICGF Rating

Yes

Directional Power Protection (Device 32*)

Yes

Configured Power Rating

Yes

Certified Power Control System

Yes

Yes

Agreed-Upon Means

Yes

Yes

• ANSI device numbers are listed in parentheses, as defined by IEEE C37.2 IEEE Standard Electrical Power System Device Function Numbers, Acronyms, and Contact Designations.

A. Export Control Methods for Non-Exporting ICGFs

Reverse Power Protection (Device 32R): To limit export of power across the Point of Common Coupling, a reverse power protective function is implemented using a utility grade protective relay. The default setting for this protective function shall be 0.1% (export) of the service transformer's nominal base Nameplate Rating, with a maximum 2.0 second time delay to limit Inadvertent Export.

Minimum Power Protection (Device 32F): To limit export of power across the Point of Common Coupling, a minimum import protective function is implemented using a utility grade protective relay. The default setting for this protective function shall be 5% (import) of the ICGF’s total Nameplate Rating, with a maximum 2.0 second time delay to limit Inadvertent Export.

Relative ICGF Rating: The ICGF’s Nameplate Rating is so small in comparison to its host facility's minimum load that the use of additional protective functions is not required to ensure that power will not be exported to the T&D Distribution system. This option requires the ICGF's Nameplate Rating to be no greater than 50% of the Interconnection Customer's verifiable minimum host load during relevant hours over the past 12 months. This option is not available for interconnections to area networks or spot networks.

B. Export Control Methods for Limited-Export ICGFs

Directional Power Protection (Device 32): To limit export of power across the Point of Common Coupling, a directional power protective function is implemented using a utility grade protective relay. The default setting for this protective function shall be the Export Capacity value, with a maximum 2.0 second time delay to limit Inadvertent Export.

Configured Power Rating: A reduced output power rating utilizing the power rating configuration setting may be used to ensure the ICGF does not generate power beyond a certain value lower than the Nameplate Rating. The configuration setting corresponds to the active or apparent power ratings in Table 28 of IEEE Std 1547-2018, as described in subclause 10.4. A local ICGF communication interface is not required to utilize the configuration setting as long as it can be set by other means. The reduced power rating may be indicated by means of a Nameplate Rating replacement, a supplemental adhesive Nameplate Rating tag to indicate the reduced Nameplate Rating, or a signed attestation from the customer confirming the reduced capacity.

C. Export Control Methods for Non-Exporting ICGF or Limited-Export ICGF

Certified Power Control System: An ICGF may use a certified Power Control System to limit export. An ICGF utilizing this option must use a Power Control System and inverter certified per UL 1741 by a nationally recognized testing laboratory (NRTL) with a maximum open loop response time of no more than 30 seconds to limit Inadvertent Export. NRTL testing to the UL Power Control System Certification Requirement Decision shall be accepted until similar test procedures for power control systems are included in a standard. This option is not available for interconnections to area networks or spot networks.

Agreed-Upon Means: An ICGF may be designed with other control systems and/or protective functions to limit export and Inadvertent Export if mutual agreement is reached with the T&D Utility. The limits may be based on technical limitations of the Interconnection Customer's equipment or the T&D Distribution system equipment. To ensure Inadvertent Export remains within mutually agreed-upon limits, the Interconnection Customer may use an uncertified Power Control System, an internal transfer relay, energy management system, or other customer facility hardware or software if approved by the T&D Utility.

§ 9. SPECIAL SCREENING CRITERIA FOR INTERCONNECTION TO DISTRIBUTION NETWORKS

The screening criteria required by this Section shall be in addition to the screening criteria required by § 7 of this Chapter.

A. For interconnection of a proposed ICGF to a Spot Network circuit where the generator or Aggregated Generation exceeds five percent (5%) of the Spot Network's maximum load, the generator must utilize a protective scheme including reverse power relays or a comparable function that will ensure that its current flow will not affect the network protective devices.

B. For interconnection of a proposed ICGF that utilizes inverter-based protective functions to an Area Network, the Aggregated Generation of exporting generators interconnected on the load side of network protective devices shall not exceed the lesser of ten percent (10%) of the minimum annual load on the network or five hundred kilowatts (500 kW). For a photovoltaic facility without batteries, the ten percent (10%) minimum shall be determined as a function of the minimum load occurring during an off-peak daylight period.

C. For interconnection of an ICGF to an Area Network that does not utilize inverter-based protective functions or for inverter-based generators that do not meet the requirements of § 9(B) above, the generator must utilize reverse power relays or other protection devices and/or methods that ensure that no export of power from the Interconnection Customer's site, including any inadvertent export (e.g. under fault conditions) that could adversely affect protective devices on the network circuit.

§ 10. ENERGY STORAGE SYSTEMS

An ICGF that includes ESS shall provide the T&D Utility with a completed form that contains information about the ESS. The ESS form shall be a standard form as described in § 4 and shall include:

A. A description of whether the ESS is:

Stand-alone; or

2. Integrated with generation.

B. A description of how the ESS will be charged:

Electrical grid only;

Unrestricted charging from the electrical grid and any associated ICGF generation;

Restricted charging from the electrical grid and any associated ICGF;

4. From the ICGF only.

C. The Nameplate Rating of the ESS;

D. A description of any proposed export control methods; and

E. A description of any markets the ESS will participate in, including:

1. ISO-NE wholesale markets; and

2. State programs.

§ 11. LEVEL 1 SCREENING CRITERIA AND PROCESS: INVERTER-BASED GENERATORS NOT GREATER THAN 25 KW

A. Interconnection Application. An Applicant shall submit an Interconnection application indicating which certified interconnection equipment the Applicant intends to use. Within five (5) Business Days after receipt, the T&D Utility shall acknowledge to the Applicant receipt of the application and notify the Applicant whether the Interconnection Application is complete, and, if it is not, the T&D Utility shall provide to the Applicant a written list detailing all information that must be provided to complete the application. Within five (5) Business Days after receipt, the T&D Utility shall acknowledge to the Applicant receipt of the application and notify the Applicant that the application is complete or incomplete. If the application is incomplete, the T&D Utility shall provide notice to the Applicant that the application is incomplete and a written list detailing all information that must be provided to complete the application. The Applicant will have ten (10) Business Days after receipt of the list to submit the required information, or to request an extension of time to provide such information. If the Applicant does not comply with this deadline, the application will be deemed withdrawn. An Applicant may include with its application an executed Standard Form Level 1 Interconnection Agreement.

B. Applicable Screens. A facility must pass screens § 7(A), 7(E), and 7(I). For interconnections to distribution networks, proposed facilities must also pass screen § 9(A). If a facility is using an export control method, it must use one of the acceptable export control methods described in § 8.

C. Time to Process Under Screens. Within ten (10) Business Days after the T&D Utility sends notice to the Applicant that the application is complete, the T&D notify the Applicant whether the ICGF meets all the applicable screens above.

D. Screens Failure. If the ICGF fails one or more of the applicable screens, then the T&D Utility shall provide the Applicant with detailed information on the reason or reasons for failure, including: (1) the utility’s definition of the line section and identification of the automatic sectionalizing device that bounds the line section; (2) the amount of aggregated generation on the line section; (3) 15% of the line section’s peak load; (4) if available, the line section’s minimum load and minimum daytime load; (5) percentage of the line section’s peak load attributable to the ICGF; (6) if available, percentage of the line section’s minimum load attributable to the ICGF; and (7) a good faith estimate of the costs of additional review in accordance with § 11(E). Within five (5) days of such notification, the Applicant may request the application continue to be processed under additional review under Level 3 or Level 4.

Notwithstanding a failure of one or more screens, including such failures with or without any Minor System Modifications, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety, reliability, and power quality, and provided that the Applicant pays all interconnection costs.

E. Additional Review. If an ICGF has failed to meet one or more of the Level 1 screens, but additional review may enable the T&D Utility to determine that, with Minor System Modifications, the ICGF can be interconnected consistent with safety, reliability, and power quality pursuant to § 11(D), the T&D Utility shall offer to perform additional review to determine whether Minor System Modifications would enable the interconnection to be made consistent with safety, reliability, and power quality. The T&D Utility shall undertake the additional review only after the Applicant pays for the additional study. Within ten (10) Business Days of receipt of payment for the additional study, the T&D Utility shall provide to the Applicant a non-binding, good faith estimate of the costs of the upgrades.

F. Site visit. The T&D Utility shall conduct a site visit before sending an executable Interconnection Agreement. During the site visit the T&D Utility shall determine any other potential costs the Interconnection Customer may incur.

G. Approval. The T&D Utility shall send an executable Interconnection Agreement within ten (10) Business Days after notifying the Applicant that all the applicable screens have been met.

H. Estimate. The Interconnection Agreement shall include a good faith estimate of all costs of interconnection, including Distribution Upgrades, Interconnection Facilities, and any other costs the T&D Utility estimates will be associated with the interconnection process. In the estimate, the T&D Utility will note which costs are for Distribution Upgrades, which costs are for Interconnection Facilities, and which costs are separate from either of those categories.

I. Execution of Agreement. An Applicant that receives an Interconnection Agreement pursuant to this Section shall execute the agreement and return it and the cost-sharing fee to the T&D Utility no later than thirty (30) Business days from receiving the Interconnection Agreement (unless the T&D Utility waives this requirement). The Applicant shall indicate the anticipated start date for operation of the ICGF. The Applicant shall not delay the return of an executed Interconnection Agreement more than ninety (90) days beyond the date shown in the Interconnection Application for initial operations except by mutual agreement between the T&D Utility and the Applicant.

J. Default Approval. If a T&D Utility does not notify a Level 1 Applicant in writing or by e-mail whether the Interconnection Application is approved or denied within twenty (20) Business Days after the receipt of a completed application, the interconnection shall be deemed approved. The twenty (20) Business Days shall begin on the date that the T&D Utility sends the written notice that the completed Interconnection Application is received.

K. Commission Notification of Default Approval. After receiving Default Approval, a Level 1 Applicant is not required to engage in the Good Faith Negotiation described in § 17(A) if the Applicant decides to proceed with the Informal Dispute Resolution process described in § 17(B).

L. Application Fee. The fee for Level 1 Interconnection applications is $100.

§ 12. LEVEL 2 SCREENING CRITERIA AND PROCESS: GENERATORS NOT GREATER THAN 2MW

A. Interconnection Application. The Applicant shall submit an Interconnection Application indicating which certified interconnection equipment the Applicant intends to use. Within five (5) Business Days after receipt, the T&D Utility shall acknowledge receipt of the application and notify the Applicant whether the application is complete. If the application is incomplete, the T&D Utility shall provide notice to the Applicant that the application is incomplete and a written list detailing all information that must be provided to complete the application. The Applicant shall have ten (10) Business Days after receipt of the list to submit the listed information, or to request an extension of time to provide such information. If the Applicant does not do so, the application shall be deemed withdrawn.

B. Applicable Screens. A facility must pass screens § 7(A) through § 7(J). Interconnections to distribution networks must pass applicable screens under § 9. If a facility is using an export control method, it must use one of the acceptable export control methods described in § 8.

C. Time to Process Under Screens. Within fifteen (15) Business Days after the T&D Utility sends notice to the Applicant that the Interconnection Application is complete, the T&D Utility shall notify the Applicant whether the ICGF meets all the applicable screens in § 12(B).

D. Screens Failure. If the ICGF fails one or more of the applicable screens, then the T&D Utility shall provide notice to the Applicant with detailed information on the reason or reasons for failure, including: (1) the utility’s definition of the line section and identification of the automatic sectionalizing device that bounds the line section; (2) the amount of aggregated generation on the line section; (3) 15% of the line section’s peak load; (4) if available, the line section’s minimum load and minimum daytime load; (5) percentage of line section’s peak load attributable to the ICGF; (6) if available, percentage of the line section’s minimum load attributable to the ICGF; and (7) a good faith estimate of the costs of additional review in accordance with § 12(E). Within five (5) Business Days of such notice, the Applicant may request the application continue to be processed under additional review under Level 3 or Level 4.

Notwithstanding a failure of one or more screens, including such failures with or without any Minor System Modifications, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety, reliability, and power quality, and provided that the Applicant pays all interconnection costs.

E. Additional Review. If an ICGF has failed to meet one or more of the Level 2 screens, but additional review may enable the T&D Utility to determine that, with Minor System Modifications, the ICGF can be interconnected consistent with safety, reliability, and power quality pursuant to §12(D), the T&D Utility shall offer to perform additional review to determine whether Minor System Modifications would enable the interconnection to be made consistent with safety, reliability, and power quality. The T&D Utility shall undertake the additional review only after the Applicant pays for the additional study. Within ten (10) Business Days of receipt of payment for the additional study, the T&D Utility shall provide to the Applicant a non-binding, good faith estimate of the costs of the upgrades.

F. Site visit. The T&D Utility shall conduct a site visit before sending an executable Interconnection Agreement. During the site visit the T&D Utility shall determine any other potential costs the Interconnection Customer may incur.

G. Approval. Within ten (10) Business Days of notifying an Applicant that its ICGF meets all of the applicable screens above or is otherwise approved by the T&D Utility, the T&D Utility shall send an executable Interconnection Agreement to the Applicant.

H. Estimate. The Interconnection Agreement shall include a good faith estimate of all costs of interconnection, including Distribution Upgrades, Interconnection Facilities, and any other costs the T&D Utility estimates will be associated with the interconnection process. In the estimate, the T&D Utility will note which costs are for Distribution Upgrades, which costs are for Interconnection Facilities, and which costs are separate from either of those categories.

I. Execution of Interconnection Agreement. An Applicant that receives an Interconnection Agreement pursuant to this Section shall execute the Interconnection Agreement and return it to the T&D Utility no more than thirty (30) business days from being sent the Interconnection Agreement. The Applicant shall not delay the return of an executed Interconnection Agreement more than ninety (90) days beyond the date shown in the original application for initial operations except by mutual agreement between the T&D Utility and the Applicant.

J. Witness Testing. A T&D Utility may require witnessing of the Commissioning Test. If witnessing of the Commissioning Test is required, this shall be stated in the Interconnection Agreement.

K. Application Fee. The fee for Level 2 interconnection applications is one-hundred dollars ($100) plus two dollars per kW ($2/kW) of generator capacity.

§ 13. LEVEL 3 SCREENING CRITERIA AND PROCESS: NON-EXPORTING GENERATORS NOT GREATER THAN 10 MW

A. Interconnection Application. The Applicant shall submit a completed Interconnection Application indicating which certified interconnection equipment the Applicant intends to use. Within five (5) Business Days of receipt, the T&D Utility shall notify the whether the application is complete. If the application is incomplete, the T&D Utility shall provide notice to the Applicant that the application is incomplete and a written list detailing all information that must be provided to complete the application. The Applicant will have ten (10) Business Days after receipt of the list to submit the listed information, or to request an extension of time to provide such information. Otherwise, the application will be deemed withdrawn.

B. Applicable Screens. A facility must pass screens § 7(B) through § 7(H) and § 7(J). Interconnections to distribution networks must pass applicable screens under § 9. In addition, the ICGF shall use one of the acceptable export control methods for non-exporting ICGFs described in § 8.

C. Time to Process Under Screens. Within seventeen (17) Business Days after the utility sends notice to the Applicant that the application is complete, the T&D Utility shall notify the Applicant whether the ICGF meets all the applicable screens in § 13(B).

D. Screens Failure. If the ICGF fails one or more of the applicable screens, then the T&D utility shall provide the Applicant with (1) detailed information on the reason or reasons for failure; (2) the utility’s definition of the line section and identification of the automatic sectionalizing device that bounds the line section; (3) aggregated generation on the line section; and (4) a good faith estimate of the costs of additional review in accordance with §13(J). The Applicant may request the application continue to be processed under Level 4 within five (5) days of receiving notice of failure. Otherwise, the application will be deemed denied.

Notwithstanding a failure of one or more screens, including such failures with or without any Minor System Modifications, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety, reliability, and power quality, and provided that the Applicant pays all interconnection costs.

A T&D Utility must apply to the Commission for a waiver as described in § 18 to deny interconnection of a non-exporting ICGF if the T&D Utility has determined that the resulting reduction in load of the non-exporting ICGF may compromise the safety, reliability, or power quality of the T&D Distribution System.

E. Site visit. The &D Utility shall conduct a site visit before sending an executable Interconnection Agreement. During the site visit the T&D Utility shall determine any other potential costs the Interconnection Customer may incur.

F. Approval. Within ten (10) Business Days of notifying an Applicant that its ICGF meets all of the applicable screens above or is otherwise approved by the T&D Utility, the T&D Utility shall send an executable Interconnection Agreement to the Applicant.

Estimate. The Interconnection Agreement shall include a good faith estimate of all costs of interconnection, including Distribution Upgrades, Interconnection Facilities, and any other costs the T&D Utility estimates will be associated with the interconnection process. In the estimate, the T&D Utility will note which costs are for Distribution Upgrades, which costs are for Interconnection Facilities, and which costs are separate from either of those categories.

H. Execution of Interconnection Agreement. An Applicant that receives an Interconnection Agreement under this Section shall execute the Interconnection Agreement and return it to the T&D Utility no more than thirty (30) business days from being sent the Interconnection Agreement. The Applicant shall not delay the return of an executed Interconnection Agreement more than ninety (90) days beyond the date shown in the original application for initial operations except by mutual agreement between the T&D Utility and the Applicant.

I. Witness Testing. A T&D Utility may require witnessing of the Commissioning Test. If witnessing of the Commissioning Test is required, this shall be stated in the Interconnection Agreement.

J. Additional Review. If an ICGF has failed to meet one or more of the Level 3 screens, but additional review may enable the T&D Utility to determine that, with Minor System Modifications, the ICGF can be interconnected consistent with safety, reliability, and power quality pursuant to § 13(D), the T&D Utility shall offer to perform additional review to determine whether Minor System Modifications would enable the interconnection to be made consistent with safety, reliability, and power quality. The T&D Utility shall undertake the additional review only after the Applicant pays for the additional study. Within ten (10) Business Days of receipt of payment for the additional study, the T&D utility shall provide to the Applicant a non-binding, good faith estimate of the costs of the upgrades.

K. Application Fee. The fee for Level 3 interconnection applications is one-hundred dollars ($100) plus three dollars per kW ($3.00/kW) of generator capacity.

§ 14. LEVEL 4 SCREENING CRITERIA AND PROCESS: ALL GENERATORS NOT SUBJECT TO FERC JURISDICTION

A. Interconnection Application. The Applicant shall submit a standard application form for Level 4 interconnection. An application for a Level 4 interconnection must include documentation of Site Control for the Facility. Acceptable documentation of Site Control shall include copies of executed agreements (which may be redacted for commercially sensitive information) or recorded memoranda thereof. If a facility is using an export control method, it must use one of the acceptable export control methods described in § 8.

1. Site Control Transition. Applicants with an Interconnection Request for a Level 4 interconnection deemed to have been complete before or on December 11, 2019 must submit documentation of Site Control to the T&D Utility within thirty (30) calendar days of such Commission order. The T&D Utility shall evaluate the documentation of Site Control and notify the Applicant within ten (10) Business Days of receipt that the documentation of Site Control has been accepted or rejected. If the T&D Utility rejects the documentation of Site Control, then the Applicant shall have one opportunity to submit additional documentation of Site Control within five (5) Business Days of receiving notice of the T&D Utility’s rejection. If the Applicant fails to submit documentation of Site Control as required by this paragraph, then its applicable Interconnection Request shall be deemed withdrawn and will lose its Queue Position. If the T&D Utility does not notify the Applicant within (10) Business Days of receipt that the documentation of Site Control has been accepted or rejected, or prior to commencement of the Impact Study the T&D Utility discovers that the documentation provided did not demonstrate Site Control, then the T&D Utility shall notify the Applicant, and the Applicant shall have five (5) Business Days from receipt of such notice to provide documentation of Site Control.

B. Acknowledgement of Receipt. The T&D Utility shall acknowledge to the Applicant receipt of the Interconnection Application within five (5) Business Days of receipt of the Interconnection application, and application fee, or within five (5) Business Days from the date of transfer from the simplified or expedited interconnection procedures.

C. Notification of Completeness. The T&D Utility shall evaluate the application and notify the Applicant within ten (10) Business Days of receipt that the application is complete or incomplete, including with respect to the required Site Control written documentation. If the application is incomplete, the T & D Utility’s notice to the Applicant that the application is incomplete shall include a written list detailing all information that must be provided to complete the application. The Applicant shall provide all of the required information to complete the application within ten (10) Business Days from receipt of the T&D Utility notice, with limited exceptions for system models that the Applicant will use Commercially Reasonable Efforts to obtain from the manufacturer. In no event shall the Applicant take longer than fifteen (15) Business Days from receipt of the T&D Utility notice to provide all information required by the T&D Utility. Within three (3) Business Days of the final deadline for completion of the application, the T&D Utility shall provide notice to the Applicant as to whether or not the application is complete; and if the application is complete, the T & D Utility will assign a queue position based on the date of completed application.

D. Queue Position. The Queue Position of each Interconnection Request will be used to determine the order of interconnection review in those circumstances where one pending interconnection application could affect the analysis of other pending interconnection applications as well as any cost responsibility for the facilities necessary to accommodate the generator interconnection. Queue Position is based on the date of receipt of a completed application. If the Applicant has failed to meet the timelines described under § 14(C), (E), (I), (J), (L), (O), (Q), and (R), or the Applicant has not responded to T&D Utility written communications for three (3) consecutive months, the T&D Utility will notify Applicant of impending loss of Queue Position. Ten (10) Business Days after this notice, the T&D Utility will remove the Applicant from the Queue if the Applicant does not cure the failure to meet such timelines. An Applicant is considered inactive if the Applicant has ceased communication with the T&D Utility and is not actively working on interconnection requirements.

1. Allowed Modifications to Interconnection Requests. The following modifications are allowed to an Interconnection Request without loss of Queue Position:

a. Prior to the commencement of the Feasibility Study under § 14(I) below, a decrease in the MW (AC) nameplate capacity of the ICGF;

b. Prior to the commencement of the Impact Study under § 14(L) below, an Applicant may consolidate the capacity of multiple Interconnection Requests for multiple ICGFs if the following conditions are met: (i) the ICGFs share common ownership and (ii) the ICGFs have directly dependent Queue Positions;

c. At any time, an In-Kind Modification to the technical parameters associated with the ICGF’s technology, that does not increase the AC export capability of the ICGF; and

d. At or within fifteen (15) Business Days after the meeting between Applicant and T&D Utility to review results of either the Feasibility Study under § 14(I) below or the Impact Study under § 14(L) below, a one-time modification of the interconnection configuration, including an In-Kind Modification, that does not increase the AC export capability of the ICGF, as a result of information from the interconnection study process (including a decrease in the MW (AC) nameplate capacity of the ICGF) or due to non-interconnection circumstances beyond the Applicant’s control (including reductions due to permitting requirements or wetlands considerations). If electing this modification, the Applicant shall provide a modified electrical one-line diagram and site plan within fifteen (15) Business Days of the meeting to review Feasibility Study or Impact Study results, and the T & D Utility shall notify the Applicant within ten (10) Business Days of receipt of the modified electrical one-line diagram and site plan if any additional information is needed. If additional information is needed or document corrections are required, the Applicant shall provide the required information or corrections within ten (10) Business Days from receipt of the T & D Utility notice, with limited exceptions for system models that the Applicant will use Commercially Reasonable Efforts to obtain from the manufacturer.

The actual costs to T&D Utility for any necessary re-studies as a result of a modification described in subparagraphs (a)-(d) above shall be paid by Applicant. Such restudies should be limited to the impacts of the modification and shall be billed to the Applicant at cost and not for work previously completed. The T&D Utility shall use Commercially Reasonable Efforts to limit the scope of such re-studies to what is necessary. The timeframes for any re-studies and for any payments associated with any re-studies shall be the same number of days as the timeframes and deadlines for the initial studies set forth in § 14 (thereby extending the time periods and deadlines to accommodate re-studies). If an Applicant elects to consolidate Facilities pursuant to subparagraph (b) above, then the allowed modifications under subparagraphs (c) and (d) above shall be allowed with respect to the consolidated Facilities. Termination of any Interconnection Requests consolidated under subparagraph (b) shall be included in the Applicant’s allowed one-time modification in subparagraph (d) above without requiring termination of all consolidated Interconnection Requests, and the Applicant may modify the consolidated Interconnection Request(s) at the same time.

E. Initial Review and Scoping Meeting. The T&D Utility will conduct an initial review that includes a scoping meeting/discussion with the Applicant (if necessary) within ten (10) Business Days of sending notice that an Interconnection Application is complete unless (i) otherwise agreed to by the Parties in writing (but in no event shall they agreed to extend the scoping meeting more than twenty (20) Business Days of sending such notice) or (ii) waived in writing by mutual agreement between the Applicant and T&D Utility. If the scoping meeting/discussion does not occur within this ten (10) Business Day period, unless (i) due to the fault or delay of the T&D Utility, (ii) otherwise agreed in writing as stated above, or (iii) due to waiver by mutual agreement, the ICGF will be moved to the end of the Queue. At the scoping meeting the T&D Utility will provide pertinent information such as: the available Fault Current at the proposed location, the existing peak loading on the lines in the general vicinity of the proposed generator, Contingent Upgrades in the general vicinity of the ICGF triggered by earlier-queued Interconnection Requests and known by the T&D Utility at the time of the scoping meeting/discussion, and the configuration of the distribution lines at the proposed Point of Common Coupling. By mutual agreement of the Parties, the Feasibility Study, Impact Study or Facilities Study may be waived

Upon conclusion of the scoping meeting/discussion, or mutual agreement between the Applicant and the T&D Utility to waive the scoping meeting, Applicant shall have ten (10) Business Days to determine which study it wants to proceed with and submit any Application corrections requested by the T&D Utility.

Upon selection of the applicable study, the T&D Utility shall have five (5) Business Days to issue the study agreement and request any final information applicable to the type of study selected, and fifteen (15) Business Days to provide a cost estimate for the study.

Upon receipt of both the applicable study agreement and the cost estimate for the study, the Applicant shall have ten (10) Business Days to return the signed study agreement, study deposit, and requested information to the T&D Utility with limited exceptions for system models that the Applicant will use Commercially Reasonable Efforts to obtain from the manufacturer.

F. Contingent Upgrades. The T&D Utility shall identify Contingent Upgrades at the scoping meeting/discussion if available, and otherwise before the execution of the Interconnection Agreement. Contingent Upgrades that are identified during the evaluation of the Interconnection Request shall be documented in the Impact Study report (if applicable) and the Interconnection Agreement. The T&D Utility shall also provide, upon request of the Applicant, the estimated Interconnection Facility and/or Distribution Upgrades costs and estimated construction schedule for each Contingent Upgrade when this information becomes available.

G. Cost Sharing. The T&D Utility may collect payments for Contingent Upgrades in advance of expenditures for Contingent Upgrades. The Interconnection Customer shall only be responsible for paying for that portion of the interconnection costs resulting solely from the Interconnection Facilities or Distribution Upgrades required to allow for safe, reliable parallel operation of the ICGF with the T&D Distribution System; provided, however, the T&D Utility may only charge an Interconnection Customer for the Interconnection Facilities or Distribution Upgrades specifically necessary for and directly related to the ICGF. Such upgrades may include transformers, distance for express feeders, reconductoring upgrades, and similar upgrades. To the extent that later-queued ICGFs benefit from Contingent Upgrades (i) that were paid for by earlier-queued Interconnection Customers and (ii) for which the good faith estimate of costs is in excess of $200,000, the T&D Utility will identify a prorated portion of the cost responsibility in each Interconnection Agreement for later-queued Interconnection Customers. If the Generating Capacity of the ICGF is less than 250 kilowatts, the Applicant may elect in writing to not participate in cost sharing. The T&D Utility will assess a prorated portion of the costs to each Interconnection Customer benefitting from the Contingent Upgrade and credit earlier-queued Customers once projects lower in the queue become operational (that is, payments are firm only when projects are operational), except in instances where the ICGF’s Generating Capacity is less than 250 kilowatts and the Interconnection Customer has elected in writing not to participate in cost sharing. The share of the costs paid by Interconnection Customers shall be calculated by the T&D Utility as the ratio of the total upgrade cost to the total AC watts that the Contingent Upgrade serves. The ratio shall also include the ratio of distance utilized by an ICGF to the total distance of the upgrade, where the Contingent Upgrade is reconductoring or a line extension. Assessments of prorated costs for Contingent Upgrades shall occur until the earlier of (i) ten years from the Effective Date of the earliest affected Interconnection Customer’s Interconnection Agreement, (ii) the prorated amount of cost sharing is $100,000 or less for each affected Interconnection Customer or (iii) until the capacity of Contingent Upgrade is used up. The T&D Utility shall administer the allocation process and track the payments among contributing projects. The T&D Utilities are authorized to collect from Applicants a fee based on actual administrative costs of T&D Utility for processing such cost sharing reimbursement.

When an Applicant withdraws or abandons an Interconnection Request, the T&D Utility may reconcile administrative expenses incurred for cost sharing at cost. When an Applicant withdraws or abandons an earlier-queued Interconnection Request subject to a Contingent Upgrade, an Applicant with a later-queued Interconnection Request may request a restudy to potentially avoid paying for Contingent Upgrades upon which the withdrawn or abandoned Interconnection Request was dependent. Such restudy may affect the timing of studies for Interconnection Requests queued behind the restudied Interconnection Request T&D Utility shall use Commercially Reasonable Efforts to minimize the restudy time.

The following assumptions and principles apply to cost:

• • • Interconnection Requests will be studied in a quasi-sequential manner, i.e., each Interconnection Request is studied after the previous Interconnection Request has been studied. Contingent Upgrades, when identified by an Impact Study or Facilities Study, will be recorded and tracked by the T&D Utility. - T&D Utility will provide information on Contingent Upgrade costs, and the estimated share and allocation by Queue Position as such information becomes known (at scoping meeting/discussion if available, and during the study process at the latest). - The T&D Utility shall provide the above information to all dependent Interconnection Requests in the Queue behind the Interconnection Request that triggered the Contingent Upgrade(s) at the scoping meeting/discussion (if available) and when a dependent Interconnection Request in the Queue withdraws, is abandoned, or becomes operational. - Contingent Upgrade costs will be recorded at the time of the first Impact Study or Facilities Study, whichever is earlier, for future cost sharing purposes.

H. Feasibility Study. The Feasibility Study shall provide a preliminary review of short circuit currents, including contribution from the proposed ICGF, and coordination and potential overloading of distribution circuit protection devices. Provided there are no violations in the Feasibility Study, the Parties may waive the Impact Study and the T&D Utility shall send an executable Interconnection Agreement to the Applicant pursuant to § 14(R).

I. Feasibility Study Completion. The T&D Utility shall havetwenty-five (25) Business Days to complete the Feasibility Study and request a meeting to discuss results.

The T&D Utility and Applicant shall meet within ten (10) Business Days of the T&D Utility’s completion of the Feasibility Study to discuss the Feasibility Study results, unless such a meeting is waived in writing by the Applicant. The study results meeting will include representatives of the Applicant and T&D Utility planning engineers to discuss any system modifications required to interconnect the ICGF. When feasibility analysis identifies Substantial System Modifications, the T&D Utility will notify the Applicant and share the assumptions and technical thresholds that trigger such upgrades or facilities. A one-time modification to the ICGF is permitted in accordance with § 14(D)(1)(d).

The Applicant may request at the study results meeting that the T&D Utility provide additional information from the Feasibility Study that is readily available to the T&D Utility but not reflected in the Feasibility Study report. The T&D Utility shall respond to all requests for information within five (5) Business Days of the study results meeting. Within fifteen (15) Business Days after the results meeting the Applicant must state its intent to proceed with the Interconnection Agreement (if applicable), Impact Study, or request a one-time modification to the ICGF permitted in accordance with § 14(D)(1)(d).

J. Impact Study

If the Applicant states its intent to proceed with the Impact Study, the T&D Utility shall provide an Impact Study Agreement within five (5) Business Days of receipt of Applicant’s notification, the Feasibility Study results meeting (if applicable), or the completion of the Feasibility Study if applicable and the results meeting has been waived. The T&D Utility shall provide a cost estimate for the Impact Study within fifteen (15) Business Days of the Applicant stating its intent to proceed with the Impact Study. Where the proposed interconnection may affect electric transmission or distribution systems other than that of the T&D Utility where the interconnection is proposed or may have a significant effect on the stability, reliability, or operating characteristics of the T&D Utility’s transmission facilities, the transmission facilities of another transmission owner, or the system of another ISO-NE market participant, the T&D Utility shall notify the Applicant that a review process must be initiated by filing a generator notification or other applicable form with the applicable RTO or other transmission provider in accordance with RTO or FERC rules. Applicant shall have ten (10) Business Days from receiving the Impact Study Agreement and cost estimates to return the executed Impact Study Agreement, study deposit and requested information to the Utility, with limited exceptions for system models that the Applicant will use Commercially Reasonable Efforts to obtain from the manufacturer.

If no Impact Study is required and the Applicant states its intent to proceed with the Interconnection Agreement, the T&D Utility shall have ten (10) Business Days to issue an Interconnection Agreement. If the Generating Capacity of the ICGF is less than 250 kilowatts and the Applicant has elected not to participate in cost sharing, the Applicant must notify the T&D Utility prior to requesting an Interconnection Agreement.

K. Description of Impact Studies. Each T&D Utility shall include in its Terms and Conditions a description of the elements of an impact study it would typically undertake pursuant to this Section, including:

1. Load-Flow Study

2. Short-Circuit Study

3. Circuit Protection and Coordination Study

4. Impact on System Operation

5. Stability Study (and the conditions that would justify including this element in the Impact Study)

6. Voltage-Collapse Study (and the conditions that would justify including this element in the Impact Study).

L. Start of Impact Study. Once the Applicant executes the Impact Study Agreement and pays to T&D Utility the deposit contained therein, the T&D Utility shall complete the Impact Study within forty-five (45) Business Days, or within thirty (30) Business Days if a Feasibility Study was previously completed for the ICGF. When impact analysis identifies Substantial System Modifications the T&D Utility will notify the Applicant and share the assumptions and technical thresholds that trigger such upgrades and facilities. A modification to the ICGF to mitigate the need for system modifications is permitted under § 14(D)(1)(d). The T&D Utility and Applicant shall meet within ten (10) Business Days of the completion of the Impact Study to discuss study results. The study results meeting will include representatives of the Applicant and T&D Utility planning engineers to discuss any system modifications required to interconnect the ICGF. The T&D Utility shall respond to all requests for information within five (5) Business Days. Within fifteen (15) Business Days after the results meeting the Applicant must state its intent to proceed with an Interconnection Agreement (if applicable), Facilities Study, or request modifications to the ICGF permitted under § 14(D)(1)(d) in order to mitigate the need for system modifications. If the Applicant states its intent to proceed with the Interconnection Agreement, the T&D utility shall have ten (10) Business Days to issue an Interconnection Agreement.

M. Minor System Modifications. If upon completion of the Impact Study, the T&D Utility determines that the system modifications required to accommodate the proposed interconnection are Minor System Modifications, the Impact Study shall identify the scope and cost of the modifications as defined in the Impact Study results and no Facilities Study shall be required. If no Facilities Study is required, the T&D Utility shall send an executable Interconnection Agreement to the Applicant pursuant to §14(L).

Notwithstanding the results of the Impact Study, including such failures with or without any Minor System Modifications, the utility, at its sole option, may approve the interconnection provided such approval is consistent with safety, reliability, and power quality, and provided that the Applicant pays all interconnection costs.

N. Substantial System Modifications. If the T&D Utility determines through the Impact Study that the system modifications to its system are substantial, the results of the Impact Study shall notify the Applicant in the Impact Study and include a good faith estimate of the cost of the system modifications, which the T&D Utility should endeavor to estimate with +/- 25%. The T&D Utility will also include, to the extent known, the good faith cost estimate and schedule of Contingent Upgrades. The detailed system modifications, and more accurate costs of the modifications necessary to interconnect the ICGF shall be identified in the Facilities Study to be completed by the T&D Utility.

O. Facilities Study Agreement. If elected by the Applicant, a Facilities Study Agreement, with a good faith estimate of the cost of completing the Facilities Study, shall be provided to the Applicant for the Applicant's approval within ten (10) Business Days. The Applicant shall return the executed Facilities Study Agreement, the deposit, and the required information to complete the Facilities Study, with limited exceptions for system models that the Applicant will use Commercially Reasonable Efforts to obtain from the manufacturer, within ten (10) Business Days of receiving the Facilities Study Agreement.

P. Start of Facilities Study. Once the Applicant executes the Facilities Study Agreement and pays the deposit pursuant to the terms thereof, the T&D Utility shall conduct the Facilities Study within forty-five (45) Business Days

Q. Notice of Facilities Study Completion. The T&D Utility and Applicant shall meet within ten (10) Business Days of the completion of the Facilities Study to discuss study results. The study results meeting will include representatives of the Applicant and T&D Utility planning engineers to discuss any system modifications required to interconnect the ICGF. The T&D Utility shall respond to all requests for information within five (5) Business Days. Within fifteen (15) Business Days after the results meeting the Applicant must state its intent to proceed with an Interconnection Agreement or request modifications to the ICGF permitted under § 14(D)(1)(d) in order to mitigate the need for system modifications. If the Applicant states its intent to proceed with the Interconnection Agreement, the T&D utility shall have ten (10) Business Days to issue an Interconnection Agreement.

R. Execution of Interconnection Agreement. Within twenty (20) days from the receipt of an Interconnection Agreement above, the Applicant shall execute and return the Interconnection Agreement. The T&D Utility shall have ten (10) Business Days to sign the Agreement and share a fully executed copy with the Applicant.

S. Installation Milestones. The facilities study shall indicate the milestones for completion of the Interconnection Customer’s installation of its ICGF and the T&D Utility completion of any electric system modifications, and the milestones from the facilities study (if any) shall be incorporated into the Interconnection Agreement. Good faith estimates of construction timelines shall be provided in the Interconnection Agreement.

T. Payment of System Modifications. Except as provided below with respect to a payment schedule, the Applicant shall have ninety (90) Business Days from the execution of the Interconnection Agreement to pay twenty-five percent (25%) of the quoted costs for any required Distribution Upgrades and Interconnection Facilities. The Applicant shall have ninety (90) Business Days from the date of the initial 25% payment to pay the 75% balance of the quoted costs for any required Distribution Upgrades, unless the T&D Utility has not yet provided the Applicant with a detailed design and construction schedule, in which case the 75% balance payment shall be due thirty (30) Business Days after the T&D Utility provides a detailed design and construction schedule. Notwithstanding this paragraph (T), if the quoted costs of the Distribution Upgrades and Interconnection Facilities exceeds $500,000, the T&D Utility will provide a payment schedule to Applicant attached as a schedule in the Interconnection Agreement, which will expand the schedule for making payments to coincide with design, procurement, or construction to be completed by T&D Utility. Following the payment for the balance of Distribution Upgrades, the T&D Utility shall construct the designed Distribution Upgrades as described in the design phase and consistent with any provided construction schedule.

Payments will be adjusted and refunded to the Applicant in accordance with § 15(J) (Cost Reconciliation) and § 15(I) (Cancellation of Interconnection Agreement).

U. Generator Inspection and Witness Testing. After completion of construction of an ICGF, and before it may be operated, the T&D Utility shall Witness Test the ICGF for compliance with requirements and attends any required commissioning tests pursuant to IEEE Standard 1547. Prior to such Witness Test, the Applicant shall arrange for inspection of the completed ICGF by the local electrical wiring inspector, or other authority having jurisdiction, and this person shall sign the Certificate of Completion. Such Witness Test will be performed within fifteen (15) Business Days of the Applicant’s notification to the T&D Utility that it is ready for such tests and receipt of the signed Certificate of Completion by the T&D Utility. If the T&D Utility has elected not to witness the Commissioning Tests, the Applicant shall provide a written notification within five (5) Business Days of completion of the Commissioning Tests certifying that the ICGF has been installed and tested in compliance with the T&D Utility-accepted design, IEEE 1547 and the equipment manufacturer’s instructions.

V. Notification of Approved Operation. Provided any required Commissioning Tests are satisfactory, the T&D Utility shall issue to the Applicant a formal letter of acceptance of the ICGF for interconnection. No ICGF may commence operation before receiving this Notification of Approved Operation.

W. Notification of Changes to Initial Operations Date. The Interconnection Customer shall notify the T&D Utility if there is any anticipated change in the proposed date of initial interconnected operations of the ICGF.

X. Application and Other Fees. A Level 4 interconnection application fee shall be $3,000, as well as charges for actual time spent on the interconnection study. In addition, there shall be a $500 fee for changes to the interconnection application after receipt of notice of completeness under § 14(C) above. The application fee and change fee shall be considered non-refundable and surrendered by the Applicant in the event of application withdrawal by the Applicant or cancellation by the Utility.

Y. Queue Publication. Each investor-owned T&D Utility shall publish a report on its website at least twice each calendar month with the following information about each Level 4 Interconnection Request in its Queue;

Queue position

Any dependencies,

Contingent Upgrades

Municipality where Facility is located

Substation name

Fuel type

Project status

Circuit name

Date application request submitted

Estimated commercial operations date

Facility capacity

Feasibility Study – start and completion dates

Impact Study – start and completion dates

Facility Study – start and completion dates

Interconnection Agreement – completion date

25% Payment – completion date

§ 15. GENERAL PROVISIONS AND REQUIREMENTS AFTER INTERCONNECTION APPROVAL

A. Construction and Zoning Costs. The Applicant is responsible for all aspects of siting, permitting, construction, and anything else needed by its ICGF.

B. Commissioning Test. An Interconnection Customer must conduct Commissioning Test pursuant to IEEE Standard 1547 and manufacturer requirements.

C. Designated T&D Utility Employee. To assist Applicants in the interconnection process, the T&D Utility shall designate an employee or office from which information about the application can be readily obtained. Upon request, the T&D Utility shall provide the Applicant with all relevant forms, documents and technical requirements for filing a complete application for interconnection of generators and, if requested, the T&D Utility shall meet with the Applicant prior to submission of an Application within a reasonable time that is mutually agreeable to both parties.

D. Engineering Rate. Authorized hourly rate for engineering review under additional review or Level 4 shall be one hundred dollars ($100) per hour for resources internal to the T&D Utility and at cost for resources external to the T&D Utility.

E. No Additional Tests, Controls, or Insurance. If an ICGF complies with all applicable standards in § 5 of this Chapter, the facility shall be presumed to comply with the technical requirements of this rule. In such a case, the T&D Utility shall not require an Applicant to install additional controls (including but not limited to a utility accessible disconnect switch), to perform or pay for additional tests, or to purchase additional liability insurance (other than as set forth herein) in order to obtain approval to interconnect except as agreed to by the Applicant.

F. Liability Insurance. The Interconnection Customer and the T&D Utility shall comply with all applicable insurance requirements imposed by the State of Maine. If insurance is required by the State of Maine or by the T&D Utility as provided for below then all such policies shall be maintained with an insurance company that is authorized to do business in the State of Maine. A T&D Utility may require an Applicant to purchase insurance covering T&D Utility damages in the following amounts:

1. For non-inverter-based Generating Facilities:

Generating Capacity greater than 5 MW: $3,000,000.

Generating Capacity greater than 2 MW up to and including 5 MW: $2,000,000.

Generating Capacity greater than 500 kW up to and including 2 MW: $1,000,000.

Generating Capacity greater than 50 kW up to and including 500 kW: $500,000.

Generating Capacity less than or equal to 50 kW: no insurance required.

2. For inverter-based Generating Facilities:

Generating Capacity greater than 5 MW: $2,000,000.

Generating Capacity greater than 2 MW up to and including 5 MW: $1,000,000.

Generating Capacity less than or equal to1 MW: no insurance required.

G. Additional Equipment at T&D Utility Expense. Additional protection equipment not included with the Certified Generator or interconnection Equipment Package may be required at the T&D Utility's discretion as long as (i) the performance or facilities of the ICGF is not negatively impacted in any way and the Applicant is not charged for such additional equipment.

H. Metering and Monitoring. For Interconnection Customers that will be participating in Net Energy Billing or Procurements pursuant to Chapter 313 or Chapter 312 of the MPUC Rules, the metering provisions of the applicable rule shall apply to the customer’s ICGF. For all other Interconnecting Customers, the required metering and monitoring shall be established by the T&D Utility’s Terms and Conditions or the Interconnection Agreement.

I. Cancellation of Interconnection Agreements. The Interconnection Agreement applicable to Level 1, 2, 3, and 4 Interconnection Requests may be cancelled under any of the following conditions. The cancellation shall relieve the parties of their liabilities and obligations as of the date of termination (except for then-pending and accrued owed amounts), including future financial obligations; provided, that an Interconnection Customer that terminates an Interconnection Agreement prior to the ICGC becoming operational is not eligible for a reimbursement through cost sharing. The Interconnection Customer shall be responsible for costs incurred by the T&D Utility prior to termination, as calculated during cost reconciliation under § 15(J) below.

The parties agree in writing to terminate the Interconnection Agreement;

The Interconnection Customer may terminate the Interconnection Agreement by providing twenty (20) Business Days’ written notice to the T&D Utility.

The T & D Utility may terminate the Interconnection Agreement if the Interconnection Customer either: 1) fails to energize the ICGF within 12 months of the Notification of Approved Operation, unless due to the fault or delay of the T&D Utility or RTO; or (2) permanently abandons the ICGF. Failure to operate the ICGF for any consecutive 12-month period after the Notification of Approved Operation shall constitute permanent abandonment unless agreed to in writing between the Parties.

J. Cost Reconciliation. Within sixty (60) Business Days after issuance of the later of (i) T & D Utility’s formal Notice of Approved Operation, or (ii) submittal of final as-built drawings to the T & D Utility, the T & D Utility shall prepare and submit to the Applicant a final reconciliation statement of its actual costs less any Payment of System Modifications made by the Applicant, with a detailed breakdown of costs for review by the Applicant. The detail of the breakdown should match the Distribution Upgrades identified in any detailed design provided by the T&D Utility. Also, when an ICGF dependent on a Contingent Upgrade becomes operational, the T&D Utility shall prepare and submit to all operational Interconnected Customers that depend on that Contingent Upgrade a final reconciliation statement of the proportional costs with a detailed statement of the operational ICGFs dependent on the Contingent Upgrade, their characteristics that determined their portion of the Contingent Upgrade and the reimbursement amount. Within twenty (20) Business Days after delivery of the reconciliation statement, the T&D Utility will send the Applicant an invoice that states any balance due from Applicant or overpayment to be reimbursed by the T&D Utility. The Applicant may dispute the reconciliation calculation pursuant to the dispute resolution process in § 17. If the T&D Utility’s final reconciliation invoice states a balance due from the Applicant, the Applicant shall pay any undisputed amount within thirty (30) Business Days of receipt of the final reconciliation invoice. Failure to pay undisputed amounts will give the T&D Utility the right to disconnect the ICGF. If the T&D Utility’s final reconciliation invoice states a reimbursement for overpayment to be paid by the T&D Utility, the T&D Utility shall pay any undisputed reimbursement amount to the Applicant within thirty (30) Business Days of issuing the final reconciliation invoice.

K. Limited Testing Requirements. Once an interconnection has been approved under this rule, the T&D Utility shall not require further testing except for the following:

1. For Levels 2 and 3 ICGFs, an annual test in which the facility is disconnected from the T&D Utility's system to ensure that the generator stops delivering power to the grid, and any manufacturer-recommended testing. The T&D Utility shall be given reasonable advanced notice of such testing, and T&D Utility shall have the right to witness such testing.

2. For Level 4, all interconnection-related protective functions and associated batteries shall be periodically tested by the Applicant at intervals specified by the manufacturer, stem integrator, or authority that has jurisdiction over the interconnection. Periodic test reports or a log for inspection shall be maintained. T&D Utility shall have the right to access all testing reports or logs.

L. Right to Inspect and Disconnect. A T&D Utility shall have the right to inspect an ICGF facility before and after interconnection approval is granted, at reasonable hours and with reasonable prior notice provided to the Applicant. If the T D Utility discovers that the ICGF is not in compliance with the requirements of IEEE Standard 1547 or UL 1741, and the requirements of this Chapter, and such non-compliance adversely affects the safety or reliability of the electric system, the T&D Utility may require disconnection of the ICGF until it complies with all applicable requirements. If non-compliance with the applicable standard or standards is due to modification by the Applicant that is not a result of requirements of the interconnection process, then the costs of the inspection by the T&D shall be borne by the Applicant. If non-compliance is the result of an Applicant interconnecting to the T&D’s system without having received approval for the interconnection through the process described in this Chapter, the T&D Utility may require disconnection of the ICGF and all costs related to the inspection and the disconnection shall be borne by the Customer.

§ 16. PENALTIES

The Commission may assess financial penalties on a T&D Utility consistent with the maximum penalties included in 35-A M.R.S. §1508-A for failure to comply with the required timelines listed in this Chapter.

A. Reporting Requirements

1. Annual Report. The T&D Utility shall submit an annual report by March 1 providing information on annual compliance with timelines for completion of studies pursuant to this Chapter for all projects, on a project-by-project basis and on an aggregated basis, that signed Interconnection Agreements in the prior calendar year.

2. Quarterly Report. The T&D Utility shall submit quarterly reports by April 1, July 1, October 1, January 1, providing information on compliance with timelines for completion of studies pursuant to this Chapter, on a project-by-project basis, for all projects that signed Interconnection Agreements in the prior quarter.

3. Annual Report for Construction Timelines. As part of the annual report submitted pursuant to § 16(A)(1), the T&D Utility shall also provide, for all projects that completed construction in the prior calendar year, a comparison in the aggregate of the total number of days it took to complete construction and the number of days provided in the construction schedules.

§ 17. DISPUTE RESOLUTION

Disputes arising between the T&D Utility and the Applicant or the Interconnection Customer regarding any matter governed by this Chapter may be resolved by the Parties or brought to the Maine Public Utilities Commission for resolution as provided below.

A. Good Faith Negotiation. The Party seeking dispute resolution will commence the process by sending a written request to all Parties. The Parties may include the developer if the developer is not the Interconnection Customer. Within five (5) Business Days of receipt of such notice (unless agreed otherwise in writing by the Parties), an officer or executive of each of the Parties with sufficient authority to bind the respective Party shall negotiate in good faith to resolve the dispute.

If such negotiations do not resolve the dispute within eight (8) calendar days of commencing, either Party may proceed to § 17(B) below upon providing written notice describing the Party’s position to the other Parties and to the Commission Staff.

B. Informal Dispute Resolution. Within ten (10) Business Days after written notice to Commission Staff from a Party describing a dispute and its position, the other Party(-ies) shall provide a description of the dispute and its position. Within twenty (20) Business Days of all Parties’ written submissions, Commission Staff will schedule a meeting with the Parties for informal mediation and resolution of the dispute. Commission Staff may include the developer in the process described in this Section if Commission Staff finds developer inclusion is necessary for a complete resolution of the issues. The Parties may mutually agree to meet multiple times with Staff for further informal dispute resolution. If a Party or the Staff elects to end the informal dispute resolution by delivering written notice, the Parties may proceed to § 17(C) below.

C. Maine Public Utilities Commission Resolution. If the processes set forth in §§ 17(A) and (B) do not resolve the dispute, then either Party may send written notice to Commission Staff requesting an adjudicatory proceeding, on an expedited schedule if possible, to resolve the dispute in accordance with Chapter 110 of the Commission’s Rules of Practice and Procedure. Commission Staff may include the developer in the process described in this Section if Commission Staff finds developer inclusion is necessary for a complete resolution of the dispute.

§ 18. WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Electric and Gas Division, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2023-00103, issued on November 3, 2023. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 3474, P.L. 2021 Ch. 264.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 19, 2010. It was filed with the Secretary of State on January 21, 2010 and became effective on January 26, 2010 (filing 2009-219).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 30, 2013. It was filed with the Secretary of State on September 5, 2013 and became effective on September 10, 2013 (filing 2013-218).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 2, 2018. It was filed with the Secretary of State on April 3, 2018 and became effective on April 8, 2018 (filing 2018-049).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 10, 2019. It was filed with the Secretary of State on December 11, 2019 and became effective on December 11, 2019 (emergency filing 2019-230).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 9, 2020. It was filed with the Secretary of State on March 10, 2020 and became effective on March 15, 2020 (filing 2020-050).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 4, 2022. It was filed with the Secretary of State on January 4, 2022 and became effective on January 9, 2022 (filing 2022-002).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on November 15, 2023. It was filed with the Secretary of State on November 15, 2023 and became effective on November 20, 2023 (filing 2023-233).
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 325 Community-based Renewable Energy Pilot Program

Code Me. R. 65-407 Ch. 325 – Community-Based Renewable Energy Pilot Program {#sec-65-407-ch.-325 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 325}

SUMMARY: This Chapter establishes requirements, standards and procedures to implement the community-renewable energy pilot program.

§1 PURPOSE 4

§2 DEFINITIONS 4

§3 PILOT PROGRAM CAPACITY LIMITS 5

A. Total Program Capacity Limit 5

B. Project Capacity Limit 5

C. Service Territory Capacity Limit 5

D. Utility Territory Specific Capacity Limit 6

1. Central Maine Power Company 6

2. Bangor Hydro-Electric Company 6

3. Maine Public Service Company 6

E. Consumer-Owned Utilities; Small Generators 6

F. Renewable Energy Credit Multiplier 6

§4 PILOT PROGRAM ELIGIBILITY 6

A. Criteria 6

1. Community-Based 6

2. Local Support 6

a. Municipality 6

b. Tribal Land 7

3. Interconnection 7

4. In-Service 7

B. Commission Certification 7

1. Process 7

2. Petition 7

3. Finding 8

4. Termination 8

§5 PILOT PROGRAM INCENTIVES 8

§6 LONG-TERM CONTRACTING 9

A. Commission Authority 9

B. Participant Option 9

C. Large Generators 9

1. Periodic Solicitations 9

2. Requests for Proposals; Standard Form Contracts 9

3. Evaluation of Proposals; Bidder Negotiations 10

4. Selection Criteria 10

D. Small Generators 10

1. Contract Prices 10

a. Wind Power Installations 10

b. Solar Arrays and Installations 10

c. Hydroelectric Installations 10

d. Other Renewable Resources 10

2. Process 10

E. Cost Containment 11

F. Contract Term 11

G. Contract Termination 11

H. Contract Administration 11

I. Contract Payments 11

J. Commercial Reasonableness 11

K. Interconnection Requirements 11

L. Disposition of Resources 11

M. Cost Recovery 12

N. Commission Notification 12

O. Consumer-Owned Transmission and Distribution Utilities 12

§7 RENEWABLE ENERGY CREDIT MULTIPLIER 12

A. Value 12

B. Commission Notification 12

§8 WAIVER OR EXEMPTION 12

§9 REPEAL 13

§1 PURPOSE

The purpose of this Chapter is to implement the State’s policy to encourage the sustainable development of community-based renewable energy in Maine through the establishment of a pilot program.

§2 DEFINITIONS

A. Community-Based Renewable Energy Project. "Community-based renewable energy project" means a locally owned electricity generating facility that generates electricity from an eligible renewable resource.

B. Consumer-Owned Transmission and Distribution Utility. “Consumer-owned transmission and distribution utility” has the same meaning as specified in Title 35-A, section 3201(6).

C. Eligible Renewable Resource. "Eligible renewable resource" means a renewable resource as defined in Title 35-A, section 3210, subsection 2, paragraph C, except that "eligible renewable resource" does not include a generator fueled by municipal solid waste in conjunction with recycling and does include a generator fueled by landfill gas. "Eligible renewable resource" includes a biomass generator whose fuel includes anaerobic digestion of agricultural products, byproducts or wastes.

D. Financial Transaction. “Financial transaction” means a contractual arrangement between a program participant and a transmission and distribution utility in which money is exchanged among the contracting parties, rather than a physical delivery of the capacity and energy commodity, and which results in the same or similar financial consequences as a physical transaction.

E. Installed Generating Capacity. “Installed generating capacity” means the nameplate capacity of a community-based renewable energy project that is under a contract with a transmission and distribution utility pursuant to section 6 of this Chapter or is obtaining a renewable energy credit multiplier pursuant to section 7 of this Chapter.

F. Investor-Owned Transmission and Distribution Utility. “Investor-owned transmission and distribution utility means either a large investor-owned transmission and distribution utility as specified in Title 35-A, section 3201(12) or a small investor-owned transmission and distribution utility as specified in Title 35-A, section 3201(16).

G. ISO-NE. “ISO-NE” means the Independent System Operator of the New England bulk power system or successor organization.

H. Locally Owned Electricity Generating Facility. "Locally owned electricity generating facility" means an electricity generating facility at least 51% of which is owned by one or more qualifying local owners.

I. nmisa. “nmisa” means the Northern Maine Independent System Administrator or successor organization.

J. Program Participant. "Program participant" means a community-based renewable energy project that is participating in the community-based renewable energy pilot program established in Title 35-A, section 3603.

K. Qualifying Local Owner. "Qualifying local owner" means a person or entity that is:

1. An individual who is a resident of the State;

2. A political subdivision of the State, including, but not limited to, a county, municipality, quasi-municipal corporation or district as defined in Title 30-A, section 2351, school administrative unit as defined in Title 20-A, section 1, public or private institution of higher education, regional council of governments or any other local or regional governmental organization, including, but not limited to, a board, commission or association;

3. A department, agency or instrumentality of the State;

4. A federally recognized Indian tribe located in the State;

5. A nonprofit corporation, organized under the laws of the State, including a unit owners association organized under Title 33, section 1603-101; or

6. A business corporation, organized under the laws of the State, at least 51% of which is owned by one or more residents of the State.

L. Renewable Energy Credit. “Renewable energy credit” means an electronic record produced by the NEPOOL Generation Information System that represents attributes of electric power and that may be traded separately from the energy commodity.

§ 3 PILOT PROGRAM CAPACITY LIMITS

A. Total Program Capacity Limit. The total installed generating capacity of all program participants in the pilot program combined may not exceed 50 megawatts.

B. Project Capacity Limit. The installed generating capacity of a program participant may not exceed 10 megawatts.

C. Service Territory Capacity Limit. The total installed generating capacity of program participants within the service territory of a single investor-owned transmission and distribution utility may not exceed 25 megawatts, unless a higher installed capacity limit is authorized by the utility and approved by the Commission.

D. Utility Territory Specific Capacity Limit. Unless the Commission determines otherwise by order based on program experience, the total installed generating capacity limit of program participants located within the service territory of an investor-own utility is as follows:

1. Central Maine Power Company. The total installed generating capacity limit of program participants located within the service territory of Central Maine Power Company is 25 megawatts.

2. Bangor Hydro-Electric Company. The total installed generating capacity limit of program participants located within the service territory of Bangor Hydro-Electric Company is 11 megawatts.

3. Maine Public Service Company. The total installed generating capacity limit of program participants located within the service territory of Maine Public Service Company is 4 megawatts.

E. Consumer-Owned Utilities; Small Generators. Unless the Commission determines otherwise by order based on program experience, the total installed generating capacity limit of program participants that are either located within the service territory of a consumer-owned utility or have an installed generating capacity of less than 100 kilowatts is 10 megawatts.

F. Renewable Energy Credit Multiplier. The total installed generating capacity of program participants that receive the renewable energy credit multiplier incentive under section 7of this Chapter may not exceed 10 megawatts.

§ 4 PILOT PROGRAM ELIGIBILITY

A. Criteria. To be eligible to participate in the pilot program, a generating project must satisfy the criteria in this subsection.

1. Community-Based. The project must be a community-based renewable energy project as defined in section 2 of this Chapter.

2. Local Support. The project must have local support as specified below.

a. Municipality. A resolution of support passed by the municipal legislative body or municipal officers acting to state an official position of the municipality, as appropriate, of the municipality in which the community-based renewable energy project is proposed to be located, except that any project that is proposed to be located wholly in an unorganized or deorganized area of the State or that has a generating capacity of less than 100 kilowatts is exempt from this requirement.

b. Tribal land. A documentation of tribe support for a project proposed to be located on the tribal land or territory of a federally recognized Indian tribe in Maine, including any land owned by the tribe or held in trust by the United States for the tribe.

3. Interconnection. The project must be interconnected to Maine’s electric grid.

4. In-Service. The project must have an in-service date after September 1, 2009.

B. Commission Certification. To be eligible to participate in the pilot program, a generating project must be certified by the Commission as a community-based renewable energy project.

1. Process. An owner or developer of a generating project may seek Commission certification through the submission of a petition for certification as a community-based renewable energy project. The Commission shall by order either certify the generation project as a community-based renewable energy project or state the reasons for the denial of the certification within 90 days of the submission of a complete application, unless the Commission determines that additional time is required.

2. Petition. The petition for certification as a community-based renewable energy project must include the following information:

a. Name, address, phone number and e-mail address of petitioner;

b. Location or proposed location of the project;

c. Description of the community-based renewable energy project; including fuel type, nameplate capacity, interconnection point, and initial or expected in-service date;

d. A list of the names and addresses of all owners of the project, percentage ownership of each owners, and documentation as to whether owners are qualifying local owners as defined in section 2 of this Chapter;

e. Documentation of a resolution of support passed by the municipal legislative body or municipal officers, as appropriate, of the municipality in which the community-based renewable energy project is proposed to be located, if required by section 4(A)(2);

f. Documentation of tribal support if required by section 4(A)(2);

g. Documentation of applicant control over the proposed facility site;

h. Documentation of financial capability to develop the community-based renewable energy project;

i. Documentation of technical capability and experience to develop the community-based renewable energy project;

j. Demonstration that the community-based renewable energy project is reasonable likely to be in-service within three years of certification;

k. The program incentive that the project anticipates choosing pursuant to section 5 of this Chapter; and

l. Any other information that the Commission determines to be necessary or useful.

3. Finding. The Commission may certify a project only upon a finding that the project satisfies the eligibility requirements of this section and is reasonably likely to be in-service within three years of certification.

4. Termination. Commission certification of a generating project as a community-based renewable energy project shall terminate if the generating project is not in-service within three years of certification.

§ 5 PILOT PROGRAM INCENTIVES

A program participant may elect one of the two pilot program incentives specified in this section.

A. A long-term contract pursuant to the provisions of section 6 of this Chapter; or

B. A renewable energy credit multiplier pursuant to the provisions of section 7 of this Chapter.

A program participant may not change its choice of a program incentive during the term of a long-term contract entered into pursuant to the provisions of section 6 of this Chapter. A program participant may choose a long-term contract subsequent to a electing the option of a renewable energy credit multiplier. A program participant may not elect to participate in the two pilot program incentives at the same time. A program participant must notify the Commission of its election of a program incentive and any subsequent change to the program incentive choice.

§6 LONG-TERM CONTRACTING

A. Commission Authority. The Commission may direct investor-owned transmission and distribution utilities to enter into long-term contracts with program participants located within the service territory of the utility for energy, capacity or renewable energy credits. The contract may be for physical delivery of the products or may be a financial transaction.

B. Participant Option. The program participant has the option to sell capacity or renewable energy credits to the transmission and distribution utility. A long-term contract under this section must include either all or a specified percentage of the energy output of the eligible renewable resource. In the event a program participant is not receiving value for capacity or renewable energy credits, the Commission may direct the program participant to transfer the capacity or renewable energy credits to the transmission and distribution utility if the Commission finds that the capacity or renewable energy credits is reasonably likely to have value for ratepayers without creating an undue administrative burden.

C. Large Generators. For program participants with a generating capacity of one megawatt or more, the Commission shall conduct competitive solicitations for long-term contracts as specified in this sub-section.

1. Periodic Solicitations. The Commission shall periodically conduct a competitive bid process for community-based renewable energy projects. To participate in the bid process, a program participant must be certified by the Commission pursuant to section 4 of this Chapter. The Commission shall not conduct bid processes if the applicable pilot program capacity limits specified in section 3 are reached or if there are no certified community-based renewable energy projects that are not already participating in the long-term contract program incentive pursuant to section 6 or the renewable energy credit multiplier program incentive pursuant to section 7.

2. Requests for Proposals; Standard Form Contracts. The Commission shall solicit bids for community-based renewable energy projects through the issuance of a request for proposals that contains all the standards, procedures and requirements for the bid solicitation process. The request for proposals shall contain a standard form contract. As part of the solicitation and selection process, the Commission may accept modifications to the standard form contracts. The Commission delegates to the Director of the Electricity and Gas Utility Industries the authority to develop and approve the requests for proposals and the standard contract, and to accept modifications to the standard form contract. The request for proposals shall, at a minimum, require that the proposals contain the proposed pricing terms, full project cost disclosure, expected revenue sources in addition to the long-term contract, and the Commission order certifying the project as a community-based renewable energy project pursuant to section 4 of this Chapter.

3. Evaluation of Proposals; Bidder Negotiations. The Commission shall evaluate submitted proposals to determine compliance with the standards, procedures and requirements contained in the request for proposals. Following review of proposals, the Commission may engage in negotiations or discussions with bidders or a subset of bidders to clarify, refine or improve the proposals. At the direction of the Commission, the applicable transmission and distribution utility shall participate in bid evaluations or negotiations. The Commission may accept one or more of the proposals or none of the proposals based on its assessment of whether proposals meet the requirements of the request for proposals and this Chapter.

4. Selection Criteria. The Commission will select proposals that are certified pursuant to section 4 of this Chapter, satisfy the requirements of the request for proposals of subsection C(2) and meet the cost containment provisions of subsection E. In considering the cost containment requirement, the Commission will take into account revenue the program participant will likely receive if capacity resource or renewable energy credits are not sold to the transmission and distribution utility. In the event the proposals exceed the applicable pilot program capacity limits, the Commission will select proposals that provide the lowest net cost to ratepayers over the term of the proposed contract.

D. Small Generators. For program participants with an installed generating capacity of less than one megawatt, the Commission shall establish contract prices and terms as specified in this subsection.

1. Contract Prices. Until changed by Commission order, the contract prices for small generators shall be as specified in this paragraph.

a. Wind Power Installations. The contract price for wind power installations shall be10 cents per kilowatt-hour. Unless the Commission states otherwise by order, the price per kilowatt-hour in the contract may not vary.

b. Solar Arrays and Installations. The contract price for solar arrays and installations shall be 10 cents per kilowatt-hour. Unless the Commission states otherwise by order, the price per kilowatt-hour in the contract may not vary.

c. Hydroelectric Installations. The contract price for hydroelectric facilities shall be 10 cents per kilowatt-hour. Unless the Commission states otherwise by order, the price per kilowatt-hour in the contract may not vary.

d. Other Renewable Resources. The Commission will establish prices for eligible renewable resources other than wind power installations and solar arrays and installations at the request of a community-based renewable energy generator that has been certified by the Commission pursuant to section 4 of this Chapter.

2. Process. To obtain a long-term contract under this subsection, a program participant must provide to the applicable transmission and distribution utility a copy of its certification under section 4 of this Chapter and a statement as to contract term desired. The applicable transmission and distribution shall provide the program participant with a standard contract for execution. The Commission delegates to the Director of the Electricity and Gas Utility Industries the authority to develop and approve the standard form contract, and to accept modifications to the standard form contract. The transmission and distribution utility shall provide a copy of the executed long-term contract to the Commission.

E. Cost Containment. The average price per kilowatt-hour within each contract year shall not exceed 10 cents and the cost of the contract will not exceed the cost of the project plus a reasonable rate of return on investment as determined by the Commission.

F. Contract Term. A program participant may choose the contract term up to a maximum term of 20 years. A chosen contract term may not result in a violation of the cost containment provision in section 6(E) of this Chapter.

G. Contract Termination. A contract entered into pursuant to this section shall terminate if the community-based renewable energy project is not in-service within three years of the execution of the contract or if the project ceases operation for a six-month period after the initial service date.

H. Contract Administration. The transmission and distribution utility shall be responsible for administering contracts entered into pursuant to this section.

I. Contract Payments. Contracts for capacity and energy entered into pursuant to this section must provide that payments will be made only after contracted amounts of capacity and associated energy have been provided.

J. Commercial Reasonableness. Contracts entered into pursuant to this section shall be commercially reasonable and commit all parties to commercially reasonable behavior.

K. Interconnection Requirements. A program participant must comply with all interconnection, safety and reliability requirements of the transmission and distribution utility applicable to the community-based renewable energy project.

L. Disposition of Resources. At the direction of the Commission, investor-owned transmission and distribution utilities shall:

1. dispose of contracted resources through periodic auctions supervised by the Commission, which may occur in conjunction with solicitations for standard offer supply bids under Title 35-A, section 3212 or solicitations for green power bids under section 3212-A; or

2. use the contracted resources to meet the supply requirements of Maine ratepayers; or

3. take other action relative to contracted resources as determined by Commission rule or order.

M. Cost Recovery. A transmission and distribution utility may recover in rates all prudent costs of contracts entered into under this section, including but not limited to any effects on the utility's costs of capital and costs of contract administration. A price differential existing at any time during the term of the contract between the contract price and the prevailing market price at which the energy is sold must be reflected in rates and may not be considered to be imprudent.

N. Commission Notification. The program participant must notify the Commission of the in-service date of the community-based renewable energy project or if the project ceases or substantially reduces operation for a six month period after the initial in-service date.

O. Consumer-Owned Transmission and Distribution Utilities. A consumer-owned transmission and distribution utility may, at the option of the utility, enter into long-term contracts with program participants located within the service territory of the utility for energy, capacity or renewable energy credits in accordance with this section.

§7 RENEWABLE ENERGY CREDIT MULTIPLIER

A.Value. For purposes of Maine’s portfolio requirements of Title 35-A, section 3210, subsections 3 and 3-A, the value of renewable energy credits associated with the generation from a community-based renewable energy project located in the ISO-NE area or the energy of a community-based renewable energy project located in the NMISA area is 150% of the amount of the generated electricity.

B. Commission Notification. A program participant must notify the Commission that it has elected the renewable energy credit multiplier. A program participant located in the ISO-NE area must notify the Commission that it has made arrangements to obtain renewable energy credits from the NEPOOL Generation Information System. A program participant must notify the Commission of the in-service date of the community-based renewable energy project or if the project ceases or substantially reduces operation for a six month period after the initial in-service date. A community-based renewable energy project that ceases operation for a six-month period will not be considered as obtaining the renewable energy credit multiplier incentive under this section.

§8 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Utility Industries, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

§9 REPEAL

This Chapter is repealed on December 31, 2015, unless the Legislature extends the community-based renewable energy pilot program.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Adopting Final Rule, Docket No. 2009-363, issued on January 27, 2010. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.

AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 3602-3606.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 4, 2010. It was filed with the Secretary of State on February 8, 2010 and became effective on February 13, 2010.

APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 326 Green Power Offer

Code Me. R. 65-407 Ch. 326 Green Power Offer {#sec-65-407-ch.-326 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 326}

SUMMARY: This Chapter establishes requirements, standards and procedures and a competitive bidding process to implement the green power offer program for residential and small commercial electricity customers.

§1 PURPOSE 2

§2 DEFINITIONS 2

§3 GREEN POWER OFFER 3

A. Supply Arrangement 3

B. Periodic Solicitations 3

C. Request for Proposals 3

D. Evaluation of Proposals; Bidder Negotiations 4

E. Selection Criteria 4

F. Brand; Logo 4

G. Promotion 4

H. Non-Payment 4

I. Utility Renewable Energy Credits 4

J. Consumer-Owned Transmission and Distribution Territories 4

K. Premium Green Power Offer 5

L. Ocean Wind Green Power Offer 5

M. Customer Verification 5

N. Reports 5

§4 UTILITY OBLIGATIONS AND RESPONSIBILITIES 6

A. Billing, Collections, and Administration 6

B. Customer Sign Up or Enrollment 6

C. Customer Inquiries 6

D. Cost Responsibility 6

E. Bill Inserts; Promotional Material 6

F. Contract 7

G. Premium Green Power Offer 7

H. Cost Recovery 7

§5 WAIVER OR EXEMPTION 7

§6 REPEAL 7

§1 PURPOSE

The purpose of this Chapter is to implement a green power offer program for residential and small commercial electricity customers.

§2 DEFINITIONS

A. Consumer-Owned Transmission and Distribution Utility. “Consumer-owned transmission and distribution utility” has the same meaning as specified in Title 35-A, section 3201(6).

B. GIS. “GIS” means the NEPOOL Generation Information System or successor system.

C. GIS Certificates. “GIS certificates” mean certificates created pursuant to the NEPOOL Generation Information System that represent attributes of electric power and that may be traded separately from the energy commodity.

D. Green Power Offer. “Green power offer” means renewable energy credits associated with electricity generated from renewable capacity resources as defined in Title 35-A, section 3210-C, subsection 2, paragraph B-2.

E. Green Power Offer Provider. “Green power offer provider” means a person or entity that provides the green power offer or premium green power offer to customers pursuant to this Chapter.

F. Investor-Owned Transmission and Distribution Utility. “Investor-owned transmission and distribution utility means either a large investor-owned transmission and distribution as specified in Title 35-A, section 3201(12) or a small investor-owned transmission and distribution as specified in Title 35-A, section 3201(16).

G. NMISA. “NMISA” means the Northern Maine Independent System Administrator or successor organization.

H. Non-Region Renewable Energy Credits. “Non-Region Renewable Energy Credits” mean a tradable instrument that represents an amount of generated electricity in any region, other than New England, that has a tracking system comparable to the GIS.

I. Premium Green Power Offer. “Premium green power offer” means a Commission-determined subset of a green power offer. The subset could be based on resource type, year of commercial operation, size or location of the generation resource.

J. Renewable Energy Credit. “Renewable energy credit” means a tradable instrument that represents an amount of generated electricity. For purposes of this Chapter, a renewable energy credit means either a GIS certificate, or a tradable instrument that represents the attributes of electric power generated in the region of the State administered by the NMISA that is authorized by the Commission through order.

K. Residential Customer. “Residential customer” means a customer taking service as a residential customer under the terms and conditions of the applicable transmission and distribution utility.

L. Small Commercial Customer. “Small commercial customer” means a non-residential customer taking service from an investor-owned transmission and distribution utility under terms and conditions that do not include a demand charge or a non-residential customer that is taking service from a consumer-owned transmission and distribution utility with a demand of 20 kilowatts or less.

§3 GREEN POWER OFFER

A. Supply Arrangement. The Commission shall arrange for a green power offer to be available to residential and small commercial customers in the service territory of investor-owned transmission and distribution utilities. The green power offer shall be renewable energy credits that correspond to either all or a portion of the customer’s monthly usage. The Commission may arrange for a single green power offer that will available throughout the State. In the event that the Commission determines that a green power offer comprised of renewable energy credits cannot be made available upon acceptable terms, it may arrange for a green offer comprised completely or partially of non-region renewable energy credits.

B. Periodic Solicitations. The Commission shall periodically conduct a competitive solicitation process to choose a green power offer provider through the issuance of a request for proposals. The Commission is not required to arrange for a green power offer in the event it receives no bids or determines the bids are inadequate or unacceptable.

C. Request for Proposals. The request for proposals shall contain all the standards, procedures and requirements for the bid solicitation process and the evaluation and selection criteria. The Commission delegates to the Director of the Electricity and Gas Utility Industries the authority to develop and approve the requests for proposals and related contracts. The request for proposals shall, at a minimum, either specify or require a bidder proposal on the following items:

1. the term for which the green power offer supplier shall provide the green power offer;

2. restrictions, if any, for customers to switch onto or off of the green power offer;

3. customer prices for the green power offer and options for election of the green power offer for less than 100% of customer usage;

4. mechanisms for customers to sign up or enroll to obtain the green power offer, including provisions for transmission and distribution utilities to provide customer account numbers;

5. consequences of customer non-payment;

6. termination of service;

7. a plan for marketing or advertising the green power offer;

8. a brand or logo for the green power offer or a proposal for the development of a brand or logo; and

9. a proposed contract between the green power offer supplier and the transmission and distribution utility to govern billing, collecting and other administrative aspects of the green power offer program.

D. Evaluation of Proposals; Bidder Negotiations. The Commission shall evaluate submitted proposals to determine compliance with the standards, procedures and requirements contained in the request for proposals. Following review of proposals, the Commission may engage in negotiations or discussions with bidders or a subset of bidders to clarify, refine or improve the proposals. At the direction of the Commission, the applicable transmission and distribution utility shall participate in bid evaluations or negotiations. The Commission may accept one or more of the proposals or none of the proposals based on its assessment of whether proposals meet the requirements of the request for proposals and this Chapter. In evaluating proposals, the Commission shall consider bidder experience and success in providing a green power offer or a similar product in other states, and the extent to which a proposal will incorporate renewable energy credits associated with community-based renewable energy projects as defined in Title 35-A, section 3602, subsection 1 and whether the green offer supplier is an entity based in the State.

E. Selection Criteria. The Commission will select proposals that satisfy the requirements of the request for proposals issued pursuant to subsection C and that will provide the maximum value to green power offer customers taking into account both the cost of the green power offer to customers and non-cost aspects including, but not limited to, customer sign-up ease and flexibility and the potential to maximize customer participation in the program.

F. Brand; Logo. The Commission may create or cause to be created a brand or logo to identify the green power offer to customers. The Commission may develop the brand or logo in consultation with the green power provider. The Commission shall register any mark or logo created pursuant to this subsection with the United States Patent and Trademark Office or in accordance with Title 10, chapter 301-A, or both.

G. Promotion. The Commission may use up to $100,000 per year from the conservation program fund established under Title 35-A, section 3211-A, subsection 5 or successor provision to promote the green power offer or to otherwise support the purposes of this Chapter.

H. Non-Payment. A customer that does not pay for the green power offer will be terminated from the green power option. Charges for the green power offer shall not be included in any disconnection notice or in any calculation of payment arrangements. Disconnection of customers for non-payment of charges other than charges for the green power option will continue to be conducted in accordance with the provisions of Chapter 815 of the Commission’s rules.

I. Utility Renewable Energy Credits. The Commission may require the green power offer provider to purchase or otherwise acquire renewable energy credits that are owned or controlled by a transmission and distribution utility if it determines that such action will provide value to ratepayers.

J. Consumer-Owned Transmission and Distribution Territories. A green power offer option may be available to customers in the service territories of consumer-owned transmission and distribution utilities as follows:

1. in the event that the Commission arranges for standard offer service in the service territory of a consumer-owned transmission and distribution utility and the consumer-owned transmission and distribution utility elects to have the Commission arrange a green power offer for its customers;

2. the consumer-owned transmission and distribution utility chooses to establish a green power offer through a competitive bidding process conducted in accordance with this Chapter; or

3. upon the request of the consumer-owned transmission and distribution utility, the Commission shall include the consumer-owned transmission and distribution utility territory as part of the request for proposals issued pursuant section 3(C) of this Chapter if the consumer-owned transmission and distribution utility agrees to comply with the transmission and distribution utility obligations contained in section 4 of this Chapter.

The consumer-owned transmission and distribution utility shall notify the Commission that it requests that the Commission arrange for a green power offer pursuant to paragraph 1 or 3 a minimum of 30 days prior to the issuance of a request for proposals. The consumer-owned transmission and distribution utility that chooses to arrange for green power offer pursuant to paragraph 2 shall notify the Commission a minimum of 30 days prior to the issuance of a request for proposals.

K. Premium Green Power Offer. In addition to the green power offer, the Commission may include in the solicitation the requirement that the green power offer supplier also arrange for a premium green power offer as an alternative for customers. The Commission will specify the nature of and terms and conditions for the premium green power option for which it is soliciting a proposal. The arrangement for a premium green power offer shall be in accordance with the provisions of this section.

L. O cean Wind Green Power Offer. The Commission will develop and market an ocean wind green power offer, in accordance with provisions governing green power offers under Title 35-A, section 3212-A and this Chapter, that is composed of renewable energy credits associated with electricity generated from deep-water offshore wind energy pilot projects to coincide with the start-up date of any deep-water offshore wind energy pilot project that secures a long-term contract pursuant to P.L. 2009, ch. 615, sec. A-6.

M. Customer Verification. The green power offer provider shall obtain and retain for a minimum period of one year verificationof customer sign-up or enrollment. The green power offer provider may comply with this provision through written verification signed by the customer, electronic records or third party verification as approved by the Commission.

N. Reports. On July 1 of each year, the green power offer supplier shall provide an annual report to the Commission covering the previous calendar year. The annual report shall demonstrate that the green power offer supplier acquired and retired renewable energy credits that correspond to the electricity usage of customers that have the green power offer, and that the renewable energy credits were not used for other purposes. The annual report shall contain other information specified by the Commission. The green power offer supplier shall provide information relevant to its activities at any time as requested by the Commission. At the direction of the Commission, the green power offer supplier shall provide information regarding the green power offer to customers.

§4 UTILITY OBLIGATIONS AND RESPONSIBILITIES

A. Billing, Collections, and Administration. The transmission and distribution utility shall be responsible for billing, collections, and administration of the green power offer as follows:

1. the transmission and distribution utility shall be responsible for billing, collecting and remitting customer payments to the green power offer provider for green power offer provided to customers within its service territory.

2. the transmission and distribution utility shall be responsible for administering the green power offer including, but not limited to, tracking the usage of green power offer customers and other necessary information and transmitting that information to the green power offer supplier.

3. the transmission and distribution utility shall provide a separate line item on customer bills for green power offer.

4. except as provided in section 3(H) of this Chapter, the transmission and distribution utility shall not be responsible for collections of amounts not paid by the customer for the green power offer.

5. charges for the green power offer shall follow the transmission and distribution utility’s existing payment allocation methodology as used for non-basic charges.

B. Customer Sign Up or Enrollment. As directed by the Commission, each transmission and distribution utility shall provide a mechanism or mechanisms for customers to sign up or enroll to take the green power offer Mechanisms under this provision may include a check-off option on the bill or on a response card, a green power offer website or by telephone. For the purpose of facilitating customer sign-up for the green power offer, the Commission may direct a transmission and distribution utility to provide customer account numbers to the green power offer provider for those customers that have signed up for the green power offer but have been unable to provide customer account numbers to the green power offer provider. Green power offer providers may only use customer account numbers for signing up or enrolling customers for the green power offer and will agree to comply with customer confidentiality provisions that are applicable to transmission and distribution utilities.

C. Customer Inquiries. Customer inquiries regarding utility billing and collecting shall be the responsibility of the transmission and distribution utility.

D. Cost Responsibility. The transmission and distribution utility shall be responsible for the cost of utility billing, collecting, remitting customer payments, customer sign-up or enrollment and other utility services related to billing, collection and administration of the green power offer.

E. Bill Inserts; Promotional Material. As directed by the Commission, each transmission and distribution utility shall include green power offer promotional materials as bill inserts in customer bills. Any incremental cost of the bill inserts will be paid for by the green power offer provider pursuant to Commission-approved rate schedules.

F. Contract. The transmission and distribution utility shall enter into a Commission-approved contract with the green power offer provider to govern billing, collections and administration of the green power offer.

G. Premium Green Power Offer. In the event the Commission arranges for a premium green power offer as an alternative for customers pursuant to section 3(K) of this Chapter, the transmission and distribution utility’s obligations and responsibilities are the same as for green power offer under this section.

H. Cost Recovery. All incremental and prudent costs incurred by the transmission and distribution utility to carry out activities required by this section are recoverable in rates.

§5 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Utility Industries, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

§6 REPEAL

This Chapter is repealed on December 31, 2015, unless the Legislature extends the authority for the Commission to arrange for a green power offer.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 3212-A
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 22, 2010. It was filed with the Secretary of State on October 25, 2010 and became effective on October 30, 2010 (filing 2010-521).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 327 Ceiling on Energy Efficiency Spending from the Energy and Carbon Savings Trust Fund and Rebates to Electric Ratepayers

Code Me. R. 65-407 Ch. 327 Ceiling on Energy Efficiency Spending from the Energy and Carbon Savings Trust Fund and Rebates to Electric Ratepayers {#sec-65-407-ch.-327 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 327}

SUMMARY: This Chapter implements the system to provide rebates to electric ratepayers of amounts in excess of the ceiling on energy efficiency spending from the Energy and Carbon Savings Trust Fund.

§1 PURPOSE 2

§2 DEFINITIONS 2

§3 TRANSFER OF FUNDS TO THE COMMISSION 2

Notification from Efficiency Maine Trust 2

Transfer of Funds to the Commission 3

§4 COMMISSION DETERMINATION OF REBATE ALLOCATIONS 3

A. Commission Allocation 3

B. Notification 3

§5 RATEPAYER REBATES…...................................... 3

A. Utility Proposals 3

B. Commission Determination 3

§6 WAIVER OR EXEMPTION 3

§1. PURPOSE

The purpose of this Chapter is to implement the mechanism by which the Commission will provide for rebates to electric ratepayers of any revenue in excess of $5.00 per carbon dioxide allowance received from the auction of carbon dioxide allowances through the Regional Greenhouse Gas Initiative.

§2. DEFINITIONS

A. Carbon Dioxide Allowance. "Carbon dioxide allowance" or “carbon allowance” or “CO2 allowance” means a limited authorization issued by the Department of Environmental Protection for the emission of up to one ton of carbon dioxide.

B. Commission. “Commission” means the Maine Public Utilities Commission.

C. Consumer-Owned Transmission and Distribution Utility. Consumer-owned transmission and distribution utility” has the same meaning as specified in Title 35-A, section 3201(6).

D. Efficiency Maine Trust or Trust. “Efficiency Maine Trust” or “Trust” means the trust established in Title 35-A M.R.S.A. §10103 for the purposes of developing, planning, coordinating and implementing energy efficiency and alternative energy resources programs in the State.

E. Investor-Owned Transmission and Distribution Utility. “Investor-owned transmission and distribution utility means either a large investor-owned transmission and distribution utility as specified in Title 35-A, section 3201(12) or a small investor-owned transmission and distribution utility as specified in Title 35-A, section 3201(16).

F. Regional Greenhouse Gas Initiative or RGGI. "Regional Greenhouse Gas Initiative" or “RGGI” means the market-based, mandatory carbon cap-and-trade program in which Northeastern and Mid-Atlantic states participate.

RGGI, Inc. “RGGI, Inc.” means the nonprofit organization created to provide technical and administrative services to the states participating in RGGI and to administer the quarterly RGGI auctions of carbon allowances.

§3. TRANSFER OF FUNDS TO THE COMMISSION

A. Notification from Efficiency Maine Trust. Within five (5) business days of the certification by RGGI, Inc. of the results of a quarterly auction in which the clearing price for a CO2 allowance exceeds $5.00, the Efficiency Maine Trust shall provide written confirmation to the Commission of the dollar amount of auction proceeds that are to be transferred to the Commission. The confirmation shall include:

The settlement dates on which auction proceeds are scheduled to be transferred from RGGI, Inc. to the Trust and from the Trust to the Commission; and

The dollar amount of revenue the Trust will receive from RGGI, Inc., calculated based on the number of Maine CO2 allowances sold in the quarterly auction and the clearing price(s) for current compliance period allowances and for future compliance period allowances; and

The dollar amount of revenue the Trust will transfer to the Commission, calculated using the excess of the clearing price(s) over $5.00 times the number of CO2 allowances sold.

B. Transfer of Funds to the Commission. On the next business day after the settlement date designated for the transfer of RGGI auction proceeds, the Trust shall transfer the dollar amount of auction proceeds calculated in accordance with subsection 3 (A) (3) to the Commission. The Commission shall hold the funds pending approval of the distribution of the funds to ratepayers in accordance with section 5 of this Chapter.

§4. COMMISSION DETERMINATION OF REBATE ALLOCATIONS

A. Commission Allocation. The Commission will by Order establish the proportions and amounts of revenue received from the Trust to be allocated to each of the Investor-Owned and Consumer-Owned Transmission and Distribution Utilities on a per kilowatt-hour basis.

B. Notification. The Commission shall provide notification to each of the Investor-Owned Transmission and Distribution Utilities and Consumer-Owned Transmission and Distribution Utilities of the amount of revenue to be allocated to it for ratepayer rebates and direct each utility to propose to the Commission a methodology for providing rebates to electric ratepayers on a per kilowatt-hour basis.

§5. RATEPAYER REBATES

A. Utility Proposals. Within sixty (60) days of receipt of the notification as provided in section 4(B) of this Chapter, each utility that has been notified that it has been allocated funds shall propose for Commission approval, the methodology and timing for providing rebates to electric ratepayers. The rebate methodology must be based on a per kilowatt-hour basis.

B. Commission Determination. Upon receipt of utility proposals pursuant to subsection A, the Commission will either notify the utility that its proposed methodology and timing for providing rebates to its ratepayers is accepted, or the Commission will establish a proceeding to determine the methodology and timing for providing rebates to ratepayers.

§6. WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Utility Industries, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 301, 1322, 10109(3)
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 10, 2011. It was filed with the Secretary of State on February 14, 2011 and became effective on February 19, 2011 (filing 2011-54).
• EFFECTIVE DATE: 65-407 Chapter 327 page 2

Chapter 328 Funding Source for Interconnection Ombudsman

Code Me. R. 65-407 Ch. 328 Funding Source for Interconnection Ombudsman {#sec-65-407-ch.-328 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 328}

SUMMARY: This rule establishes a funding source and a mechanism for collecting those funds to support the position in the Commission for an interconnection ombudsman, as established by P.L. 2023, Chapter 307, as amended by P.L. 2024, Chapter 643, § WWW-1, codified at 35-A M.R.S. § 3474.

1. ESTABLISHMENT OF INTERCONNECTION OMBUDSMAN

There will be an interconnection ombudsman appointed by the Commission to assist with the interconnection of solar resources and energy storage systems pursuant to 35-A M.R.S. § 3474 and Chapter 324 of the Commission’s rules. The purpose of this rule is to set forth provisions relating to the funding of the position of an interconnection ombudsman.

2. INTERCONNECTION OMBUDSMAN FUND

Establishment of the Fund. The Commission will create a nonlapsing fund for the purpose of funding the work of an interconnection ombudsman, who will be a member of the Commission’s Staff. This fund will be referred to as the “Interconnection Ombudsman Fee Fund.”

The Commission will appoint an ombudsman who has the expertise and experience as described in 35-A M.R.S. § 3474(4)(A). This position will be partially funded by this fund with fees collected pursuant to subsection 2(B) of this chapter. Any remaining amount needed to support the position will be covered by the Commission’s regulatory funding sources.

Establishment of Fees to be Paid by Interconnection Customers

The Commission establishes an “Interconnection Ombudsman Fee” that must be paid by any customer of an investor-owned transmission and distribution utility seeking to interconnect a solar resource or an energy storage system to the utility’s distribution system pursuant to Chapter 324 of the Commission’s rules.

For purposes of this Chapter, a “solar resource” is a resource as defined in 35-A M.R.S. § 3210-C(1)(E) that uses solar power.

For purposes of this Chapter, an “energy storage system” has the meaning set forth in 35-A M.R.S. § 3481(6), whether or not such energy storage system is collocated with a solar resource.

The utility must collect the fee at the time the interconnecting customer submits an application for interconnection.

The amount of the fee will be $40 per interconnection application.

An application for interconnection will not be considered complete until the Interconnection Ombudsman Fee has been received by the utility.

Remittance of Interconnection Ombudsman Fees.

The transmission and distribution utility must remit all Interconnection Ombudsman Fees it has collected to the Commission on a quarterly basis. The collected fees must be remitted no later than the 15^th day of the final month of each quarter. The transmission and distribution utility will include a cover letter identifying the funds as being remitted to the Interconnection Ombudsman Fee.

The Commission will hold all Interconnection Ombudsman Fees remitted by the transmission and distribution utilities in the Interconnection Ombudsman Fee Fund. This fund will be used solely for the purpose of funding the interconnection ombudsman position.

The Commission may accept contributions from public and private sources or from grants or other sources of funding from the federal government into the Interconnection Ombudsman Fee Fund.

Within 30 days of the close of the calendar year, that is, by January 30 each year, the transmission and distribution utilities will submit a report providing the following information:

• • 1. The number of solar resource and energy storage system applications for interconnection received during the previous calendar year; 2. The total Interconnection Ombudsman Fees collected; and 3. The amount remitted to the Commission.

3. Waiver

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2024-00218, issued on November 19, 2024. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, and P.L. 2023, c. 307, as amended by P.L. 2024, c. 643, Sec. WWW-1, codified at 35-A M.R.S. § 3474.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 4, 2024. It was filed with the Secretary of State on December 6, 2024 and became effective on December 11, 2024 (filing 2024-264).

Chapter 330 Filing Requirements for Petitions for Certificates of Public Convenience and Necessity for Electric Transmission Facilities and Standards for Granting Certificates

Code Me. R. 65-407 Ch. 330 Filing Requirements for Petitions for Certificates of Public Convenience and Necessity for Electric Transmission Facilities and Standards for Granting Certificates {#sec-65-407-ch.-330 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 330}

SUMMARY: This rule establishes filing requirements pursuant to 35-A M.R.S.A.§3132 for petitions for certificates of public convenience and necessity for the construction of new transmission lines of 69 kilovolts or more, and for amendments to agreements regarding such construction. This rule also establishes filing requirements for rebuilding and relocating transmission lines of 69 kilovolts or more.

§1 PURPOSE 3

§2 DEFINITIONS 3

§3. CERTIFICATE REQUIREMENTS AND DEADLINES 3

A. Certificate Required 3

B. Certificate Not Required 4

C. Deadlines and Extensions 4

§4. AMENDMENTS, EXTENSIONS AND RENEWALS TO CONTRACT 4

A. Waiver of approval for amendments to previously approved agreements 4

B. Contracts not originally subject to approval by the Commission 5

§5. FILING FEES 5

A. Fee required 5

B. Filing fee to the Office of the Public Advocate 5

C. Waiver 5

§6. NEW TRANSMISSION FACILITIES 6

A. Maps 6

B. System diagrams 6

C. Description of type of line 6

D. Description of proposed corridor 6

E. Description of effects of proposed line 6

F. Cost estimates 6

G. Costs to date 7

H. Description of changes 7

I. Alternative routes 7

J. Alternatives to construction of transmission line 7

§7. SYSTEM RELIABILITY 7

A. Analysis required 7

B. Content of analysis 7

§8. REBUILDING AND RELOCATION OF TRANSMISSION LINES 8

A. Annual report 8

B. Content of report 8

C. Notification to submit petition 8

§9. FINAL ORDERS AND STANDARDS FOR GRANTING CERTIFICATES 9

A. Finding of Public Need 9

B. Public Need defined 9

C. Customer Cost Impact 9

§10. DELEGATION 9

§11. REQUEST FOR WAIVERS 10

65-407 PUBLIC UTILITIES COMMISSION

Chapter 330: FILING REQUIREMENTS FOR PETITIONS FOR CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY FOR ELECTRIC TRANSMISSION FACILITIES AND STANDARDS FOR GRANTING CERTIFICATES

§1 PURPOSE

The purpose of this Chapter is to establish filing requirements and standards for the review and issuance of certificates of public convenience and necessity to construct, rebuild or relocate transmission lines.

§2 DEFINITIONS

Generator interconnection transmission facility. A “Generator Interconnection Transmission Facility” means a transmission line, together with all associated equipment and facilities, that is constructed, owned and operated by a generator of electricity solely for the purpose of electrically and physically interconnecting such generator to the transmission system of a transmission and distribution utility.

Minor transmission line construction project. A “minor transmission line construction project” is a transmission line construction project the cost of which does not exceed 25% of the utility’s current annual transmission property depreciation charge.

High-impact electric transmission line. A “high-impact electric transmission line” is a transmission line greater than 50 miles in length that is not located in a statutory corridor, as defined in 35-A M.R.S.A. §122 (1)(F-4), or a petitioned corridor, as defined in 35-A M.R.S.A. §122 (1)(D-1), and that is constructed to transmit direct current electricity or is capable of operating at 345 kilovolts or more and is not a generator interconnection facility and is not constructed primarily to provide electric reliability, as determined by the commission.

Person. “Person” means a corporation, partnership, limited partnership, limited liability partnership, limited liability company, association, trust, estate, any other legal entity or natural person.

§3. CERTIFICATE REQUIREMENTS AND DEADLINES

A. Certificate required

Construction. A person must petition for, and receive, a certificate of public convenience and necessity from the Commission before erecting a transmission line capable of operating at 69 kilovolts or more. Any petition to erect a transmission line capable of operating at 69 kilovolts or more shall provide the information required by sections 6 and 7 of this Chapter.

Construction of a minor transmission project. Notwithstanding subsection 1, if a person is constructing a transmission line that qualifies as a minor transmission project, the person must first notify the Commission of such plans, in accordance with section 8 of this Chapter. The Commission may then require the person to submit a petition for public convenience and necessity, as specified in section 8. If required to submit a petition for a certificate of public convenience and necessity, the petition shall provide the information required by sections 6 and 7 of this Chapter.

Rebuilding or Relocating. A person rebuilding or relocating a transmission line that will become, or will remain at, voltages of 69 kilovolts or more must first notify the Commission of such plans, in accordance with section 8 of this Chapter. The Commission may then require the person to submit a petition for public convenience and necessity, as specified in section 8 of this Chapter. If required to submit a petition for a certificate of public convenience and necessity, the petition shall provide the information required by sections 6 and 7 of this Chapter.

Amendments, Extensions or Renewals of Contracts. This Chapter applies to any amendment, extension or renewal of any contract between the utility and other parties with an ownership interest, governing the terms of their participation in the construction of a transmission facility subject to this Rule, for which the original contract was subject to the approval of the Commission.

B. Certificate not required

1. The construction of a generator interconnection transmission facility does not require a certificate of public convenience and necessity and is exempt from the requirements of this Chapter.

C. Deadlines and extensions

1. The Commission shall issue its order within 6 months after a petition for approval of a transmission line is filed.

2. The period may be extended either by agreement of all the parties or by the Commission upon its determination that the party seeking the extension had to that time prosecuted its case in good faith and with due diligence, was seeking the extension because of circumstances beyond that party's control for which it had no reasonable substitute, and would be unreasonably disadvantaged unless the extension were granted.

§4. AMENDMENTS, EXTENSIONS AND RENEWALS TO CONTRACTS

A. Waiver of approval for amendments to previously approved agreements

1. As provided in 35-A M.R.S.A. §3132(11-A), a person may request a waiver from the application of §3132 for amendments to agreements which were previously approved by the Commission under §3132. If the Commission does not act within 30 days to the request for a waiver, the waiver will be considered granted. The request for waiver may pertain to a particular amendment or to a certain category or type of amendment. Requests for waivers must describe the amendment and state the basis for the request. The Commission may grant the waiver if it finds that good cause has been shown that application of §3132 and this Chapter is unnecessary, burdensome or impractical, and that the underlying purposes of §3132 will not be significantly impaired.

If the Commission does not respond to a request for a waiver within 30 days, the request shall be considered granted. In the event of a denial of a waiver, the person must file a petition as required in section 3. If the Commission grants a waiver for a category or type of amendment, as distinguished from a particular amendment, the person shall notify the Commission of any amendments which fall within the category in the same manner prescribed for amendment to contracts not previously approved by the Commission under 35-A M.R.S.A. §3132(11-B) and section 4(B) of this rule.

B. Contracts not originally subject to approval by the Commission

As provided in 35-A M.R.S.A. §3132(11-B), for any amendment, extension or renewal of any contract otherwise subject to this rule, but for which the original contract was not subject to approval by the Commission, the utility shall file a copy of the proposed amendment, extension or renewal with the commission within 7 days of the day when the utility receives notice of the proposal. Commission approval of such amendments, extensions or renewals is not required.

§5. FILING FEES

A. Fee required. A person shall pay a filing fee to the Commission when it files a petition under this Chapter. When constructing a transmission line, the amount of the fee shall equal 4/100 of 1% (.04%) of the estimated cost to construct a transmission line. Notwithstanding the previous sentence, if the transmission line qualifies as a minor transmission construction project under 35-A M.R.S.A. §3132 (3-A) and the Commission requires the filing of a petition for a CPCN, the filing fee shall be equal to 2/100 of 1% (.02%) of the estimated construction cost. When rebuilding or relocating a transmission line, the amount of the fee shall be 2/100 of 1% (.02%) of the estimated cost to rebuild or relocate the transmission line. Any portion of the filing fee received from a utility but not expended by the Commission to process the petition for a certificate of public convenience and necessity shall be returned to the utility.

B. Filing fee to Office of the Public Advocate. When a person pays a filing fee to the Commission pursuant to this Chapter, the person shall, at the same time, pay to the Office of the Public Advocate an amount equal to 1/100 of 1% of the estimated cost to erect, rebuild or relocate the transmission line. Any portion of the filing fee received but not expended by the Office of the Public Advocate for the purposes of representing the interests of consumers in the proceeding before the Commission or conducting public outreach to inform consumers about the proceeding shall be returned.

C. Waiver. A person may request a waiver from the Commission of all or a portion of the filing fee at the time the petition is filed. The Commission shall rule on the request for waiver within 30 days. A person may request a waiver from the Office of the Public Advocate of all or a portion of the filing fee due to the Office of the Public Advocate at the time of the filing. The Office of the Public Advocate shall decide on the waiver request within 30 days.

§6. NEW TRANSMISSION FACILITIES

A. Maps. The Petitioner shall include a map or plat of sufficient scale, which shows, in detail, the proposed location of the line; the width of the corridor in which it is proposed to be located; the location of existing incorporated communities; the principal topographic features of the proposed location; public or private recreational areas, parks, forests, hunting or fishing areas, or similar facilities; historical or scenic areas or places; rivers, lakes, streams, reservoirs and similar bodies of water, located within five miles of either side of the center line of the proposed corridor. The Petitioner shall also include a written description of the corridor in which the line will be constructed sufficient to locate the corridor on the face of the earth within the standards described in Chapter 140 of the Commission’s Rules.

B. System diagrams. The Petitioner shall provide one-line system diagrams showing the following details:

1. All affected existing and proposed transmission lines, substations, substation buses, and transformers.

2. Existing and proposed voltage and capacity ratings of all affected lines, buses, transformers and protective and switching equipment.

3. Highest peak load experienced during normal operating conditions of each affected line and substation.

4. The highest peak load experienced during contingency operating conditions of each affected line and substation.

5. Projected five and ten year peak loading on each affected line and substation with and without proposed changes.

C. Description of type of line. The Petitioner shall provide a description of the standard type of construction configuration of the proposed line. The description shall include the height of the line, the number, type, class and average height of poles or towers to be placed thereon, the number, type and size of conductors to be used, and all safety features to be used in connection therewith.

D. Description of proposed corridor. The Petitioner shall provide a description of the proposed corridor, including all trimming clearances required and identifying locations where the degree of the slope is in excess of twenty degrees, and specifying those portions of the proposed corridor to which Petitioner has acquired property rights.

E. Description of effects of proposed line. The Petitioner shall provide a description of the effect of the proposed transmission line on public health and safety and scenic, historic, recreational and environmental values and of the proximity of the proposed transmission line to inhabited dwellings.

F. Cost estimates. The Petitioner shall provide a breakdown of cost estimates in the general form indicated.

Line 1

Line 2

Substation 1

Total

Construction

Labor

Material

General

Administrative

Land Total

G. Costs to date. The Petitioner shall provide a breakdown, similar to Item E, of all costs incurred to date.

H. Description of changes. The Petitioner shall provide (1) descriptions of any other changes in plant or in system operation that will result from the erection or operations of the proposed lines, (2) an explanation of the causes of or reasons for all such changes, and (3) estimates of all costs associated with each such change.

I. Alternative routes. The Petition shall include all studies, reports, or other data relied upon in the investigation of alternate routes and shall clearly state the process by which Petitioner selected the proposed route, including comparison with alternative routes that are environmentally, technically and economically practical.

J. Alternatives to construction of transmission line. The Petitioner shall state what alternatives, including conservation, distributed generation or load management to the proposed transmission line project were investigated. The petition shall include all studies, reports, or other data relied upon in the investigation of such alternatives and shall clearly state the process by which Petitioner decided upon the proposed construction, rebuilding, or relocation project. Specifically, the Petitioner should state the purposes and benefits of the proposed project (such as the promotion of reliability and line loss reduction) and whether cost-benefit analyses have been performed.

§7. SYSTEM RELIABILITY

A. Analysis required. Each Petition shall include an analysis of the effects of the proposed line or rebuilding or relocation of a line on (1) the reliability of the transmission system as a whole and any relevant portion or subsystem thereof, and (2) the capability of the transmission systems to serve existing and projected loads.

B. Content of analysis. The analysis shall clearly identify:

1. The standards and design criteria used to evaluate the effects on system reliability and capability; and

2. All assumptions and data used in the analysis including load flow modeling and lines in and contingency analysis.

§8. REBUILDING AND RELOCATION OF TRANSMISSION LINES

A. Annual report. Each transmission and distribution utility shall submit by April 1 of each year to the Director of Electric and Gas Utility Industries a schedule of transmission line rebuilding or relocation projects and minor transmission line construction projects which it intends to carry out during the next 5 years concerning transmission lines that will become, or will remain at, voltages of 69 kilovolts or more. The utility shall also identify in the schedule the planned construction of any transmission lines which will be capable of initially carrying 69 kilovolts or more, even if it is not expected to carry 69 kilovolts or more. The failure of a utility to file a schedule shall constitute an affirmative statement by the utility that it has no projects which it intends to carry out during the next 5 years. A waiver of any provision of this section may be requested from, and granted by, the Director of Electric and Gas Utility Industries for good cause shown. Requests must be in writing and state the basis for the requested waiver. Requests must be provided to the Office of the Public Advocate.

B. Content of report. The contents of the annual schedule must include the following information on each proposed project:

1. Identification (e.g. "Section 35")

2. Location

3. Length

4. Year Originally Constructed

5. Voltage Level

6. Existing Conductor (e.g. "266.8 KCM ACSR")

7. Existing Structure Material and Design (e.g. "Wood H-Frame")

8. Peak Load

9. A copy of the most recent depreciation study conducted by the company which includes the useful lives of the poles and conductors which constitute the existing transmission system.

10. Estimated cost of the rebuilding or relocation project in nominal dollars.

C. Notification to submit petition. If the Director of Electric and Gas Utility Industries notifies the transmission and distribution utility within 60 days of the annual filing that an investigation of any transmission line rebuilding or relocation or minor transmission line construction project is warranted, the utility must submit a petition for public convenience and necessity pursuant to section 3 of this rule. The absence of Commission notification requiring the utility to file a petition does not preclude such notification in subsequent years.

§9. FINAL ORDERS AND STANDARDS FOR GRANTING CERTIFICATES

A. Finding of Public Need

The Commission will make specific findings with regard to the need for the proposed transmission line in its order deciding whether to issue a certificate of public convenience and necessity in accordance with 35-A M.R.S.A. §3132(6). If the Commission finds a public need for the proposed transmission line exists, it shall issue a certificate of public convenience and necessity for the transmission line. If the Commission is evaluating a petition for a certificate of public convenience and necessity for a high-impact transmission line, it will do so in accordance with 35-A M.R.S.A. §3132(6-A).

B. Public Need Defined

The Commission establishes public need by determining that ratepayers will benefit by the proposed transmission line. Benefits are determined based upon the electrical need for the line, taking into account economics, reliability, public health and safety, scenic, historic and recreational values, state renewable energy goals, the proximity of the proposed transmission line to inhabited dwellings and alternatives to construction of the transmission line, including energy conservation, distributed generation or load management. The proposed transmission line must be reasonable compared to the other alternatives. Cost is an important consideration, but public need can be established for a proposed transmission line that is not the least cost alternative because aesthetic, environmental or other factors justify a reasonable cost increase.

Customer Cost Impact

The Commission may not issue a certificate of public convenience and necessity that has the effect of eliminating the independent system administrator for northern Maine or eliminating or materially modifying the scope of responsibilities of the independent system administrator for northern Maine unless the certificate is subject to a requirement for the full compensation for the net adverse effects on ratepayers. The determination of the net adverse effects must include, but is not limited to, known and measurable transmission cost effects. Compensation required by this section must be provided to affected ratepayers through a rebate, reduction in rates or other appropriate compensation mechanism benefiting affected ratepayers in the area of the State in which the retail electricity market is administered by the independent system administrator for northern Maine. Compensation required by this section must be calculated for and provided to affected ratepayers over a period not more than 10 years.

§10. DELEGATION

The Commission's authority to grant waivers and exceptions under this chapter is hereby delegated to the Administrative Director and to the Hearing Examiner in any proceeding, both of whom shall consult with the Director of Electric and Gas Utility Industries before acting on any request. This delegation does not limit the Commission's ability to consider requests directly or to review the actions of the Administrative Director or Hearing Examiner thereunder.

§11 REQUESTS FOR WAIVERS

Waiver of Exemption. Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of Electric and Gas Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 3131 and 3132
• ADOPTION UNDER THE APA: This rule was approved as to form and legality by the Attorney General in June, 1979. It was filed with the Secretary of State on July 5, 1979 as Ch. 33 Part 3, “Establishing Filing Requirements for Petitions of Public Convenience and Necessity for New Generating and Transmission Facilities,” filing 79-326.
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General n January 11, 1989. It was filed with the Secretary of State on January 11, 1989 as Ch. 330, and became effective on January 16. 1989, filing 89-9.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CORRECTION: October 27, 2004
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on May 12, 2005. It was filed with the Secretary of State on May 13, 2005 as “Filing Requirements for Petitions for Certificates of Public Convenience and Necessity for Electric Transmission Facilities and Standards for Granting Certificates,” and became effective on May 18, 2005, filing 2005-143.
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on October 15, 2012. It was filed with the Secretary of State on October 16, 2012 and became effective on October 20, 2012, filing 2012-288.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 331 Notice for Property to Be Taken by Eminent Domain for or Property Abutting the Construction, Rebuilding, or Relocation of a High-Impact Electric Transmission Line

Code Me. R. 65-407 Ch. 331 Notice for Property to Be Taken by Eminent Domain for or Property Abutting the Construction, Rebuilding, or Relocation of a High-Impact Electric Transmission Line {#sec-65-407-ch.-331 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 331}

SUMMARY: This rule establishes the requirements for the provision of notice to owners of real property that may be taken by eminent domain for the proposed construction, rebuilding, or relocation of a High-Impact Electric Transmission line by either an entity selected under 35-A M.R.S. § 3210-I(2) or a Transmission and Distribution Utility, as well as to an owner of real property that abuts a proposed High-Impact Electric Transmission Line.

§ 1 PURPOSE

The purpose of this Chapter is to establish the requirement for notice to real property owners whose property is subject to eminent domain for use in the construction, rebuilding, or relocation of a High-Impact Electric Transmission Line by either an entity selected by the Commission to construct a High-Impact Electric Transmission Line pursuant to 35-A M.R.S. § 3210-I(2) or a Transmission and Distribution Utility, and real property owners of Abutting Property to such a High-Impact Electric Transmission Line. This Chapter also provides the requirements for the form and contents of such notice including educational materials that describe the development process.

§ 2 DEFINITIONS

Abutting Property. “Abutting Property” means, with respect to a parcel of land, another parcel of land that shares a common property boundary, except that "Abutting Property" does not include a parcel of land separated from another parcel by a public road or highway.

Generator Interconnection Transmission Facility. “Generator Interconnection Transmission Facility” means a transmission line, together with all associated equipment and facilities, that is constructed, owned and operated by a generator of electricity solely for the purpose of electrically and physically interconnecting such generator to the transmission system of a Transmission and Distribution Utility or a commercial or industrial consumer of the electricity that is located on the property where the entity that generates the electricity is located or on abutting property, or a commercial or industrial site that was served by the entity that generates the electricity or its predecessor without using the transmission and distribution plant of a public utility prior to December 31, 2018.

High-Impact Electric Transmission Line. “High-Impact Electric Transmission Line” means a transmission line of any length that is constructed to transmit direct current electricity, or capable of operating at 345 kilovolts or more and is not a Generator Interconnection Transmission Facility and is not constructed primarily to provide electric reliability.

Notice Recipient. “Notice Recipient” means an owner of real property whose property may be taken by eminent domain for use in constructing, rebuilding, or the relocation of a High-Impact Electric Transmission Line and owners of Abutting Property to such a High-Impact Electric Transmission Line.

Transmission and Distribution Utility. "Transmission and Distribution Utility" or "T&D Utility," means a person, its lessees, trustees, receivers, or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State, as defined in 35-A M.R.S. § 1(20-B).

Transmission Developer. “Transmission Developer”means an entity selected to construct a High-Impact Electric Transmission Line pursuant to 35-A M.R.S. § 3210-I(2) or a person who applies for a certificate of public convenience and necessity for a High-Impact Electric Transmission Line pursuant to 35-A M.R.S. § 3132.

§ 3 REQUIREMENT TO PROVIDE NOTICE

A. A Transmission Developer must provide notice and educational materials to Notice Recipients concerning a High-Impact Electric Transmission Line for which the Transmission Developer seeks a certificate of public convenience and necessity pursuant to 35-A M.R.S. § 3132. Prior to sending the notice and educational materials to Notice Recipients, the Transmission Developer must provide copies to the Commission for review and approval. Unless otherwise directed by the Commission, these copies must be included with the petition for a certificate of public convenience and necessity for the High-Impact Electric Transmission Line Pursuant to 35-A M.R.S. § 3132.

B. A T&D Utility proposing to construct a High-Impact Electric Transmission Line must provide notice and educational materials to Notice Recipients concerning a High-Impact Electric Transmission Line for which the T&D Utility seeks a certificate of public convenience and necessity pursuant to 35-A M.R.S. § 3132. Prior to sending notice and educational materials to Notice Recipients, the T&D Utility must provide copies to the Commission for review and approval. Unless otherwise directed by the Commission, these copies must be included with the T&D Utility’s petition for a certificate of public convenience and necessity for the High-Impact Electric Transmission Line pursuant to 35-A M.R.S. § 3132.

C. A Transmission Developer or a T&D Utility proposing to rebuild or relocate a High-Impact Electric Transmission Line must provide notice and educational materials to Notice Recipients. A Transmission Developer or a T&D Utility proposing to rebuild or relocate a High-Impact Electric Transmission Line must indicate if that relocation or rebuilding will require the use of eminent domain in the annual schedule submitted pursuant to 35-A M.R.S. § 3132(3). The Commission, based on its review of that schedule, will inform the Transmission Developer or T&D Utility of when it must provide copies of the notice and educational materials to the Commission for review and approval. When a Transmission Developer or a T&D Utility submits copies of the notice and educational materials to the Commission for review and approval, the Transmission Developer or T&D Utility shall, at the same time, submit copies to the Office of the Public Advocate for review.

§ 4 REQUIRED FORM AND CONTENTS OF THE NOTICE

A. Transmission Developer or T&D Utility must send the notice and educational materials via certified mail to the last known address of each Notice Recipient by the date established by the Commission upon approval of the notice and educational materials, enclosed in an envelope stating that it contains important information regarding the impact of the High-Impact Electric Transmission Line on each Notice Recipient’s property. At the time of sending the notice and educational materials to Notice Recipients, a Transmission Developer or T&D Utility must send a copy of the notice and educational materials by certified mail to the municipal officers of the municipality or municipalities in which the line is to be located.

B. Transmission Developer or T&D Utility must use a plain language in the notice and educational materials and must define any technical terms that are used. Notices and educational materials must comply with the following guidelines:

The font size must be no smaller than 10 points high. The typeface (shape of the letters) should be designed to improve or enhance the visual size of the type. Headlines should be in larger or bold type. All text should be in capitals and lower case as opposed to ALL IN CAPITALS;

The color of the notice and educational materials and typeface must avoid problems for persons whose "color deficient" sight makes all colors appear as shades of gray;

The use of reverse-blocks in which letters appear as white against a black or dark gray background must be avoided;

Sufficient separation between sections, font size and visual highlighting to make the notice and educational materials uncluttered and easy to read; and

The headline on the notice must conspicuously be entitled "Notice Regarding Eminent Domain" in at least 12 point font.

C. The notice must indicate whether the real property is being considered for eminent domain or abuts a High-Impact Electric Transmission Line and include information that enables the Notice Recipient to contact the Transmission Developer or the T&D Utility.

D. The Transmission Developer or T&D Utility must provide information allowing the Notice Recipient to access the educational materials approved by the Commission electronically, and upon the request of any Notice Recipient the Transmission Developer or T&D Utility must, by first class mail and at the Transmission Developer’s or T&D Utility’s expense, provide that Notice Recipient with physical copies of the educational materials. The educational materials must include, but are not limited to, the following:

1. Information regarding the development process for the High-Impact Electric Transmission Line, including:

a. A description of the permitting process, including any required municipal, county, state, or federal approvals;

b. Information on how the Notice Recipient may participate in the permitting process, including the opportunity to participate in any public hearings, meetings and proceedings before the Commission and other governmental and regulatory authorities.

1. Resources that may be available to assist the Notice Recipient, including: 1. Legal assistance; 2. The possibility of obtaining intervenor funding pursuant to Chapter 840 of the Commission’s rules; 3. Contacting the Office of the Public Advocate.
2. Information describing the High-Impact Electric Transmission Line, including: 1. In the case of a Transmission Developer, a copy of the Commission’s Order selecting the Transmission Developer pursuant to 35-A M.R.S. § 3210-I; 2. The location of the High-Impact Electric Transmission Line, including a map that illustrates where the High-Impact Electric Transmission Line will be constructed in relation to the Notice Recipient’s real property and the expected size and location of the physical components of the High-Impact Electric Transmission Line; 3. Construction and operational and maintenance activities that may impact the Notice Recipient; 4. Timelines during which the High-Impact Electric Transmission Line development will take place and the anticipated start and completion dates of important processes, including: 1. Permitting; 2. Construction; and 3. Maintenance operations.

The Commission may request that a state agency or other state commission review any educational materials that address activities relating to a High-Impact Electric Transmission Line development process that are undertaken by that other state agency or other state commission.

§ 4 WAIVER PROVISIONS

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director Electric and Gas Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2025-00279, issued on March 3, 2026. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, and 3136.
• APAO ACCESSIBILITY CHECK (Word): March 18, 2026
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 18, 2026. It was filed with the Secretary of State on March 18, 2026 and became effective on March 23, 2026 (filing 2026-066).

Chapter 332 Filing Requirement for Petitions of Public Convenience and Necessity for Significant Agreements for Generating / Energy / Transmission Capacity

Code Me. R. 65-407 Ch. 332 Filing Requirements for Petitions of Public Convenience and Necessity for Purchases of Energy or Fuel Conversion of Generating Facilities {#sec-65-407-ch.-332 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 332}

SUMMARY: This rule establishes filing requirements for petitions of public convenience and necessity for purchases of generating capacity, energy or transmission capacity or fuel conversion of generating facilities of more than 1,000 kilowatts.

1. APPLICATION OF RULE AND DEADLINES

A. Certificate required. No electric utility may either purchase any right, title or interest in generating capacity, transmission capacity or energy, as defined in Title 35‑A M.R.S.A. § 3131, or convert a permanently installed generating facility of more than 1,000 kilowatts to use a type of fuel different from that which the facility currently is equipped to use unless the Commission has issued a certificate of public convenience and necessity. This Rule also applies to any amendment, extension or renewal of any contract between the utility and other parties governing the terms of their participation in a purchase or conversion subject to this section, for which the original contract was subject to approval by the Commission.

B. Deadline and extensions.

1. The Commission shall issue its order within 12 months after the petition is filed. If there exists an approved long‑range plan pursuant to 35‑A M.R.S.A. § 3134, the Commission shall issue its order within 9 months of filing.

2. Upon written request by the utility and for good cause shown, the Commission may extend the deadline for a reasonable period of time.

2. NOTICE OF INTENT AND DETERMINATION OF COMPLIANCE WITH THE RULE

A. Notice of intent. At least two months in advance of the filing of any petition required by section 1 of this chapter, the Petitioner shall notify the Commission in writing of its intent to file such a petition. The Notice of Intent shall contain a brief description of the authority sought by the Petitioner. Together with its Notice of Intent, the Petitioner may request that the Commission exercise its power under section 4 of this rule to waive all or part of the requirements of this rule. Any Petitioner seeking to secure a waiver of an informational filing requirement on the ground that the required information is already on file with the Commission shall give a reasonably definite reference to the filed information including, where appropriate, the docket number, exhibit number and page reference of the information.

B. Review of sufficiency of filing. Within 15 days of receipt of any petition submitted pursuant to this rule the Administrative Director will inform the Petitioner in writing of the specific deficiencies of the petition or that the petition complies with this rule. No petition shall be considered filed unless the requirements of this rule have been fulfilled. The filing date shall be the date the Administrative Director determines that a petition complies with the requirements of this rule.

C. Further review of sufficiency. Notwithstanding a finding by the Administrative Director that a petition is sufficient, any party to the proceedings commenced by the filing of the petition may contend that the information submitted pursuant to sections 6, 7 and 9 of this chapter is insufficient or defective. A party making such contentions may make such motions as would be proper had the information specified in section 6, 7 and 9 been timely requested by that party under the rules governing discovery and been due to be served upon that party on the date of the petition filing. Any such motion must be made within 7 days after the party is allowed to participate in the proceeding or within 60 days after the initial receipt of the petition by the Commission, whichever is earlier.

D. Waiver of notice. The Commission may waive the advance notice requirement upon a written request and good cause shown. The Commission shall rule on the request for waiver within 60 days. An electric utility with an approved long‑range energy plan pursuant to 35‑A M.R.S.A. § 3134 which includes the agreement or contract, need not file an advance notice of its intent to file a petition under this chapter.

3. EXEMPTIONS

The following are exempt from section 3133 and the requirements of this chapter:

A. Purchases from qualifying facilities. Purchases made by an electric utility from any cogenerator or small power producer, as defined in 35‑A M.R.S.A. § 3303;

B. Wholesale purchase extensions. Extensions of existing wholesale power purchase arrangements by consumer‑owned electric utilities, as defined in 35‑A M.R.S.A. § 3501, that are subject to Federal Energy Regulatory Commission review with respect to rates; and

C. Amendments of contracts not originally approved. Any amendment, extension or renewal of any contract otherwise subject to this chapter for which the original contract was not subject to approval by the Commission. The utility shall, however, file a copy of such amendments, extensions or renewals to the Commission within 7 days of the day when the utility receives notice of the proposal.

4. WAIVERS

A. General waiver provision. Upon written request and for good cause shown the Commission may waive any of the requirements of this rule, which are not mandated by statute.

B. Waiver of approval requirements. The Commission may waive the approval requirement of 35‑A M.R.S.A. § 3133 on its own motion or upon request of any party except that the Commission may not waive the approval requirement if the purchase or fuel conversion involves generating capacity that exceeds either 5% of the installed capacity of the utility or 30 megawatts of capacity. The Commission shall rule on a request for a waiver within 60 days. Prior to Commission consideration of a waiver, notice by mail must be sent, and an opportunity to be heard permitted, to persons who commonly participate in Commission proceedings and persons whose contracts may be affected by the agreement.

C. Waiver of approval for amendments to previously approved agreements.

1. A utility may request a waiver from the application of 35 M.R.S.A. § 3133 for amendments, extensions or renewals of agreements which were previously approved by the Commission under section 3133. The request for waiver may pertain to a particular amendment or to a certain category or type of amendments. The cover letter accompanying any request for a waiver must specifically state in the first sentence of the text of the letter, that the request is being filed pursuant to this section and that if the Commission does not act within 30 days (or 7 days if applicable) the waiver will be considered granted. Requests for waivers must describe the amendment and state the basis for the request. If the utility desires expeditious processing of the request, it shall state the date by which a response is requested and the reasons for the request for expedition. The Commission may grant the waiver if it finds that good cause has been shown that application of section 3133 is unnecessary, burdensome or impractical, and that the underlying purposes of section 3133 are not significantly impaired.

2. If the Commission does not respond to a request for a waiver within 30 days, the request shall be considered granted. In the case of a request for expedited processing of the request for waiver, the request shall be considered granted if the Commission has not responded by the date requested or within 7 days after filing of the request, whichever is greater. In the event of a denial of a waiver, the utility must file a petition as required in section 1. If the Commission grants a waiver for a category or type of amendment, as distinguished from a particular amendment, the utility shall notify the Commission of any amendments which fall within the category in the same manner prescribed for amendment to contracts not previously approved by the Commission under 35‑A M.R.S.A. § 3133 (9)(b) and section 3(c) of this rule.

D. Waiver of 2‑month notice for amendments. For good cause shown, the Commission may waive the 2‑month notice requirement in section 2 for amendments which otherwise require approval under section 3133(10) and for which approval has not been waived under section 4(B) of this rule.

5. FILING FEES

A. Fee required. An electric utility shall pay a filing fee to the Commission when it files a petition under this rule. The filing fee shall be an amount equal to 2/100 of the 1% (0.02%) of the estimated cost of the purchase or conversion. Any portion of the filing fee not expended by the Commission in relation to the review of the petition shall be returned to the petitioner.

B. Waiver. The utility may request a waiver of all or a portion of the filing fee at the time it files a notice of intent to file the petition. The Commission shall rule on the request for waiver within 30 days.

C. Exception for minor projects. A filing fee shall not be required with respect to a petition under this chapter if the cost of the purchase or conversion is less than $1,000,000, unless the Commission orders otherwise upon a finding of need for a filing fee.

6. INFORMATION REQUIREMENTS TO SHOW NEED FOR POWER

A utility shall submit the following data to the Commission with any petition filed under this chapter.

A. Load forecast. The projected kilowatt and kilowatt‑hour demands by month, day and hour of use for each year during the succeeding thirty (30) years. The projection shall include:

1. The utility's load forecast assumptions by class and the bases therefor;

2. if the projection involves the use of a computer program, a description of the computer logic;

3. if the projection is based in part on reports generated by external sources, the title and date of the reports; and

4. if the projection is in the form of an internally or externally prepared report adopted by the utility, a copy of the report.

B. Preferred energy resource plan. The utility shall describe its energy resource plan for the next thirty years, which includes the capacity and energy which the proposed purchase or conversion is designed to provide. The energy resource plan also shall include:

1. The utility's plan for the addition of all capacity by amount and type, for purchases and reasonably anticipated sales of energy and energy and capacity, including all reasonably anticipated qualifying facility power, and for capacity retirements for each year;

2. a complete description of planned conservation and load management programs which will be used to limit customer demand and the expected associated energy and capacity savings, by month, day and hour for each year of the forecast period.

3. if the energy resource plan is generated through the use of a computer program, a description of the computer logic;

4. if the energy resource plan is not generated through the use of a computer program, a description of alternative plans considered, the assumptions used with respect to each alternative plan considered, and the basis for choosing the plans adopted by the utility;

5. if the plan is based in part on reports generated by external sources, the title and date of the reports.

6. if the plan includes anticipated energy resources for which a firm contractual commitment has not yet been made, a description of all assumptions concerning the anticipated terms of the contract or nature of the resource; and

7. if the plan is in the form of an internally or externally prepared report adopted by the utility, a copy of the report.

C. Alternative energy resource plan. The utility shall describe reasonable alternative resource plans to that provided in subsection B. Each alternative energy resource plan shall include the items in subsection B above.

D. Costs. The utility's projected costs and revenue requirements associated with the preferred energy resource plan and alternative energy resource plans. The projections shall include:

1. The estimated capacity costs at completion of any planned capacity additions and planned firm capacity purchases, expressed in dollars per kilowatt per individual unit or purchase;

2. the estimated energy production and associated energy costs of each unit or purchase expressed in cents per kilowatt‑hour per individual unit or purchase;

3. the total estimated capacity and energy costs of each planned capacity addition and each planned firm capacity purchase expressed in cents per kilowatt‑hour for each year of the useful life of the planned capacity addition or firm capacity purchase. The time period for which these costs shall be expressed shall be the same as the preferred energy resource plans filed under subsection B and alternative energy resource plans filed under subsection C;

4. the total estimated capacity and energy costs of each purchase of energy or capacity on a non‑firm basis for each year of the energy resource plans;

5. the total estimated cost to the utility of each conservation or load management program expressed as cost per unit of energy or capacity or both saved over the useful life of the measure;

6. if the projections involve the use of a computer program, a description of the computer logic;

7. if the projections are based in part on reports generated by external sources, the title and date of the reports; and

8. if the projections are in the form of reports adopted by the utility, a copy of the reports;

7. SENSITIVITY ANALYSES

Within sixty (60) days from the initial filing, sensitivity analyses of the original filing using reasonable alternative assumptions may be proposed by parties and intervenors to any docket instituted to examine the utility's filing. The utility shall undertake to perform these analyses following a reasonable opportunity to object or to suggest changes to the parties' proposals. This time limit may be extended on a showing of undue hardship.

8. WAIVER OF INFORMATION REQUIREMENTS

A. Requests for waiver. Any utility without the capability of performing the calculations required in sections 6(B)(C) and (D) may file a request for a waiver. Requests for waivers shall include a statement of the utility's current and future capabilities regarding the calculational requirements and the estimated cost of acquiring the necessary capability.

B. Grant of waiver. The Commission may, at its discretion, grant a waiver. Waivers shall set forth revised data reporting requirements which will be sufficient to allow the Commission to properly consider any petition filed under this chapter.

9. FUEL CONVERSION

Any petition to convert a generating facility to use a different type of fuel shall provide the following additional information regarding cost:

1. The Petitioner shall supply total annual estimated cost of converting the generating facility over each year of construction.

2. The Petitioner shall break down total estimated cost of converting the generating facility which will be incurred by Petitioner by account number in accordance with Uniform System of Accounts over each year of construction.

3. The Petitioner shall describe the complete financing plans for converting the generating facility. The Petitioner shall describe in detail the financing plans to meet its share of the total capital requirements.

4. The Petitioner shall provide estimated operating and maintenance costs, including fuel costs (dollars per kilowatt or cents per kilowatt‑hour).

5. The Petitioner shall provide a construction schedule, including dates of major milestones.

10. DELEGATION

The Commission's authority to grant waivers or exceptions under this Chapter is hereby delegated to the Administrative Director and to the Hearing Examiner in any proceeding, both of whom shall consult with the Directors of Technical Analysis and Finance before acting on any request. This delegation does not limit the Commission's ability to consider requests directly or to review the actions of the Administrative Director or Hearing Examiner thereunder.

History

• STATUTORY AUTHORITY: 35‑A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 3131, 3133 and 3134.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 6, 1997. It was filed with the Secretary of State on August 8, 1997, and became effective on August 13, 1997.
• CONVERTED TO MS WORD: May 17, 2005
• CONVERTED TO MS WORD: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 334 Filing Requirement for Significant Agreements Re: Electric Generating / Energy / Trans Capacity

Code Me. R. 65-407 Ch. 334 Filing Requirements for Petitions of Public Convenience and Necessity for Significant Agreements Relating to Generating, Energy or Transmission Capacity {#sec-65-407-ch.-334 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 334}

SUMMARY: This rule establishes filing requirements for petitions of public convenience and necessity for significant agreements and contracts relating to generating capacity, energy or transmission capacity as defined in 35-A M.R.S.A. § 3133-A.

1. APPLICATION OF RULE

No electric utility may enter into any significant agreement or contract, as defined in 35-A M.R.S.A. § 3133-A, relating to generating capacity, energy or transmission capacity, unless the Commission has issued a certificate of public convenience and necessity. This Rule also applies to any amendment, extension or renewal of any significant agreement or contract subject to this section for which the original contract was subject to approval by the Commission.

2. NOTICE OF INTENT AND DETERMINATION OF COMPLIANCE WITH THE RULE

A. Notice of intent. At least two months in advance of the filing of any petition required by section 1 of this rule, the Petitioner shall notify the Commission in writing of its intent to file such a petition. The Notice of Intent shall contain a brief description of the authority sought by the Petitioner. Together with its Notice of Intent, the Petitioner may request that the Commission exercise its power under section 4 of this rule to waive all or part of the requirements of this rule. Any Petitioner seeking to secure a waiver of an informational filing requirement on the ground that the required information is already on file with the Commission shall give a reasonably definite reference to the filed information including, where appropriate, the docket number, exhibit number and page reference of the information.

B. Review of sufficiency of filing. Within 15 days of receipt of any petition submitted pursuant to this rule the Administrative Director will inform the Petitioner in writing of the specific deficiencies of the petition or that the petition complies with this rule. No petition shall be considered filed unless the requirements of this rule have been fulfilled. The filing date shall be the date the Administrative Director determines that a petition complies with the requirements of this rule.

C. Further review of sufficiency. Notwithstanding a finding by the Administrative Director that a petition is sufficient, any party to the proceedings commenced by the filing of the petition may contend that the information submitted pursuant to section 6 of this chapter is insufficient or defective. A party making such contentions may make such motions as would be proper had the information specified in sections 6 and 7 been timely requested by that party under the rules governing discovery and been due to be served upon that party on the date of the petition filing. Any such motion must be made within 7 days after the party is allowed to participate in the proceeding or within 60 days after the initial receipt of the petition by the Commission, whichever is earlier.

D. Waiver of notice. The Commission may waive the advance notice requirement upon a written request and good cause within 60 days. An electric utility with an approved long-range energy plan pursuant to 35-A M.R.S.A. § 3134, which includes the agreement or contact, need not file an advance notice of its intent to file a petition under this chapter.

3. EXEMPTIONS

The following are exempt from section 3133-A and the requirements of this chapter:

A. Purchases from qualifying facilities. Purchases made by an electric utility from any cogenerator or small power producer, as defined in 35-A M.R.S.A. § 3303;

B. Wholesale purchase extensions. Extensions of existing wholesale power purchase arrangements by consumer-owned electric utilities, as defined in 35-A M.R.S.A. § 3501, that are subject to Federal Energy Regulatory Commission review with respect to rates;

C. Amendments of contracts not originally approved. Any amendment, extension or renewal of any contract otherwise subject to this chapter for which the original contract was not subject to approval by the Commission. The utility shall, however, file a copy of such amendments, extensions or renewals to the Commission within 7 days of the day when the utility receives notice of the proposal; and

D. Agreements subject to approval elsewhere. Any contract or agreement for which Commission approval is required under sections 3132 or 3133.

4. WAIVERS

A. General waiver provision. Upon written request and for good cause shown the Commission may waive any of the requirements of this rule, which are not mandated by statute.

B. Waiver of approval for amendments to previously approved agreements.

1. A utility may request a waiver from the application of 35-A M.R.S.A. § 3133-A for amendments to agreements which were previously approved by the Commission under section 3133-A. The request for waiver may pertain to a particular amendment or to a certain category or type of amendments. The cover letter accompanying any request for a waiver must specifically state in the first sentence of the text of the letter, that the request is being filed pursuant to this section and that if the Commission does not act within 30 days (or 7 days if applicable) the waiver will be considered granted. Requests for waivers must describe the amendment and state the basis for the request. If the utility desires expeditious processing of the request, it shall state the date by which a response is requested and the reasons for the request for expedition. The Commission may grant the waiver if it finds that good cause has been shown that application of section 3133-A is unnecessary, burdensome or impractical, and that the underlying purposes of section 3133-A are not significantly impaired.

2. If the Commission does not respond to a request for a waiver within 30 days, the request shall be considered granted. In the case of a request for expedited processing of the request for waiver, the request shall be considered granted if the Commission has not responded by the date requested or within 7 days after filing of the request, whichever is greater. In the event of a denial of a waiver, the utility must file a petition as required in section 1. If the Commission grants a waiver for a category or type of amendment, as distinguished from a particular amendment, the utility shall notify the Commission of any amendments which fall within the category in the same manner prescribed in section 3(C) of this rule for amendments to contracts not previously approved by the Commission under section 3133(9).

C. Waiver of 2-month notice for amendments. For good cause shown, the Commission may waive the 2-month notice requirement in section 2 of this rule for amendments which otherwise require approval under section 3133-A(5) and for which approval has not been waived under section 4(B) of this rule.

5. FILING FEE

A. Fee required. An electric utility shall pay a filing fee to the Commission when it files a petition under this rule. The filing fee shall be an amount equal to 2/100 of 1% (0.02%) of the estimated cost of the purchase or conversion. Any portion of the filing fee not expended by the Commission in relation to the review of the petition shall be returned to the petitioner.

B. Waiver. The utility may request a waiver of all or a portion of the filing fee at the time it files a notice of intent to file the petition. The Commission shall rule on the request for waiver within 30 days.

6. INFORMATION REQUIREMENTS TO SHOW NEED TO ENTER INTO AGREEMENT

A utility shall submit the following data to the Commission with any petition filed under this chapter.

A. Load forecast. The projected kilowatt and kilowatt-hour demands by month, day and hour of use for each year during the succeeding thirty (30) years. the projection shall include:

1. The utility's load forecast assumptions by class and the bases therefor;

2. if the projection involves the use of a computer program, a description of the computer logic;

3. if the projection is based in part on reports generated by external sources, the title and date of the reports; and

4. if the projection is in the form of an internally or externally prepared report adopted by the utility, a copy of the report.

B. Preferred energy resource plan. The utility shall describe its energy resource plan for the succeeding thirty years, which includes the capacity and energy which the proposed agreement or contract is designed to provide. The energy resource plan also shall include:

1. The utility's plan for the addition of all capacity by amount and type, for purchases and reasonably anticipated sales of energy and energy and capacity, and for capacity retirements for each year; including all reasonably anticipated qualifying facility power;

2. a complete description of planned conservation and load management programs which will be used to limit customer demand showing the expected energy and capacity savings, by moth, day and hour for each year of the forecast period;

3. if the energy resource plan is generated through the use of a computer program, a description of the computer logic;

4. if the energy resource plan is not generated through the use of a computer program, a description of alternative plans considered, the assumptions used with respect to each alternative plan considered, and the basis for choosing the plans adopted by the utility;

5. if the plan is based in part on reports generated by external sources, the title and date of the reports;

6. if the plan includes anticipated energy resources for which a firm contractual commitment has not yet been made, a description of all assumptions concerning the anticipated terms of the contract or nature of the resource; and

7. if the plan is in the form of an internally or externally prepared report adopted by the utility, a copy of the report.

C. Alternative energy resource plan. The utility shall describe reasonable alternative resource plans to that provided in subsection B. Each alternative energy resource plan shall include the items in subsection B above.

D. Costs. The utility's projected costs and revenue requirements associated with the preferred energy resource plan and alternative energy resource plans. The projections shall include:

1. The estimated capacity costs at completion of any planned capacity additions and planned firm capacity purchases, expressed in dollars per kilowatt per individual unit or purchase;

2. the estimated energy production and associated energy costs of each unit or purchase expressed in cents per kilowatt-hour per individual unit or purchase;

3. the total estimated capacity and energy costs of each planned capacity addition and each planned firm capacity purchase expressed in cents per kilowatt-hour for each year of the useful life of the planned capacity addition or firm purchase. The time period for which these costs shall be expressed shall be the same as the preferred energy resource plans filed under subsection B, and alternative energy resource plans filed under subsection C;

4. the total estimated capacity and energy costs of each purchase of energy or capacity on a non-firm basis for each year of the energy resource plans;

5. the total estimated cost to the utility of each conservation or load management program expressed as cost per unit of energy or capacity or both saved over the useful life of the measure;

6. if the projections involve the use of a computer program, a description of the computer logic;

7. if the projections are based in part on reports generated by external sources, the title and date of the reports; and

8. if the projections are in the form of reports adopted by the utility, a copy of the reports.

9. SENSITIVITY ANALYSES

Within sixty (60) days from the initial filing, sensitivity analyses of the original filing using reasonable alternative assumptions may be proposed by parties and intervenors to any docket instituted to examine the utility's filing. The utility shall undertake to perform these analyses following a reasonable opportunity to object or to suggest changes to the parties' proposals. This time limit may be extended on a showing of undue hardship.

8. WAIVER OF INFORMATION REQUIREMENTS

A. Request for waiver. Any utility without the capability of performing the calculations required in section 6 (B)(C) and (D) may file a request for a waiver. Requests for waivers shall include a statement of the utility's current and future capabilities regarding the calculational requirements and the estimated cost of acquiring the necessary capability.

B. Grant of waiver. The Commission may in its discretion grant a waiver in which case such waiver shall set forth revised data reporting requirements which shall be sufficient to allow the Commission to properly consider any petition filed under this chapter.

9. DEADLINE FOR COMMISSION ORDER

A. Deadline. The Commission shall issue its order within 12 months after the petition is filed. If there exists an approved long-range plan pursuant to 35-A M.R.S.A. § 3134, the Commission shall issue its order within 9 months of filing.

B. Extension. Upon written request and for good cause shown, the Commission may extend the deadline for a reasonable period of time.

10. DELEGATION

The Commission's authority to grant waivers and exceptions under this chapter is hereby delegated to the Administrative Director and to the Hearing Examiner in any proceeding, both of whom shall consult with the Directors of Technical Analysis and Finance before acting on any request. This delegation does not limit the Commission's ability to consider requests directly or to review the actions of the Administrative Director or Hearing Examiner thereunder.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 3131, 3133-A and 3134.
• EFFECTIVE DATE: This rule was approved by the Secretary of State On January 11, 1989, and will be effective on January 16, 1989.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: November 9, 1999 - missing line in § 7 reinserted.
• NON-SUBSTANTIVE CHANGES: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 360 Cogeneration and Small Power Productions

Code Me. R. 65-407 Ch. 360 Cogeneration and Small Power Production {#sec-65-407-ch.-360 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 360}

SUMMARY: This rule establishes the principles and procedures used by the Commission in setting rates for purchases of electricity from small power production facilities and cogenerators.

§1 GENERAL PROVISIONS 5

A. Definitions 5

B. Exceptions 8

§2 QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES 9

A. General Requirements for Qualification 9

1. Small power production facilities 9

2. Cogeneration facilities 9

B. Criteria for Qualifying Small Power Production 9

1. Size of the facility 9

a. Maximum size 9

b. Method of calculation 9

2. Fuel use 10

C. Criteria for Qualifying Cogeneration Facilities 10

1. Operating and efficiency standards for topping-cycle facilities 10

a. Operating standard 10

b. Efficiency standard 10

2. Efficiency standards for bottoming-cycle facilities 11

3. Waiver 11

D. Ownership Criteria 11

1. General rule 11

2. Ownership test 11

E. Exceptions 12

§3 ADMINISTRATIVE DETERMINATION OF AVOIDED COSTS 12

A. Applicability 12

B. Energy and Capacity. 12

1. Avoided energy costs 12

2. Avoided capacity costs 13

C. Commission Review 14

§4 ARRANGEMENTS BETWEEN ELECTRIC UTILITIES AND QUALIFYING

FACILITIES 14

A. Scope 14

1. Applicability 14

2. Negotiated rates or terms 14

3. Generation or distribution for own use 14

B. Electric Utility Obligations 15

1. Obligation to purchase from qualifying facilities 15

2. Obligation to sell to qualifying facilities 15

3. Obligation to interconnect 15

4. Parallel operation 16

C. Rates for Purchases 16

1. General Provisions 16

2. Short term energy purchases 16

3. Standard rates for energy and capacity purchases 18

4. Factors affecting rates for purchases of energy 19

5. Factors affecting rates for purchases of energy and capacity 20

D. Periods During Which Purchases Are Not Required 21

E. Additional Services to be Provided to Qualifying Facilities 21

F. Interconnection Costs 22

1. Obligation to pay 22

§5 NET ENERGY BILLING 22

A. Net Billing Prior to Retail Access 22

1. Customer Qualification 22

2. Rates 22

3. Second Meter 22

4. New Contracts 22

B. Net Billing Pursuant to Existing Contracts After Retail Access 22

1. Existing Customer Net Billing Contracts 22

2. Generation Service After Retail Access 23

3. Rates 23

4. Second Meter 23

§6 SYSTEM EMERGENCIES 23

A. Discontinuance of Purchases and Sales During System Emergencies 23

§7 COMMISSION PROCEDURES 24

A. Petition For Establishing Rates, Terms, and Conditions 24

1. Filing 24

2. Contents 24

3. Service 24

4. Response 24

5. Timing 24

6. Resolution 24

B. Commission Investigation 24

§8 SMALL ELECTRIC UTILITIES 25

A. Applicability 25

1. Wheeling utility 25

2. Non-Wheeling utility 25

B. Availability of small electric utility system cost data 25

1. Information provided on request 25

2. Failure to provide information on request 25

C. Groups of small electric utilities 25

D. Obligation to Purchase from Qualifying Facilities 25

§1 GENERAL PROVISIONS

A. Definitions. Terms defined in the Public Utility Regulatory Policies Act of 1978 (PURPA), Public Law 95-617, shall have the same meaning for purposes of this chapter as they have under PURPA, unless further defined in this chapter. In addition the following definitions apply for purposes of this chapter.

1. "Affiliate" means a person who:

a. Directly controls, is controlled by or is under common control with, a qualifying facility or industrial enterprise; or

b. Substantially owns, directly or indirectly, or operates, a qualifying facility or industrial enterprise.

2. "Associate" means:

a. An affiliate; or

b. A person that contracts to receive the thermal output of a cogeneration facility.

3. "Avoided costs" means the incremental costs to an electric or transmission and distribution utility of electric energy, capacity, load management, and/or conservation measures which, but for the purchase from the qualifying facility or qualifying facilities, such utility would obtain from another source. After the date of retail access, "avoided costs" mean the market value of the electric energy or capacity supplied by a qualifying facility to a transmission and distribution utility.

4. "Back-up power" means electric energy or capacity supplied by an electric or transmission and distribution utility to replace energy ordinarily generated by a facility's own generation equipment during an unscheduled outage of the facility.

5. "Biomass" means any organic material not derived from fossil fuels.

6. "Bottoming-cycle cogeneration facility" means a cogeneration facility in which the energy input to the system is first applied to a useful thermal energy process, and the reject heat emerging from the process is then used for electrical power production.

7. "Cogeneration facility" means equipment used to produce electric energy and forms of useful thermal energy (such as heat or steam), used for heating or cooling purposes, through the sequential use of energy.

8. "Energy input" in the case of energy in the form of natural gas or oil is to be by the lower heating value of the natural gas or oil.

9. "Existing contract" means a contract or an amendment to a contract executed prior to September 19, 1997 under which a qualifying facility sells energy or energy and capacity to an electric or transmission and distribution utility.

10. "Interconnection costs" means the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric or transmission and distribution utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a qualifying facility, or industrial enterprise under section 7(A), including transmission or distribution of the qualifying facility's power to another utility's transmission or distribution system to the extent such costs exceed the corresponding costs which the utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources. Interconnection costs do not include any costs included in the calculation of avoided costs. Interconnection costs shall also include an equitable portion of the cost of improvements to the utility's existing transmission and distribution facilities necessitated by the interconnection with a qualifying facility or industrial enterprise.

11. "Interruptible power" means electric energy or capacity subject to interruption by the provider of such energy or capacity under specified conditions.

12. "Maintenance power" means electric energy or capacity supplied by an electric or transmission and distribution utility during scheduled outages of the qualifying facility.

13. "Natural gas" means either natural gas unmixed, or any mixture of natural gas and synthetic gas.

14. "Net energy" means for any time period the total electrical energy used by a qualifying facility plus the total electrical energy used by any related retail consumer of electricity located at the same site minus the total electrical generation of the qualifying facility.

15. "Net energy billing" means a billing and metering practice that uses a single meter, capable of registering the flow of electricity in two directions, to record net energy transactions between an electric utility and a qualifying facility.

16. "Oil" means crude oil, residual fuel oil, natural gas liquids, or any refined petroleum product.

17. "Parallel operation" means the synchronous operation of a utility's generating system with the electrical generating equipment of a qualifying facility.

18. "Person" means a corporation, partnership, limited partnership, business association, trust, estate, municipal or quasi-municipal entity, or natural person.

19. "Qualifying facility" means any small power producer or cogenerator which meets the criteria set forth in section 2 of this chapter.

20. "Rate" means any price, rate, charge, or classification made, demanded, observed, or received with respect to the sale or purchase of electric energy or capacity, or any rule, regulation, or practice respecting any such rate, charge, or classification, and any contract pertaining to the sale or purchase of electric energy or capacity.

21. "Small electric utility" means any electric utility that is not an investor-owned electric or transmission and distribution utility.

22. "Supplementary firing" means an energy input to the cogeneration facility used only in the thermal process of a topping-cycle cogeneration facility or only in the electric generation process of a bottoming-cycle cogeneration facility.

23. "Supplementary power" means electric energy or capacity, regularly used by a qualifying facility in addition to that which the facility generates itself.

24. "System emergency" means a condition on a utility system which is likely to result in imminent significant disruption of service to customers or is imminently likely to endanger life or property.

25. "Topping-cycle cogeneration facility" means a cogeneration facility in which the energy input to the facility is first used to produce useful power output, and the reject heat from electrical power production is then used to produce useful thermal energy.

26. "Total energy output" of a topping-cycle cogeneration facility is the sum of the useful electrical power output and useful thermal energy output.

27. "Total energy input" means the total energy of all forms supplied from external sources other than supplementary firing to the facility.

28. "Useful power output" of a cogeneration facility means the electric or mechanical energy made available for use, exclusive of any such energy used in the electrical power production process.

29. "Useful thermal energy output" of a topping-cycle cogeneration facility means the thermal energy made available for use in any process or used in any heating or cooling application.

30. "Variable operating and maintenance cost" means that portion of the operating and maintenance expenses associated with generating facilities which change with changes in the use of those facilities.

31. "Waste" means by-product materials other than biomass.

B. Exceptions. Upon the request of any person subject to the provisions of this chapter or upon its own motion, the Commission may deviate from the provisions of this chapter for good cause shown or to the extent it deems necessary to further the purposes and policies of this chapter.

§2 QUALIFYING COGENERATION AND SMALL POWER PRODUCTION FACILITIES

A. General Requirements for Qualification

1. Small power production facilities. A small power production facility is a qualifying facility if it:

a. meets the size criteria specified in § 2(B)(1);

b. meets the fuel use criteria specified in § 2(B)(2); and

c. meets the ownership criteria specified in § 2(D).

2. Cogeneration facilities. A cogeneration facility is a qualifying facility if it:

a. meets the applicable operating and efficiency standards specified in § 2(C); and

b. meets the ownership criteria specified in § 2(D).

B. Criteria for Qualifying Small Power Production Facilities

1. Size of the facility

a. Maximum size. The power production capacity of the facility for which qualification is sought, together with the capacity of any other facilities which use the same energy resource, are owned by the same person, and are located at the same site, may not exceed 80 megawatts.

b. Method of calculation. For purposes of this paragraph, facilities are considered to be located at the same site as the facility for which qualification is sought if they are located within one mile of the facility for which qualification is sought and, for hydro-electric facilities, if they use water from the same impoundment for power generation. For purposes of making this determination the distance between facilities shall be measured from the electrical generating equipment of a facility.

2. Fuel use

a. The primary energy source of the facility must be biomass, waste, renewable resources, or any combination thereof, and more than 75 percent of the total energy input must be from these sources. Any primary energy source which, on the basis of its energy content, is 50 percent or more biomass shall be considered biomass.

b. Use of oil, natural gas, and coal by a facility may not, in the aggregate, exceed 25 percent of the total energy input of the facility during any calendar-year period.

C. Criteria for Qualifying Cogeneration Facilities

1. Operating and efficiency standards for topping-cycle facilities

a. Operating standard. For any topping-cycle cogeneration facility, the useful thermal energy output of the facility must, during any calendar-year period, be no less than 5 percent of the total energy output.

b. Efficiency standard. For any topping-cycle cogeneration facility for which any of the energy input is natural gas or oil, and the installation of which began on or after March 13, 1980, the useful power output of the facility plus one-half of the useful thermal energy output, during any calendar-year period, must:

i) subject to § 2(C)(1)(b)(ii), be no less than 42.5 percent of the total energy input of natural gas and oil to the facility; or

ii) if the useful thermal energy output is less than 15 percent of the total energy output of the facility, be no less than 45 percent of the total energy input of natural gas or oil to the facility; or

iii) for any topping-cycle cogeneration facility not subject to subsection 2(C)(1)(b) there is no efficiency standard.

2. Efficiency standards for bottoming-cycle facilities

a. For any bottoming-cycle cogeneration facility for which any of the energy input as supplementary firing is natural gas or oil, and the installation of which began on or after March 13, 1980, the useful power output of the facility must, during any calendar-year period, be no less than 45 percent of the energy input of natural gas or oil for supplementary firing.

3. Waiver. The Commission may waive any of the requirements of paragraphs (1) and (2) of this subsection upon a showing that the facility will consume significantly less energy than would be consumed by the facility and the electric utility if the cogeneration facility were not constructed.

D. Ownership Criteria

1. General rule. Prior to the date of retail access, a cogeneration facility or small power production facility may not be owned by a person primarily engaged in the generation or sale of electric power, other than power production facilities. After the date of retail access, a cogeneration facility or small power production facility may not be owned by a transmission and distribution utility or its affiliate unless permitted pursuant to 35-A M.R.S.A. § 3204(6).

2. Ownership test

a. For purposes of this section, a cogeneration or small power production facility shall be considered to be owned by a person primarily engaged in the generation or sale of electric power if more than 50 percent of the equity interest in the facility is held by an electric utility or utilities, or by a public utility holding company, or companies, or any combination thereof. If a wholly or partially owned subsidiary of an electric utility or public utility holding company has an ownership interest in a facility, the subsidiary's ownership interest shall be considered as ownership by an electric company or public utility holding company. For purposes of this section a company shall not be considered to be an "electric utility" company if it is a subsidiary of an electric utility holding company which is exempt by rule or order adopted or issued pursuant to section 3(a)(3) or 3(a)(5) of the Public Utility Holding Company Act of 1935, 14 U.S.C. 79c(a)(3), 79c(a)(5); or is declared not to be an electric utility company by rule or order of the Securities and Exchange Commission pursuant to section 2(a)(3)(A) of the Public Utility Holding Company Act of 1935. 15 U.S.C. § 79b(a)(3)(A).

b. Any electric utility that owns any part of a qualifying facility shall maintain separate records for all income investment and expenses associated with its ownership, operation or management of the qualifying facility.

E. Exceptions. Notwithstanding any provision of this section any small power producer or cogenerator which is considered to be a qualifying facility by the Federal Energy Regulatory Commission shall be deemed to be a qualifying facility for purposes of this chapter.

§3 ADMINISTRATIVE DETERMINATION OF AVOIDED COSTS

A. Applicability. Except as otherwise provided, this section applies to each investor-owned electric or transmission and distribution utility in the State. This section shall remain effective until the date of retail access.

B. Energy and Capacity. Each electric or transmission and distribution utility shall submit the following pursuant to a schedule set by Commission order.

1. Avoided energy costs

a. The estimated avoided energy costs on the electric utility's system, for various levels of purchases from qualifying facilities. Except as provided in this subsection such levels of purchases shall be stated in blocks of not more than 50 megawatts for utilities with a peak demand of 500 megawatts or more, and in blocks equivalent to not more than 10% of the peak demand for utilities of less than 500 megawatts. At least two such blocks shall be provided. In the event that the utility can reasonably be expected to purchase an amount of energy at the rates established by the Commission pursuant to Section 4(C) which exceeds the amount of energy reflected in the first of the two blocks described above then the first block shall be stated in an amount equal to the reasonably anticipated purchases. The avoided costs shall be stated on a cents per kilowatt-hour basis (showing the same number of significant digits as were employed by the electric utility in its last Fuel Cost Adjustment tariff), during daily peak and off-peak periods, by month, for the most recent 12 months, and in each of the next 18 months or until the date of retail access if that date occurs within the 18 month period.

b. The utility's avoided energy costs shall include, as applicable, reasonable estimates of avoided fuel costs, avoided start-up costs, avoided variable operating and maintenance costs, and energy purchase costs.

c. In each estimate required by subparagraph (a) above, the avoided costs shall be calculated by determining the difference between the total electric energy costs estimated to serve a utility's load and the total electric energy costs estimated for that load reduced in every hour consistent with the block and time periods discussed above divided by the kilowatt hours reflected in such load reductions.

2. Avoided capacity costs.

a. The estimated avoided capacity costs on the electric utility's system, for various levels of purchases from qualifying facilities. Except as provided in this subsection, such levels of purchases shall be stated in blocks of not more than 50 megawatts for utilities with a peak demand of 500 megawatts or more, and in blocks equivalent to not more than 10% of the peak demand for utilities of less than 500 megawatts. At least two such blocks shall be provided. In the event that the utility can reasonably be expected to purchase an amount of energy and capacity at the rates established by the Commission pursuant to Section 4(C) which exceeds the amount of energy and capacity reflected in the first of the two blocks described above then the first block shall be stated in an amount equal to the reasonably anticipated purchases. The avoided costs shall be stated on a cents per kilowatt-hour basis (showing the same number of significant digits as were employed by the electric utility in its last Fuel Cost Adjustment tariff), during daily peak and off-peak periods, by month, for the most recent 12 months, and in each of the next 18 months or until the date of retail access if that date occurs within the 18 month period.

b. The utility's avoided capacity costs shall include, as applicable, reasonable estimates of avoided capacity construction costs, capacity purchase costs, and capacity sale values.

c. In each estimate required by subparagraph (a) above, the avoided costs shall be calculated by determining the difference between the total electric capacity costs estimated to serve a utility's load and the total electric capacity costs estimated for that load reduced in every hour consistent with the block and time periods discussed above divided by the kilowatt-hours reflected in such load reductions.

3. Supporting analyses and data. A copy of all analyses used to derive the estimates required by paragraphs (1) and (2) above together with all input data and a detailed description of the methodology used and all assumptions employed.

C. Commission Review. Material submitted pursuant to subsection B above shall be subject to review and approval by the Commission. In any such proceeding the utility has the burden of coming forward with justification for its data.

§4 ARRANGEMENTS BETWEEN ELECTRIC UTILITIES AND QUALIFYING FACILITIES

A. Scope

1. Applicability. This section applies to the regulation of sales and purchases between qualifying facilities and electric or transmission and distribution utilities, except as provided in section 8 below.

2. Negotiated rates or terms. Nothing in this rule limits the authority of any electric or transmission and distribution utility or any qualifying facility to agree to a rate for any purchase, or terms or conditions relating to any purchase, which differ from the rate or terms or conditions which would otherwise be established by this chapter; or affects the validity of any contract entered into between a qualifying facility and an electric or transmission and distribution utility for any purchase.

3. Generation or distribution for own use. Notwithstanding any provision of this chapter any small power producer or cogenerator may generate or distribute electricity through its private property or its associates' private property solely for its use, the use of its tenants, or the use of its associates without approval or regulation by the Commission.

B. Electric Utility Obligations

1. Obligation to purchase from qualifying facilities

a. Existing contracts. Each electric or transmission and distribution utility must purchase from qualifying facilities pursuant to the terms established in an existing contract, or, as applicable, pursuant to rates established by the Commission in accordance with this chapter.

b. Purchases not pursuant to existing contracts. Each electric or transmission and distribution utility shall purchase any energy which is made available from a qualifying facility at a price and under terms agreeable to the utility and the qualifying facility or at rates for short-term energy purchases as established by the Commission in accordance with the provisions of this chapter. The utility obligation to purchase energy which is made available from a qualifying facility at short-term energy rates shall remain effective until the date of retail access.

2. Obligation to sell to qualifying facilities. Prior to the date of retail access, each electric or transmission and distribution utility shall sell to any qualifying facility, in accordance with this chapter, any energy and capacity and transmission and distribution services requested by the qualifying facility, provided the qualifying facility is located within the utility's service territory. After the date of retail access, each electric or transmission and distribution utility shall sell to any qualifying facility any transmission and distribution service available to other retail customers requested by the qualifying facility, provided the qualifying facility is located within the utility's service territory.

3. Obligation to interconnect

a. Any electric or transmission and distribution utility shall make such interconnections with any qualifying facility as may be necessary to accomplish purchases or sales by any utility under this chapter provided, however, that no interconnection shall be made unless the interconnecting utility inspects the interconnection facility and determines that the facility:

i) complies with the requirements of the National Electric Safety Code;

ii) provides reasonable protection of the interconnecting utility's generating, transmission and distribution systems; and

iii) is designed to prevent a violation of the prohibition contained on § 4(C)(1)(c). The obligation to pay for any interconnection costs shall be determined in accordance with subsection F of this section.

b. No interconnecting utility may unreasonably refuse to inspect an interconnection facility nor may a utility unreasonably delay the performance of any such inspection.

4. Parallel operation. Each electric utility shall offer to operate in parallel with a qualifying facility.

C. Rates for Purchases

1. General Provisions

a. Rates for purchases shall:

i) be just and reasonable with respect to the customers of the electric or transmission and distribution utility and in the public interest; and

ii) not discriminate against qualifying cogeneration and small power production facilities.

b. Nothing in this section requires any electric or transmission and distribution utility to pay more than its avoided costs for purchases nor shall this chapter be construed to limit or otherwise discourage an electric or transmission and distribution utility or qualifying facility from negotiating any reasonable price or other contract terms agreeable to the utility and the qualifying facility.

2. Short term energy purchases

a. Prior to the date of retail access, with respect to purchases of energy made by electric or transmission and distribution utilities from qualifying facilities on an as available basis the rates established by the Commission shall equal the avoided energy costs determined in accordance with section 3 after consideration of the factors set forth in paragraphs 4 of this subsection.

b. For periods after the date of retail access, the Commission shall set rates in accordance with the following procedures.

(i) Filing. On January 15, 2000 and on January 15 of each succeeding year, each transmission and distribution utility that has a qualifying facility contract that contemplates Commission-established short term energy rates for the 12 month period beginning March of that year shall file rates with the Commission calculated as described in this subparagraph and serve copies of the filing on a predetermined service list. The short term energy rates shall be calculated as the sale prices accepted pursuant to the sale of the rights to the energy component of qualifying facilities contracts pursuant to 35-A M.R.S.A. § 3204(4) for each month during the 12 month period beginning March of that year. The short term energy rates shall be time differentiated for the same periods and expressed on a cents-per-kilowatt hour basis with the same number of significant digits as in short-term energy rates in effect as of January 1, 1997.

(ii) Procedure. Any interested person may object to the utility's proposed short term energy rates by demonstrating that the rates are not reasonably representative of short-term wholesale energy costs in Maine or are otherwise inconsistent with law. Objections must be filed by February 15. If no objections are filed, the short term energy rates shall become effective on March 1 unless suspended by the Commission or its Director of Technical Analysis. If an objection is filed, the Commission or its Director of Technical Analysis may suspend the filing. In the event the filing is suspended, the Commission will adopt procedures for establishing short-term energy rates.

3. Standard rates for energy and capacity purchases

a. Prior to the date of retail access, standard rates for purchases of energy by a utility will be established by the Commission in accordance with section 3 after consideration of the factors in paragraphs 4 and 5 of this subsection. These rates will be available to any qualifying facility with an installed capacity of 1,000 kilowatts or less that elects to sell energy as available and that has been unable to reach a negotiated price with the electric or transmission and distribution utility.

b. Prior to the date of retail access, standard rates for purchases of energy and capacity sold by a qualifying facility pursuant to a 5, 10, 15, or 18-year contract will be established by the Commission after review of the filing of avoided cost data filed by the utility pursuant to section 3 of this chapter and consideration of the factors in paragraphs 4 and 5 of this subsection. These rates will be available to any qualifying facility that has an installed capacity of 1,000 kilowatts or less that has been unable to negotiate a contract with the electric utility. Separate time differentiated rates shall be established.

c. Prior to the date of retail access, standard rates established pursuant to subsections (a) and (b) above will correspond to the blocks described in section 3. In determining whether the standard rates for a block have been committed and thus no longer available to qualifying facilities, the Commission will compare the total avoided cost associated with a block to the total estimated cost of the purchases from qualifying facilities that have executed contracts since the standard rates were established.

d. For periods after the date of retail access, the Commission shall set standard rates for purchase of energy and capacity sold by a qualifying facility with an installed capacity of 1,000 kilowatts or less in accordance with the following procedures:

i. Filing. On January 15, 2000 and on January 15 of each year following a new sale of the rights to capacity and energy of qualifying facility contracts pursuant to 35-A M.R.S.A. § 3204(4), each transmission and distribution utility that has a qualifying facility contract that contemplates Commission-established standard rates for purchases of energy and capacity shall file rates with the Commission calculated as described in this subparagraph and serve copies of the filing on a predetermined service list. The capacity and energy rates shall be calculated as the sale prices accepted pursuant to the sale of the rights to the energy and capacity components of qualifying facility contracts pursuant to 35-A M.R.S.A. § 3204(4) for each month beginning March 1 and continuing until the end of the sale period. The capacity and energy rates shall be time differentiated.

ii. Procedure. Any interested person may object to the utility's proposed capacity and energy rates by demonstrating that the rates are not reasonably representative of wholesale capacity and energy costs in Maine or are otherwise inconsistent with law. Objections must be filed by February 15. If no objections are filed, the capacity and energy rates shall become effective on March 1 unless suspended by the Commission or its Director of Technical Analysis. If an objection is filed, the Commission or its Director of Technical Analysis may suspend the filing. In the event the filing is suspended, the Commission will adopt procedures for establishing capacity and energy rates.

4. Factors affecting rates for purchases of energy. In determining rates for purchase of energy, the Commission may consider the following factors to the extent practicable.

a. The availability of energy from a qualifying facility during on-peak and off-peak periods.

b. The ability of the utility to dispatch the qualifying facility. If the utility is able to dispatch the output of the qualifying facility, without reducing the total energy production of the qualifying facility, the energy portion of the standard rates established by the Commission pursuant to paragraph 3(a) and (b) shall be increased 3 percent unless otherwise ordered by the Commission.

c. The extent to which scheduled outages of the qualifying facility can be usefully coordinated with scheduled outages of the utility's facilities. If the utility is able to schedule the maintenance of the qualifying facility, the energy portion of the standard rates established by the Commission pursuant to paragraph 3(a) and (b) shall be increased 1 percent unless otherwise ordered by the Commission.

d. The costs or savings resulting from variations in line losses from those that would have existed in the absence of purchases from a qualifying facility. Unless otherwise ordered by the Commission, the rates established for purchases from any specific qualifying facility shall be increased to reflect the same level of line losses as used to establish retail rates for any class of customer that is served at a similar voltage level.

e. The usefulness of energy supplied from a qualifying facility during system emergencies, including its ability to separate its load from its generation.

5. Factors affecting rates for purchases of energy and capacity. In establishing rates for the purchase of capacity and energy the Commission may consider the factors discussed in subsection 4 above and, in addition, may consider the following factors to the extent practicable.

a. The availability of capacity from a qualifying facility during on-peak and off-peak periods.

b. The expected or demonstrated reliability of the qualifying facility.

c. The terms of any contract or other legally enforceable obligation, including the duration of the obligation, termination notice requirement and sanctions for non-compliance;

d. The individual and aggregate value of capacity from qualifying facilities on the electric utility's system.

6. When the Commission determines standard rates pursuant to this section, the Commission will aggregate qualifying facilities and treat them as one in considering the factors listed in paragraphs 4 and 5.

D. Periods During Which Purchases Are Not Required

1. Any electric or transmission and distribution utility which gives notice pursuant to paragraph 2 of this subsection will not be required to purchase electric energy or capacity during any period during which, due to operational circumstances, purchases from qualifying facilities can reasonably be expected to result in negative avoided costs.

2. Any electric or transmission and distribution utility seeking to invoke paragraph 1 of this subsection must notify the Commission and each affected qualifying facility at least 48 hours prior to period described above. Such notice shall include a description of the operational circumstances, and the duration of the period.

3. Any electric or transmission and distribution utility which fails to comply with the provisions of paragraph 2 of this subsection or which unreasonably invokes the provisions of this subsection will be required to pay the same rate for such purchase of energy or capacity as would be required had the period described in paragraph 1 of this subsection not occurred.

E. Additional Services to be Provided to Qualifying Facilities

1. Prior to the date of retail access, upon request of a qualifying facility in the utility's service territory, each electric or transmission and distribution utility shall provide at reasonable rates:

a. supplementary power;

b. back-up power;

c. maintenance power; and

d. interruptible power.

After the date of retail access, upon request of a qualifying facility, each electric or transmission and distribution utility shall provide at reasonable rates transmission and distribution services.

2. The Commission may waive any requirement of subsection (E)(1) of this section if, after notice in the area served by the utility and after opportunity for a public hearing, Commission finds that compliance with such requirement will:

a. impair the utility's ability to render adequate service to its customers; or

b. place an undue burden on the utility.

F. Interconnection Costs

1. Obligation to pay. Each qualifying facility shall be obligated to pay all interconnection costs as defined in this chapter.

§5 NET ENERGY BILLING

A. Net Billing Prior to Retail Access

1. Customer Qualification. Any qualifying facility that has an installed capacity of 100 KW or less may at its option sell electricity to an electric utility on a net energy billing basis.

2. Rates. Net energy sales during any billing period shall be at rates established pursuant to section 4(C)(2).

3. Second Meter. Nothing in this subsection shall prohibit a utility from installing additional meters to record purchases and sales separately, provided, however, that no qualifying facility which elects to sell electricity on a net energy billing basis shall be charged for the cost of the additional meters or other necessary equipment.

4. New Contracts. Any qualifying facility that has an installed capacity of 100 kW or less may obtain a customer net energy billing contract pursuant to this subsection. Any such new contract must terminate on or before February 28, 2000. Except for the contract duration and rates, contracts entered pursuant to this subsection shall contain the terms identical to those in the utility's existing customer net energy billing standard contract. The terms of the standard contract may be modified subject to Commission approval.

B. Net Billing Pursuant to Existing Contracts After Retail Access

1. Existing Customer Net Billing Contracts. Any qualifying facility that has an existing customer net energy billing contract on the effective date of this section shall be billed by the transmission and distribution utility on a net energy basis for the duration of the contract.

2. Generation Service After Retail Access. Any qualifying facility that has an existing customer net energy billing contract may obtain retail generation service on a net billing basis from any competitive electricity provider that agrees to provide service and purchase energy on such a net energy basis. If the qualifying facility obtains generation service from the standard offer, the standard offer provider(s) shall provide service and purchase energy on a net energy basis. If there are more than one standard offer providers in a service territory, each provider shall purchase net energy in the same proportion as its standard offer obligation.

3. Rates. If the qualifying facility obtains retail generation service from a competitive electricity provider, net energy during any billing period shall be purchased by the competitive electricity provider at rates agreed upon by the qualifying facility and the competitive electricity provider. If the qualifying facility obtains standard offer service, net energy during any billing period shall be purchased by the standard offer provider(s) at rates established pursuant to the existing contract.

4. Second Meter. Nothing in this subsection shall prohibit a utility from installing additional meters to record purchases and sales separately, provided, however, that no qualifying facility which elects to sell electricity on a net energy billing basis shall be charged for the cost of the additional meters or other necessary equipment.

§6 SYSTEM EMERGENCIES

A. Discontinuance of Purchases and Sales During System Emergencies. During any system emergency, an electric or transmission and distribution utility may discontinue:

1. purchases from a qualifying facility if such purchases would contribute to such emergency; and

2. sales to a qualifying facility, provided that such discontinuance is on a nondiscriminatory basis.

§7 COMMISSION PROCEDURES

A. Petition For Establishing Rates, Terms, and Conditions

1. Filing. If after good faith negotiations a qualifying facility and an electric or transmission and distribution utility are unable to reach an agreement, the qualifying facility or utility may petition the Commission to establish any rate, term, condition or other provision of a contract that is rendered impractical or impossible to perform or implement as a result of the restructuring of the electric industry.

2. Contents. The petition shall include the names and addresses of the qualifying facility and the utility, a description of the rate, term, condition or other contractual provision for which the petitioner seeks Commission intercession, an explanation of why the rate, term, condition or other contractual provision has been rendered impractical or impossible to perform or implement as a result of the restructuring of the electric industry, a copy of the contract, and any Commission orders relevant to the intent and purposes of the disputed provisions.

3. Service. The petitioner shall serve a copy of the petition by regular mail or fax to the affected utility or qualifying facility.

4. Response. The affected utility or qualifying facility shall file a response to the petition within 7 days of receiving service.

5. Timing. The Commission shall issue an order resolving the issues raised by the petition within 90 days of filing.

6. Resolution. The Commission shall make a finding as to whether the disputed rate, term, condition, or other contractual provision has been rendered impractical or impossible to perform or implement as a result of the restructuring of the electric industry. If the Commission makes such a finding, it shall establish a rate, term, condition, or other contractual provision that preserves the intent and purposes embodied in the disputed contractual provision(s).

B. Commission Investigation

The Commission at any time may initiate an investigation or any person may petition the Commission to initiate an investigation of any matters relevant to the matters contained in this Chapter. The petition shall contain an explanation of the scope of the investigation sought. The Commission shall determine within sixty (60) days of the filing whether an investigation shall be opened. If a Notice of Investigation is not issued within 60 days, the request is denied. If an investigation is opened, procedures set forth in subsection B shall be followed.

§8 SMALL ELECTRIC UTILITIES

A. Applicability. This section applies to each small electric utility. Except as specified, other sections of this rule shall not apply to small electric utilities. This section shall remain in effect until the date of retail access.

1. Wheeling utility. If a small electric utility agrees to wheel the power of a qualifying facility to another utility under terms mutually agreeable or as set by the Commission, the small electric utility shall be exempt from this chapter.

2. Non-Wheeling utility. If a small electric utility and a qualifying facility do not wish to wheel the qualifying facility's power, the small electric utility shall be subject to the conditions set forth in subsection B through D.

B. Availability of small electric utility system cost data

1. Information provided on request. Each small electric utility subject to subsection A, paragraph 2 shall upon request of any qualifying facility:

a. Provide comparable data to that required under subsection B of section 3.

b. With regard to an electric utility which obtains its requirements for electric energy and capacity primarily from another electric utility or utilities, the utility may, at its option, provide the data of its supplying utility and the rates at which it currently purchases such energy and capacity.

2. Failure to provide information on request. If any such electric utility fails to provide such information on request, the qualifying facility may apply to the Commission for an order requiring that the information be provided.

C. Groups of small electric utilities. Two or more small electric utilities may form a group for the purpose of negotiations with and purchases from one or more qualifying facilities when the formation of such a group facilitates such negotiations and purchases. When such a group is formed, for the purposes of this rule, the Commission shall consider it as if it were a single small electric utility.

D. Obligation to Purchase from Qualifying Facilities. Each small electric or transmission and distribution utility subject to subsection A, paragraph 2 shall purchase any energy which is made available directly to the utility from a qualifying facility at a price and under terms agreeable to the utility and the qualifying facility or as established by the Commission in accordance with the provisions of this chapter.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission's Statement of Factual and Policy Basis and Order Adopting Rule, Commission Docket No. 97-794, issued on March 10, 1998. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 1301, 1306, 3301-3308; P.L. 1997, ch. 316, §§ 5, 6, 7, 8, 9.
• EFFECTIVE DATE (as Chapter 36): May 13, 1981
• AMENDED: July 14, 1982
• AMENDED: June 28, 1984
• AMENDED: July 16, 1984- Sec. 6(B) (Changed Secretary to Administrative Director
• AMENDED: June 7, 1985 - Section 4(C)(3)(f) and Appendix A
• AMENDED: March 28, 1987
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• EFFECTIVE DATE (as Chapter 360): This rule was approved as to form and legality by the Attorney General on March 17, 1998. It was filed with the Secretary of State on March 17, 1998 and will be effective on March 22, 1998.
• EFFECTIVE DATE (as Chapter 360): APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 395 Construction Standards, Ownership, Cost Allocation, and Customer Charges Rules for Electric Distribution Line Extensions and Service Drops

Code Me. R. 65-407 Ch. 395 Construction Standards, Ownership, Cost Allocation, and Customer Charges Rules for Electric Distribution Line Extensions and Service Drops {#sec-65-407-ch.-395 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 395}

SUMMARY: This Chapter establishes the requirements for persons who construct electric distribution line extensions, including the development and approval of construction standards qualifications to perform tasks associated with building line extensions, and dispute resolution procedures. In addition, it governs the ownership of electric distribution line extensions and the method for reapportioning construction costs among customers who receive service from them. The Chapter contains a methodology and process for setting electric distribution line extension charges for investor-owned transmission and distribution utilities. Finally, the Chapter establishes cost, installation and maintenance responsibilities for service drops.

§ 1 DEFINITIONS 4

§ 2 PURPOSE AND APPLICABILITY 6

A. Purposes 6

B. Applicability 6

§ 3 STANDARDS FOR CONSTRUCTION OF LINE EXTENSIONS 6

A. Standards 6

1. NESC 6

2. RUS7 6

3. Utility Standards 6

B. Submission of Standards 6

1. Terms and Conditions 6

2. Submission; Approval 6

3. Interested Persons List; Comments 7

4. Requests to Adopt or Modify Standards; Investigations 7

5. Requests to Modify NESC 7

C. Approval of Standards 7

1. NESC 8

2. Utility Standards 8

3. Transition Period 8

D. Emergency Revisions 8

E. Changes Allowing Greater Flexibility in Construction Requirements or

Procedures; Changes Allowing Alternative Materials 8

1. More Flexible Standard 8

2. Term and Condition Allowing Alternative Materials 8

F. Availability of Standards 9

1. NESC 9

2. RUS 9

3. Utility Standards 9

§ 4 DETERMINATION OF LINE EXTENSIONS AS SAFE, RELIABLE AND IN

COMPLIANCE WITH STANDARDS 9

A. Determination Required 9

B. Determination by T&D Utility 9

C. Determination by Others 9

D. Dispute 9

§ 5 DISPUTE RESOLUTION 9

A. Single Point of Contact 9

B. Contesting Operational Procedures 9

C. Commission Investigation 10

1. Referral 10

2. Dispute Resolution 10

3. Investigation 10

§ 6 OWNERSHIP AND MAINTENANCE OF LINE EXTENSIONS 10

A. Ownership 10

1. Line Extension in a Public Way 10

2. Developments 10

3. Multiple Customers 10

B. Ownership by Private Person Permitted 10

1. On Public Way; Single Customer 10

2. On Private Way; Single Customer 11

3. Interconnection Points 11

4. Developments 11

5. Maintenance Obligations for Privately-Owned Line Extensions; Contract 11

6. Standard Form Contract 11

7. Connection Obligations for Privately-Owned Line Extensions; Easements 12

C. Required Maintenance or Disconnection of Privately-Owned Facilities by Utility 12

1. Public Way 12

2. Private Property 12

3. Interconnection Point 12

4. Licensing Authority Requirements 12

5. Temporary Disconnection 12

§ 7 TRANSFER OF OWNERSHIP; TAXES ON CONTRIBUTION IN AID OF

CONSTRUCTION 12

A. Line Extensions in Developments 13

B. Optional Transfer of Ownership 13

C. Additional Customers 13

D. Compensation to Customers for Transfers of Ownership of Line Extensions 13

E. Cost Obligation of Owner Transferring Line Extension Pursuant to

Subsections A or B 13

1. Taxes on Contribution in Aid of Construction or Contribution of Facilities 13

2. Interconnection Costs 14

3. Compliance Costs 14

4. Costs to Upgrade the Existing Distribution System 14

5. Easement and Permit Costs 14

6. Other Costs 14

F. Cost Obligation of Owner Transferring Line Extension Pursuant to Section 7(C) 14

1. Taxes on Contribution in Aid of Construction 14

2. Other Costs 15

§ 8 ENERGIZING AN ELECTRIC LINE EXTENSION 15

A. Certification 15

B. Pending Dispute Resolution 16

C. Privately-Owned Line Extensions When Ownership is Transferred 16

D. Privately-Owned Line Extensions Serving Single Customers 16

E. Privately-Owned Line Extensions; Additional Customer 16

§ 9 ALLOCATION OF LINE EXTENSION COSTS AMONG CUSTOMERS 16

A. Applicability 16

B. Initial Allocation Required for Two or More Customers 16

C. Additional Customer 16

1. Reallocation 16

2. Payment by New Customer 16

3. Distribution to Old Customers of Payment by New Customer 16

4. Substitution of Customer 17

5. Loss of Customer Location 17

D. Allocation of Line Extension Costs 17

1. Allocation Method 17

2. Determination of Construction Costs 17

3. Application of Allowance or Low-Income Support 18

4. Allocation of Support or Other Monthly Charges 18

E. Additional Line Extensions Added to Earlier Line Extensions 18

§ 10 LINE EXTENSION CHARGES FOR TRANSMISSION AND

DISTRIBUTION UTILITIES 18

A. Methodology 18

1. Single-Phase Line Extensions 19

2. Polypase Line Extensions 19

B. Telephone Contribution 19

C. Make-Ready Work 19

D. Cost Recovery 19

E. Applicability 20

F. Annual Reports 20

1. Filing Date 20

2. Report Contents 20

G. Investigation/Establishment of Charges 22

§ 11 SERVICE DROP COST RESPONSIBILITY, OWNERSHIP

AND MAINTENANCE 23

A. Above-Ground Service Drops 23

1. Installation 23

2. Cost Responsibility 23

3. Ownership and Maintenance 23

B. Underground Service Drops 23

1. Customer Election 24

2. Ownership 24

3. Installation and Maintenance 24

4. Cost Responsibility 24

C. Applicability 24

D. Prior Ownership Arrangements 24

§ 12 WAIVER 24

§ 1 DEFINITIONS

The following definitions apply to the provisions of this Chapter:

A. Contribution in Aid of Construction (CIAC). A “contribution in aid of construction” (or “CIAC”) is a payment to a transmission and distribution (T&D) utility for the construction of an electric line extension that is taxed as income to the T&D utility.

B. Consumer-Owned Transmission and Distribution Utility. A “Consumer-owned transmission and distribution utility” has the same meaning as contained in Title 35-A,section 3201(6).

C. Contribution of Facilities. A “contribution of facilities” is the transfer of ownership of a line extension to a utility for which the utility does not pay the transferring owner, and that is taxed as income to the T&D utility.

D. Development. ”Development” means property owned or under the control of a single person, entity or association when that single person, entity or association has offered two or more parcels within the property for sale or it is reasonable to expect that two or more parcels within the property will be offered for sale.

E. Electric Distribution Line Extension. “Electric distribution line extension” means any new single-phase or polyphase distribution facility that will be connected to a T&D utility’s distribution system after the new facility’s completion. An electric distribution line extension does not include a “service drop.”. For the purpose of reallocation of the costs of a line extension pursuant to section 9, a line extension shall be considered to last 20 years from the date that the line extension first provided service to a customer.

F. Interconnection point. “Interconnection point” means the point, located on a pole or other structure, that separates a line extension, or a portion thereof, that is privately-owned from electric distribution facilities (including a portion of the line extension) owned by the T&D utility.

G. Licensing Authority. “Licensing authority” means the “applicable licensing authority” defined in 35-A M.R.S.A. §2502(1) that must issue a location permit pursuant to 35-A M.R.S.A. §2503 for a person to construct or own facilities in a public way.

H. Line Extension. “Line extension” means an “electric distribution line extension,” as defined above.

I. Make-Ready Work. "Make-ready work" means work necessary to connect an electric distribution line extension to existing utility infrastructure.

J. National Electric Safety Code (NESC). “National Electric Safety Code (NESC)” is a set of standards developed by the Institute of Electrical and Electronics Engineers (IEEE) and approved by the American National Standards Institute (ANSI) that is designed to ensure safe installation, operation and maintenance of electric supply and communication lines and associated equipment, and that T&D utilities in Maine must comply with pursuant to the provisions of 35-A M.R.S.A. §2305-A.

K. Person. “Person” means an individual, corporation, or any other legal entity.

L. Private Line Extension Contractor. “Private line extension contractor” means a person who is not an employee of a T&D utility or otherwise acting on the utility’s behalf and is constructing a line extension under a contract with a non-utility person.

M. Private Way. “Private way” means any location that is not a public way.

N. Privately-Constructed Line Extension. “Privately-constructed line extension” means an electric line extension constructed by a private line extension contractor.

O. Privately-Owned Line Extension. “Privately-owned line extension” means a line extension that is located on a public or private way and is owned by a person who is not a T&D utility.

P. Public Way. “Public way” means a street or public right-of-way that has been accepted and is owned or controlled by a municipal, county or state government.

Q. Registered Professional Engineer. “Registered professional engineer” means a registered professional engineer licensed by the Maine Board of Registration for Professional Engineers.

R. Rural Utilities Service (RUS); RUS Standards. The “Rural Utilities Service” is an agency of the United States Department of Agriculture that provides loans and other assistance to cooperatives and utility districts that provide electric service in rural areas. “RUS standards” are the “Electric Standards And Specifications For Materials And Construction” contained in the regulations of the RUS at 7 C.F.R. Part 1728. The RUS requires that any utility that borrows money through the USDA loan program must follow the RUS standards.

S. Service Drop. A “service drop” is the service cable or other conductor and associated equipment that provides secondary voltage to the customer’s service entrance equipment from a transformer or from a secondary conductor located on the utility’s distribution system or on a privately-owned line extension. A “service drop” does not include a transformer or poles.

T. Standard. “Standard” means a requirement that governs the design, construction and certification of an electric line extension that is approved and implemented pursuant to this Chapter. “Standards” include “utility line construction standards,” the NESC, and the RUS, if applicable.

U. Transmission and Distribution (T&D) Utility. “Transmission and distribution utility” means a person, its lessees, trustees or receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

V. Utility. “Utility” means a transmission and distribution (T&D) utility.

W. Utility Line Construction Standards. “Utility line construction standards” means the requirements, other than those imposed by the National Electric Safety Code (NESC) or the Rural Utilities Service (RUS), of a T&D utility that apply to electric distribution line extensions and that a constructor of a line extension must meet before, during, or after the construction of a line extension prior to the energization of the line. Utility line construction standards may be contained in a utility’s Terms and Conditions or in a separate document that is incorporated by reference in its Terms and Conditions. They include but are not limited to construction procedures and specifications for facilities and materials.

§ 2 PURPOSES AND APPLICABILITY

A. Purposes. The purposes of this Chapter are to ensure construction of safe and reliable electric distribution line extensions, to allow competition in the construction of line extensions to occur in an equitable and economically efficient manner, to govern ownership of line extensions, to allocate construction costs among users of a line extension, to establish a methodology for setting electric distribution line extension charges for transmission and distribution utilities, and to establish the responsibility for the installation, cost, ownership and maintenance of service drops.

B. Applicability. The provisions of this Chapter apply to T&D utilities, to private line extension contractors, and to customers that own and/or connect to line extensions or service drops.

§ 3 STANDARDS FOR CONSTRUCTION OF LINE EXTENSIONS

A. Standards. All line extensions, whether constructed by a utility or a private line extension contractor, shall be constructed in compliance with the following standards:

1. NESC. National Electrical Safety Code (NESC), except as modified pursuant to 35-A M.R.S.A. §2305-A(4);

2. RUS7. Rural Utility Service (RUS), if the T&D utility is subject to oversight by the Rural Electrification Administration; and

3. Utility Standards. The line construction standards of the utility to whose transmission and distribution system the line extension is to be connected.

B. Submission of Standards

1. Terms and Conditions. All utility line construction standards shall be part of the utility’s Terms and Conditions but may be located in a separate document and referenced in the main volume of the Terms and Conditions.

2. Submission; Approval. A T&D utility shall submit its initial utility line construction standards and any subsequent revisions to the Commission pursuant to 35-A M.R.S.A. §307. The initial standards shall be submitted no later than 91 days (13 weeks) following the effective date of this Chapter. A T&D utility shall not implement a utility line construction standard until it receives the Commission’s approval pursuant to subsection C(2) below, except as permitted by subsection C(3) below.

3. Interested Persons List; Comments

a. List. Each T&D utility shall maintain a list of persons who have requested notice of and an opportunity to comment on its utility line construction standards.

b. Notice. Each T&D utility shall provide copies of its initial proposed utility line construction standards and any proposed revisions to persons on the list required by subparagraph a. When providing a proposed standard to persons on the list, the utility shall inform those persons that they have 35 days to provide comments concerning the utility’s initial standards and 14 days for any revisions to the standards.

c. Consideration of Comments. The utility shall consider information it receives from persons submitting comments before it submits the initial or revised standards to the Commission and, in its filings, shall inform the Commission of the information it considered.

d. Emergency Revisions. If a T&D utility files a change to its standards as provided in subsection D below, it may make the filing without providing notice of the proposed change to persons on the list required by paragraph 3(a) above, but shall immediately thereafter send copies to persons on the list and within 7 days after receiving comments, inform the Commission of the information it received.

e. Changes Pursuant to Subsection E. If a utility makes a change to its standards that allows greater flexibility in construction requirements or procedures, or changes allowing alternative materials, as permitted by subsection E below, the utility shall provide notice to the persons on the list required by this subsection and on its website as soon as possible, either before or after the effective date of the change. Within 28 days following notice, the utility shall inform the Commission of any negative comments.

4. Requests to Adopt or Modify Standards; Investigations. Any person may request the Commission to require a utility to adopt or modify any utility line construction standard. Upon receiving such a request, the Commission may conduct an investigation pursuant to the provisions of 35-A M.R.S.A. §1303.

5. Requests to Modify NESC. Any person may request the Commission to modify, delete or waive any requirement of the NESC pursuant to the provisions of 35-A M.R.S.A. §2305-A(4).

C. Approval of Standards

1. NESC. A revision to a NESC standard shall apply to the construction and maintenance of line extensions pursuant to the provisions of 35-A M.R.S.A. §2305-A.

2. Utility Standards. The Commission shall consider and approve the Terms and Conditions encompassing utility line construction standards required by subsection B(1) above pursuant to the provisions of 35-A M.R.S.A. §307.

3. Transition Period. Until the Commission approves initial utility line construction standards:

a. All persons constructing line extensions within a T&D utility’s service territory shall comply with the utility line construction standards on file with the T&D utility; and

b. Standards for all persons constructing line extensions within a T&D utility’s service territory shall be identical.

D. Emergency Revisions. If a T&D utility believes a change to its standards is necessary because of an imminent risk to the safety of the public or of utility employees, the utility may submit the proposed change to the Commission with a request that the Commission approve the change on less than 30 days notice. The utility shall provide notice of the proposed change to persons on the list required by subsection B(3) above, and information about any comments it receives as required by subsection B(3)(d) above.

E. Changes Allowing Greater Flexibility in Construction Requirements or Procedures; Changes Allowing Alternative Materials

1. More Flexible Standard. If a utility files a change to its standards and represents to the Commission that the change allows less stringent or more flexible construction requirements or procedures, or alternative or substitute materials, the change shall become effective immediately.

2. Term and Condition Allowing Alternative Materials. A utility may include a general provision in its standards (Terms and Conditions) stating that utility personnel may specify or approve an alternative for a material required by the standards if the alternative is of the same or better quality. A utility with an approved Term and Condition permitted by this paragraph shall designate a contact person for the purpose of allowing private line extension contractors and other persons to make a request to use an alternative material. A utility that begins to use or approves an alternative material pursuant to a general Term and Condition permitted by this section shall update its materials standards as soon as possible thereafter if the alternative may be used on an ongoing basis. A utility that makes any change in methods, procedures or permitted materials pursuant to this subsection shall provide notice of the change as provided in subsection B(3)(e) above.

F. Availability of Standards

1. NESC. A T&D utility shall provide a means by which an interested person may obtain a copy of the NESC or information about how to obtain a copy.

2. RUS. If a utility must comply with the RUS standards (7 C.F.R. Part 1728), it shall provide a means by which an interested person may obtain a copy of those standards or information about how to obtain a copy, and shall maintain an internet link to those standards if it has a website and the standards are available on the internet.

3. Utility Standards. A T&D utility shall maintain a copy of its utility line construction standards at its central administrative office and on its website, if it has a website. A T&D utility shall provide a copy of its utility line construction standards to any person upon request. The T&D utility may impose a fee that does not exceed its cost of producing the copy of the standards requested.

§ 4 DETERMINATION OF LINE EXTENSION AS SAFE, RELIABLE AND IN COMPLIANCE WITH STANDARDS

A. Determination Required. Before a line extension in a public or a private way is energized, the private line extension contractor or an owner of a line extension must obtain one of the determinations required by this section.

B. Determination by T&D Utility. Upon the request of a private line extension contractor or an owner of a line extension, a T&D utility employee designated by the T&D utility shall inspect the line extension within 5 business days of the request and determine whether the line extension is safe; or

C. Determination by Others. Either (1) a registered professional engineer or (2) a person licensed to certify electric distribution line extension construction by the Maine Office of Licensing and Registration or by another State agency designated by law shall determine and state in writing that the line extension is safe, reliable, and constructed in compliance with the standards required by this Chapter.

D. Dispute. In a period of widespread power outages caused by weather or other emergency conditions, the T&D utility may extend by a reasonable number of days the 5-day period required by subsection 4(B).

§ 5 DISPUTE RESOLUTION

A. Single Point of Contact. Each T&D utility and private line extension contractor must designate a contact person to deal with other persons and the Commission during disputes regarding the operation of this Chapter or any standards implemented pursuant to this Chapter.

B. Contesting Operational Procedures. Any person that constructs line extensions may contest an application or interpretation of this Chapter by a T&D utility or by a private line extension contractor. The contact persons designated pursuant to subsection A shall attempt in good faith to resolve the dispute. If the parties are unable to resolve the dispute within 3 business days, any party to the dispute shall have the option to request the Commission to initiate the dispute resolution procedures described in subsection C. In a period of widespread power outages caused by weather or other emergency conditions, any party to the dispute may extend by a reasonable number of days the 3-day period required by this subsection.

C. Commission Investigation. Following the dispute resolution process described in subsection B, a person participating in the process who is dissatisfied with the result may request the Commission to investigate the dispute. The Commission may take any of the following actions to address the dispute:

1. Referral. Refer the dispute to the Department of Professional and Financial Regulation, the Maine Office of Licensing and Registration or other State agency that has licensing authority over the design, construction or certification of line extensions if the Commission believes it to be the appropriate jurisdictional authority;

2. Dispute Resolution. Conduct informal dispute resolution pursuant to Chapter 110 of the Commission’s Rules; or

3. Investigation. Conduct a summary or formal investigation pursuant to 35‑A M.R.S.A. §1303.

§ 6 OWNERSHIP AND MAINTENENCE OF LINE EXTENSIONS

A. Ownership

1. Line Extension in a Public Way. Except as provided in subsection B(1), and except when a telephone utility owns, or jointly owns with the T&D utility, poles or other structures to which a T&D utility attaches its facilities, a T&D utility shall own all portions of a line extension located in a public way.

2. Developments. A T&D utility shall own a line extension that was constructed to serve a development if the line extension delivers power to any structures in the development.

3. Multiple Customers. A T&D utility shall own a line extension, wherever located, if more than one customer receives service from the line extension.

B. Ownership by Private Person Permitted

1. On Public Way; Single Customer. A person who is not a T&D utility may own a line extension that is located on a public way if it provides electric service to only one customer, and if the person complies with and obtains all necessary permits from the licensing authority pursuant to 35-A M.R.S.A. §§ 2305-B, 2503 and 2507. If a single customer receives electric service from more than one location on a line extension, including from separate meters, the person or entity shall be considered one customer for the purposes of this paragraph.

2. On Private Way; Single Customer. A person who is not a T&D utility may own a line extension that is located on a private way if it provides electric service to only one customer. If a single customer receives electric service from more than one location on a line extension, including from separate meters, the person or entity shall be considered one customer for the purposes of this paragraph.

3. Interconnection Points. A person who is not a T&D utility may own a pole or other structure containing an interconnection point, including a pole to which a riser conduit is attached, whether the structure is located on a private way or a public way, provided that the person complies with and obtains all necessary permits from the licensing authority pursuant to 35-A M.R.S.A. §§ 2305-B, 2503 and 2507 and the line extension connected to the interconnection point provides electric service to only one customer, as described in paragraph 1 above.

4. Developments. A person who causes the construction of a privately-constructed line extension that serves a development may own the line extension until the line extension delivers power to any structure.

5. Maintenance Obligations for Privately-Owned Line Extensions; Contract. A person who owns a privately-owned line extension must execute a written contract with the T&D utility, which the utility must file with the appropriate registry of deeds. The contract shall require the person to:

a. Maintenance. Maintain and repair the privately-owned line extension, including any pole or other structure containing an interconnection point, as required by the standards approval pursuant to section 3, and pay for any maintenance or repair that the utility must perform under the circumstances described in subsection C below;

b. Interconnection Point. Permit the utility unrestricted access to the interconnection point;

c. Transfer of Ownership. Transfer ownership to a T&D utility if required by sections 7(A), (B), or (C) of this Chapter; and

d. Licensing Authority Requirements. Follow all requirements imposed by the applicable licensing authority if the line extension is located in a public way, or if the interconnection point is located in a public way or affects activities of the licensing authority in the public way, and pay for any repairs, maintenance or moving of facilities performed by the utility under the circumstances described in subsection C(2) below.

6. Standard Form Contract. For the contracts required by Paragraph 4 above, a T&D utility shall use a standard form contract filed by the utility and approved by the Commission or the General Counsel of the Commission. If a T&D utility enters into a contract that differs from an approved standard form contract approved by the Commission, it shall obtain approval of the contract from the Commission pursuant to 35-A M.R.S.A. §703(3-A). The Commission delegates to its General Counsel the authority to approve standard form contracts or revisions to those contracts and contracts filed pursuant to 35-A M.R.S.A. §703(3-A).

7. Connection Obligations for Privately-Owned Line Extensions; Easements. A T&D utility may connect an additional customer to a privately-owned line extension, subject to the ownership transfer requirements of section 7(C), provided that the additional customer obtains any necessary easements. The additional customer shall grant all necessary easements to the T&D utility.

C. Required Maintenance or Disconnection of Privately-Owned Facilities by Utility

1. Public Way. When, as permitted under the provisions of subsection B above, a person who is not a T&D utility owns a line extension in a public way, and the T&D utility determines that the privately-owned line extension jeopardizes the safety of the public or utility employees or presents a risk to the reliability of the T&D distribution system, the T&D utility shall maintain or repair the line extension and shall charge the owner its cost of carrying out the maintenance or repair.

2. Private Property. When, as permitted under the provisions of subsection B above, a person who is not a T&D utility owns a line extension on private property, and the T&D utility notices that the privately-owned line extension jeopardizes the safety of the public or utility employees or presents a risk to the reliability of the T&D distribution system, the T&D utility may disconnect the line. If a T&D utility disconnects a line pursuant to this paragraph, it shall notify the customer of the disconnection and the reasons for the disconnection as soon as possible.

3. Interconnection Point. When, as permitted under the provisions of subsection B above, a person who is not a T&D utility owns a pole or other structure containing an interconnection point in a public way or on private property, and the T&D utility determines that the pole or other structure jeopardizes the safety of the public or utility employees or presents a risk to the reliability of the T&D distribution system, the T&D utility shall maintain or repair the facility and shall charge the owner its cost of carrying out the maintenance or repair.

4. Licensing Authority Requirements. When, as permitted under the provisions of subsection B, a person that is not a utility owns a line extension in a public way, or a pole or other structure that contains an interconnection point, whether within or outside the public way, and the licensing authority having authority over the public way determines that the line extension or interconnection point facility must be moved or repaired to carry out a highway or other activity of the authorizing licensing authority, the T&D utility shall move or repair the line extension and shall charge the owner the utility’s cost of carrying out the move or repair.

5. Temporary Disconnection. A T&D utility may disconnect a customer temporarily while it performs the procedures necessary to comply with this subsection.

§ 7 TRANSFER OF OWNERSHIP; TAXES ON CONTRIBUTION IN AID OF CONSTRUCTION

A. Line Extensions in Developments. The ownership all line extensions in developments shall be transferred to the T&D utility prior to energization of the line.

B. Optional Transfer of Ownership. A person who owns a privately-owned line extension may request the T&D utility to assume ownership of the line extension. The T&D utility must assume ownership if the line meets the standards required by section 3, and the owner has made all the payments required by subsection E below. If the line extension does not meet the standards required by section 3, the owner of the line shall upgrade the line extension to those standards or request the utility to upgrade the line, subject to the payment requirements of subsection E(3) below. If the line was energized prior to the date of transfer, and the standards required by section 3 have changed since the line was energized, the line must be brought into compliance only with those changed standards that affect the reliability or safety of the line.

C. Additional Customers. If an additional person will be served by a line extension that is owned by a private person as permitted by the provisions of section 6 (B)(1) and (2), the ownership of all portions of the existing line extension and of any new line extension, extending from the existing line extension, that will serve more than one customer must be transferred to the T&D utility prior to energization of the new line. If the existing line extension does not meet the standards required by section 3, the new customer or customers shall cause the line extension to be upgraded to current standards that affect the reliability or safety of the line or request the T&D utility to upgrade the line extension to those standards, subject to the payment requirements of subsection F(2)(b) below.

D. Compensation to Customers for Transfers of Ownership of Line Extensions. If the Terms and Conditions of a T&D Utility require a person ordering or building a line extension to pay for all the costs of the line extension, whether built by the utility or by a private contractor, the utility shall not compensate an owner of a line extension that transfers ownership of a line extension pursuant to subsections A, B, or C of this section. If the utility’s Terms and Conditions provide some portion of line extensions or line extension costs to customers without charge, its Terms and Conditions must also provide for compensation to an owner that transfers a line extension pursuant to this section, in an amount equivalent to the amount that would have been provided by the utility if it had built the line extension, if that amount has not already been provided to the owner of the line extension.

E. Cost Obligation of Owner Transferring Line Extension Pursuant to Subsections A or B. When an owner of a privately-owned line extension transfers ownership to a T&D utility pursuant to the provisions of subsections A or B above, the transferring owner shall pay the T&D utility an amount that includes:

1. Taxes on Contribution in Aid of Construction or Contribution of Facilities. Amounts that the T&D utility must pay in federal and state taxes for contributed facilities, reduced by the present value of the tax reduction the utility receives as a result of tax depreciation over the years of the tax depreciable life of the asset. The amount that the transferring owner must pay shall be calculated by:

a. Determining the amount of the income tax payable by the utility as a result of the contribution, pursuant to federal and State of Maine income tax law, using the utility’s expected marginal federal and state income tax rates;

b. Determining the amount of tax depreciation for each remaining year of the tax depreciable life of the asset;

c. Determining the amount of income tax reduction resulting from tax depreciation over each remaining year of the tax depreciable life of the asset, using the utility’s expected marginal federal and state tax rates;

d. Determining the present value of the amounts established by step c, using as a discount rate the weighted cost of debt plus the pre-tax weighted cost of equity as most recently determined in a Commission proceeding for an investor-owned T&D utility; and

e. Deducting the total amount established by step d from the amount of the calculated in step a;

2. Interconnection Costs. Costs incurred by the T&D utility for labor and materials required to carry out the physical interconnection of the line extension to the T&D utility’s system;

3. Compliance Costs. Any costs incurred by the T&D utility to bring the line extension into compliance with the standards required by section 3, subject to the qualification contained in subsection B above;

4. Costs to Upgrade the Existing Distribution System. Costs incurred by the T&D utility for upgrades to the existing distribution system because of increased demand from a new customer that will be served by the line extension, if the utility has an approved Term and Condition requiring such payment;

5. Easement and Permit Costs. Costs incurred by the T&D utility to obtain or maintain easements or necessary permits, including but not limited to permits required by environmental agencies and authorized licensing authorities; and

6. Other Costs. Other costs as specified in the T&D utility’s Terms and Conditions.

F. Cost Obligation of Owner Transferring Line Extension Pursuant to Section 7(C). When an owner of a privately-owned line extension transfers ownership to a T&D utility pursuant to the provisions of subsection C above, so that line may serve another person, the following payments shall be made:

1. Taxes on Contribution in Aid of Construction. The owner of the existing line extension and the additional person or persons to be served by the new line extension shall pay the T&D utility amounts that the T&D utility must pay in federal and state taxes for contributed facilities, reduced by the present value of the tax reduction the utility receives as a result of tax depreciation over the years of the tax depreciable life of the asset, using the method contained in subsection 7(E)(1) above. The total payment required by this paragraph shall be allocated among the transferring owner and the new customer(s) pursuant to the customer shares established under section 9(E)(1)(a).

2. Other Costs. Prior to the energization of any facilities, including a service drop, that will serve an additional customer or customers who will be served by the existing line extension, either directly or through a new line extension connected to the original line extension, the additional customer or customers shall pay the T&D utility:

a. Interconnection Costs. The utility’s costs to connect those customers directly to the original line extension or to connect any new line extension serving those customers to the original line extension;

b. Compliance Costs. Costs incurred by the T&D utility to bring the existing line extension into compliance with any subsequent changes to the standards required by section 3 that affect reliability or safety;

c. Costs to Upgrade the Distribution System. Costs incurred by the T&D utility for upgrades to the existing distribution system due to increased demand from the new customers, if the utility has an approved Term and Condition requiring such payment;

d. Easement and Permit Costs. Costs incurred by the T&D utility to obtain or maintain easements or necessary permits, including but not limited to permits required by environmental agencies and authorized licensing authorities;

e. Reallocation Payments. All amounts required by section 9(c)(2); and

f. Other Costs. Other costs as specified in the T&D utility’s terms and conditions.

§ 8 ENERGIZING AN ELECTRIC LINE EXTENSION

A. Certification. A T&D utility shall not energize a privately-constructed line extension until after the determination required by section 4 has been provided. Notwithstanding the determination required by section 4, the T&D utility shall inspect the line. If it determines that energization of the line extension would jeopardize the safety of any person, or would jeopardize the reliability of the utility’s distribution system, it shall not energize the line. If it determines that the line extension does not comply with the standards required by this Chapter or may not provide reliable service to the customers who will be served by the line extension, it may refuse to energize the line. If the private line extension contractor or the owner disagrees with the utility’s decision and refuses to make any of the modifications requested by the utility, the T&D utility shall initiate a dispute resolution process pursuant to section 5. When a determination has been made that all the requirements for energization contained in section 4 and this section have been satisfied, the T&D utility shall energize the privately-constructed line extension within 14 business days of that determination or on a later date established by mutual agreement of the parties. In a period of widespread power outages caused by weather or other emergency conditions, the T&D utility may extend by a reasonable number of days the 14-day period required by this subsection.

B. Pending Dispute Resolution. Pending the resolution of a dispute resolution process initiated under subsection A, the T&D utility shall not energize the line extension unless ordered to do so by the Commission.

C. Privately-Owned Line Extensions When Ownership is Transferred. Before energizing a new privately-constructed line extension that must be transferred to the T&D utility as required by section 7(A), or an unenergized line extension that may be transferred as permitted by section 7(B), a T&D utility shall determine that all the ownership transfer and payment requirements of sections 7(A), (B) and (E) are satisfied.

D. Privately-Owned Line Extensions Serving Single Customers. Before energizing a new privately-constructed line extension that will serve a single customer, as permitted by section 6(B), a T&D utility shall obtain the written contract required by section 6(B)(5) from the owner of the line extension and shall obtain any payments described in section 7(E)(2), (3), (4), (5) and (6).

E. Privately-Owned Line Extensions; Additional Customer. When the owner of a line on private property that serves only one customer is required by section 7(C) to transfer ownership of all portions of the line extension that will serve more than one customer, the utility shall not energize any new facilities, including service drops, that will provide service to the new customers who will receive service from the transferred line, either directly or through a new line extension connected to the original line extension, until it has obtained ownership of the required portions of the line, and the new customer(s) have made all payments required by section 7(F) and section 9.

§ 9 ALLOCATION OF LINE EXTENSION COSTS AMONG CUSTOMERS

A. Applicability. This section shall apply to all single phase and polyphase line extensions, except for line extensions located in a development.

B. Initial Allocation Required for Two or More Customers. If a line extension will serve two or more customers at the time it is energized, each customer shall pay the customer responsibility amount for that customer as determined pursuant to the allocation method of subsection D below.

C. Additional Customer

1. Reallocation. When an additional customer connects to a line extension within 20 years after the extension first provided service to a customer, the costs of the line extension shall be reallocated among all customers pursuant to the method described in subsection D below.

2. Payment by New Customer. The additional customer shall pay the customer responsibility amount for that customer determined pursuant to the allocation method in subsection D below.

3. Distribution to Old Customers of Payment by New Customer. The utility shall distribute the amount paid by the new customer to the previous customers who have attached to the line extension. The amount paid to each previous customer shall equal the amount of that customer’s responsibility under the prior allocation minus the amount of that customer’s responsibility under the new allocation.

4. Substitution of Customer. If a customer who previously attached to the line extension is no longer a customer at the same location on the line extension, the T&D utility shall make the payment required by this subsection to the customer currently receiving service at that location.

5. Loss of Customer Location. If a customer service location previously connected to the line extension during the 20-year allocation period no longer receives electric service, and new customers connect to the line, all future reallocations shall be modified as follows:

a. Customer Share. The “customer share” calculation in subsection D(1) below shall exclude the former customer location; and

b. Cost; Customer Responsibility. The “current total cost of the line extension” amount, determined pursuant to subsection D(1)(b) below, shall exclude the customer responsibility amount of the last customer served at that location, as determined in the most recent reallocation of the line (pursuant to subsection D(1) below) that occurred while the customer location was still connected to the line extension.

D. Allocation of Line Extension Costs

1. Allocation Method. Each customer’s responsibility for line extension costs will be determined by multiplying the following two factors:

a. Customer Share. The customer’s share of the length of the line extension, which shall be equal to the length of the line extension that serves that customer exclusively plus, for each segment of the line extension that serves two or more customers, the length of that segment divided by the number of customers served by the segment, all divided by the total length of the line extension; and

b. Cost. The current total cost of the line extension, which shall be equal to:

(i) The cost of the original construction, as calculated pursuant to paragraph 2 below; plus

(ii) Amounts paid by customers to the utility pursuant to sections 7(E)(1) or 7(F)(1) to compensate the utility for taxes it paid as a result of a contribution in aid of construction or a contribution of facilities by an owner of the line.

2. Determination of Construction Cost

a. General Rule. Construction costs shall equal the amount paid to the T&D utility by customers for portions of the line extension constructed by the T&D utility, plus payments made to private contractors for each portion of the line extension that was privately-constructed. If those amounts cannot be reasonably established, the utility shall use its own average per-foot construction costs for the year in which the line extension was built, multiplied by the number of feet for the line extension.

b. Single-Phase Customer Served from Polyphase Line. Where a single-phase customer connects to a polyphase line, the construction costs for that customer shall be the costs of construction of a single-phase line extension. If the line was built originally as a single-phase line and later rebuilt as a polyphase line, the construction costs applicable to the single-phase customer shall be the costs for the original single-phase line. If the line was built originally as a polyphase line, the construction costs applicable to the single-phase line shall be the costs of constructing, on a stand-alone basis, a single-phase line in the same location.

3. Application of Allowance or Low-Income Support. If the Terms and Conditions of a T&D utility provide that all customers will receive a certain portion of the line extension without charge or provide for a credit, discount or other support for low‑income customers, the amount of that allowance or low-income support shall be deducted from the customer responsibility amount, calculated pursuant to subsection D(1), for each customer who has received the allowance or support. The deduction shall be made after the calculation of each customer’s pre-allowance or pre-support customer responsibility. No deduction shall be made to the construction cost calculated pursuant to subsection D(2).

4. Allocation of Support or Other Monthly Charges. Where a utility charges line extension customers a support charge or other monthly charge, instead of, or in addition to, requiring a contribution in aid of construction, the charge shall be allocated pursuant to the customer share allocation factor in subsection D(1)(a) above.

E. Additional Line Extensions Added to Earlier Line Extensions. If a new line extension is built from the end of, or from any point along, an earlier line extension that first provided service to a customer within the past 20 years, new customers served by the newer line extension will be required to make a payment to the utility pursuant to subsection C above that the utility will then pay to existing customers served by the earlier extension. A customer served by the newer extension shall be considered as being located at the point at which the newer extension connects to the earlier extension, and the customer’s share of the costs of the earlier line extension shall be calculated pursuant to subsection D above. The payment required by this subsection E is in addition to the payment that the customer must make for the costs of the newer extension. The requirements of this subsection E shall terminate after 20 years following the provision of first service to a customer from the earlier line.

§ 10 LINE EXTENSION CHARGES FOR TRANSMISSION AND DISTRIBUTION UTILITIES

A. Methodology

1. Single-Phase Line Extensions. Unless the Commission decides otherwise pursuant to order, a transmission and distribution utility may only charge customers for a single-phase electric distribution line extension as follows:

a. Line Extension Charges. Line extension charges shall be a pre-established per foot charge based on the prior year’s pre-established per foot charge adjusted annually by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index. The line extension charges pursuant to this provision shall exclude tree trimming, ledge work, and make-ready costs. There shall be separate per foot charge for overhead and underground electric distribution line extensions.

b. Tree Trimming. If tree trimming or vegetation removal is required, tree trimming charges shall be a pre-established charge per span based on the weighted average contract rates that a transmission and distribution utility pays its contractors that perform such work at the time that such work is performed.

c. Ledge Work. If ledge work is required, ledge work charges shall be a pre-established charge per ledge pole installation, ledge anchor installation and per ledge push brace installation based on the weighted average contract rates that a transmission and distribution utility pays its contractors that perform such work at the time that such work is performed.

2. Polyphase Line Extensions. Unless the Commission decides otherwise pursuant to order, a large transmission and distribution utility may only charge customers for a polyphase electric distribution line extension based on the design costs of the actual route as specified in the large transmission and distribution utility’s terms and conditions in effect at the time of the effective date of this Chapter.

B. Telephone Contribution. Revenues received by a transmission and distribution utility from a telephone utility may not be used to offset or reduce the amount charged to a customer for an electric distribution line extension.

C. Make-Ready Work. Unless the Commission decides otherwise pursuant to order, a transmission and distribution utility shall charge a customer taking polyphase service the actual costs of make-ready work associated with that customer's service. For make-ready work begun after August 30, 2012 a transmission and distribution utility may not charge a customer taking single-phase service for make-ready work associated with that customer's service.

D. Cost Recovery. Any costs associated with construction of an electric distribution line extension, including overhead costs, that are not recovered by a transmission and distribution utility through the charges established in accordance with this Section shall not be recovered in rates charged to the ratepayers of the transmission and distribution utility. Notwithstanding this provision, a transmission and distribution utility may recover costs associated with single-phase service make-ready work in rates charged to the ratepayers of the transmission and distribution utility.

E. Applicability. The provisions of this section do not apply to Consumer-owned transmission and distribution utilities.

F. Annual Reports

1. Filing Date. On February 1 of each year, a transmission and distribution utility shall submit an annual report to the Commission on electric distribution line extension costs and revenues associated with jobs that have been completed and closed out during the prior calendar year.

2. Report Contents. The annual report shall contain the following information on a total service territory basis and, if reasonably available, by service center. All costs and charges may exclude return on investment, administrative support adders, and contribution in aid of construction. Costs and charges that include return on investment, administrative support adders, and contribution in aid of construction shall be provided if reasonably available. All costs and charges will be provided on a comparable basis.

a. Single-phase overhead distribution line extensions. For single-phase, overhead, primary voltage electric distribution line extensions (excluding jobs with low-income credit adjustments):

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those line extensions

(iii) The total number of those jobs;

(iv) The total length, in feet, of those jobs;

(v) The prior year’s pre-established per foot charge adjusted by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index.

b. Single-phase, underground electric distribution line extensions. For single-phase, underground electric distribution line extensions (excluding jobs with low-income credit adjustments):

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those line extensions;

(iii) The number of those jobs;

(iv) The total length, in feet, of those jobs;

(v) The prior year’s pre-established per foot charge adjusted by the Handy Whitman index and further adjusted, as necessary, for known cost changes not captured by the Handy Whitman index.

c. Polyphase electric distribution line extensions. For polyphase electric distribution line extensions:

(i) The total amount charged to customers;

(ii) The total costs to the transmission and distribution utility to complete those polyphase;

(iii) The number of those jobs;

(iv) The total length, in feet, of those jobs;

d. Tree trimming. For single-phase line extension jobs that included tree trimming (excluding any jobs with low-income credit adjustments for tree trimming):

(i) The total amount charged to customers for tree trimming;

(ii) The total costs to the transmission and distribution utility to complete that tree trimming;

(iii) The total number of spans trimmed;

(iv) The individual contract rates that a transmission and distribution utility will pay its contractors for tree trimming during the upcoming construction season.

e Ledge work. For single-phase line extension jobs that include ledge work (excluding any jobs with low-income credit adjustments for ledge work):

(i) The total amount charged to customers for ledge work;

(ii) The total costs to the transmission and distribution utility to complete that ledge work;

(iii) The individual contract rates that a transmission and distribution utility currently will pay its contractors for each type of ledge work during the upcoming construction season.

f. The total labor costs related re1ated to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

g. The total materials costs related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

h. The total transportation costs related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions, excluding contractor charges;

i. The total amount of contractor charges related to single-phase overhead electric distribution line extensions and single-phase underground electric distribution line extensions

j. Any other relevant information as determined by the Commission.

k. The information required by this subsection shall be provided in the following format:

Single-Phase, Primary Voltage

Overhead

Underground

line extension jobs

Length (feet)

Line Extension

Total Base Charges to Customers

Total Full Charges to Customers

Total Base Cost to Utility

Total Full Cost to Utility

Trim

of spans trimmed

Individual contract rates for trim

Total Base Charges to Customers

Total Full Charges to Customers

Total Base Cost to Utility

Total Full Cost to Utility

Ledge

of poles involving ledge

of braces involving ledge

of anchors involving ledge

Individual contract rates for ledge work

Total Base Charges to Customers

Total Full Charges to Customers

Total Base Cost to Utility

Total Full Cost to Utility

Labor Cost (excluding contractor costs)

Material Costs (excluding contractor costs)

Contractor Costs

Total # of Jobs with Low-Income Credit Adjustments

Total Base Amount of Low Income Adjustments

Total Full Amount of Low Income Adjustments

G. Investigation/Establishment of Charges

1. Within 30 days of the filing of the annual report pursuant to subsection F, the Commission shall open an investigation to determine the amount to be charged during the upcoming construction season so that the total amount charged to customers will reasonably likely be no less than 95% and no more than 105% of total actual costs for the line extensions. The Commission shall provide notice of any investigation opened pursuant to this subsection to the Office of the Public Advocate and interested persons.

2. If the annual report filed pursuant to subsection F indicates that total charges to customers for single-phase overhead electric distribution line extensions or single-phase underground electric distribution line extensions are less than 95% of total actual costs or greater than 105% of total actual costs not including make-ready costs (actual costs are the total costs less an amount equal to the number of jobs multiplied by the make-ready charge) during the reporting period, the Commission will adjust the prior year’s pre-established per foot charge so that the charge would have recovered 100% of the year’s total actual costs and further adjust the charge by the Handy Whitman index and, as necessary, for known cost changes not captured by the Handy Whitman index.

3. If an annual report filed pursuant to subsection F indicates that total charges to customers for single-phase overhead electric distribution line extensions or single-phase underground electric distribution line extensions are within 95% and 105% of total actual costs not including make-ready costs (actual costs are the total costs less an amount equal to the number of jobs multiplied by the make-ready charge) during the reporting period, the Commission will adjust the prior year’s pre-established per foot charge by the Handy Whitman index and, as necessary, for known cost changes not captured by the Handy Whitman index.

4 Notwithstanding the prior provisions in this subsection, the Commission may, based on the information provided in the annual report or provided after the submission of the annual report, determine whether additional adjustments should be made to the pre-established charge for single-phase electric distribution line extensions so that the charge will be reasonably likely to be no less than 95% and no more than 105% of total actual costs for the line extensions.

The Commission may initiate an investigation, at any time, to consider changes to the pre-established per foot charges or other line extension charges and direct changes to the pre-established per foot charges or other line extension charges if it finds that such changes are necessary so that line extension charges are within 95% and 105% of total actual costs.

§ 11 SERVICE DROP COST RESPONSIBILITY, OWNERSHIP AND MAINTENANCE

A. Above-Ground Service Drops

1. Installation. A T&D utility shall install an above-ground service drop and associated hardware and equipment. Poles and equipment associated with pole installation are not considered part of a service drop. A T&D utility shall install the pole and associated equipment for a flat fee if requested by the customer. Customers may also choose to have the pole and associated equipment installed by a contractor.

2. Cost Responsibility. A T&D utility may not charge a customer for an above-ground service drop. The costs of service drops shall not be used in establishing any line extension charges. A T&D utility shall charge a customer a flat fee for the cost of any poles and associated equipment if the customer chooses to have the utility provide such equipment.

3. Ownership and Maintenance. The T&D shall own and maintain an above-ground service drop and shall not charge a customer for the cost of maintaining an above-ground service drop. Poles and equipment associated with poles are owned by the customer and it is the customer’s responsibility to pay for any replacement poles and associated equipment.

B. Underground Service Drops

1. Customer Election. A customer may elect to have service provided through an underground service drop.

2. Ownership. A T&Dutility shall not own an underground service drop.

3. Installation and Maintenance. A customer that elects to have service provided through an underground service drop shall provide all trench excavation, backfill, and underground facilities such as conduits, duct systems, enclosures, pedestals, vaults, hand holes, or mounting foundations. A customer that elects to have service provided through an underground service drop shall also install and maintain all associated equipment, related to an underground service drop. Only a T&D utility may connect the underground service drop to the T&D utility’s system.

4. Cost Responsibility. A customer that elects to have service provided through an underground service drop shall be responsible for all costs associated with the installation, maintenance and repair of the underground service drop. The T&D utility shall not charge the a customer for connecting the underground service drop to its system.

C. Applicability. The provisions of this section do not apply to Consumer-owned transmission and distribution utilities.

D. Prior Ownership Arrangements. Service drop ownership and maintenance arrangements entered into prior to the adoption of this section shall not be affected by the provisions of this rule.

§ 12 WAIVER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of the Electric and Gas Division, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 111, 314, 315
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on April 11, 2002. It was filed with the Secretary of State on April 12, 2002 and became effective on May 12, 2002 (filing 2002-116).
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on November 2, 2012. It was filed with the Secretary of State on November 6, 2012 and became effective on November 11, 2012 (filing 2012-312).
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on April 1, 2013. It was filed with the Secretary of State on April 1, 2013 and became effective on April 6, 2013 (filing 2013-076).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 28, 2019. It was filed with the Secretary of State on January 29, 2019 and became effective on February 3, 2019 (filing 2019-018).

Chapter 396 Efficiency Maine Trust Procurement Funding Cap

Code Me. R. 65-407 Ch. 396 Efficiency Maine Trust Procurement Funding Cap {#sec-65-407-ch.-396 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 396}

SUMMARY: This chapter establishes the process and requirements for determining and applying the statutory cap on transmission and distribution utility rates for procurement of energy efficiency resources.

§ 1 PURPOSE

The purpose of this chapter is to establish the process and requirements by which the Commission will determine the statutory cap of 4% of the total retail electricity and transmission and distribution sales for the procurement electric energy efficiency resources pursuant to Title 35-A, section 10110(4-A).

§ 2 DEFINITIONS

A. Assessments. “Assessments” means the assessments made by the Commission pursuant to 35-A M.R.S. § 10110(4).

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Efficiency Maine Trust. “Efficiency Maine Trust” means the entity established by Legislature pursuant to Title 35-A, section 10103(1) for the purposes of developing, planning, coordinating and implementing energy efficiency and alternative energy resources programs in the State.

D. External Funds. “External Funds” means funds received by or due to the transmission and distribution utilities from external sources, including Maine Yankee Funds or other proceeds from legal actions that have been or will be transferred to the Efficiency Maine Trust.

E. Long-Term Contract Funds. “Long-Term Contract Funds” mean amounts transferred from transmission and distribution utilities to the Efficiency Maine Trust pursuant to Commission order in Docket No. 2012-00408 or other Commission orders pursuant to Title 35-A, section 3210-C.

F. Maine Yankee Funds. “Maine Yankee Funds” means funds pursuant to a damage award received by transmission and distribution utilities pursuant to litigation with the United States Department of Energy concerning the removal and storage of spent nuclear fuel related to the Maine Yankee Atomic Power Company.

G. Procurement Order. “Procurement Order” means an order of the Commission directing transmission and distribution utilities to transfer funds to the Efficiency Maine Trust for purposes of electric efficiency and conservation program funding pursuant to Title 35-A, section 10110, subsection (4-A).

H. Transmission and Distribution Utility. "Transmission and distribution utility" means a person, its lessees, trustees, receivers or trustees appointed by a court, owning, controlling, operating or managing a transmission and distribution plant for compensation within the State.

I. Triennial Plan. "Triennial Plan" means the Efficiency Maine Trust’s energy efficiency plan required under Title 35-A, section 10104, subsection 4.

§ 3 UTILITY ENERGY EFFICIENCY PROCUREMENT CAP

A. Utility Procurement Obligation. Each transmission and distribution utility shall comply with a Procurement Order to procure all electric energy efficiency resources found by the Commission to be cost-effective, reliable and achievable pursuant to Title 35-A, section 10104, subsection 4, subject to the Utility Procurement Cap.

B. Utility Procurement Cap. The Commission may not issue a procurement order that results in an amount in rates for electric energy efficiency resources that exceeds 4% of total retail electricity and transmission and distribution sales in Maine.

C. Determination of Amount of Sales Revenue. The total retail electricity and transmission and distribution sales in Maine shall be determined using the revenue from retail sales as reported for the State of Maine by the U.S. Energy Information Administration (EIA) in its Form EIA-861for the most recent available year. The Commission may use alternative sources of revenue from retail sales upon a finding that an alternative source of information has equivalent or greater reliability, is readily available, and reflects more recent retail sales. In determining the total retail electricity and transmission and distribution sales revenue, the Commission shall exclude all revenue included in utility rates from prior Procurement Orders, Assessments, Long-Term Contract Funds, or other amounts associated with funding for Efficiency Maine Trust electric energy efficiency programs.

D. Determination of Amounts in Rates. In determining that the amount in rates for electric energy efficiency resources does not exceed 4% of total retail electricity and transmission and distribution sales, the Commission shall:

1. Procurement Order Funds. Include all amounts that will be in utility rates during the applicable Procurement Order period related to prior or current Procurement Orders issued pursuant to budgets in approved in Triennial Plans.

2. Long-Term Contract Funds. Include all amounts that will be in utility rates during the applicable Procurement Order period related to Long-Term Contract Funds.

3. Other Funds. Include all other amounts that will be in utility rates during the applicable Procurement Order period for Efficiency Maine Trust administered electric energy efficiency programs as reflected in approved Triennial Plans.

4. External Funds. Exclude External Funds.

E. Determination of Procurement Cap. The Utility Procurement Cap for each fiscal year of the Efficiency Maine Trust’s Triennial Plan shall be 4% of total retail electricity and transmission and distribution revenue in Maine as set forth in Section 3(C) above.

F. Utility Annual Report. Each transmission and distribution utility shall file an annual report by March 1st of each year that contains all revenue included in utility rates for Efficiency Maine electric energy efficiency programs, including from prior Procurement Orders, Assessments, Long-Term Contract Funds, or other amounts associated with funding for electric energy efficiency programs, (i) during the two prior calendar years and (ii) expected during the fiscal year beginning July 1^st of the current year.

G. Cost Recovery. The cost of procurement of cost-effective electric energy efficiency resources pursuant to this chapter constitutes a just and reasonable utility expense that shall be recovered through transmission and distribution utility rates.

§ 4 WAIVER OR EXEMPTION

Upon request of any person subject to the provisions of this chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this chapter or Title 35-A. The Commission, the Director of Electric and Gas Utility Industries, or the presiding officer assigned to a proceeding related to this chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 10110(4-A).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 26, 2016. It was filed with the Secretary of State on January 27, 2016 and became effective on February 1, 2016 (filing 2016-015).

Chapter 397 Rule Governing Procurement of Renewable Energy Promoting the Use of Contaminated Land

Code Me. R. 65-407 Ch. 397 Procurement of Renewable Resources with a Preference for Projects Located on Contaminated Land {#sec-65-407-ch.-397 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 397}

SUMMARY: This rule establishes the requirements for the procurement of energy and renewable energy credits from Class IA resources with a preference for projects located on contaminated lands, as set forth in P.L. 2023, c. 321.

§ 1 PURPOSE

The purpose of this Chapter is to establish the requirements and processes for the procurement of energy and renewable energy credits from eligible Class IA resources or combined projects with a preference to be given to projects that are located on contaminated lands as set forth in P.L. 2023, c. 321, which is codified in 35-A M.R.S. § 3210-J.

§ 2 DEFINITIONS

Combined project. “Combined project” means an eligible Class IA resource paired and collocated with an energy storage system connected to the State’s electricity grid, whether metered jointly or separately from the eligible Class IA resource.

Commercial operation. “Commercial operation” means that the Class IA resource in issue is operational and placed in service and that the resource has been constructed, tested, and is fully capable of operating for the purpose of generating electrical energy as contemplated in this Chapter.

Contaminated land. “Contaminated land” means agricultural land, contaminated by perfluoroalkyl and polyfluoroalkyl substances as defined in 38 M.R.S. section 1614(1)(F) that may no longer be used for its current or historical agricultural purposes as determined by the Department of Agriculture, Conservation and Forestry in accordance with applicable state and federal food safety standards.

Eligible Class IA resource. “Eligible Class IA resource” means a Class IA resource, as defined in 35-A M.R.S. section 3210(2)(A-3) that: (1) begins commercial operation on or after September 19, 2023; and (2) for which an interconnection agreement has been signed or a system impact study has commenced, if one is required by the relevant Regional Transmission Organization or Independent system Operator or Administrator as recognized by the Federal Energy Regulatory Commission.. If the resource is a fuel cell, it must be a fuel cell that utilizes a renewable fuel.

Energy storage system. “Energy storage system” means a commercially available technology that uses mechanical, chemical or thermal processes for absorbing energy and storing it for a period of time for use at a later time.

Investor-owned transmission and distribution utility. “Investor-owned transmission and distribution utility” means a transmission and distribution utility other than a consumer-owned transmission and distribution utility.

ISO-NE. “ISO-NE” means the Independent System Operator for New England.

Megawatt. “Megawatt” means 1,000 kilowatts.

Megawatt-hour. “Megawatt hour” means one megawatt of power sustained for one hour.

Nameplate capacity. “Nameplate capacity” means the installed or rated capacity of a Class IA resource in Alternating or Direct Current (AC/DC), as applicable to the resource.

Output. “Output” means the energy, renewable energy certificates and all other environmental attributes and market products that are available or may become available from a Class IA resource and any associated energy storage systems.

Renewable energy credit. “Renewable energy credit” or “REC” means a credit or certificate that represents renewable attributes of electric power that may be traded separately from the energy commodity.

RFP. “RFP” means request for proposal, which is the document the Commission will issue to initiate a competitive solicitation process to obtain energy and RECs from Class IA resources as set forth in this Chapter.

§ 3 COMPETITIVE PROCUREMENT FOR ENERGY AND RECs FROM CLASS IA RESOURCES

Target Amounts. The Commission will initiate competitive solicitations for contracts for energy and RECs in an amount that represents the aggregate of the following two separately measured amounts when added together:

1. An amount that is equal to 5% of the retail electricity sales in the State for the period of January 1, 2021 to December 31, 2021, which is 579,000 MWh; and
2. An amount that the Commission will determine prior to issuance of the RFP for the first round of competitive solicitation that is to be conducted pursuant to this chapter, which represents the amount of energy or RECs from Class IA resources that were awarded a contract through the procurement conducted pursuant to 35-A M.R.S. section 3210-G (Docket Nos. 2020-00033 and 2021-00004) that have been terminated as of the date the RFP is issued.

Procurement Rounds, Targets, and Schedule. The Commission must commence the first competitive solicitation within three months of the adoption of this Chapter. For any amount of energy or RECs that are not procured as part of the first round, the Commission will initiate a second competitive solicitation within twelve months of the conclusion of the first round of procurement. The Commission will initiate subsequent rounds of procurement in the same manner until such time as contracts have been approved in an amount equal to the aggregate amount as determined through paragraph A of this section.

Commencement of Procurement and Issuance of RFP. The Commission shall initiate each procurement round by issuing an RFP, which shall establish the schedule and process for submission of proposals, as well as the selection process, including selection criteria.

Proposals. A proposal submitted in response to a Commission issued RFP is firm and binding upon the bidder. Proposals must conform with the requirements specified in the applicable RFP.

1. Energy storage systems. For combined projects, the bidder must submit two separate proposals: one with the energy storage system and one without the energy storage system. The bidder for a combined project must affirm in their proposal that the energy storage system will remain stationary and under the same ownership as the Class IA resource through the duration of the contract term.
2. Economic benefits. Each bidder must demonstrate in their proposal the economic and community benefits their proposal will provide, including but not limited to the following: 1. Jobs that will be created; 2. Excise, income, property and sales taxes that will be paid; and 3. Goods and services that will be purchased.

The Commission will provide bidders with a template with instructions on how to submit information on economic and community benefits in monetary values. The Commission will not consider the value of economic benefits in the selection process except as set forth in section 3(E)(4) of this Chapter.

Selection Criteria. In evaluating proposals, the Commission must consider the following criteria:

1. Benefit to ratepayers. Only eligible Class IA resources or combined projects for contracts that will benefit ratepayers will be selected. Determination of whether a project will benefit ratepayers is based on the Commission’s assessment of the cost of the contract compared to the value of the contract products realized by ratepayers. Only those projects for which the value of the contracted products realized by ratepayers exceeds the contract cost will be considered as beneficial to ratepayers and thus eligible to be selected for a contract. For purposes of this provision, benefits to ratepayers may include, but are not limited to:

Energy and renewable energy credits at costs that are reasonably likely to be below their market value; or

Reduced energy supply or transmission-related costs.

1. Congestion and curtailment. The Commission shall consider the expected effect that the Class IA resource would have on other renewable resources due to congestion and curtailment. Bidders must provide an assessment of the effect of the proposed eligible Class IA resource or combined project on other renewable resources due to congestion and curtailment. The Commission may also request the bidder to provide pricing that eliminates the potential effect of congestion and curtailment. The Commission may also make its own independent assessment of the effect of congestion and curtailment of the proposed Class IA resources.
2. Preferences. Of those eligible Class IA resources or combined projects that are determined to benefit ratepayers, the Commission will give preference as follows: 1. Primary preference to those eligible Class IA resources or combined projects that are located on contaminated land. In determining the application of this preference, the Commission will seek the guidance of the Maine Department of Agriculture, Conservation and Forestry (DACF), and may also require bidders to provide confirmation from DACF that the proposed project qualifies for this preference. 2. Secondary preference to those eligible Class IA resources or combined projects that minimize use of farmland that is not contaminated land and minimize use of forested land.
3. Economic Benefits. The value of economic benefits will be considered only to the extent necessary to select between identically scored projects. To the extent that economic benefits are considered, the Commission reserves the right to include in the RFP an ongoing reporting requirement to verify fulfillment of the economic benefits.

Contract terms. The contracts entered into through this Chapter will be for a term of no longer than 20 years, unless the Commission determines that a contract for a longer term is in the public interest.

Assignment of RECs. The RECs procured through this Chapter will be assigned to a standard offer service provider to satisfy that standard offer service provider’s renewable resource portfolio requirements as set forth in 35-A M.R.S. section 3210. The Commission will establish a process for assignment of the RECs through amendment of this Chapter, or through a separate rulemaking prior to commercial operation of any eligible Class IA resource selected for a contract through this Chapter.

Standard contract. The Commission will make the standard contract that it expects an eligible Class IA resource to enter into with the transmission and distribution utility, if selected, available as part of the initial competitive solicitation.

§ 4 WAIVER PROVISIONS

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director Electric and Gas Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2024-00028, issued on July 24, 2024. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 1301, P.L. 2023 c. 321
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 29, 2024. It was filed with the Secretary of State on August 5, 2024 and became effective on August 10, 2024 (filing 2024-172).

Energy Programs (formerly with 19-530)** Energy Programs** (formerly with 19-530)

Chapter 400 Energy Efficiency Standards for Subsidized Multi-Family Residences

Code Me. R. 65-407 Ch. 400 Energy Efficiency Standards for Subsidized Multi-Family Residences {#sec-65-407-ch.-400 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 400}

1. SUMMARY

Section 1415 G of the Energy Efficiency Building Performance Standards Act, 10 MRSA, Chapter 214, Sections 1410-1420, prohibits the installation of electric heat as a primary heating system in any multi-family residence when public funds are used to subsidize all or part of the construction, renovation or remodeling of that residence. The building owner may petition the Commissioner of the Department of Economic and Community Development (DECD) for a waiver to the prohibition. A waiver shall only be granted if the proposed design meets the additional energy efficiency requirements specified in the 10 MRSA, 1415 G and in this rule.

This rule defines terms used in the Statute and the rule, establishes procedures to be used by subsidy providers and the Energy Conservation Division (ECD) to inform property owners of the requirements, establishes procedures for the owner to certify compliance, establishes inspection procedures for ECD to verify that actual construction meets the standards, sets some minimum acceptable energy efficient construction practices to be used on projects receiving a waiver, establishes standards for infiltration control and ventilation to provide acceptable indoor air quality, and establishes criteria for showing compliance with the insulation requirements using the performance compliance alternative.

2. DEFINITIONS

"Addition" means new conditioned space which is attached to an existing building.

"Air Barrier" means a material installed to retard air infiltration and/or wind wash. An air barrier material may perform more than one function, such as, but not limited to, also being a vapor retarder, or either an exterior or interior building sheathing.

"Annual energy consumption," as used in 10 MRSA, 1415-G {4), means annual energy consumption for space conditioning calculated in Btu's.

"ASHRAE 90" means the current standard for energy conservation in new building design developed and approved by the American Society of Heating Refrigerating and Air-Conditioning Engineers.

"Assessed value" means the equalized assessed value of the building established on the most recent April 1st

"Btu" means "British thermal unit, n approximately the amount of heat required to raise one pound of water from 59F (Fahrenheit) to 60F.

"Capillary break" means a material or system installed to stop the movement of moisture into a building by capillary action. A capillary break may be provided by either one of two general methods: 1) use of a material that has pore sizes so small as to be essentially nonexistent, such as, but not limited to, sheet polyethylene and sheet metal: or, 2) use of material that has pore sizes so large that water cannot move through it by capillarity, such as, but not limited to, a 3 inch thick layer of clean 3/4 inch crushed stone.

"Ceiling" means the overhead section of a room, including over the tops of walls enclosing that room. Ceilings may have any slope from horizontal up to, but not including vertical.

"Common room" means rooms or areas in the building open to all occupants of the building or which provide services to the building, such as, but not limited to, entries, halls, lounges, utility rooms, public restrooms, central kitchens, and central dining rooms.

"Degree day, heating" is a unit, based upon temperature difference and time, used in estimating heating energy consumption. For any one day, when the mean outdoor temperature is less than a 65 degrees Fahrenheit reference temperature, there are as many Degree Days as degrees Fahrenheit temperature difference between the mean temperature for the day and the reference temperature. Annual Heating Degree Days (HDD) are the sum of the degree days over a calendar year.

"Dwelling unit" means one or more rooms providing living facilities for one or more persons. This includes units providing complete, independent living facilities with permanent provisions for living, sleeping, eating, cooking and sanitation, and units providing independent living facilities with some shared or common use areas, such as, but not limited to, bathrooms, kitchens, living rooms, and/or dining rooms.

"Electric space heating equipment" means any heating system which derives more than 50% of its heat energy input from electricity and has a Heating Seasonal Performance Factor (HSPF) not in compliance with ASHRAE 90.1-1989.

"Foundation" means a wall below the floor nearest grade serving as a support for a wall, column or other structural part of a building.

"Heat energy input" means energy supplied to produce heat, exclusive of energy supplied to transport and distribute the heat produced.

"Heating Seasonal Performance Factor" means the combined effects of heat pump heating and performance losses due to coil frost, defrost, cycling under part-load conditions and use of supplemental resistance heat during defrost as defined by the equation:

Total heating provided during heating season, in Btu

HSPF =

Total energy consumed by the system, in watthours

The HSPF is listed by manufacturers on equipment labels for each of six regions defined in test procedures issued by the US Department of Energy in the Code of Federal Regulations (CFR) Title 10, Part 430 (1-1-92).

"Infiltration" means the uncontrolled movement of air into and out of the conditioned space through cracks and interstices in the building envelope.

"Insulation" means material primarily used to slow down heat flow, and is limited to materials defined as insulation by the Federal Trade Commission in 16 CFR Chapter 1, Part 460 (1-1-92), "Labeling and Advertising of Home Insulation."

"Minimum unit R-value" means the R-value of an overall window unit. The overall R-value is the area weighted average of the R-values for the window frame, the edge of the glass, and the center of the glass, as defined and prescribed in the 1989 ASHRAE Handbook of Fundamentals, or using Window 4.0, the PC computer program developed by Lawrence Berkeley Laboratory.

"Positive heat supply" means heat deliberately supplied to a space by design, such as, but not limited to, a supply register, a radiator, or a heating element.

"Public funds, guarantees, or bond proceeds" means any funds provided to a person by any federal, state, county, or municipal governmental or quasi-governmental agency to be used for constructing, renovating, or remodeling multi-family residential buildings as defined in 10 MRSA, 1415-G (1). This includes, but is not limited to: grants, interest subsidies, funds from the repayment of previously provided public funds, and donations of land or services. This phrase shall hereafter be called "public funds."

"R-value" is an indication of the amount of resistance to heat flow. Only R-values stated in labels, fact sheets, ads, or other promotional material must be established through tests that meet the requirements of the Federal Trade Commission as contained in 16 CFR Part 460 (1-1-92) - "Labeling and Advertising of Home Insulation" are acceptable. R-values for unlabeled products shall be those found in the ASHRAE 1989 Handbook of Fundamentals, Chapter 22 - Thermal and Water Vapor Transmission Data.

R-values may be rounded to the nearest 1/10th for tested R-values of less than 10, and to the nearest whole number for R-values of 10 or more.

"Shall be insulated to" means that insulation rated at the prescribed R-value shall be installed.

"Space conditioning" means energy consumed to provide heating or cooling to a building by a heating, ventilating or air conditioning system.

"Standard building" means a hypothetical building which is designed to comply with the prescriptive standards listed in 10 MRSA §1415-G (3) for the purposes of being used as a base case when demonstrating compliance with the standards using the performance-based compliance procedure.

"Subsidized housing" means a residence which is constructed, renovated, or remodeled with the use of any public funds, guarantees, or bond proceeds as defined above.

"Thermal transmittance {U or U-value)" means the coefficient of heat transmission (air to air). It is the time rate of heat flow per unit area and unit temperature difference between the warm side and cold side air films. The U-value applies to combinations of different materials used in series along the heat flow path, single materials that comprise a building section, cavity air spaces, and surface air films on both sides of a building element. It is expressed in units of

Btu/degrees Fahrenheit x Feet squared x Hour.

"Unheated space" means a space which is neither a conditioned space nor has any provisions for receiving a positive heat supply.

"Vapor barrier" see "vapor retarder."

"Vapor retarder" means a material installed to retard water vapor diffusion into building component assemblies. The retarder shall have a maximum permeance rating of 1.0 as defined in the 1989 ASHRAE Handbook of Fundamentals. A vapor retarder may perform more than one function, such as, but not limited to, an air barrier, referred to as an "air/vapor barrier." Building papers, sometimes called "house wraps," n designed to be applied to the outside of building serve only as air barriers and are not vapor retarders.

"Wall" means a vertical element of a building used primarily to enclose or separate spaces.

"Wind wash" means the uncontrolled wind driven movement of air through installed building insulation.

3. COMPLIANCE PROCEDURE

A. Information Package

An information package about the requirements of 10 MRSA 1415-G shall be prepared by the Energy Conservation Division (ECD). The packet shall contain a description of the requirements for subsidized multi-family residences, instructions on how to apply for a waiver if the owner wishes to install electric heat, a summary of the energy efficiency standards to be fulfilled in order to attain a waiver, and a certificate for the owner to complete and sign, certifying compliance with the requirements. The certificate will also require information about the location of the project, the nature of the construction, the time period of constructions the specified heating equipment, and the name address and phone of the owner, designer, engineer, and builder. This packet shall be distributed to known grantors of public funds for multi-family residential construction.

The grantor shall provide the owner of the proposed construction, renovation, or remodeling project with the information package containing the requirements of 10 MRSA 1415-G.

B. Certification Notice to DECD

Prior to providing or agreeing to provide a subsidy, the grantor shall require that the owner provide either:

1. signed certification that the primary heating system will not be electric, or

2. an approved waiver from the Commissioner of the Department of Economic and Community Development.

No subsidy shall be granted without either 1 or 2.

The grantor shall forward the original signed certification to the ECD at the time of pre-construction approval to provide the public funds. The building owner, and the grantor shall each retain a copy of the certification.

C. Waiver

If the owner chooses to install an electric primary heating system, he/she shall complete a waiver application and submit it to the ECD for review. Within 5 business days of receipt of the initial application, the ECD shall review the application to assure that all of the required information has been completed. If more information is required, the owner will be notified that he must provide additional information.

Within 30 days of receipt of a completed application the Commissioner of DECD shall issue a written approval or denial of the waiver request. Approval or denial shall be based solely on whether or not the proposed design meets the energy efficiency requirements specified by the law and this rule A waiver approval shall be dated, numbered, and signed by the Commissioner of DECD.

D. Inspection

The person constructing a building project that has received a waiver must notify the ECD at 624-6800 to schedule an inspection at the following construction stages:

1. after foundation insulation is installed,

2. after wall and ceiling insulation and vapor retarder have been installed, and

3. after the ventilation system is installed.

The ECD shall schedule any inspection to take place within two full working days following notification. The system to be inspected may not be covered by continuing construction progress prior to the end of the two day inspection period. If the ECD does not inspect within 2 full working days, then the work subject to inspection may be covered and continued without further delay.

4. MANDATORY COMPLIANCE

A. Applicability

The standards specified in this rule apply only to those subsidized multi-family residences for which a waiver has been granted permitting the installation of a primary electric heating system. All other subsidized multi-family residences shall comply with the mandatory energy efficiency standards prescribed in 10 MRSA, Chapter 214 which apply to all other multi-family residences, regardless of funding sources.

B. Multiple occupancy

When a building contains more than one type of occupancy, such as, but not limited to, residential and commercial, then each portion of the building shall conform to the requirements for the type of occupancy contained therein. Areas of a building shared by more than one type of occupant shall meet the more stringent requirements.

C. Transition Provision

This standard shall take effect January 1, 1992. Projects demonstrating substantial activity and contract commitments before this date which have received either

1. a building permit, or

2. a plumbing permit,

shall not be required to comply with 10 MRSA, 1415-G.

Multi-phase projects must comply with this section for phases of the project where construction has not started by January 1, 1992, or where construction has not been continuous.

D. Additions

Additions to subsidized multi-family residences must meet the minimum standards stated in 10 MRSA, Section 1415-C that apply to all residential buildings, unless a waiver is granted, in Which case the addition must meet standards specified in 10 MRSA, 1415-G.

Additions are new construction. Additions that are to be built with a primary electric heating system must comply with the waiver requirements. Only the addition must comply with the waiver conditions, and characteristics of the existing building may not be considered in performing any energy analysis of the addition used to demonstrate compliance with 10 MRSA, 1415-G.

E. Appurtenant Structures

Structures appurtenant to subsidized multi-family residences, such as, but not limited to, recreation buildings, dining halls, and offices, must comply with the provisions of this section of the law.

5. ACCEPTED PRACTICES

A. Frost Line

For determining compliance with this section of the Standards, the design frost line shall be those listed in Table 1 for each zone as found on the Zone Map.

Table 1

Design 1 frost line for conforming to

the requirements of Maine's

Energy Efficiency Building Performance Standards

when installing insulation on

foundations or slab-on-grade floors.

Zone

Design Frost Line in Feet Below Grade

1

2

3

4 feet

5 feet

6 feet

B. Ceiling Insulation

Ceiling insulation shall be installed in a manner which maintains the minimum depth of insulation needed to achieve the minimum specified R-value. The measurement shall be taken at the outside edge of the exterior wall framing.

C. Maintenance of R-value

The following measures shall be installed to maintain the integrity of the R-value of the installed insulation:

1. Wind Wash - A continuous air barrier must be provided at the following locations to mitigate wind wash:

a) the exterior edge of ceiling insulation; and

b) cantilevered floors and bay windows, including corners with adjoining vertical walls above and below.

2. Moisture and Vapor Control

a) A continuous vapor retarder shall be installed on all walls and ceilings which face outdoors or unheated spaces. The retarder shall be installed at or near the warm (interior) side of the insulation, but in no case may be placed more than 1/3 of the R-value into the insulation.

b) A vapor retarder or a capillary break shall be installed under all slabs. The retarder may be covered by a thin layer of sand to protect it from damage during the construction of the slab.

c) A vapor retarder shall be installed on top of all dirt crawl space floors. All joints in the retarder shall be lapped and sealed. The edges of the retarder shall be wrapped up onto the foundation walls a minimum of 6 inches, then sealed and mechanically fastened to the foundation.

6. INFILTRATION

A. Air Barrier

A continuous air barrier shall be installed over the inside face of framing in ceilings which face an outdoor or unheated space, and over either the inside or outside face of framing in walls which face an outdoor or unheated space. The ceiling and wall barriers must be sealed to each other.

B. Sealing of Gaps and Joints

Gaps between the rough and finish frames around windows and doors, joints between walls and foundations, all penetrations through the infiltration barrier, such as, but not limited to, those for plumbing electrical conduits, wires or boxes, and ducts, shall be sealed with permanent tape, caulk, sealant, or gaskets.

C. Separate Dwelling Units

All walls, ceilings, and floors that separate different dwelling units, or sleeping rooms designed to be occupied by residents from different families shall be sealed against air movement from one unit to another. Air barrier material shall be continuous. All penetrations through the air barrier separating dwelling units shall be sealed with permanent tape, caulk, sealant, or gaskets.

7. VENTILATION FOR ACCEPTABLE INDOOR AIR QUALITY

A. Intent of Ventilation Requirements

This ventilation requirement is intended to insure that fresh air be supplied and stale air exhausted for each dwelling unit independently of ventilation air and rates in other parts of the building and the building as a whole.

B. Dwelling Units

­

Each dwelling unit shall have balanced mechanical ventilation designed to provide outside air in conformance with ASHRAE 62-1989, "Ventilation for Acceptable Indoor Air Quality". Fresh air is not to be supplied to dwelling units from common rooms. System adjusting shall be completed by an independent testing and balancing agency acceptable to the engineer of record.

C. Common rooms

Common rooms, located in any building required to comply with this standard, shall have balanced mechanical ventilation designed to provide outside air in conformance with ASHRAE 62-1989.

D. Operations Manual

An operations manual for the ventilation system(s) shall be provided to the building manager. An operations manual for the ventilation system located in the individual dwelling unit shall be provided to each tenant. The operation manual shall provide an overview of how the ventilation system functions to assure indoor air quality, operation instructions for any controls located in the dwelling unit, the name of the person to call for service (may be different for tenants than for managers), and a schedule for any regular maintenance to be performed by the tenant or manager.

8. PERFORMANCE COMPLIANCE ALTERNATIVE

A. Scope

This Section establishes criteria for the design of buildings in terms of the building's annual energy usage.

B. Analysis Criteria

1. Compliance with this Section requires an analysis of the annual space conditioning energy usage, hereafter called "energy usage", of the proposed building design and a comparison of such usage with the energy usage of a standard building design.

2. A proposed building design will be deemed to meet the requirements of 10 MRSA §1415-G (3) if the energy usage of the proposed building design is not greater than that of a standard building design. The standard design shall be based on the criteria specified by 10 MRSA 1415-G (3), and this rule for insulation levels, infiltration controls, and ventilation.

3. The standard building design shall be substantially identical to the proposed building design in the following respects:

a) Function and design requirements;

b) Size, shape, geometry, and orientation;

c) Operating schedule, temperature, humidity, ventilation and footcandles; and

d) Internal heat gains from occupants and equipment.

C. Analysis Procedure

1. The energy usage of the standard building design and the proposed building design shall be determined through use of identical energy analysis procedures.

a) The energy usage shall be expressed as total Btu usage per year of conditioned floor area for both the proposed building design and the standard building design.

b) The energy usage from various energy sources shall be converted to Btu per year of conditioned floor area for the purposes of comparing the annual energy usage.

2. The analysis procedure shall account for the operation of the building and its systems through a full year operating period.

3. The analysis of the annual energy usage of the standard building design and the proposed building design shall be based on the same outdoor weather conditions including temperatures, solar radiation, wind, and humidity of typical days in the year representing seasonal variation.

D. Documentation

The analysis of the annual energy usage of the proposed building design and the standard building design shall be prepared by a licensed architect, engineer, or State certified energy auditor. The analysis shall provide technical data on the proposed building design, the standard building design, and the data used to verify that the requirements of this Standard are met.

EFFECTIVE DATE UNDER 19-530, DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT, ENERGY CONSERVATION DIVISION:

December 23, 1992, filing 92-484

EFFECTIVE DATE (ELECTRONIC CONVERSION):

May 15, 1996

NON-SUBSTANTIVE CORRECTIONS:

April 13, 2000 - Zone Map added in electronic format

MOVED TO 65-407, PUBLIC UTILITIES COMMISSION:

July 1, 2003 - PL 2003 c.20

Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Note: the Zone Map follows; other attachments to this Chapter are available from the Energy Resources Division.

PUC - General (cont.) PUC - General (cont.)

Chapter 410 Uniform System of Accounts for Gas Utilities

Code Me. R. 65-407 Ch. 410 Uniform System of Accounts for Gas Utilities {#sec-65-407-ch.-410 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 410}

SUMMARY: This rule establishes a uniform system of accounts and annual report filing requirements for natural gas utilities operating in Maine.

§1 APPLICABILITY

This rule applies to all natural gas utilities in Maine. For purposes of this rule, natural gas utility means every person, its lessees, trustees, receivers or trustees appointed by any court owning, controlling, operating or managing for compensation within this state any pipeline, gas plant or other facilities used for the transportation, distribution, or sale of natural gas within the State.

§2 UNIFORM ACCOUNTING SYSTEM

Every natural gas utility shall maintain its accounts and records in conformity with the Uniform System of Accounts for Natural Gas Companies as found in the Code of Federal Regulations, Title 18, Subchapter F-Accounts, Natural Gas Act, Part 201-Uniform System of Accounts Prescribed for Natural Gas Companies Subject to the Provisions of the Natural Gas Act.

§3 OTHER RECORDS

Any natural gas utility may, unless or until otherwise ordered by the Commission or the Director of Finance, keep upon its books any subsidiary, divisional, or other records or accounts that shall not impair the integrity of any account prescribed.

§4 ANNUAL REPORTS

A. Account Closing Date. Natural gas utilities shall close all accounts annually on the 31st day of December.

B. Annual Reports. Not later than April 1 of each year, every natural gas utility shall file with the Commission a report, verified by an officer or owner of the gas utility, containing such information as the Commission may prescribe. The Commission shall send a blank report to each natural gas utility by January 30 of each year.

C. Interstate Natural Gas Pipelines. Interstate natural gas pipeline utilities are natural gas pipeline systems authorized by the Federal Energy Regulatory Commission to construct and operate pipelines extending across state boundaries to serve Maine and other states. In lieu of the annual report described in 4B, an interstate natural gas pipeline utility operating in Maine may file a copy of its FERC annual report with the Commission or notify the Commission when it has filed its FERC annual report with instructions on how it may be viewed or obtained.

D. Confidential Information

1. Designated Confidential Information. A natural gas utility may request that the Commission issue a protective order pursuant to 35-A M.R.S.A. § 1311-A and M.R.Civ.P. Rule 26(c) to keep certain information in its annual report confidential for a specified period of time.

2. Non-Confidential Information. Notwithstanding subsection D(1), information regarding corporate affiliation and contact information, numbers and types of consumer complaints, and the names of the municipalities in which the natural gas utility serves shall not be accorded confidential treatment.

3. Redacted Version. A natural gas utility filing an annual report containing Designated Confidential Information shall also file a redacted version of its annual report suitable for public viewing.

§5 AUDITS

All natural gas utility accounts shall be audited in accordance with Chapter 710 of the Rules of the Maine Public Utilities Commission (65-407 C.M.R. 710).

§6 WAIVER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter. Where good cause exists, the Commission, the Administrative Director, the Director of Technical Analysis, the Hearing Examiner, or Presiding Officer assigned to a proceeding related to this Chapter may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Title 35-A.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 111, 112, 501, 502, and 504.
• STATUTORY AUTHORITY: REFILING UNDER THE APA, filing 79-279: approved as to form and legality by the Attorney General on June 22, 1979. It was filed with the Secretary of State on June 25, 1979 as Chapter 41, "Uniform System of Accounts for Gas Utilities."
• STATUTORY AUTHORITY: AMENDED, filing 87-445: This amendment was approved as to form and legality by the Attorney General on December 18, 1987. It was filed with the Secretary of State on December 18, 1987, and became effective on December 23, 1987.
• STATUTORY AUTHORITY: AMENDED AND CHAPTER RENUMBERING, filing 88-424: The amendment of this Rule adopted in Docket No. 88-155 were approved as to form and legality by the Attorney General on December 2, 1988. It was filed with the Secretary of State on December 2, 1988 and became effective on December 7, 1988 as Chapter 410, "Uniform System of Accounts for Gas Utilities."
• STATUTORY AUTHORITY: EFFECTIVE DATE (ELECTRONIC CONVERSION), filing 96-170: May 4, 1996
• STATUTORY AUTHORITY: AMENDED, filing 98-322: This amendment was approved as to form and legality by the Attorney General on July 20, 1998. It was filed with the Secretary of State on July 20, 1998 and became effective on July 25, 1998.
• NON-SUBSTANTIVE CORRECTION: October 28, 1998 - changed “and” to “any” in §B in accordance with an August 25, 1998 memo from Dennis Keschl, Administrative Director, Public Utilities Commission.
• NON-SUBSTANTIVE CORRECTION: AMENDED, filing 2003-27: This amendment was approved as to form and legality by the Attorney General on January 16, 2003. It was filed with the Secretary of State on January 17, 2003 and became effective on January 22, 2003.
• NON-SUBSTANTIVE CORRECTION: 65-407 Chapter 410 page 3

Chapter 420 Safety Standards for Natural Gas and Liquefied Natural Gas Facility Operators

Code Me. R. 65-407 Ch. 420 Safety Standards for Natural Gas and Liquefied Natural Gas Facility Operators {#sec-65-407-ch.-420 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 420}

§ 1 General Provisions 3

A. Scope 3

B. Applicable Codes 3

§ 2 Definitions 4

§ 3 Participation in Underground Utility Damage Prevention Program 6

A. Natural Gas and LNG Operator Participation 6

B. Pipeline Facility Locator Training and Qualification 6

C. Notation of Facilities on System Maps Using GPS Coordinates 6

D. Location of Underground Facilities Where Trenchless Technology is Used 7

§ 4 Emergency Procedures 9

A. Emergency Notification 9

B. Requirements for Responding to Reports of Leaks or Gas Odor 9

§ 5 Installation and Maintenance Standards 10

A. Interruptions of Service 10

B. Operator Qualification (OQ) Program for New Construction 10

C. Installation and Maintenance of Meters, Pressure Regulators and Service Piping 10

D. Installation and Maintenance of Mains and Service Lines 12

E. Accessibility and Operability of Pipeline System Valves 14

§ 6 Operation Standards 15

A. Operator Qualification (OQ) Program Requirements 15

B. Quality Assurance/Quality Control (QA/QC) Program 17

C. Scheduling Permanent Abandonment/Disconnection of Inactive Mains and Service Lines 17

D. Leak Detection 18

E. Leak Classification and Repair 19

F. Leak Progression Maps 23

§ 7 Documentation and Reporting Requirements 23

A. Filings with MPUC 23

B. Preservation of Records 24

C. Participation in the Plastic Pipe Data Collection and Sharing Initiative 24

D. Annual Submission of Operation Plans 24

E. Coordination of Written Operation & Maintenance (O&M), Emergency, and Operator Qualification (OQ) Plans 25

F. Logging and Analysis of Responses to Gas Odor and Leak Reports 25

G. Monthly Leak Report 26

H. Odorization Records and Reporting 27

I. Construction Work Reporting 27

J. Pipeline Up-Rating Study and Notice Requirements 27

K. Drug and Alcohol Program Documentation 28

§ 8 Enforcement Procedures 28

A. Gas Safety Staff Actions 28

B. Response Options Open to Operator 29

C. Formal MPUC Action 30

D. Hazardous Facility Orders 30

§ 9 Federal Regulation Waivers 31

§ 10 State Regulation Waivers 31

§ 1 General Provisions

A. Scope

This rule applies to all operators of gas utilities defined in 35-A M.R.S. §102(8) "Gas utility," all operators of gas pipelines as defined in 49 C.F.R. Part 192 except liquid propane gas distribution systems, and all natural gas pipeline utilities as defined in 35-A M.R.S. §102(10) "Natural Gas Pipeline utility"; provided that this rule does not apply to interstate natural gas pipeline facilities or interstate pipeline transportation.

B. Applicable Codes

1. The minimum standards for operation of natural gas and liquefied natural gas pipeline facilities are established by adoption of the following federal regulations, including amendments thereto:

a. The provisions of Parts 191, 192, and 193 of Title 49 of the Code of Federal Regulations (C.F.R.), including all amendments and revisions thereto, govern the design, fabrication, installation, inspection, reporting, testing, and the safety aspects of operation and maintenance of gas transmission and distribution systems, including gas pipelines, gas compressor stations, gas metering and regulating stations, gas mains, and service lines.

b. Title 49 C.F.R. Part 190, "Pipeline Safety Programs and Rulemaking Procedures," and Part 198, "Regulations for Grants to Aid State Pipeline Safety Programs," including all amendments and revisions thereto, govern certain enforcement, one-call system, and other matters for the MPUC's pipeline safety program, in concert with the provisions of this Chapter.

c. The provisions of 49 C.F.R. Part 199, including all amendments and revisions, which incorporate 49 C.F.R. Part 40 by reference, govern the drug testing inspection of operators of natural gas facilities.

2. Where Chapter 420 and Chapter 895 (Underground Facility Damage Prevention Requirements) establish more stringent requirements or requirements in addition to the federal pipeline safety regulations adopted pursuant to Section 1(B)(1)(a), (b) and (c) of this Chapter, the requirements set forth in Chapter 420 or Chapter 895 will apply.

3. Where this Chapter refers to "violations of this Chapter" or uses similar language, this means violations of Chapter 420 and the portions of Title 49 C.F.R. Parts 40, 190, 191, 192, 193, 198, and 199 incorporated above.

§ 2 Definitions

A. Building. "Building" means any structure that is regularly or periodically occupied by people.

B. Chapter 130 "Chapter 130" means Chapter 130 of the rules of the MPUC, 65-407 C.M.R. ch. 130.

C. Chapter 140. "Chapter 140" means Chapter 140 of the rules of the MPUC, 65-407 C.M.R. ch. 140.

D. Chapter 895. "Chapter 895" means Chapter 895 of the rules of the MPUC, 65-407 C.M.R. ch. 895.

E. Consolidated Rock. "Consolidated rock" means rock that is firm and coherent, solidified, or cemented, such as granite, gneiss, limestone, shale, or sandstone that has not been decomposed by weathering.

F. Critical Valve. "Critical valve" means any valve whose use may be necessary for the safe operation of a distribution system.

G. DIMP. "DIMP" means an operator's Distribution Integrity Management Program written plan required as part of 49 C.F.R., Subpart P.

H. Enclosure. "Enclosure" means a protective structure that protects its contents from intrusion and/or weather.

I. Gas. "Gas" means natural gas, flammable gas, or gas which is toxic or corrosive including mixtures of propane and air when introduced to natural gas transmission and distribution systems, but not distribution systems dedicated exclusively to liquefied propane gas.

J. Gas Safety Staff. "Gas Safety Staff" means the MPUC Director of Consumer Assistance and Safety, the MPUC Gas Safety Manager, MPUC Pipeline Safety Inspectors, and any MPUC Staff Attorney or Utility Analyst assigned by the MPUC to regularly support the MPUC's pipeline safety program.

K. Global Positioning System (GPS). "Global positioning system" or "GPS" means a satellite navigation system used to determine the ground position of an object.

L Independent Proctor. "Independent Proctor" means a representative of an outside testing or qualifying organization or agency administering a given test, or, if testing is not administered by an outside organization or agency, a supervisor, manager, or consultant directly employed by the operator.

M. Leakage Survey. "Leakage Survey" means a survey of gas facilities employing industry accepted testing equipment and effective procedures, including atmospheric tests in available openings and bar holes to locate leaks in gas systems.

N. Leak Progression Map. "Leak Progression Map" means a map of the transmission and distribution system of the operator, drawn to a suitable scale, upon which there is indicated in a suitable code the leaks found to exist in the system during an indicated reporting period.

O. Main. "Main" means a distribution line that serves as a common source of supply for one or more service lines.

P. MAOP. "MAOP" means Maximum Allowable Operating Pressure pursuant to 49 C.F.R. §192.619.

Q. Master Meter System. "Master Meter System" means a pipeline system for distributing gas within a definable area, such as, but not limited to, a mobile home park, housing project, or apartment complex, where the operator purchases metered gas from an outside source for resale through a gas distribution pipeline system to supply gas using equipment operated by the ultimate consumer who either purchases the gas directly through a meter or by other means, such as by rents.

R. MPUC. "MPUC" means the Maine Public Utilities Commission.

S. NFPA. "NFPA" means the National Fire Protection Association, and any number following "NFPA" (e.g., "NFPA 54") refers to the applicable code or standard published by the NFPA.

T. Operator. "Operator” means a person who operates gas pipeline facilities on his or her own behalf, or as an agent designated by the owner. Operator includes all operators of gas utilities defined as a "Gas Utility" in 35-A M.R.S. §102(8), all operators of gas pipelines as defined in 49 C.F.R. Part 192 except liquid propane gas distribution systems, and all operators of natural gas pipeline utilities as defined as "Natural Gas Pipeline Utility" in 35-A M.R.S. §102(10).

U. Pipeline System. "Pipeline system" means all parts of those physical facilities through which gas moves in transportation, including, but not limited to, pipe, valves, and other appurtenances attached to pipe, compressor units, metering stations, regulator stations, delivery stations, holders, and fabricated assemblies.

V. PHMSA. "PHMSA" means U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration.

W. Pipe Appurtenance. "Pipe Appurtenance" means any instrument or equipment permanently affixed to a natural gas transmission line, main, or service line. Pipe appurtenances include, but are not limited to, valves, tees, and couplings.

X. Prosecutorial Staff. "Prosecutorial Staff" means MPUC Staff assigned as advocates in an enforcement proceeding under this Chapter. Prosecutorial Staff are parties to an enforcement proceeding under this Chapter and are not "advisory staff" as that term is used in Title 35-A of the Maine Revised Statutes and Chapter 110 of the MPUC's Rules.

Y. Service Line. "Service Line" means the distribution line that transports gas from a common source of supply, such as a main, to an individual customer meter or to multiple customer meters as defined in 49 C.F.R. §192.3. A service line ends at the outlet of the customer meter or at the connection to a customer's piping, whichever is furthest downstream, or at the connection to customer piping if there is no meter.

Z. Underground Obstruction. "Underground obstruction" means one or more sub-surface structures, including other utility infrastructure, that would require the lowering of the natural gas facility to a depth greater than 48" to obtain separation distances required by this Chapter. Consolidated rock is not an underground obstruction.

§ 3 Participation in Underground Utility Damage Prevention Program

A. Natural Gas and LNG Operator Participation

Operators in Maine must:

1. Comply with Chapter 895;

2. Maintain membership in a notification center that utilizes and promotes the 811 "one-call" notification system;

3. Promote the use of 811 and "Ok-to-Dig" notification processes for use by excavators; and

4. Report to the MPUC in accordance with Chapter 895 any damage to its underground facilities or a damage prevention incident utilizing an MPUC Underground Facility Incident Report Form.

B. Pipeline Facility Locator Training and Qualification

Operators must maintain documentation that each person utilized to locate the operator's underground pipeline facilities is properly trained and qualified. Such documentation must indicate the latest date the person completed or demonstrated:

1. The necessary knowledge and skills needed to use industry best practices developed by the Common Ground Alliance for locating and marking pipelines or other recognized industry authority;

2. Knowledge of state and local underground damage prevention regulations; and

3. Qualification in accordance with 49 C.F.R. Part 192, Subpart N.

C. Notation of Facilities on System Maps Using GPS Coordinates

1. Operators must provide GPS coordinate identifiers, referenced to the North American Datum of 1983, for the location of all facilities installed after January 1, 2012.

2. Operators must record coordinates for existing facilities whenever an underground facility is exposed.

3. Operators must obtain GPS location data for new facilities for critical valves, at intersections with service lines, main or other gas facilities, at any point of directional change and at intervals along a pipeline sufficient to achieve geospatial accuracy.

D. Location of Underground Facilities Where Trenchless Technology Is Used

As part of its Damage Prevention Program adopted pursuant to 49 C.F.R. §192.614, operators must maintain and follow written procedures for protecting existing underground facilities during directional drilling and other trenchless technology installation techniques. Use of trenchless technology has inherent risks and regardless of the protection method chosen by an operator, operators have an obligation to not damage or interfere with other underground utility facilities.

1 . Underground Electric Facilities. When operators are installing natural gas facilities using directional drilling and other trenchless technology installation techniques, the operators' written procedures must require use of the exposed facility method described in Section 3(D)(2)(a) of this Chapter.

2. Sewer Facilities. When operators are installing natural gas facilities using directional drilling and other trenchless technology installation techniques, the operators' written procedures must require at least one of the following methods for positively locating underground sewer facilities (or two methods if using the relative elevation method for sewer service laterals and gravity sewer mains):

a. Exposed facility method. Operators must pothole and expose the underground facility at the gas crossing; the drill head, punch head, or plow must be visible in the pothole. The operator must document the distance between the punch head, drill head, or plow and the underground facility at all addresses/locations where this method was used. The exposed facility method is the only acceptable positive location method when using a punch, unless the punch head is equipped with a sonde.

b. Map and record method. Operators may use maps and records of sewer service laterals and mains to demonstrate that no conflict between the gas pipeline and the sewer service lateral or sewer main is possible. For example, if the gas service enters the front of a structure and a sewer service lateral exits the back of the same structure, the two utilities will not cross. The operator must document the criteria by which the lack of conflict was established and all addresses/locations where this method was used.

c. Sonde method. Operators may determine sewer service lateral and sewer main location and depth by a sonde transmitter at the crossed location. If operators use this method, the punch head or drill head must be equipped with a sonde and must be at least three feet from the sewer service lateral or sewer main. Operators must calibrate the sonde according to the manufacturer's specifications and at least as frequently as indicated by the manufacturer's specifications. Operators must document the sewer service lateral or sewer main depth and the punch head, drill head, or plow depth at each crossed location along with all addresses/locations where this method was used.

d. Relative elevation method (sewer service laterals only). Operators may determine the highest elevation of an individual sewer service lateral by entering the structure and verifying the sewer drain’s elevation as it leaves the structure. The punch head or drill head must be equipped with a sonde, and the punch, drill, or plow must at all times be at least three feet above the highest sewer service lateral elevation. Operators must maintain the three-foot separation across the entire width of the property. Operators must calibrate the sonde according to the manufacturer's specifications and at least as frequently as indicated by the manufacturer's specifications. Operators must document the highest sewer service lateral elevation relative to the punch head, drill head, or plow elevation along with all addresses/locations where the operator used the relative elevation method.

Relative elevation method (gravity sewer mains only). The highest or lowest elevation of a sewer main may be determined by verifying the sewer main’s elevation as it enters and leaves the manhole structures adjacent to the proposed crossing and interpolating to the proposed crossing point. The drilling head must be equipped with a sonde, and the drill must follow a path at least three feet above the highest calculated sewer main elevation or at least three feet below the lowest calculated sewer main elevation. The sonde must be calibrated before each locate according to the manufacturer's specifications. Operators must document all field measurements and calculations for the sewer main elevation relative to the drilling head elevation at all locations where this method was used. Operators must not use this method if the distance from the proposed crossing to the closest adjacent sewer manhole exceeds 200 feet.

f. Televising method. Operators may televise individual sewer service laterals and sewer mains after the gas pipe has been installed. Operators may not introduce gas into the new pipeline until the sewer service lateral or sewer main has been televised. Operators must document with an electronic, visual record of the televising along with a written report. Operators must correlate the sewer lateral connection (wye) location with the street address in a written report. Use of this method does not alleviate the operator’s responsibility to obtain all practically obtainable information regarding the location of sewer service laterals and sewer mains prior to installation of a gas pipeline (e.g., maps, drawings, diagrams, or other records). Use of this method does not alter or supersede the requirements in this Chapter and in Chapter 895 regarding the separation of utility facilities.

3. Other Underground Facilities. For underground facilities other than electric or sewer, operators' written procedures must utilize the guidance material provided by the Gas Piping Technology Committee (GPTC) detailed in Guidance Material Appendix G-192-6, or other recognized industry standards.

4. When directional drilling and other trenchless technology installation techniques are conducted by third party excavators, operators' written procedures must require mandatory monitoring of these excavations when an operator is notified and the operator determines that the proximity of the proposed excavation could affect the integrity of the gas facility. Operators must train their operating personnel, including locators and others who monitor directional drilling and other trenchless technology installation activities, in the specific requirements and hazards associated with those activities.

5. Operators installing natural gas facilities using directional drilling and other trenchless technology installation techniques must implement a message, as part of their public awareness programs, to reach all stakeholders who may be involved in the clearing of obstructed sewer facilities. This stakeholder group must include, but is not limited to: residents, building owners, property management companies, municipal sewer operators, plumbing contractors, and equipment rental companies. Operators must implement the message prior to the introduction of natural gas to any facilities installed by trenchless technologies. The message must include the dangers associated with the cross boring of gas facilities through existing sewer and other utility facilities.

6. Operators' written procedures regarding the use of trenchless technology must be reviewed annually and modified as necessary to be consistent with industry best practices.

§ 4 Emergency Procedures

A. Emergency Notification

Operators must provide prompt telephone notification to the MPUC's Gas Safety Manager (or a Gas Pipeline Safety Inspector if the Gas Safety Manager is not immediately available) if an emergency exists for which prompt MPUC or Gas Safety Staff action is likely to be needed, if such notice is otherwise required by MPUC Rules, if an incident attracts significant interest from other government agencies or from the media, or if specifically requested by a member of the Gas Safety Staff.

B. Requirements for Responding to Reports of Leaks or Gas Odor

A first responder employed or contracted by an operator must possess training, experience, and knowledge in emergency response, leak classification and investigation, and be qualified in accordance with 49 C.F.R. Part 192, Subpart N.

Operators must maintain emergency response records and report in accordance with Section 7(E) of this Chapter.

§ 5 Installation and Maintenance Standards

A. Interruptions of Service

1. Operators must use all practicable means to avoid interruptions to service, including maintaining appropriate levels of maintenance and planning for unexpected events.

2. Should interruptions occur, operators must reestablish service within the shortest time practicable consistent with safety.

3. Operators must keep a record of all interruptions to service involving twenty or more customers that include the following:

a. The date and time of interruption;

b. The approximate number of customers affected;

c. The date and time of service restoration;

d. The cause of such interruption when known; and

e. A description of steps taken to prevent its recurrence.

4. Operators must report to the MPUC unintended service interruptions pursuant to Section 5(A)(3) of this Chapter occurring within a calendar month by the 15th of the following month.

5. When an operator interrupts service to perform work on lines or equipment, such work must be done at a time causing minimum inconvenience to customers consistent with the circumstances.

6. If practicable, operators must notify, three days in advance of scheduled work on lines or equipment that requires an interruption to service, all commercial, institutional or other customers that can reasonably be expected to be seriously affected.

B. Operator Qualification (OQ) Program for New Construction

Operators must include all pertinent tasks related to new construction as covered tasks in their OQ Program.

C. Installation and Maintenance of Meters, Pressure Regulators and Service Piping

1. Location of Meters. Operators must install meters in either of the following locations:

a. Outside the building at a location selected by the operator; or

b. When an outside location is not feasible, inside the building, preferably in a dry, well-ventilated place not subject to excessive heat, and as near as possible to the point of entrance of the pipe supplying service to the building.

2. Master Meters. Operators must not utilize master meter systems unless all service lines to the buildings served are operated and maintained by an operator in accordance with this Chapter.

3. Protection of Meters and Distribution System Facilities from Damage from Motorized Vehicles or Equipment. Operators must provide adequate protective barriers for gas meters, regulators, and aboveground pipeline facilities located in areas subject to vehicular damage on each side exposed to vehicular traffic. Operators that have above-ground piping and appurtenances at commercial and industrial premises must consider the potential for damage to the gas facilities from equipment used in the operation and maintenance of that facility and provide adequate protection.

4. Protection of Meters and Distribution System Facilities from Snow and Ice Damage. Operators must protect regulators, meters, and other equipment installed in the piping system must from the forces anticipated as a result of accumulated snow or falling snow and/or ice.

5. Accessibility and Location of Pressure Regulators at Meters or Service Piping. Pressure regulators installed by operators at meters or on service piping locations must conform to the following requirements:

a. Pressure regulators must be accessible for inspection, testing and adjustment.

b. Pressure regulators must be installed with a screened vent pointed down, or under a protective cover that will prevent blockage of the screened vent by rain, snow, ice or debris.

c. Vents on pressure regulators installed after July 1, 2011 with over-pressure protection that vent gas to atmosphere must be at least three feet horizontally, or eight feet vertically, away from any existing building opening above the vent, and at least five feet away from any existing source of ignition (e.g., electrical meters, openings into direct-vent (sealed combustion system) appliances, or mechanical ventilation air intakes). Pressure regulators that utilize over-pressure shutoff (OPSO) technology or otherwise effectively eliminate venting gas to atmosphere need not abide by the above distance restrictions.

d. Operators must not direct-bury new regulators. All existing buried regulators must be rated by their manufacturer for the application for which they are used and must be vented above grade.

6. Observation of Unsafe Condition of Customer Facilities

a. When visiting a customer's premises for any technical service, such as atmospheric corrosion inspections of facilities or connecting or reconnecting a customer service, operators must also observe visible customer piping for atmospheric corrosion or other potential safety issues.

b. All operators must include in their O&M Procedures a "Red Tag" hazardous equipment procedure for suspending service to a customer when a hazardous condition is discovered that makes the continued delivery of gas unsafe.

c. Operators' Public Awareness Plans must include notification to customers that their piping must be in compliance with NFPA 54 and maintained to prevent atmospheric corrosion.

D. Installation and Maintenance of Mains and Service Lines

1. Installation of Plastic Pipe, Warning Tape, and Tracer Wire. To facilitate location of buried plastic pipe, when plastic pipe is installed or replaced, operators must use the following location methods:

a. An electrically conductive tracer wire must be installed with new or replaced plastic pipe, including plastic pipe that is inserted into existing buried cast iron pipe as a means of pipe replacement. Tracer wire must not be wrapped around the pipe and contact with the pipe must be minimized but is not prohibited when trenchless technology, including pipe insertion, is used. Tracer wire or other metallic elements installed for pipe locating purposes must be resistant to corrosion damage, either by use of coated 12-gauge copper wire or by other means.

b. Continuous gas pipeline warning tape must be installed approximately one foot below finish grade. The warning tape must be yellow, indicate the presence of a gas line, and at least six inches wide. No warning tape is required when pipe is installed by trenchless technology, including pipe insertion.

2. Plastic Pipe Joining and Design

a. Each person that joins plastic pipe must be qualified to do so for each joining method at intervals not exceeding 15 months, but at least once each calendar year.

b. Each completed joint, regardless of joint type, must be inspected by a person qualified to perform the inspection, and the joint, pipe, or fitting must be marked with the initials or other identifier unique to the individuals who both made and inspected the joint. This person cannot be the person that performed the joining method that is subject to inspection.

c. Design of plastic pipe must be in accordance with the design factor specified in 49 C.F.R. §192.121.

3. Minimum Cover and Separation Standards for Mains and Service Lines

a. Mains in Public Right-of-Ways. New or replaced mains located in public rights-of-way must be installed with at least 24 inches of cover above the shallowest pipe appurtenance, except where an obstruction, from other utilities or underground structures, prevents that installation depth or when pipe is inserted into existing pipe. This provision does not supersede any minimum cover depth requirements of an authority having permitting jurisdiction over the facilities being installed.

b. Service Lines. Service lines must be installed with at least 24 inches of cover above the shallowest appurtenance attached to the service line. Cover may be reduced to 18 inches above the shallowest appurtenance attached to the service line for the connection to a prefabricated riser.

c. Separation from Underground Obstructions

1. Where there is interference with underground obstructions, the operator must lay the main or service at a clearance distance of not less than 12 inches away from such obstructions unless the operator provides adequate shielding to protect the gas pipeline and the other facilities.

2. Operators must avoid where possible any interfering structure which provides a space in which an explosive atmosphere might accumulate in the event of a leak and must give preference to crossing over rather than under such structures.

d. Shallow Installations due to Underground Obstructions. When an operator has installed a main or service with less than 24 inches of cover, the operator must protect the main or service with shielding that conforms with gas industry standards both in respect to material and manner of installation. This provision does not supersede any minimum cover depth requirements of an authority having permitting jurisdiction over the facilities being installed.

4. Material Tracking

Operators must utilize a Geospatial Information System (GIS), or other comparable method to accurately track the location, by GPS coordinates, of all materials utilized for the installation and maintenance of mains and service lines that are permanently affixed to or installed with the mains or service lines.

The materials to be tracked by the operator include but are not limited to: pipe, valves, fittings, steel pipeline girth welds, and any other appurtenances.

The information tracked by the operator must include but is not limited to: material description; manufacturer; date of manufacture; batch, lot, and/or heat numbers; maximum design pressure and/or minimum yield strength; and identification of the individual(s) who made any plastic pipe joints and/or steel welds.

E. Accessibility and Operability of Pipeline System Valves

1. Pipeline Valves

Each pipeline valve installed on a main must be in an accessible location and the operator must mark and maintain the pipeline valve's GPS coordinates and triangulation on a pipeline system drawing. Operators must ensure that current maps are easily accessible to operating personnel.

2. Distribution Line Valves

a. Operators must maintain each valve installed on a main that has been designated by the operator as a critical valve to be readily accessible to facilitate its operation.

b. Each valve installed on a main that has been designated by the operator as a critical valve must be inspected and partially operated at least once each calendar year at intervals not to exceed 15 months. Operators must take prompt remedial action to correct any critical valve found inoperable, unless the operator designates an alternative critical valve.

c. Operators must inspect and partially operate each valve installed on a main that is not a critical valve at least once every five calendar years at intervals not to exceed 66 months. Operators must take remedial action to correct any non-critical valve found inoperable, or document on valve records and maps that the valve is inoperable.

d. Operators must inspect and partially operate each valve installed on a service line where there is not a valve at the service riser or where it is not practical to access the service riser valve in an emergency at least once every five calendar years at intervals not to exceed 66 months.

e. Operators may designate any valve that the operator does not intend to utilize (e.g., a valve installed on a main to facilitate construction) as a "non-operational valve." In so designating, the operator must document the valve as a non-operational valve on valve records and maps. Non-operational valves so designated and documented by an operator are not subject to the inspection, operation, or remediation requirements of this Section.

f. Operators that do not have an MPUC-approved isolation zone plan must install sufficient distribution valves on mains to isolate looped portions of a pipeline system and minimize outages to no more than 500 customers but no more than the number that the operator has sufficient technical resources, including mutual aid, to relight within eight hours. The relight interval begins immediately upon restoration of sufficient system function to support reconnection of service load.

e. If an operator installs a valve in a buried box or enclosure, the operator must install the box or enclosure to avoid transmitting external loads to the main and service line(s).

3. Valve Boxes. Operators must maintain all valve boxes associated with critical valves so as to avoid being paved over or filled with debris that prevents access to the valve or degrades valve operability.

4. Valves at Regulator Stations

a. Each regulator station controlling flow or pressure of gas in a distribution system must have a valve installed on the inlet piping at a distance from the regulator station sufficient to permit operation of the valve during an emergency that might preclude access to the station.

b. All regulator stations constructed after July 1, 2011, must have exterior shutoff valves or a sectionalizing valve installed on all lines entering and leaving regulator stations for use in an emergency to stop gas flow. Such valves must be installed at a readily accessible location where they can be operated in an emergency.

c. Exterior shutoff valves, for stations installed after July 1, 2011, must be located a minimum of 40 feet from the regulator station if inlet pressure to the station is 100 psig or less. Valves must be located a minimum of 100 feet from the regulator station if inlet pressure is more than 100 psig. The above minimum separation distances do not apply to stations where achieving the minimum separation distances is not practicable and where an automated fire-valve is installed at the inlet to the station.

d. A check valve may be used in lieu of an exterior shutoff valve on downstream piping if located a minimum of 40 feet from the regulator station.

e. The exterior shutoff valve may be a sectionalizing valve.

§ 6 Operation Standards

A. Operator Qualification (OQ) Program Requirements

Operators must include in its OQ Program’s written plan:

1. A provision that all of the operator’s personnel and the employees of the operator's contractors who may be joining plastic pipe, by any method, or inspecting plastic pipe joints must be qualified (a) directly by an employee of the operator who is fully trained and qualified; or (b) if an operator utilizes an agency to qualify its personnel, all such qualifications must be by the same agency through which the operator has adopted their OQ Program written plan. Any individual(s) conducting inspections or qualification testing must be qualified to join plastic pipe by all methods and have a minimum of two years of experience making all joints they are inspecting or for which they are qualifying others;

2. A provision requiring documentation that all qualified personnel (employees and contractors) have received training, for all tasks for which each person is qualified, prior to being tested for qualification. Operators must retain this documentation for as long as the individual is performing the covered task, and for five years thereafter;

3. A provision requiring documentation indicating that personnel (employees and contractors), qualified for any task by written testing, were tested for those tasks by an independent proctor and that all tests were corrected by the test proctor or by a computerized or online test administrating organization or agency. Operators must retain this documentation for as long as the individual is performing the covered task, and for five years thereafter. If written testing is conducted through a computerized or on-line test administered by the Northeast Gas Association or similar organization or agency, then the operator must ensure that the test proctor has been qualified by the administrator of the test;

4. A provision requiring documentation indicating that personnel (employees and contractors), qualified for any task by hands-on testing, were tested individually for those tasks by an independent proctor and that all tests were corrected by the test proctor. Operators must retain this documentation for as long as the individual is performing the covered task, and for five years thereafter;

5. A provision requiring that. if task testing is computer based, the operator have procedures to ensure that the stated individual is the person actually taking the test(s) and that the stated individual did not receive assistance during the testing. Operators must create documentation regarding the above and retain this documentation for as long as the individual is performing the covered task, and for five years thereafter;

6. A provision that. for tasks other than joining plastic pipe, the operator must perform analysis to verify that the domains and elements of all tasks performed by contractor personnel, qualified by an OQ Program other than the operator's, equate to the tasks as described in the operator's OQ Program. Operators must retain documentation of this analysis for as long as the contractor personnel are performing covered tasks, and for five years thereafter;

7. A provision that if the domains and elements of a contractor's task do not equate to those contained in the operator's OQ Program or if contractor personnel are lacking qualification for necessary tasks, the affected personnel must be qualified by the operator or the same agency through which the operator has adopted its OQ Program written plan; and

8. A provision that prior to the start of each construction season, the operator must provide the Gas Safety Staff with the necessary usernames and/or passwords to access any on-line databases used for the tracking of qualifications of the operator's employees and contractors.

B. Quality Assurance/Quality Control (QA/QC) Program

1. Operators must, as part of their compliance with 49 C.F.R. §192.605 Procedural manual for operations, maintenance, and emergencies , include procedures for evaluating the work performed by operator personnel to determine the effectiveness and adequacy of the procedures used during normal operation and maintenance tasks and to modify the procedures when deficiencies are found. Such procedures must be set out in a written QA/QC program that promotes gas system and related employee and contractor safety through monitoring of field work activities performed during the construction, installation, operation and maintenance of gas facilities. The operator must also develop a construction inspection program for new construction and facility repair work done by its employees and by contractors as part of its QA/QC program.

2. A mandatory component of operators' QA/QC Programs must be on-going audits of tasks performed with a goal to ensure compliance with the operator's written policies, practices, procedures and specifications; and with applicable codes. Record keeping accuracy and completeness verification audits are also included in this component of the QA/QC Program.

3. The QA/QC audit program must include:

a. Field Verification Audits of which a representative number are conducted after field work is completed for specific tasks.

b. Performance Audits which consist of various tasks of which a representative sample are evaluated during the actual time that the work is being performed by the employee or contractor.

c. Construction Inspections that are frequent enough to encompass most of the new facility installation and repairs that are done on the operator's system.

d. Detailed forms incorporating activity checklists prepared to cover normally performed work activities for evaluation or inspection of specified field work and construction.

4. When necessary, operators must use QA/QC audit and construction inspection findings to implement changes in procedures, training, and work practices.

5. Audits must be conducted by management personnel (e.g., supervisors, engineers) and performed on different employees/crews to ensure that all personnel are reviewed and construction work is inspected regularly.

C. Scheduling Permanent Abandonment/Disconnection of Inactive Mains and Service Lines

1. Operators must add and monitor service lines where gas is no longer being billed to a customer and which are not cathodically protected steel or plastic gas service lines equipped with an excess flow valve, according to the operators' DIMP written plans until the lines are disconnected and abandoned.

2. Operators discovering inactive bare steel (unprotected) service lines or stubs in the course of leakage surveillance, construction, maintenance or inspection of facilities must abandon or replace those lines or stubs as follows: If leaking, abandon immediately at the main; if not leaking, abandon or replace as soon as practicable but not more than six months after discovery.

3. The operator must indicate in its mapping system any main or service line that is abandoned at the time it is abandoned.

4. The operator must maintain records of any main or service line that has been abandoned.

5. If a building with an active service line is to be demolished and is not slated to be replaced the operator must abandon the service line must at the main.

D. Leak Detection

1. Leakage Surveys and Patrols. Operators must conduct leakage surveys and patrols according to the following:

a. Operators must conduct a risk-based leakage survey program for all gas mains with, at a minimum, the requirements as set forth in 49 C.F.R. §192.723 and 35-A MRSA §4713. As part of their compliance with 49 C.F.R. §192.605, operators must provide the detail on the survey cycles. Operators' DIMP written plans must provide the justification, based on data and metrics compiled and reviewed as part of the DIMP written plan, for the selection of each survey cycle identified in the operators' operations and maintenance procedures. Operators must complete a leakage survey of all mains and service lines, including meters and meter piping, at a frequency not to exceed 3 calendar years.

b. Operators must conduct a leakage survey of all cast iron main lines at least every 30 days between December 1 and April 30.

c. Operators must conduct a leak survey at buildings used for public assembly, including schools, post offices, churches, hospitals, nursing homes, theaters, and municipal buildings each year during the period March 1 to December 1. This requirement only applies to all public assembly buildings having a gas service line. Operators must utilize risk-based parameters to identify additional service lines in places of public congregation beyond those listed above, that require a survey each year from March 1 to December 1. Operators must use existing and readily accessible data to identify these risk-based parameters which may include service size, delivery pressure, number of meters, meter size, or building occupancy

d. If, when investigating a leak, an operator determines or has determined that the perimeter of a leak area extends to a building wall, the investigation must continue into the building unless public safety or identifiable urgent circumstances prohibit entry.

e. Once public safety or identifiable urgent circumstances no longer prohibit entry, the investigation, as provided in (d) above, must continue into the building, if the leak has not yet been resolved utilizing a combustible gas indicator.

2. Leak Detection Equipment Calibration and Maintenance

Operators must maintain written procedures for the calibration and maintenance of leak detection equipment. These procedures must consider the type of equipment, frequency of use, manufacturer's calibration recommendations, historical performance, age of equipment, required maintenance intervals and equipment failure protocols.

Operators must review these procedures annually and modify the procedures to the degree necessary to ensure that leak detection equipment used in the field has been properly calibrated and maintained.

E. Leak Classification and Repair

The purpose of the leak grading system is to determine the degree or extent of the potential hazard resulting from gas leakage and to prescribe remedial actions. Operators must promptly respond to any notification of a gas leak or gas odor or any notification of damage to facilities by excavators or other outside sources.

Operators must ensure that leak grading is made only by those individuals who possess training, experience, and knowledge in the field of leak classification and investigation. The judgment of these individuals, based upon all pertinent information and a complete leakage investigation at the scene, must form the basis for the leak grade determination.

1. Leak Response

a. Operators must establish a leak repair priority based on their evaluation of the location and the magnitude of a leak.

b. Operators must assign a classification of leaks in accordance with this subsection;

c. Operators must immediately notify the fire department of the community involved of each Grade 1 leak found to exist in their pipeline systems.

2. Grade 1 Leaks

a. A Grade 1 leak is a leak that represents an existing or probable hazard to persons or property and requires prompt action, immediate repair, or continuous action until the conditions are no longer hazardous. A Grade 1 leak includes but is not limited to:

1. Any leak which, in the judgment of operating personnel at the scene, is regarded as an immediate hazard;

2. Escaping gas that has ignited;

3. Any indication of gas, which has migrated into or under a building, or into a conduit or tunnel;

4. Any reading at the outside wall of a building, or where gas would likely migrate to an outside wall of a building;

5. Any reading of 70% lower explosive limit (LEL) or greater in a confined space;

6. Any reading of 70% LEL or greater in small substructures, other than gas associated substructures, from which gas would likely migrate to the outside wall of a building; or

7. Any leak that can be seen, heard, or felt, and which is in a location that may endanger the general public or property.

b. A Grade 1 Leak requires an operator to take action immediately to eliminate the hazard and make repairs. The action may require one or more of the following:

1. Implementing an emergency plan;

2. Evacuating premises;

3. Blocking off an area;

4. Rerouting traffic;

5. Eliminating sources of ignition;

6. Venting the area by removing manhole covers, barholing, installing vent holes, or other means;

7. Stopping the flow of gas by closing valves or other means; or

8. Notifying emergency responders.

3. Grade 2 Leaks

a. A Grade 2 leak means a leak that is recognized as being non-hazardous at the time of detection but justifies scheduled repair or removal within six months or less of detection due to the probability of its future hazard.

b. Grade 2 leaks vary greatly in degree of potential hazard. Operators must establish a repair priority for all Grade 2 leaks. In determining the repair priority, Operators must consider criteria such as the following:

1. The amount and migration of gas;

2. The proximity of gas to buildings and subsurface structures;

3. The extent of pavement; and

4. Soil type and conditions, such as frost cap, moisture, and natural venting.

c. Operators must complete Priority 1 repairs within 30 days of detection of any leak:

1. With a sustained reading of 40% LEL, or greater, under a sidewalk in a wall-to-wall paved area that does not qualify as a Grade 1 leak;

2. With a sustained reading of 100% LEL, or greater, under a street in a wall-to-wall paved area that has significant gas migration and does not qualify as a Grade 1 Leak;

3. With a sustained reading less than 70% LEL in small substructures (other than gas associated substructures) from which gas would likely migrate creating a probable future hazard;

4. With a sustained reading between 20% LEL and 70% LEL in a confined space;

5. With a reading on a pipeline operating at 30 percent SMYS, or greater, in a class 3 or 4 location, which does not qualify as a Grade 1 leak;

6. With a reading of 70% LEL, or greater, in gas associated substructures; and

7. Which, in the judgment of operating personnel at the scene, is of sufficient magnitude to justify scheduled repair.

d. Operators must re-evaluate all active Grade 2 leaks at a minimum of every 30 days until the leak is repaired and cleared.

e. Operators must take action ahead of ground freezing or other adverse changes in venting conditions with respect to any leak which, under frozen or other adverse soil conditions, would likely allow gas to migrate to the outside wall of a building.

4. Grade 3 Leaks

a. A Grade 3 leak is a leak that is non-hazardous at the time of detection and can be reasonably expected to remain non-hazardous.

b. Operators must survey and re-evaluate each Grade 3 leak at least once every 180 days from the date of discovery, until the leak is repaired. A leak requiring re-evaluation at periodic intervals includes any reading:

1. Of less than 70% LEL in small, gas-associated substructures;

2. Under a street in areas without wall-to-wall paving where it is unlikely the gas could migrate to the outside wall of a building; and

3. Of less than 20% LEL in a confined space.

c. Operators must repair each Grade 3 leak within 24 months of its detection unless the leak is located within an approved main replacement program area in which case the operator may extend the time for repair to the scheduled replacement.

5. Bare Steel Service Line Leaks

Operators finding a leak on a bare steel service line must replace the entire service line.

6. Post-Repair Inspections

a. In the case of leak repairs other than Grade 1, the need for a follow-up inspection must be determined by qualified personnel of the operator.

b. Operators must conduct a follow-up inspection as follows:

1. The adequacy of leak repairs must be checked before backfilling;

2. The perimeter of the leak area must be checked with a combustible gas indicator (CGI) or equivalent gas detection equipment; and

3. Where there is residual gas in the ground after the repair of a Grade 1 leak, the operator must conduct a follow-up inspection as soon as practical after allowing the soil atmosphere to vent and stabilize, but in no case later than one month following the repair.

c. A leak is considered to be effectively repaired when an operator's operating personnel obtains a gas concentration reading of 0%.

d. For a repaired leak with a gas concentration reading greater than 0% at the time of repair, operators must conduct a post-repair leak inspection within 30 days after the repair to determine whether the leak has been effectively repaired. If the second post-repair inspection shows a gas concentration reading greater than 0%, operators must continue conducting post-repair leak inspections every 30 days until there is a gas concentration reading of 0%. If on cathodically protected steel or plastic pipe, three post-repair inspections have been performed and the operator is unable to obtain a gas concentration reading of 0%, then the operator must initiate a new repair. For cast iron or unprotected steel pipe, which is included in an MPUC-approved pipe replacement program, and the operator is unable to obtain gas concentration readings of 0% after the third recheck, then these leaks must be regraded and moved to active status. Additional repairs will be required utilizing the requirements established for the new leak grading. If, after the third post-repair leak inspection, an operator regrades a leak and moves it to active status, the new leak classification will be based on the highest gas reading, or other conditions found during the third inspection, that results in the most conservative leak grade, prior to venting or other activity.

e. Post-repair inspections are not required for leak repairs completed by the replacement or insertion of an entire length of pipe or service line, or for the repair of leakage caused by excavator or third-party damage, provided a complete re-evaluation of the leak area after completion of repairs verifies that no further indications of leakage exist.

f. Remedial measures such as lubrication of valves or tightening of packing nuts on valves which seal leaks are considered to be routine maintenance work and do not require a post-repair inspection.

7. Upgrading. When operators upgrade a leak to a higher grade, the time period for repair is the remaining time based on its original classification or the time allowed for repair under its new grade, whichever is less. This requirement does not apply to leaks that, at the time of discovery, the operator classified at a lower grade pending a further, more complete investigation of the leak hazard area.

8. Downgrading. Operators must not downgrade a leak unless it is repaired.

F. Leak Progression Maps. Operators must institute and maintain on a continuing basis a leak progression mapping system of their service areas in a format that conforms with the specifications of Chapter 140. Map attributes to be included for each leak must be: pipe or appurtenance material; location of leak; cause of leak; and type of joint, if joint leak. Operators must enter into the system all leaks that have occurred since January 1, 2009. Operators should enter into the system leak history information prior to January 1, 2009 if the operator can verify the accuracy of the information.

§ 7 Documentation and Reporting Requirements

A. Filings with MPUC.

1.All plans, specifications, procedures, and other documents filed with the MPUC which pertain to the integrity of natural gas pipelines must bear the signature and seal of a Maine-licensed Professional Engineer when required by regulations adopted by the Maine Board of Licensure for Professional Engineers that apply to filings made with State agencies.

2. A copy of any report filed with PHMSA must also be provided to the MPUC.

B. Preservation of Records

1. Except as expressly provided to the contrary, all records required by this Chapter and federal regulations must be preserved by the operator for the life of the system.

2. Operators must make such records available to the MPUC or the Gas Safety Staff upon request at the operators' Maine office.

C. Participation in the Plastic Pipe Data Collection and Sharing Initiative. Operators must participate in the Plastic Pipe Data Collection and Sharing Initiative and report each discovered incident of plastic pipe failure as prescribed in the Initiative to the MPUC Gas Safety Manager, and the American Gas Association Plastic Pipe Ad Hoc Committee.

D. Annual Submission of Operation Plans

1. Operators must annually file electronically with the MPUC Gas Safety Manager current copies of the following written plans for each pipeline system operated within the State of Maine:

a. Pipeline Operating & Maintenance Plan (O&M Plan)

b. Construction Standards

c. Pipeline Emergency Plan (may be combined with O&M Plan)

d. Operator Qualification Plan

e. Damage Prevention Plan

f. Public Awareness Plan

g. Transmission and/or Distribution Integrity Management Program (when required by 49 C.F.R. Part 192)

h. Quality Assurance / Quality Control Plan

Control Room Management Plan

2. Operators must underline the most recent revisions to each plan.

3. Operators must make their annual filings no later than the 1st day of May or no later than two weeks prior to the start of pipeline operations by an operator of a new or newly acquired pipeline system.

4. Acceptable electronic formats for the plans may have the following file name extensions: .doc or .pdf, or other formats that are approved in advance of the filing deadline by the MPUC Gas Safety Manager.

5. Operators must designate a person or persons responsible for coordination of the plans listed above, and who will be responsible for on-going evaluation of the effectiveness of each plan and identifying changes needed due to changes in technology, code requirements, or improved procedures.

E. Coordination of Written Operation & Maintenance (O&M), Emergency, and Operator Qualification (OQ) Plans.

Operators must:

1. Annually review their O&M Plans to verify that they meet the requirements of 49 C.F.R. §192.605, and that their Emergency Plans meet the requirements of 49 C.F.R. §192.615;

2. Identify the specifications, procedures and/or any applicable manufacturer instructions that apply to the operations described in their pipeline O&M and Emergency Plans and to the identified covered tasks listed in their OQ Plans;

3. Clearly indicate within each plan the operators' specification, procedure, and/or manufacturer instructions that persons performing the operation or task must apply or follow by tabbing, footnoting, end-noting, indexing, linking or by other method(s) that will provide all required information to personnel in the field, as well as to operator managers and supervisors, and to the MPUC Gas Safety Manager.

F. Logging and Analysis of Responses to Gas Odor and Leak Reports

1. Operators must record each gas leak or odor report it receives.

2. Operators must keep and maintain a log recording the receipt and handling of each such report and the log must contain the following information:

a. Incoming date

b. Incoming time

c. Address, town and state

d. Work order number

e. Dispatcher name or employee identification number

f. Technician name or employee identification number

g. Time assigned to technician

h. Time accepted by technician

i. Time on route

j. Time arrived on site

k. Total time work order held in dispatch

l. Total travel time

m. Total response time

n. Time condition was made safe

o. Response time classification (30, 45, 60)

3. Operators must submit monthly reports of leak and gas odor calls to which they responded. The reports must include the lapsed time for each call, from receipt of the initial call to the arrival of a qualified responder, and a summary of the total calls responded to

a. Within 30 minutes;

b. Within 45 minutes;

c. Within 60 minutes; and

d. In excess of 60 minutes.

4. For any response time in excess of 60 minutes, operators must report the amount of time it took to arrive at the location of the report of a leak or gas odor, and provide a detailed written explanation for its failure to respond to the location within 60 minutes or less.

5. For each report of a gas leak or gas odor received by an operator, the operator must report to the MPUC the amount of time that lapsed time from initial notice until the leak(s) have been made safe by eliminating leaking gas.

G. Monthly Leak Report

1. Operators must provide, on or before the 20th of every month, a monthly leak report containing a description of the status of any leak on their systems, the source of leak identification (customer report or leak survey identification), along with classification of the leak as Grade 1, 2 or 3. The monthly leak report must include the municipality and street location for identified leaks. Operators must identify and describe the status of the leaks as follows:

a. Those leaks reported in previous months awaiting repair and/or where no action has been taken to date on the previously reported leaks;

b. Those reported during the month; and

c. Any actions, including repair, taken during the current month to address leaks reported during the current or previous months.

H. Odorization Records and Reporting

1. Operators must:

a. Conduct periodic sampling of combustible gases using an instrument capable of determining the percentage of gas in air at which the odor becomes readily detectable;

b. Select sampling sites utilizing sound engineering judgment to ensure that allgas within the entire piping system contains the required odorant concentration.

2. Operators must record and retain the following information in the operators' files:

a. Odorizer location;

b. Brand name and model of the odorizer;

c. Million cubic feet (MMcf) of gas odorized during the month/quarter; and

d. Injection rate of gas odorant per MMcf, or the following:

1. Quantity of gas odorant and the beginning of the month/quarter;

2. Amount of gas odorant added during the month/quarter; and

3. Quantity of gas odorant at the end of month/quarter (indicating adjustments for new quantity received during the month/quarter)

4. Operators must provide, on or before the 20th of every month, reports to the MPUC Gas Safety Manager of the odorant level measured at the sampling sites.

I. Construction Work Reporting

Operators must send to the MPUC, by e-mail or other electronic means acceptable to the MPUC, weekly reports of scheduled construction and repair activities. Reports must be received no later than 5:00 p.m. on the Friday prior to the scheduled work and must include both the operators' and contractors' construction activities and any scheduled repair activities. Operators must break down report information by individual crews and the scheduled work must be listed by day and address, as much as practical.

J. Pipeline Up-Rating Study and Notice Requirements.

In addition to the requirements of 49 C.F.R. 192, Subpart K, operators, 30 days prior to up-rating the MAOP of any pipeline segment, must:

1. Complete a study of the pipeline segment(s) proposed for up-rating utilizing proper inspection, testing, and engineering practices that demonstrates:

a. the integrity of each affected pipeline segment and all its appurtenances, and

b. the safety of operating each affected pipeline segment after the proposed up-rating.

2. Submit the up-rating study to the MPUC.

K. Drug and Alcohol Program Documentation. When operators are required to file a copy of a Drug and Alcohol Testing Management Information System (MIS) Data Collection Form with PHMSA, operators must simultaneously submit a copy of the form to the MPUC.

§ 8 Enforcement procedures

A. Gas Safety Staff Actions

The Gas Safety Staff may, in their discretion and as appropriate, undertake any of the following actions.

1. Reinforcement Reminder

The Gas Safety Staff may provide a reinforcement reminder to an operator to reinforcing the operator’s knowledge of a specific requirement, previously agreed upon action, an upcoming deadline, or compliance issue. A reinforcement reminder may be oral or written, and an operator may, but need not, respond orally or in writing. Written reminders, and responses to those reminders, may be submitted via email.

2. Request for Information

The Gas Safety Staff may make a written request for information related to the construction, operation, or maintenance of an operator’s system and facilities. The operator must respond to the request within 14 calendar days or such other time as specified by the Gas Safety Staff in the request. Written requests for information, and responses to those requests, may be submitted via email.

3. Field Corrective Action

When an evaluation or inspection of an operator's records or facilities indicates that the operator is apparently violating this Chapter, the member of the Gas Safety Staff conducting the evaluation or inspection will informally discuss the probable violation with the operator before concluding the evaluation or inspection. Any documentation or physical evidence necessary to support a future allegation of non-compliance may be obtained by the Gas Safety Staff during the inspection. At the discretion of the Gas Safety Staff, on-site corrective action may be taken by the operator of the facilities where the probable violation exists, thus correcting the violation without further action.

4. Warning Letter

Upon determining that an operator may have committed a violation of this Chapter, the Gas Safety Staff may issue a written warning notifying the operator of the probable violation and advising the operator to correct the probable violation or be subject to future enforcement action. In its warning letter, the Gas Safety Staff may describe recommended measures the operator may take to ameliorate the violation or prevent future violations. The warning letter may also include the maximum penalty to which the operator could be subject for the probable violation. The operator, in its discretion, may submit a response to a warning letter if one is not otherwise requested.

5. Notice of Probable Violation (NOPV)

Upon determining that a probable violation of this Chapter has occurred, the Gas Safety Staff may issue an NOPV. The NOPV may also include a proposed administrative penalty amount and describe the maximum penalty amount to which the operator could be subject for the described violations. A written response from the operator must be filed with the MPUC within 10 days of the time the operator receives the violation notice.

B. Response Options Open to Operator

Operators, in responding to an NOPV, may, within 10 days of receipt of the NOPV:

1. Contact Gas Safety Staff to engage in an informal process to reach a mutually agreeable resolution of the NOPV. If this effort is successful, the Gas Safety Staff and the operator will document the resolution of the NOPV with a consent agreement. The MPUC will docket all consent agreements along with a copy of the relevant NOPV in the MPUC’s Case Management System, and all consent agreements are subject to approval by the MPUC. At any time in the informal process, the operator or Gas Safety Staff may request that the MPUC appoint a Hearing Examiner pursuant to Section 8(B)(2) of this Chapter; or

2. Request the appointment of a Hearing Examiner. Upon request by either the operator or Gas Safety Staff, the MPUC will designate a Hearing Examiner that is not a member of the Gas Safety Staff. Once the MPUC designates a Hearing Examiner, the MPUC will docket and file the NOPV in the MPUC’s Case Management System. Once appointed, the Hearing Examiner will establish a date, time, and location for a status conference. The Hearing Examiner will conduct the status conference. During the conference, the Hearing Examiner will review the NOPV, and review and discuss efforts made by the operator and the Gas Safety Staff to identify corrective actions and reach a mutually acceptable resolution of the NOPV. If this effort is successful, the Gas Safety Staff and the operator will document the resolution of the NOPV with a consent agreement which will be subject to approval by the MPUC.

If the operator and the Gas Safety Staff are ultimately unable to reach a mutually agreeable resolution of the NOPV, the Hearing Examiner must refer the NOPV to the MPUC for formal resolution.

C. Formal MPUC Action

1. When a Hearing Examiner refers a probable violation to the MPUC for formal resolution, the MPUC may take the following actions:

a. Issue a cease and desist order pursuant to 35-A M.R.S. §§ 4515 or 4704;

b. Commence an investigation pursuant to 35-A M.R.S. §1303.

2. Notwithstanding any other provision of this rule, the MPUC may at any time resolve an alleged violation by approving a consent agreement between the Gas Safety Staff and the operator. A consent agreement is effective only if approved by the MPUC through the issuance of an order.

3. In any formal resolution proceeding before the MPUC, the Gas Safety Staff will serve as Prosecutorial Staff and the Hearing Examiner and any other MPUC staff assigned to the proceeding will serve as Advisory Staff.

D. Hazardous Facility Orders

1. In conjunction with, in addition to, or separate from the MPUC actions described in Section 8(C) above, if the MPUC finds a pipeline facility is hazardous to life or property, it may issue an order requiring the operator to take immediate corrective action, which may include:

a. Suspended or restricted use of the facility;

b. Physical inspection;

c. Testing;

d. Repair;

e. Replacement; or

f. Other action.

2. The MPUC must give the operator written notice and an opportunity for a hearing before issuance of a hazardous facility order unless the MPUC determines there is a serious and imminent threat to life or property. If the MPUC issues the order without a prior hearing, the MPUC must give the operator written notice and an opportunity for a hearing as soon as possible after the order is issued. Any such hearing must be recorded and a member of the MPUC's legal staff that is not a member of the Gas Safety Staff will serve as Hearing Examiner.

§ 9 Federal Regulation Waivers

Upon application by an operator, the MPUC may grant a waiver from compliance with the federal gas pipeline safety regulations for intrastate pipeline transportation, subject to review by PHMSA.

A. The MPUC may grant waivers for particular circumstances where it is inappropriate for an operator to follow a regulation of general applicability.

B. Before granting a waiver, the MPUC must give notice and opportunity for written comments and hearing, unless the it finds that notice is impracticable, unnecessary, or not in the public interest.

C. If the MPUC finds that a requested waiver is consistent with gas pipeline safety and is otherwise justified, the waiver must be issued under appropriate terms and conditions with a statement of reasons for granting the waiver.

D. If the MPUC finds a requested waiver is inconsistent with gas pipeline safety or is otherwise unjustified, the request must be denied, and the applicant notified of the reasons for denial.

E. The MPUC must give PHMSA written notice of each waiver at least 60 days before it becomes effective. Each notice of waiver must provide the following information:

1. The name, address, and telephone number of the applicant;

2. The safety standards involved;

3. A description of the pipeline facilities involved;

4. The justification for the waiver, including the reasons why the standards are not appropriate and why the waiver is consistent with gas pipeline safety.

§ 10 STATE REGULATION WAIVERS

Upon the request of any person subject to this Chapter or upon its own motion, the MPUC may, for good cause and upon a finding that the requested waiver is consistent with gas pipeline safety and is otherwise justified, waive any requirement of this Chapter that is not required by federal pipeline safety regulations or state or federal statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35‑A. The MPUC, the Director of Consumer Assistance and Safety, the Gas Safety Manager, the attorney assigned to the Gas Safety Staff, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2025-00330 issued on June 9, 2026. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04330-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 111, 4508, 4515, 4516-A, and 4705-A
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 25, 2011. It was filed with the Secretary of State on February 28, 2011 and became effective on March 5, 2011 (filing 2011-59).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 18, 2015. It was filed with the Secretary of State on September 21, 2015 and became effective on September 26, 2015 (filing 2015-171).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 25, 2021. It was filed with the Secretary of State on March 26, 2021 and became effective on March 31, 2021 (filing 2021-066).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 31, 2022. It was filed with the Secretary of State on August 31, 2022 and became effective on September 5, 2022 (filing 2022-167).
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General onJune 25, 2026. It was filed with the Secretary of State on June 25, 2026 and became effective on June 30, 2026 (filing 2026-135).

Chapter 421 Safety and Operation Standards for Liquefied Petroleum Gas (LPG) Distribution Systems

Code Me. R. 65-407 Ch. 421 Safety and Operation Standards for Liquefied Petroleum Gas (lpg) Distribution Systems {#sec-65-407-ch.-421 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 421}

SUMMARY: This Rule establishes safety and operation requirements and enforcement procedures for Liquefied Petroleum Gas Distribution Systems.

§1 GENERAL PROVISIONS 2

A. Scope 2

B. Applicable Codes 2

C. LPG Operator Designation 2

§2 DEFINITIONS 3

A. Combustible Materials 3

B. Corrosion 3

C. Gas 3

D. Jurisdictional LPG System 3

E. LPG 3

F. LPG Operator 3

G. LPG Supplier 3

H. Petroleum Gas 3

§3 UNDERGROUND FACILITIES DAMAGE PREVENTION PROGRAM 4

A. LPG Operator Participation 4

B. Pipeline Facility Locator Training and Qualification 4

C. System Maps 4

D. Location of Underground Facilities Where Trenchless Technology Is Used 4

§4 JURISDICTIONAL SYSTEM INSTALLATION AND MAINTENANCE STANDARDS 5

A. Installation and Maintenance of Meters and Pressure Regulators 5

B. Installation and Maintenance of Mains and Service Lines 5

C. Directional Boring Operations 6

D. Marking of Containers 6

§5 DOCUMENTATION REQUIREMENTS 6

A. Preservation of Records 6

B. LPG Operator Documentation of Gas Odorization 6

§6 ENFORCEMENT PROCEDURES 7

A. Informal Disposition of Probable Violation 7

B. Written Formal Notice of Probable Violation 7

C. Response Options Open to Operator 7

D. Commission Action 7

E. Hazardous Facility Orders 8

§7 FEDERAL REGULATION WAIVERS 9

Chapter 421: SAFETY AND OPERATION STANDARDS FOR LIQUEFIED PETROLEUM GAS (LPG) DISTRIBUTION SYSTEMS

§1 General Provisions

A. Scope

This rule describes the requirements for the installation, maintenance, and safety related conditions of LPG pipeline facilities. This Chapter applies to any Jurisdictional LPG System that distributes LPG that falls within the scope of 49 C.F.R. §192.

B. Applicable Codes

1. The minimum standards governing the design, fabrication, installation, inspection, reporting, testing, and the safety aspects of operation and maintenance of Liquefied Petroleum Gas (LPG) distribution systems, including propane storage tanks, vaporizers, mains, and service lines up to the outlet of the customer's meter set assembly or at the connection to a customer’s piping, whichever is further downstream, shall be the provisions of Parts 191 and 192 of Title 49 of the Code of Federal Regulations (CFR), including all amendments and revisions thereto.

a. In the application of LPG distribution safety rules within Maine, the 2004 edition of NFPA 58, LP-Gas Code is adopted by reference for the enforcing of the provisions of 49 CFR §192.11, except that the following sections of NFPA 58, 2004 are not adopted:

i. 6.6.7 Installation of Containers on Roofs of Buildings; and

ii. Chapter 14 Operations and Maintenance, with the exception of 14.3.3 Maintenance of Fire Protection Equipment, which is adopted.

2. Installation of LPG supply containers on the roofs of buildings within pipeline systems in Maine is prohibited. Requirements for the preparation and revision of LPG systems operation and maintenance plans for gas pipelines within the State of Maine shall be in accordance with the provisions of 49 CFR §192.605.

3. Where this Chapter 421 conflicts with 49 CFR Part 192, Chapter 421 shall prevail.

C. LPG Operator Designation

1. Every jurisdictional LPG system operating in the State of Maine must be registered with the Maine Public Utilities Commission no later than 30 days after this rule goes into effect or the operation of the system begins. A qualified LPG operator of record must be designated on the registration notice.

2. If for any reason an LPG operator ceases to be the LPG operator of record for a jurisdictional LPG system, that operator shall submit an updated registration stating they are no longer the LPG operator of record. The previous LPG operator shall provide all LPG pipeline system maps, and operating and maintenance records to the owner of the system at the time of any change in the LPG operator of record.

3. LPG operator shall retain copies of all LPG pipeline system maps or diagrams, and operating and maintenance records regarding jurisdictional LPG systems for which it ceases to be the LPG operator of record for a period of one year.

4. Failure to register a jurisdictional LPG system or report change of designation in accordance with this section may result in a penalty in an amount not to exceed $5,000.

§2 Definitions

For the purposes of this Chapter, the following terms have the following meanings.

A. Combustible Material. “Combustible Materials” are materials which, if ignited, can burn at a temperature and for a period of time that could cause damage to an LPG container or distribution system. These include but are not limited to, fuels, stored building materials, and dead brush. “Combustible Materials” does not include live vegetation such as grass, shrubs, living trees, and seasonal vegetation.

B. Corrosion. “Corrosion” is defined as a condition exhibiting signs of deterioration including pitting or loss of metal. Surface rust or light surface oxide as well as a loss of paint coating does not constitute atmospheric corrosion.

C. Gas. “Gas” means petroleum gas as defined in §2 (K).

D. Jurisdictional LPG System. “Jurisdictional LPG system” means any LPG pipeline facility that transports LPG, including propane pipelines that transport petroleum gas or petroleum gas/air mixtures from one or more LPG systems, with the exception of systems that serve:

1. Fewer than 10 customers, if no portion of the system is located in a public place; or

2. A single customer, if the system is located entirely on the customer's premises (no matter if a portion of the system is located in a public place.

E. LPG. “LPG” means petroleum gas as defined in §2 (I).

F. LPG Operator. “LPG Operator (or operator)”, means any person or entity that owns and engages in the transportation of LPG through a Jurisdictional LPG System or a person who is contracted to serve as the operator by a person who owns and engages in the transportation of LPG through a jurisdictional LPG system.

G. LPG Supplier. “LPG Supplier” means a marketer who delivers liquefied petroleum gas to a storage tank which supplies an LPG distribution system. The LPG Supplier may or may not be the operator of the distribution system.

H. Petroleum Gas. “Petroleum gas” means propane, propylene, butane, (normal butane or isobutanes), and butylene (including isomers), or mixtures composed predominantly of these gases, having a vapor pressure not exceeding 208 psi (1434 kPa) gage at 100 °F (38 °C).

§3 Underground Facilities Damage Prevention Program

A. LPG Operator Participation

1. Each LPG operator in Maine shall:

a. Comply with Maine PUC Chapter 895, Underground Facility Damage Prevention Requirements; and

b. Maintain membership in a notification center that utilizes and promotes the “811” one-call notification system.

2. Report to the Commission in accordance with Chapter 895 any damage to its underground facilities or a damage prevention incident utilizing MPUC Underground Facility Incident Report form, such incidents including when an excavator fails to contact the LPG Operator or the one-call notification system.

B. Pipeline Facility Locator Training and Qualification

1. Each LPG operator shall maintain documentation that each person utilized to locate the operator’s pipeline facilities, whether the person is an employee of the operator or is an employee of a contractor retained by the operator, is properly trained and qualified. Such documentation shall indicate the latest date the person completed or demonstrated:

a. The necessary knowledge and skills needed to use industry best practices developed or other recognized industry authority for locating and marking pipelines;

b. Knowledge of state and local underground damage prevention regulations.

c. Qualification in accordance with 49 CFR Part 192, Subpart N.

C. System Maps

Each LPG operator shall have on file at its local office a map, diagrams, or drawing showing:

1. The LPG distribution system, including but not limited to, the size, character, and location of supply container(s), regulators, mains including valves, and service lines; and

2. The size and location of each service line provided that, in lieu of showing service locations on maps, a card record or other suitable means may be used.

3. LPG operators shall provide global position satellite (GPS) coordinate identifiers for the location of all facilities on its system maps, diagrams, and/or drawings.

D. Location of Underground Facilities Where Trenchless Technology Is Used

LPG operators shall physically locate existing underground facilities that are located within 3 feet of where the LPG Operator is using trenchless technology to place gas lines during any new construction, repair, or replacement project. “Physical locate” as used in this section means exposing the existing underground facilities by hand-digging and/or vacuum excavation in addition to locating and marking along the ground.

§4 Jurisdictional System Installation and Maintenance Standards

A. Installation and Maintenance of Meters and Pressure Regulators

1. Protection of Meters, Tanks and Distribution System Facilities from Damage from Motorized Vehicles or Equipment

Gas meters, aboveground tanks, domes of underground tanks, and distribution system facilities located adjacent to a roadway, street, alley, driveway, easement or otherwise susceptible to damage from motor vehicles shall be provided protective barriers on each side exposed to vehicular traffic.

2. Accessibility and Location of Pressure Regulators at Meters or Service Piping

Pressure regulators installed at meters or on service piping locations shall conform to the following requirements:

a. Regulators shall be installed:

i. With the screened vent pointed down, or under a protective cover that will prevent blockage of the vent by rain, snow, ice or debris;

ii. At least 5 feet away from mechanical ventilation air intakes, openings into direct-vent (sealed combustion system) appliances, or any source of ignition, such as but not limited to electrical meters.

b. Regulators shall not be direct buried.

3. Hazardous Equipment Procedure

By July 1, 2012, LPG suppliers shall implement modified operation and maintenance procedures that include a “Red Tag” or hazardous equipment procedure for suspending service to a customer’s system when a hazardous condition is noticed that makes continued delivery of LPG unsafe.

B. Installation and Maintenance of Mains and Service Lines

1. Installation of Plastic Pipe, Warning Tape, and Tracer Wire

a. Plastic pipe that is not encased in metallic piping must have an electrically conductive tracer wire or other approved means of locating the pipe. To facilitate location of buried plastic pipe, where plastic pipe is installed or replaced the following location methods shall be used.

i. A tracer wire shall be installed adjacent to the piping. Tracer wire may not be wrapped around the pipe and must not contact the pipe. Tracer wire or other metallic elements installed for pipe locating purposes must be resistant to corrosion damage, either by use of coated copper wire or by other means.

ii. Continuous gas pipeline warning tape shall be placed above piping installed by open trenching, and separated from the piping by a minimum of 6 inches.

C. Directional Boring Operations

Each LPG operator shall:

1. Develop written procedures for conducting directional boring activities for the installation of gas pipeline facilities prior to engaging in directional boring;

2. Train its operating personnel including locators in the specific requirements and hazards associated with directional bores.

D. Marking of Containers

1. All LPG operator-owned containers, aboveground or underground, installed at consumer locations shall be marked in a legible manner with the name and telephone number of the owner by decal, tag, stencil, or similar marking.

2. Containers gained through acquisition shall be marked as soon as possible, but no later than 30 days after acquisition.

§5 Documentation Requirements

A. Preservation of Records

1. All records required by these rules shall be preserved by the LPG operator for 1 year after the LPG Operator ceases to operate the LPG system unless otherwise designated by 49 C.F.R. Part 192.

2. The LPG operator shall make such records available to the Commission upon request at the LPG operator’s local office.

B. LPG Operator Documentation of Gas Odorization

1. All LPG delivered by distribution system to customers shall be odorized by the addition of a warning agent of such character that the gases are detectable, by a distinct odor.

2. The presence of odorant shall be determined by sniff-testing or other means and the results documented upon delivery to the distribution system storage containers or when LPG is loaded into the containers of delivery vehicles at a bulk facility.

§6 Enforcement Procedures

The Commission shall use the following process when it initiates an enforcement action.

A. Informal Disposition of Probable Violation

When an evaluation of an operator's records and facilities indicates that the operator is apparently violating this chapter, a staff member designated by the Commission will informally discuss the probable violation with the operator before concluding the inspection. Any documentation or physical evidence necessary to support a future allegation of non-compliance may be obtained during the inspection. On-site corrective action may be taken by the operator of the facilities where the probable violation exists, thus correcting the violation without further action. The Commission may permit the operator of the facilities where a probable violation exists to correct the violation within 30 days, thus correcting the violation without further action.

B. Written Formal Notice of Probable Violation

After evidence of a probable violation is collected and the violation report written, the operator will be notified of the results of the on-site evaluation and the provision of this chapter the operator is apparently violating. The notice of probable violation may include a proposed administrative penalty amount. A written response from the operator must be filed with the Commission within 14 days of the time the operator receives the violation notice.

C. Response Options Open to Operator

The operator, in responding to the violation notice, may:

1. Submit a written plan specifying actions that the operator will take to correct the violation, a schedule for completion of each action step, and a final date of compliance. If the Commission accepts the corrective plan submitted by the operator and the operator implements the corrective actions, the violation is resolved. In addition to the submission of a written correction plan, or alternatively, the operator may request an informal conference. Upon request for an informal conference, a staff member designated by the Commission will establish a date, time, and location for the conference. During the conference, staff will review the violation report with the operator to identify corrective actions and reach a mutually acceptable resolution of the violation and proposed administrative penalty, if any. If this effort fails, the designated staff member may refer the violation to the Commission for formal action. If the designated staff member declines to refer the matter to the Commission for formal action, the operator will be notified by letter.

D. Commission Action

1. If the violation is referred to the Commission for formal resolution, the Commission may take the following actions:

a. The Commission may seek injunctive relief in the Superior Court pursuant to 35-A M.R.S.A. §§ 4515 or 4704;

b. The Commission may issue a show cause order and schedule a hearing requiring the operator to show why the operator should not be subject to the penalties set forth in 35-A M.R.S.A. §§ 4516-A or 4705-A;

c. The Commission may, after investigation and a formal public hearing pursuant to 35-A M.R.S.A. §1303, order an operator to take corrective action; or

d. The Commission may decline to take action to resolve the alleged violation.

2. Consent agreements. Notwithstanding any other provision of this rule, the Commission may at any time resolve an alleged violation with a consent agreement.

a. Content. A consent agreement must be signed by the respondent, or a duly authorized representative, and must indicate agreement with the terms therein. A consent agreement is not required to indicate the respondent acknowledges having committed a violation.

b. Order. A consent agreement is effective only if approved by the Commission through the issuance of an order.

E. Hazardous Facility Orders

1. If the Commission finds a pipeline facility is hazardous to life or property, the Commission may issue an order requiring the operator to take immediate corrective action, which may include:

a. Suspended or restricted use of the facility;

b. Physical inspection;

c. Testing;

d. Repair;

e. Replacement; or

f. Other action.

2. The Commission shall give the operator written notice and an opportunity for a hearing before issuance of a hazardous facility order unless the Commission determines there is a serious and imminent threat to life or property. If the order is issued without a prior hearing, the operator shall be given written notice and an opportunity for a hearing as soon after the order is issued as possible. Any such hearing shall be recorded and a member of the Commission's legal staff shall act as hearing examiner.

3. The operator may appeal the decision of the hearing examiner to the Commission within 5 business days following the decision. After receipt of the notice of appeal, the Commission may investigate pursuant to 35-A M.R.S.A. §1303 and hold a formal public hearing on the matter within a reasonable time. If the Commission does not issue an order commencing an investigation within 20 days following the filing of the appeal, the appeal is automatically denied. If the Commission denies the appeal, the decision of the hearing examiner is deemed a final decision of the Commission. If the Commission does hold a public hearing, it shall determine the matter de novo and may affirm, revise or modify the decision of the hearing examiner and substitute its own decision therefore.

§7 Federal Regulation Waivers

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by federal regulation or state or federal statute. The Commission or the Presiding Officer may grant the waiver.

A. Upon application by an operator, the Commission may grant a waiver from compliance with the federal Gas Pipeline Safety Regulations for intrastate pipeline transportation, subject to review by the office of Pipeline Safety Regulation.

1. Waivers may be granted for particular circumstances where it is inappropriate for an operator to follow a regulation of general applicability.

a. Before granting a waiver, the Commission must give notice and opportunity for written comments and hearing, unless the Commission finds that notice is impracticable, unnecessary, or not in the public interest.

b. If the Commission finds a requested waiver is consistent with gas pipeline safety and is otherwise justified, the waiver must be issued under appropriate terms and conditions with a statement of reasons for granting the waiver.

c. If the Commission finds a requested waiver is inconsistent with gas pipeline safety or is otherwise unjustified, the request must be denied, and the applicant notified of the reasons for denial.

d. The Commission must give the office of Pipeline Safety Regulation of the United States Department of Transportation written notice of each waiver at least 60 days before it becomes effective. Each notice of waiver must provide the following information:

i. The name, address, and telephone number of the applicant;

ii. The safety standards involved;

iii. A description of the pipeline facilities involved;

iv. The justification for the waiver, including the reasons why the standards are not appropriate and why the waiver is consistent with gas pipeline safety.

AUTHORITY: 35-A M.R.S.A. §§ 111, 4508, 4702-A, and Resolves 2011, ch. 143.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on June 1, 2010. It was filed with the Secretary of State on June 4, 2010 (filing 2010-219) and became effective on June 9, 2010.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on February 23, 2011. It was filed with the Secretary of State on February 24, 2011 (filing 2011-57, major substantive) and became effective on March 1, 2011. A corrected version was approved as to form and legality by the Attorney General on March 3, 2011. It was filed with the Secretary of State on March 4, 2011 (filing 2011-76, major substantive) and became effective on March 9, 2011.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on May 14, 2012. It was filed with the Secretary of State on May 15, 2010 (filing 2012-156, major-substantive) and became effective on June 14, 2012.

65-407 Chapter 421 page 2

Chapter 430 Cost of Gas Adjustment for Gas Utilities

Code Me. R. 65-407 Ch. 430 Cost of Gas Adjustment for Gas Utilities {#sec-65-407-ch.-430 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 430}

Section Page

1. Definitions 1

2. Application for Cost of Gas Adjustment 2

3. Projected Cost of Gas 3

4. Reconciliation Adjustment 4

5. Interest Expense Adjustment 5

6. Transition Adjustment 6

7. Computation of Cost of Gas Adjustment 7

8. Annual Report 7

9. Reporting Requirements 8

10. Transition 8

65 INDEPENDENT AGENCIES - REGULATORY

407 PUBLIC UTILITIES COMMISSION

Chapter 430: COST OF GAS ADJUSTMENT FOR GAS UTILITIES

SUMMARY: This rule, applicable to gas utilities, establishes rules for calculation of gas cost adjustments, procedures to be followed in establishing gas cost adjustments and refunds, and describes reports required to be filed with the Commission.

1. DEFINITIONS

A. Gas Utility. Gas utility means a gas company, or a natural gas pipeline company as defined in 35-A M.R.S.A. section 102, subsections 8 and 10.

B. The Commission. The Commission means the Public Utilities Commission.

C. Gas. Natural gas or a mixture of natural gas and other flammable gas, including, but not limited to, propane, liquefied natural gas and synthetic natural gas.

D. Cost of gas. Cost of gas means the total charges paid by the gas utility for gas received into system supply for sale to its customers, less any cash or other discounts, and less any supplier refunds to be credited in a manner described in section 4(A)(6). This term encompasses associated costs including, but not limited to, labor, carrying costs, or the cost of handling the gas prior to its delivery to the gas utility for sale to its customers. The cost of gas shall also include any back out charges, pay out charges, take-or-pay penalties or similar charges to the extent that said charges have been prudently incurred. The cost of gas shall not include demurrage, purchasing agent commissions, insurance, on system storage costs, or other non gas-related expenses incurred on system by the gas utility.

E. Therm. Therm means 100,000 btu's. This would equate to one-hundred cubic feet of one-thousand btu per-cubic-foot gas.

F. Total Therm Sales. Total therm sales means total therms sold subject to 35-A M.R.S.A. § 4703, as the same shall be amended from time to time.

G. Winter Period. Winter period means the six-month period from November 1 through and including April 30 of the following year.

H. Summer Period. Summer period means the six-month period from May 1 through and including October 31.

I. Base Rates. Base Rates are the rates set in a general rate adjustment proceeding under 35-A M.R.S.A. §§ 307, 1303 or 1308.

J. Base Rate Cost of Gas. Base Rate Cost of Gas is that portion of the Base Rate which is designed to recover the gas utility's cost of gas. See 35-A M.R.S.A. § 4703(1). It is a fixed cents-per-therm charge on monthly billed volumes. Since the total amount recovered is dependent on therms billed, it will vary with usage.

K. Base Rate Gas Cost Recovery. Base Rate Gas Cost Recovery means that portion of a gas utility's total cost of gas which has been or will be recovered through Base Rates. It is derived by multiplying the Base Rates Cost of Gas by the number of therms sold or projected to be sold.

2. APPLICATIONS FOR COST OF GAS ADJUSTMENT

A. Each gas utility, as defined in this chapter, shall adjust its charges to customers to recover increases and to credit decreases in the cost of gas as approved by the Commission.

B. No gas utility shall implement a cost of gas adjustment which has not been approved and ordered into effect by the Commission.

C. A gas utility must file an application for a cost of gas adjustments on or before February 15 of each year, designed to recover the projected cost of gas for the summer period. It must also file a cost of gas adjustment on or before August 15 of each year, designed to recover the projected cost of gas for the winter period. The gas utility may amend its application to update it based upon more current information, to the extent that the Commission determines that such amendment will not unduly delay the Commission's determination. For good cause shown, in unusual circumstances and upon timely application by a gas utility, the Commission may allow the gas utility to vary either the filing dates or the periods during which a cost of gas adjustment is to be in effect. For the first filing which a gas utility makes pursuant to these regulations, section 2(F) of this chapter shall control.

D. In addition to the applications which must be filed pursuant to the previous subsection of this chapter, a gas utility may file an application seeking an alteration in its cost of gas adjustment in the event that its then-effective cost of gas adjustment is likely to result in a material over-recovery or under-recovery of gas costs, and upon a showing satisfactory to the Commission that any delay in making an adjustment will unreasonably burden either the gas company or its customers. Except by leave of the Commission, no such application shall be filed less than 90 days following the date upon which the last application for a cost of gas adjustment was filed. Additionally, after summary investigation the Commission may direct any gas company to file a new cost of gas adjustment.

E. After receipt of an application for a cost of gas adjustment, the Commission shall order notice of the application to be published within seven (7) days of receipt and shall set a time and place for a public hearing, which shall be held, unless otherwise ordered by the Commission, within fourteen (14) days after publication of the notice. The Commission shall render its decision on the application within forty-five (45) days of the close of the hearing or within forty-five (45) days of receipt of the application, if no hearing is held. Except in unusual circumstances, the Commission shall act upon a cost of gas adjustment application prior to the start of the applicable summer or winter period.

F. With respect to the first cost of gas adjustment application filed by a gas utility following the effective date of this chapter, the period during which the adjustment is to be in effect may be different than the periods defined in Sections 1(G) and (H) of this chapter. All gas utilities providing service on the effective date of this chapter shall file a cost of gas adjustment application within thirty (30) days thereof. All other gas utilities shall file a cost of gas adjustment application not less than seventy-five (75) days prior to the commencement of service.

3. PROJECTED COST OF GAS

For all applications filed pursuant to Section 2(C) of this chapter, the gas utility shall estimate its total cost of gas for each month of the period during which the cost of gas adjustment is proposed to be in effect. For all applications filed pursuant to Sections 2(D) and 2(F) of this chapter, the gas utility shall estimate its total cost of gas for each of the remaining months of the period for which the application is filed.

4. RECONCILIATION ADJUSTMENT

A. The Commission shall make a reconciliation adjustment for inclusion in the cost of gas adjustment of a gas utility to account for the following:

1. A Transition Adjustment, if any as defined in Section 6, below.

2. Any amounts over-collected or remaining to be collected from prior periods. Any over-collection or under-collection occurring during a winter period shall be recovered by means of the cost of gas adjustment effective during the next winter period. Any over-collection or under-collection occurring during a summer period shall be recovered by means of the cost of gas adjustment effective during the next summer period. In the case of periods during which the cost of gas adjustment is changed pursuant to an application filed under Section 2(D) of this chapter, all or part of the unrecovered or over-collected gas costs that accumulate during the first months of the period may, in the discretion of the Commission, be recovered during the remaining months of the period.

3. Errors or erroneous reporting.

4. Imprudent or unreasonable gas procurement policies and practices.

5. Such other practices, policies, and factors as the Commission considers appropriate, including the justness and reasonableness of the cost of gas acquired by the gas utility.

6. Refunds received from suppliers, to be treated as follows:

(a) Refunds, whenever received, shall be retained by the gas utility for inclusion in the next reasonably available cost of gas adjustment following receipt of the refund, and then shall be distributed over the next 12 months.

(b) The gas utility shall accrue interest on the balance refunded in a manner consistent with Section 5(C) beginning with the second month of retention and continuing through the refund period. In making a refund adjustment, the gas utility shall also include a projection of accrued interest associated with the amortization of the refunded balance over the twelve-month amortization period. This shall be computed by applying the gas utility's latest known twelve-month actual average short-term interest rate, to the projected average refund balances for each month during which the amortization is to be accomplished.

(c) At the end of the twelve-month distribution period, any refunds not fully distributed, or any amounts distributed in excess of the refund, together with interest accrued during the intervening period, calculated in a manner consistent with Section 5(C), shall be included in the next available cost of gas adjustment.

B. The reconciliation adjustment may be either positive or negative.

C. If for any reason a cost of gas adjustment authorized pursuant to this chapter is in effect for a period different than the summer and winter periods set forth in this chapter, the Commission shall allow any over- or under-recoveries of reasonable gas costs incurred during said period to be recovered in a manner consistent with the purposes of this chapter, preserving so far as is possible, the principle of recovering summer gas costs during subsequent summer periods, and winter gas costs during subsequent winter periods.

5. INTEREST EXPENSE ADJUSTMENT

The interest expense (either positive or negative) associated with under- and over-collections of gas costs, shall be included in the cost of gas adjustment.

A. Over-and under-collected gas costs, and associated interest costs shall each be accounted for separately for each summer and winter period. The balances in the summer accounts at the end of each summer period shall be transferred to the next summer period for inclusion in the cost of gas adjustment in effect for the next summer period. With respect to the over- and under-collected gas cost account only, the gas utility shall accrue interest during the intervening winter period by applying the company's average short-term cost of borrowing, as the company's average short-term cost of borrowing, as determined in Section 5(C), to this account for each month of the intervening winter period. The balances at the end of each winter period shall be treated in the same manner.

B. The over-/under-collection gas cost accounts for each period shall be credited or debited each month with the difference between gas cost revenues billed that month and gas costs incurred that month. Gas cost revenues are the total of the base rate gas cost recovery and cost of gas adjustment revenues, net of transition and supplier refund revenues.

C. The over-/under-collection interest accounts for each period shall be credited or debited each month with the over-/under-collection interest expense. This expense shall be computed by applying the Company's average short-term cost of borrowing for the month to the average of the beginning and end of month balances of the over-/under-collection gas cost accounts, for each month of the applicable period.

D. If, in a gas utility's most recent rate proceeding, the Commission has approved, by stipulation or otherwise, a capital structure, cost of equity and overall cost of capital, then in lieu of using actual and projected short-term debt interest costs in this section to reflect the capital costs associated with deferring the recovery or return of over- or under-collected gas costs, the Commission may, in its discretion, make the adjustment by using the overall cost of capital, adjusted to account for the taxes on the equity portion of that return on capital.

6. TRANSITION ADJUSTMENT

Unrecovered reasonable gas costs outstanding on the effective date of a gas utility's first cost of gas adjustment shall be recovered as follows:

A. The Commission shall determine the total amount of uncollected reasonable gas costs as of the date of the new cost of gas adjustment. The Commission shall also determine a reasonable interest expense, in a manner consistent with Section 5(C), reflecting the cost, as of the date of the implementation of the first cost of gas adjustment filed pursuant to this Chapter, of deferring the recovery of these gas costs. The Commission shall also estimate the projected interest costs, associated with the amortization of the balance over the period selected in subsection C of this Section, in a manner consistent with Section (4)(A)(6)(b).

B. These amounts, shall be amortized over a period, to be determined by the Commission, of not more than twenty-four months, and shall be recovered by means of the cost of gas adjustments in effect during the amortization period.

C. The adjustment for this recovery shall be derived by dividing the total unrecovered gas costs together with associated interest, as determined by the Commission, by the projected total number of therm sales during the amortization period.

D. In each filing made pursuant to this chapter during the amortization period, the gas company shall indicate the gas costs recovered to date pursuant to this subsection. The gas company may then propose, and the Commission may order or authorize, a change in the amortization rate to minimize the possibility either of an over-recovery or an under-recovery of the amount to be amortized.

E. Any over-recovery or under-recovery outstanding at the close of amortization period shall be treated in accordance with the method set forth in Section 4(A)(6)(c) of this chapter.

7. COMPUTATION OF COST OF GAS ADJUSTMENT

A. The cost of gas adjustment for any period is equal to the projected cost of gas for that period, plus or minus the reconciliation adjustment, plus or minus the interest expense adjustment, minus the base rate gas cost recovery.

B. A gas utility shall estimate the total therm sales for each month of the period during which its proposed cost of gas adjustment is intended to be in effect.

C. The cost of gas adjustment rate for any period is equal to the cost of gas adjustment divided by the projected total therm sales for that period.

D. The cost of gas adjustment rate shall be a single uniform rate per therm for all customers of the gas company.

8. ANNUAL REPORT

A. Each gas utility shall file with the Commission an annual cost of gas report as a supplement to its Annual Report to the Commission, by May 1. Each report shall contain information regarding:

1. Procedures employed to assure that minimum prices are paid for gas purchased;

2. Policies followed to assure long-term supply of gas at reasonable prices;

3. Summary of financial and statistical data, with any necessary reconciliation to data presented in the gas utility's annual report;

4. Name of person or firm making audit, whether or not that person is an employee of the gas utility;

5. A disclosure of any ownership or corporate relationship between the gas utility, its directors, its officers, or its employees who are engaged in the acquisition of gas, and the seller of gas to such utility.

9. REPORTING REQUIREMENTS

A. By no later than 25 days following the end of each quarter, each gas utility shall submit a quarterly report reflecting operations during the prior quarter in accordance with the format established by the Commission. Each report shall include all information necessary to calculate and document gas charges and costs, gas adjustment charges, and any other information in whatever form requested by the Commission to facilitate the evaluation and cost justification process. These reports shall show the volume of pipeline natural gas, liquefied natural gas, storage gas and propane air gas and other gas supplied to customers during the quarter, together with the cost of each. The quarterly report shall include all relevant data for the preceding calendar quarter, including revenue received under the cost of gas adjustment. It shall also report and describe any refunds received during the quarter. By no later than 40 days from the end of each quarter, the gas utility shall also explain in writing any differences between actual gas costs, gas sendout and gas sales, and the projections made in its filing.

10. TRANSITION

Any cost of gas adjustment tariff in effect on the effective date of this chapter shall remain in effect until such time as a cost of gas adjustment made pursuant to this chapter becomes effective.

BASIS STATEMENT: The factual and policy basis for this amended rule is set forth in the Commission's Statement of Factual and Policy Basis and Order Adopting Rule, Commission Docket No. 97-172, issued on August 6, 1997. Copies of this Statement and Order have been filed with this rule at the Office of the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, ME 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§111 and 4703.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 4, 1997. It was filed with the Secretary of State on September 4, 1997 and will be effective on September 9, 1997.
• NON-SUBSTANTIVE CORRECTION: September 24, 1997 - date in Basis Statement.
• NON-SUBSTANTIVE CORRECTION: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 440 Gas Utility Meter Performance, Accuracy, Testing, and Related Standards

Code Me. R. 65-407 Ch. 440 Gas Utility Meter Performance, Accuracy, Testing, and Related Standards {#sec-65-407-ch.-440 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 440}

SUMMARY: This Chapter establishes meter performance, accuracy, testing, and related standards for gas utilities.

§ 1. SCOPE AND PURPOSE

A. Scope

Unless otherwise specified, this Chapter applies to all gas utilities in the State.

B. Purpose

This Chapter establishes meter performance, accuracy, testing, and related standards and for gas utilities.

§ 2. DEFINITIONS

The following words and terms, when used in this Chapter, shall have the following meanings, unless the context clearly indicates otherwise.

A. “Applicable Codes, Standards and Requirements” means the codes, standards, and/or requirements identified, established, adopted, or published by the American National Standards Institute (ANSI) or American Gas Association (AGA) that are applicable to gas utility meter performance, accuracy, testing, or related matters, or the codes and standards of other entities that are generally accepted and used by the gas utility industry for meter performance, accuracy, testing, or related matters. The applicable version of the codes and standards required by this Chapter shall be the most recent version of the applicable codes and standards. The version that applies to a device will be the version in effect at the time the device is initially put into service.

B. “Billing Conversion Factor” means a factor used to convert cubic feet of gas into Therms, based on the heat content and the delivery pressure of the gas delivered to customers over the applicable billing period.

C. “British Thermal Unit” or “BTU” means the amount of heat required to raise the temperature of one pound of water one-degree Fahrenheit at the temperature that water has its greatest density.

D. “Commission” means the Maine Public Utilities Commission.

E. “Customer” means a person or entity that receives service from a gas utility.

F. “Diaphragm Meter” means a positive displacement instrument which is used to measure the volume of gas that passes through it.

G. “Gas Utility” means an entity that distributes natural gas for end use by customers in the State of Maine.

H. “Heat Content” means a thermodynamic quantity equal to the internal energy of a system plus the product of its volume and pressure.

I. “Rotary Meter” means a gas volume meter with a rigid measuring compartment is formed between the walls of a stationary chamber and rotating element of elements.

J. “Therm” means 100,000 BTUs.

K. “Turbine Meter” means is a liquid/gas velocity measurement device with a free-spinning turbine rotor that turns at a speed that is proportional to the flow velocity.

L. “Ultrasonic Meter” means a device that measures the velocity of gas within the meter ultrasonically allowing flow to be computed.

§ 3. METERING PERFORMANCE AND ACCURACY

A. General

All gas distributed or delivered to customers by a gas utility shall be measured by meters owned and maintained by the gas utility, except where it is impracticable to do so. Each gas utility shall include in its Terms and Conditions the factors or conditions that would render it impracticable to maintain a meter for this purpose.

A gas utility shall keep a complete set of records of its meters by customer account and/or premise ID, including the meter type, meter age, meter manufacturer, unique meter identification code, and date of installation. Each gas utility shall also keep records of all meter tests and meter test results. The records shall also include all repairs, and upgrades that affect accuracy. All records required by this Chapter shall be kept by the gas utility for a period of ten years. All such records shall be available to the Commission upon request.

B. Meter Performance and Accuracy

1. Performance and Accuracy Standards

All meters shall comply with the applicable codes, standards, and requirements related to performance and accuracy. The applicable codes, standards, and requirements shall generally be the most recent version of such standards. Each gas utility shall identify in its Terms and Conditions the applicable codes, standards, and requirements for each meter type being used., and the process by which the gas utility will ensure and document compliance with the codes, standards, and requirements.

2. Failure to Meet Standards

A meter that does not meet the applicable performance and accuracy standards may not be placed in service or, if such meter is in service, the meter must be removed from service within a reasonable period, which shall be specified in the gas utility’s Terms and Conditions.

3. Billing Adjustments

If, upon testing, a customer meter that is in service is found to be registering usage in an amount that is not within the required performance and accuracy standards of the Chapter, in addition to the removal requirement set forth in Section 3(B)(2), the gas utility shall adjust the customer’s bills on a retroactive basis in accordance with Chapter 815 of the Commission’s rules.

C. Testing Protocols

1. Utility Testing

All meters shall be tested to ensure and document compliance with the applicable performance and accuracy standards. The testing may be performed by the gas utility, or by a qualified third party retained by the gas utility, using testing equipment and processes that meet the applicable codes, standards, and requirements or otherwise conform to standard utility practice. The gas utility’s testing protocols shall include (i) testing and verification by the meter manufacturer for each new meter before it is placed in service, (ii) testing by the gas utility, or a third party on behalf of the gas utility, of any existing meters before redeployment or reuse of the meter, and(iii) testing upon request of a customer, and (iv) periodic testing in accordance with the gas utility’s Terms and Conditions.

All meter testing activity, including results, shall be documented by the gas utility and shall be provided to the Commission upon request.

2. Customer Requested Tests

When a customer requests a meter test, a gas utility shall test the customer’s meter within fifteen (15) days from the time the request is made. If the customer’s meter has been tested at no charge during the preceding twelve (12) months, a gas utility may require the deposit of a fee in an amount as specified in the gas utility’s Terms and Conditions. If upon testing the meter is found to be registering an amount that is not within the applicable codes, standards, and requirements, any deposit shall be promptly refunded, the gas utility shall promptly remove the meter from service and provide the customer with a replacement meter, and the gas utility shall adjust the customer’s billings pursuant to section 3(B)(3) of this Chapter. If the meter is found to be performing and registering usage in accordance with the applicable codes, standards, and requirements, the utility may retain the customer’s deposit.

The gas utility shall provide to the customer by electronic mail or other method selected by the customer within thirty (30) days after completion of the test a written report that includes:

a. the name and account number of the customer requesting the test;

b. the date of the request;

c. the location of the meter;

d. the meter type, manufacturer, model, size, age, and serial number;

e. the date of the test;

f. a detailed description of the test results, including what the results indicate with respect to the applicable codes, standards, and requirements; and

g. the status of any deposit provided by the customer.

The letter shall also include a description of any billing adjustments indicated by the testing results, if available at the time. Alternatively, the gas utility may provide such description within 30 days of test report, if the information is not available at the time the test results report is provided. In addition, the letter shall include information about how to contact the gas utility in the event the customer has questions about the report, as well as information regarding the customer’s right to contact the Commission’s Consumer Assistance and Safety Division (CASD) to dispute any aspect of the test, including any billing adjustments. The letter shall include the CASD’s toll-free telephone number.

D. Billing Conversion Factors

A gas utility shall determine the heat content of the gas serving customers within its service territory on a daily basis and shall convert the metered usage of each customer to Therms using the heat content of the gas delivered to the service territory over the customer’s billing period.

The heat content of gas serving customers in the gas utility’s service territory shall be determined by the gas utility by direct measurement at the gas utility’s city gates or take stations, or through such other reliable means as set forth in the gas utility’s Terms and Conditions.

A gas utility shall have systems and protocols in place to verify the accuracy of its bill conversion factors and shall provide a report documenting the accuracy of these factors in each of its cost of gas proceedings.

§ 4. WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of Electric and Natural Gas Industries, the Director of Consumer Assistance and Safety, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104 and 111.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 2, 2020. It was filed with the Secretary of State on January 6, 2020 and became effective on January 11, 2020 (filing 2020-005).

Chapter 510 Authorization and Operation of Ferries in Casco Bay

Code Me. R. 65-407 Ch. 510 Authorization and Operation of Ferries in Casco Bay {#sec-65-407-ch.-510 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 510}

SUMMARY: This rule governs authorization and operation of ferries in Casco Bay pursuant to Chapter 51 of Title 35-A.

§1 PURPOSE

This rule governs ferry service in Casco Bay. For purposes of this rule, ferry service means any waterborne transportation service of passengers and/or freight in Casco Bay stopping at one or more of the following islands: Chebeague, Cliff, Great Diamond, Long and Peaks; that is not charter, tour, water taxi or unscheduled freight service, as defined in Chapter 520 of the Commission’s rules.

§2. Operating Schedules

A ferry service provider shall maintain copies of its current operating schedules in its principal terminal. The operating schedule shall be open to public inspection during normal business hours and be made available to the Commission upon request.

§3. Rate Schedules and Terms and Conditions

A. Ferry service providers shall file with the Commission a rate schedule and its terms and conditions of service showing all fares, charges, and terms and conditions which it has established and which are in force at the time for any service rendered or furnished or to be rendered or furnished, including all rates and charges established for the transportation of property when such transportation has been authorized by the Commission. The rate schedule and terms and conditions of service shall set forth all rules and regulations that in any manner affect fares and charges and the rates and charges assessed or to be assessed for any service. The Commission may investigate and suspend the operation of any rate schedule and term or condition of service filed with the Commission in accordance with Title 35-A and other applicable law.

B. A copy of the passenger and freight rate schedules and terms and conditions of service shall be kept on file at the carrier’s principal terminal and shall be readily available for public inspection.

§4. Request for Certificate of Public Convenience and Necessity

Any person, except for Casco Bay Island Transit District, created by Private and Special Law 1981, Chapter 22, seeking to provide scheduled service transporting passengers or property by vessel for compensation between the mainland of Cumberland County and Peaks Island, Great Diamond Island, Little Diamond Island, Long Island, Chebeague Island or Cliff Island or between these islands, must file a request with the Commission for a certificate of public convenience and necessity consistent with the requirements in Title 35-A, Chapter 51. Persons seeking to provide unscheduled tour, charter, water taxi and unscheduled freight service must comply with the requirements in Chapter 520 of the Commission’s Rules.

5. WAIVER

Upon the request of any persons subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant this waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 5101, 5101-A – 5101-F, 5102 – 5107.
• EFFECTIVE DATE (as Chapter 51): This rule was approved by the Secretary of State on November 7, 1986 and BECAME effective on November 12, 1986.
• PLACED IN MICROSOFT WORD FOR WINDOWS 2.0 FORMAT: April 7, 1998
• NON-SUBSTANTIVE CORRECTION: May 1, 1998 - removed stray “-”.
• REPEALED AND REPLACED: October 1, 2000 - filing 2000-414, replaced Chapter 51 with Chapter 510
• REPEALED AND REPLACED: 65-407 Chapter 510 page 2

Chapter 520 Tour, Charter and Water Taxi Services, and Unscheduled Freight Services in Casco Bay

Code Me. R. 65-407 Ch. 520 Tour, Charter and Water Taxi Services, and Unscheduled Freight Services in Casco Bay {#sec-65-407-ch.-520 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 520}

SUMMARY: This Chapter establishes provisions governing Unscheduled Freight Service in accordance with 35-A M.R.S. §5101-D and Tour, Charter, and Water Taxi Services in accordance with 35-A M.R.S. §5101-E.

1. Purpose and Scope

This Chapter establishes requirements and limitations for the provision of Tour, Charter, Water Taxi and Unscheduled Freight Services between the mainland of Cumberland County and Peaks Island, Great Diamond Island, Little Diamond Island, Long Island, Chebeague Island, or Cliff Island or between the islands mentioned above, which comprise the franchise of the Casco Bay Island Transit District (CBITD) and others as defined in 35-A M.R.S. §5101.

2. Definitions

A. Charter Provider. "Charter Provider" means a person or entity that provides a Charter Service.

B. Charter Service. "Charter Service" means Passenger Service that is provided to a single person, entity, or group in Casco Bay that:

i. is an unscheduled round trip that is provided pursuant to contract that originates on the mainland and stops at one or more point(s) on any of the Regulated Islands, or

ii. is an unscheduled round trip that is provided pursuant to contract that originates on one of the Regulated Islands and stops at one or more point(s) on the mainland or any of the other Regulated Island; or

iii. is a scheduled or unscheduled round trip that is provided and operated by an employer to its employees for the sole purpose of transporting those employees to and/or from work.

C. Ferry Provider. "Ferry Provider" means a person or entity that provides a Ferry Service.

D. Ferry Service. "Ferry Service" means any waterborne transportation of passengers and/or freight in Casco Bay stopping at one or more of the Regulated Islands that is not a Charter Service, a Tour Service, or a Water Taxi Service, or Unscheduled Freight Service.

E. Freight Service. “Freight Service” means any commercial waterborne transportation of goods.

F. Operator. "Operator" means a person or entity that provides a Charter Service, Ferry Service, Tour Service, Water Taxi Service, or Freight Service.

G. Passenger Service. "Passenger Service" means waterborne transportation that is provided to passengers and their accompanying hand luggage.

H. Regulated Islands. "Regulated Islands" means the islands in Casco Bay of Chebeague, Cliff, Great Diamond, Little Diamond, Long, and Peaks.

I. Roll-On and Roll-Off Vehicle. “Roll-On and Roll-Off Vehicle” means a wheeled or tracked vehicle capable of operating under its own power that has a cargo weight that exceeds five gross tons. It does not include a vehicle with four wheels that has a gross weight of ten tons or less (unless such vehicle is transported in conjunction with a Roll‑On and Roll-Off vehicle with a cargo weight that exceeds five gross tones).

J. Tour Provider. "Tour Provider" means a person or entity that provides a Tour Service.

K. Tour Service. "Tour Service" means a trip in Casco Bay which originates on the mainland or one of the Regulated Islands but does not stop at any of the Regulated Islands or the mainland other than at the point of origination.

L. Unscheduled. "Unscheduled" means service that is provided on-demand, not pursuant to any published or announced schedule, and not as a part of a pattern of an Operator or Operators in providing transportation at a regular or preset frequency.

M. Water Taxi Provider. "Water Taxi Provider" means any person or entity that provides a Water Taxi Service.

N. Water Taxi Service. "Water Taxi Service" means an on-demand, unscheduled, one-way Passenger Service in Casco Bay that stops at one or more of the Regulated Islands and that is provided for six or fewer passengers.

3. Authorization Required

A. Tour Service. Tour Service as defined by this Chapter is not subject to regulation by the Commission under 35-A M.R.S., Ch. 51 and, therefore, no authorization from the Commission is required to provide a Tour Service.

B. Charter Service, Water Taxi or Unscheduled Freight Service. No person shall provide any Charter Service, Water Taxi or Unscheduled Freight Service without first obtaining authorization from the Commission.

Applications

All applications shall be filed electronically through the Commission’s Case Management System (CMS). All applicants shall request applications be served on CBITD. To assist applicants, an application form and filing instructions may be made available on the Commission’s website.

Applicants must file the following applicant information:

1. Name, address, telephone number, and email address
2. Whether the applicant is an individual, partnership, limited liability company (LLC), corporation, or other
3. If a partnership or a member-run LLC, the name and address of each partner
4. If a manager-run LLC, the name and address of each officer or manager
5. If a corporation, the name and address of each officer, each board member, and the registered agent, and when and where incorporated

Applicants must file the following information about the proposed service(s) to be provided:

1. Whether the application is for Charter, Water Taxi, and/or Freight Service(s)
2. If Water Taxi and/or Unscheduled Freight Service, a list of all rates and charges for proposed service(s)
3. If Charter Service, whether all passengers will be returned to the origination point by the Charter Provider on the round trip and, if not, whether the contract for the return trip of passengers is with CBITD or other identified person
4. If Water Taxi Service, the hours of operation and the telephone number for the service
5. If Unscheduled Freight Service, a general description of the type of freight services to be provided

Applicants must provide the following information for each vessel to be employed in the proposed service(s).:

1. Name of vessel
2. Name and address of the owner of the vessel
3. A copy of the State of Maine registration
4. Port of registration and in whose name the vessel is registered
5. Vessel length, breadth, and gross tonnage
6. Maximum number of passengers
7. A copy of the United States Coast Guard Certificate of Inspection, as applicable, including number, and issuance and expiration dates, and any other United States Coast Guard documentation

Applicants must certify they have the following:

1. Sufficient personnel properly licensed to operate the vessel(s) to be used in the proposed service(s)
2. Sufficient liability insurance covering the proposed service(s), including the name of the insurer

Any further information the Commission requires.

Process

i. Authorization shall not be granted by the Commission unless the Applicant satisfies all the requirements of this Chapter, and the Commission finds that the public convenience and necessity requires such authorization.

ii. In the event applicants puts in service or uses an additional vessel or vessels after having obtained authorization from the Commission to provide the regulated service(s), applicants must file notice electronically through the Commission’s CMS, including the information required in subsections 3(B)(1)(iv) & 3(B)(1)(v).

iii. No hearing shall be held on such application unless an objection is filed within two weeks of the filing of the application which demonstrates a substantial need for a hearing, which requirement may be satisfied by, for example but not necessarily limited to, a prima facie showing that the actual service to be provided will differ from the authorization requested.

C. Ferry Providers. If service for which authorization is requested is not Charter Service or Water Taxi Service or Unscheduled Freight Service as defined by this Chapter, the application shall be treated as an application for authorization as a Ferry Provider under Title 35-A, M.R.S. §5101 and this Chapter shall not be applicable.

4. LIMITATIONS ON AND REQUIREMENTS FOR THE PROVISION OF CHARTER SERVICE

A. Tickets and Individual Fares. A Charter Provider may not sell individual tickets or charge individual fares for any charter trip.

B. Disembarkment. If the passengers of a Charter Provider disembark on any of the Regulated Islands, the Charter Provider shall

1. remain with the passengers and provide return service;

2. return to pick up its Charter Service passengers who disembark on any of the Regulated Islands;

3. provide only one way service and contract with CBITD or another Charter Provider to have the CBITD or the other Charter Provider provide passenger return service; or

4. return to pick up its charter service passengers but, if the charter has a contract with CBITD that provides an allowance for a certain number of passengers to return with the CBITD ferry, the charter provider may provide its passengers with the option to return with the ferry.

C. Record keeping. Charter Providers shall maintain records of inbound and outbound passenger counts for each trip and, for any trip on which the inbound and outbound passenger counts are not identical, records demonstrating compliance with this Chapter, at least until the end of the calendar year following the calendar year in which the trip occurred.

5. LIMITATIONS ON THE PROVISION OF WATER TAXI SERVICE

A. Flat Rate. Water Taxi Service shall be provided at a flat rate based on the distance between the origination and termination points, regardless of whether the vessel carries fewer than the maximum allowable number of passengers as provided in section 2(N) of this Chapter and regardless of whether the trip is inbound or outbound.

B. Filing Requirement. A Water Taxi Provider shall file at the Commission, for informational purposes only, any changes in its rates. These rate schedules are not subject to Commission approval.

6. LIMITATIONS ON THE PROVISION OF UNSCHEDULED FREIGHT SERVICE

A. Type of Vehicles Allowed. All vehicles transported in Unscheduled Freight Service between mainland Cumberland County and the Regulated Islands or between the Regulated Islands must consist of either (i) Roll-On and Roll-Off Vehicles, or (ii) special purpose equipment such as construction equipment, emergency equipment, or trash compacting equipment. Any Roll-On and Roll-Off Vehicle must be loaded with allowed freight (if such vehicle is transported one a round-trip, it must be loaded with allowed freight on at least on leg of that round-trip).

B. Type of Freight Allowed. All freight transported in Unscheduled Freight Service between mainland Cumberland County and the Regulated Islands or between the Regulated Islands must consist of (i) freight transported in a Roll‑On and Roll-Off Vehicle, (ii) material in bulk that requires the use of a deck barge and crane, or (iii) household goods transported in tractor trailers. Transported vehicles may not carry food, beverages, perishables, or wrapped or boxed freight.

C. Loading and Unloading. Loading and unloading of transported vehicles may not occur at any dock or wharf used by the CBITD for scheduled service.

D. Limitation for Peaks Island. The freight transported on any single trip between Peaks Island and mainland Cumberland County or between Peaks Island and the other Regulated Islands may not consist of property of multiple owners unless:

1. The property was originally sold by a single vendor who is the owner of one of the vehicles transported on the trip; or

2. The property is related to the performance of a single contract to be performed by the owner of one of the vehicles carried on the trip.

E. Rate Schedule. All carriers providing Unscheduled Freight Service shall file a rate schedule with the Commission that includes a statement of the hourly fee and the minimum fee, which shall not be less than one hour at the hourly fee.

7. WAIVER

Upon the request of any persons subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Telephone and Water Utility Industries, or the presiding officer assigned to a proceeding related to this Chapter may grant this waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 5101-D, 5101-E.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 3, 1993. It was filed with the Secretary of State on February 3, 1993 and became effective on February 8, 1993.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 3, 1999. It was filed with the Secretary of State on September 7, 1999 and became effective on September 12, 1999.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 22, 2000. It was filed with the Secretary of State on September 26, 2000 and became effective on October 1, 2000.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on April 19, 2018. It was filed with the Secretary of State on April 20, 2018 and became effective on April 25, 2018 (filing 2018-063).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 560 Publication and Posting Requirement for Rate Changes Filed by the Casco Bay Island Transit District

Code Me. R. 65-407 Ch. 560 Publication and Posting Requirements for Rate Changes Filed by the Casco Bay Island Transit District {#sec-65-407-ch.-560 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 560}

SUMMARY: This rule establishes the public notice requirement for rate changes filed by the Casco Bay Island Transit District.

§1 PURPOSE AND SCOPE

This rule sets forth the requirements for the Casco Bay Island Transit District (the District) to notify the public of any changes to its rates and tolls for ferry service between the mainland of Cumberland County and Peaks Island, Great Diamond Island, Little Diamond Island, Long Island, Chebeague Island, or Cliff Island, or between the islands mentioned above which comprise the Casco Bay Island Transit District as defined in 35-A M.R.S.A. § 5101.

§2 PUBLIC HEARING IN ADVANCE OF CHANGES TO RATES AND TOLLS

The District shall hold at least one public hearing prior to filing for changes to its rates or tolls. The District shall provide notice of this hearing at least 14 days prior to the date when the hearing is to be held by posting such notice in a conspicuous location at the mainland ferry terminal and on each of the vessels used by the District.

§3 PUBLIC NOTIFICATION OF RATE CHANGE

The Casco Bay Island Transit District shall give notice to the public of any change to its rates and tolls at least 30 days in advance of the effective date of the changes.

A. Notice shall be published at least twice in the Portland Press Herald or a similar newspaper of general daily circulation that is distributed in Cumberland County.

B. Notice shall be posted in a conspicuous location at the mainland ferry terminal and on each of the vessels used by the District.

C. The notice shall describe any planned change in CBITD’s rates or tolls, the proposed effective date, and how fifty or more ratepayers can request, in writing, that the Commission investigate the change in rates or tolls.

D. The District shall include in its filing with the Commission for a change in rates and tolls, a copy of the notices provided and an affidavit indicating where the notices appeared.

§4 WAIVER

Upon request of any persons subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of the Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter of Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. § 5101; P. & S.L. 1981, ch. 22(12); P.L. 1985, ch. 481, section 101.
• EFFECTIVE DATE: This rule was approved by the Secretary of State on March 19, 1984 and became effective on March 24, 1984 as Chapter 56, "Public Notice Required for Rate Changes Filed by Casco Bay Island Transit District."
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 23, 1999
• REPEALED AND REPLACED: This rule was approved as to form and legality by the Attorney General on September 22, 2000. It was filed as 2000-416 with the Secretary of State on September 26, 2000 and became effective on October 1, 2000, replacing Chapter 56.
• AMENDED: January 31, 2009 – filing 2009-39
• AMENDED: This rule was approved as to form and legality by the Attorney General on January 23, 2009. It was filed with the Secretary of State on January 26, 2009 and became effective on January 31, 2009.
• AMENDED: 65-407 Chapter 560 page 2

Chapter 610 Uniform System of Accounts for Water Utilities

Code Me. R. 65-407 Ch. 610 Uniform System of Accounts for Water Utilities {#sec-65-407-ch.-610 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 610}

SUMMARY: This regulation establishes a uniform system of accounts for water utilities.

A. Each water utility shall keep its books in the manner and form prescribed in the Uniform System of Accounts for Class B Water Utilities of the National Association of Regulatory Utility Commissioners issue of 1984, as modified by the Maine Public Utilities Commission, so far as the same are applicable to the business of such water utility. The Commission by an accounting order may require additional accounting entries, sub-categories, or reports as are necessary for its regulation of water utilities.

B. Any water utility may, unless or until otherwise ordered by the Commission or the Director of Finance, keep any subsidiary, divisional, or other records or accounts provided that such entries shall not impair the integrity of any account prescribed by this rule.

C. Any water utility may request the Commission or the Director of Finance to waive specific requirements of the uniform system of accounts. The request may be granted by an accounting order if good cause is shown.

D. All accounts shall be closed annually on December 31. On or before the following first day of April each water utility shall prepare a report, verified by an officer or owner, on forms furnished by the Commission. This report shall contain such information as the Commission shall prescribe.

E. All accounts shall be audited in accordance with Chapter 710 of the Rules of the Maine Public Utilities Commission (65-407 C.M.R. 710). A copy of the auditor's report, accompanied by the audited financial statements, shall be filed with the Commission not later than the first day of the fourth month following the 12-month period for which the audit was conducted, except that audit reports based on a fiscal year ending December 31 must be filed by the following July 1. (For example, the audit report for an audit on the basis of a fiscal year ending June 30 must be filed by the following October 1.) The utility shall file with the audited financial statements a cover sheet describing any discrepancies between the audited financial statements and the annual report or reports filed by the utility under section D which cover the same 12-month period as the audit.

F. For good cause shown, the Commission may waive any of the requirements of this Rule, provided such waiver does not unduly undermine the purposes of this Rule. The Commission may also subsequently rescind, alter, or amend any such waiver for good cause. The Commission delegates to the Director of Finance the authority to issue, rescind, alter, or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Director of Finance or to issue, rescind, alter, or amend a waiver directly.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 501, 502, 504, and 505, and 5 M.R.S.A. § 8051.
• EFFECTIVE DATE: This rule was approved by the Secretary of State on December 9, 1988, and will be effective on December 14, 1988.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 610 page 1

Chapter 615 Exemptions from Regulatory Requirements for Consumer-Owned Water Utilities

Code Me. R. 65-407 Ch. 615 Exemptions from Regulatory Requirements for Consumer-Owned Water Utilities {#sec-65-407-ch.-615 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 615}

SUMMARY: This Rule establishes rules for the form, content, and procedure for granting, modifying, and rescinding exemptions from regulatory requirements before the Maine Public Utilities Commission.

§ 1 APPLICABILITY 1

§ 2 DEFINITIONS 1

§ 3 PETITION FOR EXEMPTION FROM REGULATORY REQUIREMENTS 2

A. Notice to Customers and Public Meeting 2

B. Contents of the Petition 3

C. Process upon Filing Petition for Exemption 4

D. Exemption Proceedings initiated by the Commission 4

§ 4 PROCEEDINGS SUBSEQUENT TO EXEMPTIONS 4

A. Review of Exemption 4

B. Review Procedure 5

C. Rescission or Modification of Exemption 5

§ 5 WAIVER 5

Appendix A: SUPPORTING DATA FOR PETITIONS FOR EXEMPTIONS FROM REGULATORY REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITIES 7

§ 1 APPLICABILITY

This Chapter governs the form, content, and procedure for reviewing petitions for exemption from regulatory requirements submitted to the Commission by consumer-owned water utilities pursuant to 35-A M.R.S. §6114. Additionally, this Chapter governs the form and procedure for review of petitions seeking rescission or modification of exemptions previously granted by the Commission.

The Commission may not grant an exemption to the following statutes: 35-A M.R.S. §§ 116, 301, 309, 501, 502, 702, 709, 712, 1101, 1302, 6105, 6109, 6109-B, 6111-C, or 6112 or any other statute where exemption is prohibited.

Furthermore, nothing in this Chapter shall be deemed to authorize an exemption from the statutory right of any 10 persons to bring complaints regarding utility service to the Commission pursuant to 35-A M.R.S. §1302.

§ 2 Definitions

A. "Adjudicatory Proceeding" has the same meaning as in Chapter 110 of the Commission’s Rules.

B. "Consumer Owned Water Utility” or “utility” has the same meaning as “consumer-owned water utility” in 35-A M.R.S. §6101(1-A).

C. "Lead Petitioner" means, with respect to petitions for review of exemptions under Section 4(A)(1) of this Chapter, the petitioner designated as the agent for all other petitioners. In absence of such a designation by the petitioners, the person who submitted the petition or the first petitioner’s name appearing on the petition will be considered the lead petitioner. The Administrative Director shall identify the lead petitioner upon receipt of the petition.

D. "Petitioner" means any customer who receives water service from a consumer-owned water utility and who seeks review of an exemption granted to that consumer-owned water utility by the Commission pursuant to Section 4(A)(1) of this Chapter.

§ 3 PETITION FOR EXEMPTION FROM REGULATORY REQUIREMENTS

A. Notice to Customers and Public Meeting

Prior to submitting to the Commission a petition for exemption from regulatory requirements pursuant to this Chapter, a consumer owned water utility must provide notice to all of its customers of the utility’s intent to file such a petition and must hold a public meeting, the purpose of which is to inform the utility’s customers of the proposed exemption, the date upon which the utility will file its request with the Commission, and how customers of the utility may submit comments regarding the request to the Commission’s case management system after the petition is submitted. The meeting must occur at least 30 days prior to the filing of the request with the Commission. The notice of intent to file a petition and the notice of the public meeting may be contained in the same notice. The notice (or notices, if provided separately) must include a plain-language description of the proposed exemption including the justification and the potential consequences of the exemption.

1. Notice Requirements

The consumer-owned utility must provide notice of its intent to file a petition for exemption and notice of the public meeting by regular mail postmarked at least 14 days prior to the meeting in addition to using any two of the following methods:

• • 1. By email. If the utility provides notice by email, the notice must be made individually to each customer at least 14 days before the meeting. Email notice may be included in electronic customer bills; 2. By publication. The utility may provide newspaper notice of the meeting in a newspaper of general circulation in the area served by the utility; 3. Conspicuous posting. The utility may post notice in a town office or other conspicuous place within the utility’s service area; 4. Website. If the utility has a website, the utility may post notice on its website; 5. Social media. If the utility has social media accounts, it may post notice on those social media accounts; or 6. Other. Other methods of notification that are reasonably calculated to provide broad notice to the utility’s customers.

Utilities may include notice in mailed customer bills. Utilities must file copies of the notice in the Commission’s Case Management System at least 14 days before the date of the public meeting. All notices, whether by mail or other method, must contain the same information.

In addition, utilities must file verification of the email, publication, conspicuous posting, website, social media, or other notifications in the Commission’s Case Management System at least 14 days before the date of the public meeting. Verification may be affidavits, screenshots, photographs, or other media sufficient to show compliance with this Section.

B. Contents of the Petition

1. The Petition must specifically identify the statutory requirement or requirements for which an exemption is sought.

2. The Petition must contain information sufficient to support a finding by the Commission that an exemption from the regulatory requirement is

in the public interest;

will not result in unjust or unreasonable rates;

will not have a negative impact on the provision of safe, adequate and reliable service; and

d. that the water utility seeking the waiver has the adequate technical, financial and administrative capacity to perform the waived function or requirement.

3. Contents of the filing

a. Systems, policies, and other mechanisms by which the water utility will ensure its compliance with statutory requirements of 35-A M.R.S. §301 in the absence of Commission oversight;

b. The names and relevant credentials, licenses, and certifications of persons employed or retained by the utility who will be responsible for maintaining safe, adequate, and reliable service in the absence of regulatory oversight; and

A description of system and process by which the utility is governed and the methods by which customers may participate in the governance of the utility.

4. Required Documents

Records of any Significant Deficiency found to be present by the Maine Drinking Water Program within the water utility’s system during the past five years;

A statement that utility has filed its annual report with the Commission for the most recent reporting period, if the utility is required to file an annual report;

Copies of audited financial statements for the most recent financial reporting period, if the utility is required to prepare audited financial statements;

Copies of unaudited financial statements for the most recent financial reporting period, if the utility is required to prepare financial statements but is not required to prepare audited financial statements;

Copies of the utility’s current trial balances if the utility is not required to prepare financial statements;

Copies of the notices sent to customers and published prior to the public meeting;

g. Copies of any minutes or other documents recording the decision of the water utility’s decision to seek an exemption; and

h. Benchmarks, ratios, and other documents listed in Appendix A for the previous three calendar years prior to the exemption request.

C. Process upon Filing Petition for Exemption

The Commission will review the petition and seek comment from the Office of the Public Advocate and any interested parties. Interested persons will have 30 days to file comments and within 120 days the Commission shall either issue an order resolving the petition or initiate an investigation of the requested exemption.

An investigation initiated under to this Section is an adjudicatory proceeding conducted pursuant to Chapter 110 of the Commission’s rules.

D. Exemption Proceedings Initiated by the Commission

The Commission may initiate a proceeding to propose an exemption from a regulatory requirement for a class of consumer-owned water utilities pursuant to 35-A M.R.S. §6114. Such a proceeding will be initiated by Notice to all consumer-owned water utilities and interested persons. A proceeding initiated under this section will provide an opportunity for comment and participation by interested persons and the public.

§ 4 PROCEEDINGS SUBSEQUENT TO EXEMPTIONS

A. Review of Exemption

The Commission may modify or rescind any exemption granted under this rule to any consumer owned water utility upon its own motion or upon presentation of a petition seeking review of the exemption signed by 15% of the customers of a consumer-owned water utility or 1000 customers, whichever is less.

1. Petitions for Review of Exemptions

a. A petition presented to the Commission pursuant to this subsection must indicate

i. the name and address of each petitioner; and

ii. a summary of the basis upon which the petitioners seek to have the water utility’s exemption reviewed.

b. Upon presentation of a petition for review, the Commission will inform the utility of the petition. The utility shall file a response to the petition within 10 business days.

B. Review Procedure

1. Summary Review. Upon receipt of a valid petition seeking review, the Commission shall conduct a summary review of the petition and its alleged basis. Upon completion of the summary review, if the Commission determines the petition for review has merit, it shall open an investigation to determine whether the exemption should be rescinded or modified.

2. Investigation. Any investigation initiated under this section will be an adjudicatory proceeding pursuant to Chapter 110 of the Commission’s rules.

3. Lead Petitioner. In any investigation initiated pursuant to Section 4(A)(1), the Commission will designate the Lead Petitioner as defined in Section 2(F) of this rule.

C. Rescission or Modification of Exemption

1. Upon a Commission finding that a previously granted exemption no longer satisfies the criteria of Section 3(B)(2), the Commission may rescind or modify the exemption, in in part or in whole.

2. An exemption granted pursuant to this rule will be rescinded or modified only after the consumer-owned water utility subject to the decision has been provided an opportunity for a hearing.

§ 5 WAIVER

To the extent permitted by law, where good cause appears, the Commission the Commission’s Administrative Director, the Director of Telephone and Water Utility Industries, or a Presiding Officer assigned to a proceeding related to this Chapter may permit deviation or waiver from this Chapter. Any request for a procedural deviation or waiver must be made in writing. The Commission, the Commission’s Administrative Director, the Director of Telephone and Water Utility Industries, or a Presiding Officer assigned to a proceeding related to this Chapter may grant a request for a substantive deviation or waiver upon a finding of good cause or that compliance would be unduly burdensome and that the deviation or waiver is not inconsistent with the purposes of this chapter or 35-A M.R.S §6114.

History

• STATUTORY AUTHORITY: 35‑A M.R.S. §6114
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 12, 2015. It was filed with Secretary of State on February 17, 2015 and became effective on February 22, 2015 (filing 2015-018).
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on December 20, 2022. It was filed with the Secretary of State on December 21, 2022 and became effective on December 26, 2022 (filing 2022-252).
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025
• EFFECTIVE DATE: Appendix A: SUPPORTING DATA FOR PETITIONS FOR EXEMPTIONS FROM REGULATORY REQUIREMENTS FOR CONSUMER-OWNED WATER UTILITIES
• SUMMARY: This Appendix describes ratios, data, and documents that a consumer-owned water utility shall submit in conjunction with a petition for an exemptions from regulatory oversight or statutory requirements in accordance with Chapter 615, Section 3(B)(4).
• SUMMARY: INFORMATION TO BE FILED WITH PETITION
• SUMMARY: The petitioning utility shall provide each ratio, data, or document described below. If the results deviate from the expected benchmark measure indicated for a particular item, the utility may provide a written statement describing the reason for any such deviation. The references indicated in parenthesis are to the forms filed as part of a utility’s annual report to the Commission.
• SUMMARY: Financial Ratios and DataCurrent Ratio
• SUMMARY: The current ratio measures an entity’s liquidity or ability to pay its short-term obligations. A ratio of less than one indicates that the entity cannot cover those obligations and maybe financially at risk. It is calculated:
• SUMMARY: Current and Accrued Assets (F-1, Ln. 42)
• SUMMARY: Current and Accrued Liabilities (F-2, Ln. 29)
• SUMMARY: Quick Ratio
• SUMMARY: The quick ratio measures an entity’s ability to meets its short-term obligations with its most liquid assets. The higher the quick ratio, the better the entity’s liquidity position. The quick ratio should be no less than 1. It is calculated:
• SUMMARY: Current & Accrued Assets less M&S (F-1, Ln. 42 – Ln 37)
• SUMMARY: Current and Accrued Liabilities (F-2, Ln. 29)
• SUMMARY: Operating Ratio
• SUMMARY: The operating ratio demonstrates the relationship between operating revenues and operating expenses. A high ratio may indicate that the organization has achieved operating efficiency by keeping expenses low relative to revenues. It is calculated:
• SUMMARY: Operating Revenues (F-4, Ln. 2)
• SUMMARY: Operating Expenses (F-4, Ln. 3)
• SUMMARY: Unrestricted Days Cash
• SUMMARY: Unrestricted days cash measures liquidity relative to daily operations and maintenance expense. It is calculated:
• SUMMARY: Cash/Temp Cash Investments (F-1, Ln, 29 +Ln. 32) ÷ 365
• SUMMARY: Operating Expense (F-4, Ln. 3)
• SUMMARY: Cash Flow after Debt Payment or Debt Service Coverage
• SUMMARY: Cash flow after debt payment reflects actual cash funds available to fund operations such as repairs, capital replacements, and debt service. This figure should be positive. It is calculated:
• SUMMARY: Net Income (F4, Ln. 46 + Depreciation & Amortization Expense (Lns. 4 – 7) – Debt Principal Payments (F5, Ln. 17) + Required Sinking Fund Payments (F5, Ln.16)
• SUMMARY: Total Debt/Net Plant
• SUMMARY: This measures outstanding debt to net plant and indicates how the entity has financed its plant. It is calculated:
• SUMMARY: Long Term Debt (F-2, Ln. 16)
• SUMMARY: Net Plant (F-1, Ln. 6)
• SUMMARY: Outstanding Debt to Maximum Debt
• SUMMARY: This measure identifies whether limitations exist that could prevent an entity from borrowing to fund future infrastructure projects. As some water utilities do not have borrowing limitations, this will not be applicable to all consumer-owned water utilities.
• SUMMARY: Long Term Debt (F-2, Ln. 16)
• SUMMARY: Charter Borrowing Limitation
• SUMMARY: Level of Undepreciated Assets
• SUMMARY: This measure indicates the age of the assets and, in turn, provides a measure of whether the utility has been replacing its infrastructure on a regular basis. The depreciation base removes assets funded by contributions in aid of construction and assets, such as land, that are not depreciable. It is calculated:
• SUMMARY: Accumulated Depreciation (W-5a, Ln. 33)
• SUMMARY: Depreciation Base (W-5, Ln. 26, Col. d)
• SUMMARY: Accounts Receivable Turnover
• SUMMARY: This measure indicates whether the utility may be experiencing cash flow problems due to slow payments or the failure to write off accounts receivables that are unlikely to be paid due to age. It is calculated:
• SUMMARY: Operating Revenues (F-4, Ln. 2)
• SUMMARY: Accounts Receivable (F-1, Ln. 33)
• SUMMARY: Average Customer Revenue
• SUMMARY: This measure shows the average revenue from each customer. For an entity with customer classes that have varying usage levels, it is appropriate to calculate this for each customer class. It is calculated:
• SUMMARY: Operating Revenues (W-1, Lns. 10 – 13, col. c)
• SUMMARY: Number of Customers (W-7, Lns. 1 -6, col. d )
• SUMMARY: Percentage of Revenue from Each of the Utility’s 10 Largest Customers
• SUMMARY: This measure identifies the extent to which a utility’s revenues depend to a significant degree on one, or several, large customers, and thus the risks to revenues that a utility faces should such customers cease to take service. This measure is to be calculated from the utility’s billing records separately for each of its 10 largest customers. It is calculated by:
• SUMMARY: Individual Revenue of Customer from Billing Records
• SUMMARY: Operating Revenues (W-1, Lns. 10 – 13, col. c)
• SUMMARY: Average Customer Consumption
• SUMMARY: This measure, when compared with previous years, reflects the trend in customer consumption and is useful in predicting potential trends in total revenues. For an entity with customer classes that have varying usage levels, it is appropriate to calculate this ratio for each customer class. It is calculated:
• SUMMARY: Operating Revenues (W-1, Lns. 10 – 13, col. e)
• SUMMARY: Number of Customers (W-7, Lns. 1 -6, col. d)
• SUMMARY: Pension Plan Funding Ratio
• SUMMARY: This measure reflects the percentage of unfunded pension liability and may indicate the need for future rate increases to fund the balance. Until GASB 68 is adopted, the utility may need to obtain this information from its pension fund manager. If the water utility does not provide pension benefits, this measure will not be applicable. It is calculated:
• SUMMARY: Actuarial Fair Value of Pension Fund .
• SUMMARY: Actuarial Accrued Liability for Pension Benefits
• SUMMARY: OPEB Plan Funding Ratio
• SUMMARY: This measure reflects the percentage of unfunded OPEB liability and may indicate the need for future rate increases to fund the balance. The utility may have to gather this information from its fund manager. To the extent that the water utility pays OPEB on a “pay-as-you-go basis.” and has therefore not accumulated any funds, it should indicate the procedures used to budget for these costs. If the water utility does not provide OPEB benefits, this measure will not be applicable. If the utility maintains a fund, it is calculated:
• SUMMARY: Actuarial Fair Value of OPEB Fund .
• SUMMARY: Actuarial Accrued Liability for OPEB Benefits
• SUMMARY: Operations and Maintenance DataPercentage of Mains Replaced per Year
• SUMMARY: This is a measure of the existing distribution/transmission infrastructure that has been replaced each year. The measure is calculated on a per foot basis due to the difference between the cost of the replacement infrastructure and the cost of the replaced infrastructure when it was first put into place. This calculation will be need to be developed using the utility’s in house records for the number of feet replaced because the annual PUC report does not include information regarding replacements. It is calculated:
• SUMMARY: Number of Feet of Distribution/Transmission Main Replaced
• SUMMARY: Total Feet of Distribution/Transmission Main (W-9, Col. c)
• SUMMARY: Percentage of Non-revenue Water
• SUMMARY: This measure reflects the percent of water either purchased or produced that does not yield revenues to the utility. This measure is shown on page W-12 of the PUC report on Line 19. It is calculated:
• SUMMARY: Total Production Water (W-12, Ln. 15)
• SUMMARY: Total Revenue Water (W-3, Ln. 20, Col. e)
• SUMMARY: Percentage of Unaccounted for Water
• SUMMARY: This measure reflects the percent of water either purchased or produced that does not result in revenues for the utility and has not otherwise been accounted for by the utility. This percentage is lower than the percentage of total non-revenue water because a utility is able to account for certain usages that do not produce revenue, such as flushing and breaks. It is calculated by:
• SUMMARY: Total Non-Revenue (NR) Water (W-12, Ln. 19) - Accounted for NR Water (W-12, Ln. 96)
• SUMMARY: Total Production Water (W-12, Ln. 35)
• SUMMARY: Percentage of Hydrants Flushed per Year
• SUMMARY: This measure reflects how frequently the water utility flushes its hydrants, based upon the number of hydrants flushed as reflected in the utility’s operating records. It is calculated by:
• SUMMARY: Number of Hydrants Flushed
• SUMMARY: Total No. of Hydrants (W-10, totaled)
• SUMMARY: Percentage of Hydrants Replaced per Year
• SUMMARY: This measure reflects how frequently the water utility replaces its hydrants. It is calculated by:
• SUMMARY: Number of Hydrants Replaced
• SUMMARY: Total No. of Hydrants (W-10, totaled)
• SUMMARY: Percentage of Hydrants Currently Functional
• SUMMARY: This measurement reflects how many hydrants are functional in the system. The number of working hydrants is from the utilities operating records. It is calculated by:
• SUMMARY: Number of Working Hydrants
• SUMMARY: Total No. of Hydrants (W-10, totaled)
• SUMMARY: Hydrant Replacement Percentage
• SUMMARY: This measurement reflects the rate at which the utility replaces its hydrants, based upon the utility’s operating records. It is calculated by:
• SUMMARY: Number Hydrants Replaced per Year
• SUMMARY: Total Number of Hydrants at Beginning of Year
• SUMMARY: Meter Replacement Percentage
• SUMMARY: This measurement reflects the rate at which the utility replaces its meters, based upon the utility’s operating records. It is calculated:
• SUMMARY: Number of Meters Replaced per Year
• SUMMARY: Total Number of Meters at Beginning of Year
• SUMMARY: Percentage of Meters Tested per Year
• SUMMARY: This measure reflects how frequently the utility tests its meters. The number of meters tested comes from the utilities operating records. It is calculated by:
• SUMMARY: Number of meters tested
• SUMMARY: Total Number of Meters at Beginning of Year (col. b)
• SUMMARY: Number of Water Main Breaks per YearPersonnel InformationNumber of EmployeesAverage Years of Employment with Utility Among Current EmployeesNumber of Employees holding Water Operator’s LicenseAverage Years of Water Utility Experience Among Current EmployeesPlans and Other Documentation
• SUMMARY: The petitioning water utility shall include a copy of the most recent version of all models, policies, and reports listed below.
• SUMMARY: Hydraulic ModelValve Exercise ProgramSanitary Surveys, most recent 3 yearsSource Protection PlanLeak Detection ProgramHydrant Flushing ProgramWritten Standard Operating ProceduresEmergency Response PlanCustomer Complaint ProcedureDescription of each SDWA Violation during the prior 10 yearsConsumer Confidence Reports, most recent 3 yearsComprehensive Facilities Plan / Master PlanSafety Program (work safety)Water System Maps

Chapter 616 Specific Exemptions from Regulatory Requirements for Consumer-Owned Water Utilities

Code Me. R. 65-407 Ch. 616 Customer Notification Requirements and Specific Exemptions from Regulatory Requirements for Consumer-Owned Water Utilities {#sec-65-407-ch.-616 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 616}

SUMMARY: This rule sets forth certain exemptions that are applicable to consumer-owned water utilities and sets forth requirements for certain customer notifications for consumer-owned water utilities.

§ 1 APPLICABILITY

This Chapter sets forth certain exemptions that are applicable to consumer-owned water utilities. Nothing in this Chapter shall be deemed to authorize an exemption from the statutory right of any 10 persons to bring complaints regarding utility service to the Commission pursuant to 35-A M.R.S. §1302. This Chapter also sets forth requirements for certain customer notifications for consumer-owned water utilities.

§ 2 Definitions

A. “Consumer owned water utility” or “utility” has the same meaning as “consumer-owned water utility in 35-A M.R.S. §6101(1-A).

§ 3. EXEMPTIONS

A. Customer Notifications Pursuant to 35-A M.R.S. §§ 6104 & 6104-A

A consumer-owned water utility is exempt from the newspaper notification requirements for public hearings pursuant to 35-A M.R.S. §§ 6104(3) and 6104-A(5) provided that a utility provides notice of the public hearing by regular mail to all customers in addition to utilizing at least two of the following notification methods at least 14 days prior to the public hearing:

1. Email. Email notice must be made individually to each customer. Email notice may be included in electronic customer bills;

2. Conspicuous posting. The utility may post notice in a town office or other conspicuous place within the utility’s service area;

3. Website.If the utility has a website, the utility may post notice on its website;

4. Social media. If the utility has social media accounts, it may post notice on those social media accounts; or

5. Other. Any other method reasonably calculated to provide broad notice to the utility’s customers.

The utility must provide notice individually to each customer and the mailing must be postmarked at least 14 days before the public hearing. Utilities may include notice in mailed customer bills. Utilities must file copies of the notice in the Commission’s Case Management System at least 14 days before the date of the public hearing. All notices, whether by mail or other method, must contain the same information.

In addition, utilities must file verification of the email, conspicuous posting, website, social media, or other notifications in the Commission’s Case Management System at least 14 days before the date of the public hearing. Verification may be screenshots, photographs, or other media sufficient to show compliance with this section.

§ 4. OTHER CUSTOMER NOTIFICATIONS

A. Customer Notifications Pursuant to 35-A M.R.S. § 6104-B

A consumer-owned water utility adjusting rates pursuant to 35-A M.R.S. § 6104-B must provide individual notice to customers. The consumer-owned water utility may, at its option, provide stand-alone notice by regular mail or by email if that is the customer’s preference, or by including the notice with a customer’s (paper or electronic) bill (or by any combination of the above that ensures each customer receives an individual notification).

If the consumer-owned water utility provides stand-alone notice to a customer by regular mail the notice must be postmarked at least 30 days prior to the effective date of the rate adjustment. If the consumer-owned water utility provides stand-alone notice to a customer by email, the email must be sent at least 30 days prior to the effective date of the rate adjustment. If the consumer-owned water utility provides notice to a customer by including the notice with the customer’s bill, the bill must be dated at least 30 days prior to the effective date of the rate adjustment and the bill must be delivered to the customer according to the customer’s existing billing preference ( e.g. , paper bill or electronic bill).

Regardless of method of delivery, customer notices must describe the amount of the rate adjustment, the percentage change for each customer class, and a brief explanation of the reason for the rate adjustment.

A consumer-owned water utility adjusting rates pursuant to 35-A M.R.S. § 6104-B may also utilize, but is not required to utilize, any of the other notification methods described in Section 3(A) of this Chapter.

§ 5. WAIVER

To the extent permitted by law, where good cause appears, the Commission, the Commission’s Administrative Director, the Director of Telephone and Water Utility Industries, or a Presiding Officer assigned to a proceeding related to this Chapter may permit deviation or waiver from this Chapter. The Commission, the Commission’s Administrative Director, the Director of Telephone and Water Utility Industries, or a Presiding Officer assigned to a proceeding related to this Chapter may grant a request for a substantive deviation or waiver upon a finding of good cause or that compliance would be unduly burdensome, and that the deviation or waiver is not inconsistent with the purposes of this Chapter or Title 35-A of the Maine Revised Statutes.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Commission Docket No. 2025-00046, issued on May 7, 2025. Copies of this Order and Statement have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35‑A M.R.S. §§ 6104-B and 6114
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on December 20, 2022. It was filed with the Secretary of State on December 21, 2022 and became effective on December 26, 2022 (filing 2022-253).
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on June 9, 2025. It was filed with the Secretary of State on June 9, 2025 and became effective on June 14, 2025 (filing 2025-112).

Chapter 620 Service Standards for Water Utilities

Code Me. R. 65-407 Ch. 620 Service Standards for Water Utilities {#sec-65-407-ch.-620 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 620}

SUMMARY: This rule sets forth comprehensive regulations for water utilities, including rules applicable to jobbing, conditions of service, seasonal service, water conservation and utilization, low pressure areas, limited service contracts, metering, and water supply emergencies.

§ 1 PURPOSE AND APPLICABILITY

A. Purpose

This Chapter establishes minimum customer service standards for water utilities.

B. Applicability

Unless otherwise specified, this Chapter applies to all water utilities that are subject to the jurisdiction of the Commission.

§ 2 DEFINITIONS

A. ANSI/AWWA. ANSI is the American National Standards Institute; AWWA is the American Water Works Association.

B. Commission. “Commission” means the Maine Public Utilities Commission.

C. Customer. “Customer” means any person or business that has applied for or been accepted to receive or is either receiving utility service or has agreed to be billed for utility service. This term also includes a person or business that was a customer of the same utility within the past 30 days and who requests service at the same or a different location.

D. Electromagnetic or Ultrasonic Water Meter. "Electromagnetic or ultrasonic water meter" means a cold water electronic electromagnetic or ultrasonic type meter.

E. Establishment. “Establishment” means a location at which water service is sought or is being rendered.

F. Jobbing. “Jobbing” means the provision of unregulated utility service by a water utility, including, but not limited to, construction services. Jobbing services are at the discretion of the water utility and are at the customer’s request and expense.

G. Limited Service Contract. “Limited service contract” means a written agreement, approved by the Commission, under which a water utility agrees to provide and the customer agrees to accept a substandard level of service described in the contract.

H. Main. “Main” means a water line which is owned, operated, and maintained by a water utility, and used for the transmission or distribution of water, other than a private line as defined in Section 2(L) of this Chapter or a service line as defined in Section 2(M) of this Chapter.

I. Mechanical Water Meter. “Mechanical water meter” means a cold-water displacement meter conforming to standard ANSI/AWWA C715-18.

J. Person. “Person” means a corporation, partnership, limited partnership, limited liability company, limited liability partnership, association, trust, estate, any other legal entity or natural person.

K. Private Line. “Private line” means (1) A water line constructed prior to May 7, 1986 across private property to serve one or more customers and that is not considered by the water utility to be a main; (2) except as provided under Section 2(C) of Chapter 65 of the Commission’s Rules, a water line constructed after May 7, 1986 across private property to serve a single customer, a single multi-unit dwelling complex or a single commercial or industrial development upon which no other person has an easement or other right of access for water line purposes.

L. Service Line. “Service line” means a water line running from the water main to the customer's establishment.

M. Temporary Establishment. “Temporary establishment” means an establishment that a water utility reasonably believes to be temporary in nature after giving due consideration to the location, setting, structures, and use of the establishment. The absence of a cellar or permanent foundation must not be the sole criterion used by the water utility in determining that an establishment is a temporary establishment.

N. Water Utility. “Water utility” means every person, its lessees, trustees, receivers or trustees appointed by any court, owning, controlling, operating or managing any water works for compensation within this State, including any aqueduct organized under former Title 35, chapter 261 and any of its predecessors.

§ 3 GENERAL PROVISIONS

A. Applications for Service. An application for service may be made by either the owner or occupant of the establishment to be served. If a new service connection or other work on the owner's premise is required, the owner must authorize the water utility to enter the premises to perform the necessary work.

B. Advance Payment for Jobbing. Whenever a water utility agrees to do work outside the scope of regulated utility service for a customer at the customer's expense, the water utility may require an advance payment equal to the water utility's estimated cost of the work. At the completion of the work, any excess over the actual bill for services will be returned to the customer, and any amount due in excess of the advance payment will be payable by the customer.

C. Service Lines

1. The water utility will determine or approve the size, location, and material of the service line. The water utility must install, own, and maintain the utility portion of the service line (historically known as the service drop), as described in, and subject to the payment and other requirements of, Chapter 65 of the Commission’s Rules. The customer is responsible to pay for, install, own, and maintain the customer's portion of the service line.

2. When a customer requests that a water utility thaw a frozen service line and the water utility cannot determine whether the service line is frozen on the water utility's portion of the service line or on the customer's portion of the service line, one half of the cost of thawing the pipe must be borne by the water utility.

D. Temporary Service

1. If it is impractical for a water utility to provide service directly to a customer, the water utility may furnish water temporarily from an adjacent service line if the water utility and the owner of the adjacent service line approve. The cost of the temporary service will be borne by the customer requesting the temporary service.

2. A water utility has no obligation to make an investment to serve a temporary establishment. If however, service is installed at the customer's expense and water service is taken for the following five consecutive years after the initial provision of service, or if the factors causing the water utility to believe that the establishment was temporary no longer exist, the establishment is considered permanent and the water utility must refund to the customer any expenses borne by the customer which would otherwise have been borne by the water utility with interest compounded annually in accordance with Chapter 870 of the Commission’s Rules.

E. Summer Service Lines and Mains. A water utility is only required to serve customers through summer service pipes and mains from May 1 to October 1 or other such dates in the water utility’s terms and conditions.

F. Joint Use of Pipe Trench. A water utility must not place water mains or service lines in the same trench with facilities of other utilities. If possible, a water utility must provide a horizontal separation of ten feet between water mains or service lines and facilities of other utilities.

G. Seasonal Customers and Vacancies. A water utility may file a tariff establishing a reasonable charge, based on its costs, for each resumption of service to customers subject to seasonal rates, or for partial vacancy or multiple units served through a single meter with a normal minimal charge for that size meter. If an establishment is to be vacated for a period of thirty days or more, a water utility must abate water charges if the customer notifies the water utility of the vacancy and requests the water utility shut off service as required in the water utility’s terms and conditions.

H. Service Interruption. Notice of any planned shut off must be given to affected customers at least twenty-four hours in advance of an interruption of service. Notice of unplanned shut offs must be given as soon as practicable. Notice pursuant to this subsection may be given using electronic means, including but not limited to posts on the water utility’s website or social media sites, email, and text messages.

I. Low Pressure Areas

1. A water utility must not extend its mains or render service to new customers in areas where substantially uniform system pressure at the connection of the water service to the main may be expected to fall below 20 p.s.i.g. static, as measured or calculated, except for periods of fire flow or system maintenance, unless a limited service contract is executed between the customer and the water utility and approved by the Commission. If a customer within a water utility's franchise area is willing to enter into a limited service contract, then the water utility must provide service to the customer unless the Commission orders otherwise. The water utility must ensure that the limited service contract specifies the materials and minimum size for the customer's portion of the service line. The limited service contract must be made expressly subject to the authority of the Commission to require better service when, upon investigation, the Commission concludes that service should be improved.

J. Water Conservation and Utilization. A water utility must take all reasonable steps to prevent the unnecessary waste of water. A water utility must not supply water at flat rates for any continuous flow device. If a water utility concludes that a customer charged at flat rates is unnecessarily wasting water, the water utility may convert the customer's service to a metered service. When necessary to conserve and manage water resources, a water utility may restrict or prohibit the use of hoses or sprinklers for both flat rate and metered customers, implement water use provisions specified in the water utility’s terms and conditions, or limit water use as required by the Maine Center for Disease Control & Prevention or Maine Department of Environmental Protection.

K. Water Supply Emergency. A water utility may declare a water supply emergency and implement mandatory water conservation and/or utilization restrictions: (i) when the water utility has determined that water availability from the water utility’s source or, if it has more than one source, combined sources is not sufficient to meet demand; (ii) to comply with drinking water orders by the federal or Maine Center for Disease Control and Prevention; (iii) when maintenance and repair of facilities or equipment substantially limits the water utility’s ability to meet water demand; or (iv) when the water utility identifies other conditions that substantially limit the water utility’s ability to meet water demand. A water utility may declare a water supply emergency for the water utility's entire distribution system or for a discrete portion or portions of the water utility's distribution system. A water utility that declares a water supply emergency and has conservation and utilization procedures in its Commission-approved Terms and Conditions may use those procedures or follow the following process:

1. Provide notice to all affected customers as soon as reasonably practicable. Notice must be given to customers by U.S. Postal Service mail, email, text message, by posting notice on the water utility’s webpage or other electronic platform (for example but not necessarily limited to a Facebook page or Twitter account), by postings in public areas of the community, or any combination of the above. The notice must include a description of the water supply emergency, a description of the specific water conservation and/or utilization restrictions being imposed by the water utility, and notice that violations of the water conservation and/or utilization restrictions may subject the customer to a fee equal to twice the general reconnection fee in the water utility’s Commission-approved Terms and Conditions. The notice must also specify that each 24-hour period for which the customer is not in compliance with the water utility’s water conservation and/or utilization restrictions constitutes a separate violation;

2. For the first violation of the water utility’s water conservation and/or utilization restrictions, the water utility must provide a warning by U.S. Postal Service mail, email, hand delivery, text message, door hanger, or any combination of the above to each customer in violation of the water utility’s water conservation and/or utilization restrictions. The warning must specify that each 24-hour period for which the customer is not in compliance with the water utility’s water conservation and/or utilization restrictions constitutes a separate violation;

3. For each subsequent violation of the water utility’s water conservation and/or utilization restrictions after the violation that resulted in the warning in subsection 3(K)(2) of this Chapter, the water utility may impose a fee on the customer’s next water bill equal to twice the general reconnection fee contained in the water utility’s terms and conditions. For purposes of this fee, each 24-hour period for which the customer is not in compliance with the water utility’s water conservation and/or utilization restrictions constitutes a separate violation. A water utility may disconnect customers for repeated violations of the water utility's water conservation and/or utilization restrictions if it deems those customers to be a threat to the safety of any person or the integrity of the water utility’s delivery system. Water utilities must conduct such disconnections in accordance with Chapter 660 of the Commission’s Rules; and

4. Notify Commission Staff within 24 hours of the implementation and removal of mandatory water conservation and/or utilization restrictions. Notification may be by email or telephone.

§ 4 METERS

A. Application. A customer may receive water through a meter, in accordance with the water utility’s application process and its terms and conditions. The person applying for service must submit to the water utility all necessary information (as determined by the water utility) to enable the water utility to determine and/or approve the size of the meter.

B. Meter Setting

1. All meters must be set as close as practicable to the point of entrance of the service line to the establishment. The water utility must require the customer to provide a warm, dry, and accessible location for the meter. The location of the meter, once set, may be changed at the request and expense of the customer, but the change may be made only by the water utility or an appropriately licensed plumber hired by the customer and approved by the water utility. For new installations of meters, the piping arrangement must be in accordance with the requirements of the water utility.

2. The cost of the meter, related meter reading equipment, and installation must be apportioned according to Chapter 65 of the Commission’s Rules.

3. If a customer does not furnish a suitable location for a meter inside a building or if it is necessary to locate the meter outside the building, a water utility may require the customer to provide and maintain a suitable vault or enclosure. Installation may be performed by the water utility on a jobbing basis, by an appropriately licensed contractor approved by the water utility, or by the customer’s appropriately licensed contractor under the supervision of the water utility.

C. Meter Repairs. Repairs and replacement of meters and related meter reading equipment owned by the water utility, necessitated by ordinary wear must be paid for by the water utility. Meter repair and replacement due to damage other than ordinary wear and tear may be charged to the customer, including the associated labor cost.

D. Testing

1. A water utility furnishing water on a metered basis must have provisions in its terms and conditions for testing its meters in a manner acceptable to the Commission.

2. Meters placed in service by a water utility must be tested by the manufacturer, with proper certification of such testing furnished to the water utility, or by the water utility before installation. Thereafter, meters must be tested in accordance with this Subsection or more frequently if requested by the customer.

All meter tests are at the expense of the water utility unless the customer requests more than one test in 18 months, in which case the water utility may require the customer to make a reasonable deposit, if authorized by the water utility's tariffs, to cover the cost of the test. The water utility must provide a written report of the test results, which includes the flow rates at which the meters were tested, the volume of water used to test at each of those flow rates and the accuracy of the meter (expressed as % registration) to the customer.

If a meter tested at the request of a customer does not conform to the standards below, the water utility must refund the customer's deposit, if provided. If the meter conforms to the standards below, the customer's deposit may be retained by the water utility, and the meter may be continued in use at the same location.

3. To determine the accuracy of mechanical and electromagnetic and ultrasonic meters, the water utility must follow the standard specifications of the most recent AWWA Manual M6 or the table below or use the manufacturer’s recommended testing procedures.

FLOW IN GALLONS PER MINUTE

Mechanical Meters

Nominal Meter Size

Low

Intermediate

High

1/2”

0.25

2

8

5/8”

0.25

2

15

3/4”

0.50

3

25

1”

0.75

4

40

1 1/2”

1.50

8

50

2”

2.00

15

100

Electromagnetic and Ultrasonic Meters

Nominal Meter Size

Low

Intermediate

High

1/2”

0.11

0.35

8

5/8”

0.25

2

15

3/4”

0.50

3

25

1”

0.75

4

40

1 1/2”

1.50

8

50

2”

1.00

5

100

A water utility must not place or continue in service any meter that registers more than 2% above or below the intermediate or high flows or below 90% of the low flow.

A water utility must replace meters on a schedule determined by manufacturer warranties, specifications, and limits or adopt the schedule below.

Nominal Size of Meter

Max. Interval between Tests (in years)

Cubic Feet

5/8”

10

100,000

3/4”

10

150,000

1”

10

300,000

1 1/2"

8

2”

8

3”

4 Field

4”

2 Field

6” or Larger

1 Field

H. Rate Adjustment

1. For purposes of computing rate adjustments, a water utility must use an overall weighted accuracy. To determine an overall weighted accuracy for a meter a water utility must add 15% of the low flow test accuracy percentage plus 70% of the intermediate flow test accuracy percentage plus 15% of the high flow accuracy percentage.

2. If the meter over-registers, the water utility must determine the corrected usage amount by dividing 100 by the overall weighted accuracy and multiplying that amount by the usage read by the meter. The water utility must then use this corrected usage amount to determine the customer’s bill for the applicable portion of the current billing period and the most recent full billing period. If a meter is under-registering in favor of the customer, the water utility must not bill the customer for the difference.

§5 CONDITIONS OF SERVICE

As a condition of service, a water utility must require or adopt the following:

A. The right of reasonable access to all establishments which it serves, at reasonable hours, to permit the inspection of plumbing and fixtures, to set, remove, or read meters, and to ascertain the amount of water used.

B. That every establishment be equipped with operable valves located inside the building near the entrance of the service line, easily accessible, and protected from freezing. One valve must be located immediately upstream of the meter and one valve must be located immediately downstream of the meter. The water utility must also require that all piping be arranged to prevent back-siphonage and to permit draining whenever necessary.

C. Regulations to prohibit or limit the use of water consumption equipment which affects the water utility's pressure or operating conditions and interferes with water service to other customers. If a customer fails to comply with these regulations, the water utility may disconnect service pursuant to Chapter 660 of the Commission's Rules.

D. That customers install vacuum, temperature, or pressure relief valves or cutouts to prevent damage to a direct pressure water device or system supplied by an automatic feed valve as required by the Maine Center for Disease Control.

E. Regulations limiting or prohibiting any cross connection between the public water supply system and any other supply unless it is properly protected by measures which comply with rules of the Maine Center for Disease Control. If the owner of such a connection fails or refuses to break or properly protect the connection within a time limit specified by the water utility or the Maine State Internal Plumbing Code (02-395 C.M.R. ch. 4), the water utility may seek to discontinue service pursuant to Chapter 660 of the Commission’s Rules.

§ 6 WAIVER

Upon the request of any person subject to the provisions of this Chapter, or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Director of the Telephone and Water Utility Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 111
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 20, 2022. It was filed with the Secretary of State on December 21, 2022, and became effective on December 26, 2022 (filing 2022-254).
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 640 Private Fire Protection Services

Code Me. R. 65-407 Ch. 640 Private Fire Protection Services {#sec-65-407-ch.-640 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 640}

SUMMARY: This rule provides that water utilities shall establish accounting for those portions of water lines for private fire protection service which are located within highway limits, provides a methodology for determining the allocation of costs between public and private fire protection as recommended by the Private Fire Protection Task Force, and establishes general provisions for private fire protection service.

1. DEFINITIONS

A. Private fire protection - Water service to support the operation of a private fire protection system, including private hydrants, automatic sprinkler systems, standpipes, and other appurtenances installed by the customer to assist in extinguishing fires. Private fire protection includes all fire protection installations which are not provided by the utility as part of its public fire protection services.

B. Back-up capacity or back-up facilities - The capacity and facilities (such as transmission and distribution mains, storage facilities, pumps, etc.) that must be present in order for the private fire protection system to perform as designed. This capacity and/or facilities may be provided by the utility or by the customer.

C. Private fire service line - A water line installed at the customer’s expense extending from a main to provide private fire protection to a single customer, a single multi-unit building or complex, or a single commercial or industrial development.

D. Service Drop - That portion of a water line that extends from the main to the edge of the utilities’ easement or the public right-of-way.

E. Direct Costs - Those costs that are directly associated with the provision of public fire protection or private fire protection. For example, service line costs, hydrant maintenance, cost of utility participation in sprinkler system tests. These costs should be assigned directly to public or private fire protection service.

F. Indirect Costs - Those costs that are shared or joint costs of providing private and public fire protection service. These costs are allocated between public and private fire charges.

2. GENERAL PROVISIONS REGARDING PRIVATE FIRE PROTECTION SERVICES

A. The service drop portion of the private fire service line shall be installed at the expense of the customer, but shall be owned, maintained, and replaced by the utility at utility expense and shall extend from the main to the edge of the utility’s easement or the public right-of-way. The balance of the line shall be installed, owned, maintained, and replaced by the customer at the customer’s expense.

B. A utility may institute service and maintenance policies, as contained in its filed Terms and Conditions of Service, which it determines to be in the best interest of its ratepayers or in the safe operation of the water utility, regarding the provision of private fire protection service. A utility may implement different policies for different types of private fire protection installations, such as private hydrants, sprinkler systems, or standpipes, where there is good cause to do so.

C. A utility may require, as a term of service, a showing by the customer on a periodic basis that certain reasonable maintenance, testing, or inspection procedures have been conducted in order that the installation be consistent with the health or safety standards of the water utility.

D. The utility may refuse service to or disconnect a private fire protection installation from service if it does not comply with the utility’s terms and conditions of service or in the reasonable opinion of the utility management subjects the water system to unnecessary potential risk or expense.

E. The customer shall keep the water utility informed of the location of any private fire protection installation connected to the utility system and the operating status of each.

F. A water utility shall not be required to upgrade its system in order to provide greater water pressure to support the installation of a private fire protection installation. The utility may upgrade its system for this purpose if it constitutes reasonable system development consistent with the factors contained in Chapter 65 section 2(G) of the Commission’s Rules, or if the customer agrees to pay the costs of the upgrade.

G. Private fire protection service shall normally be provided on an unmetered basis. The utility may, for good cause, require a particular service or a class of services to be metered. Said meters shall be installed at the expense of the customers taking service and shall be sized to accommodate the maximum flow rate identified for the private fire service. If a customer is to be billed for water used for an incidental service, such incidental service shall be billed based upon the meter size required for the actual water use rather than the actual meter size. The private fire service shall be billed based upon the demand of the sprinkler system.

H. A pipeline for separately metered domestic water service may be connected to a private fire service line outside the building provided that each system is provided with a separate shutoff which the utility may control. The utility may require a separate service from its mains in order to maintain water quality or to ensure access to disconnect either service.

I. As a condition of service, the utility shall require its private fire service customers to report reasonable estimates of the volumes of water used annually for flushing and testing the private fire service and the amount of water used in the event of a fire.

3. RATE COMPONENTS

A. A water utility’s private fire protection charge shall include reasonable amounts to cover the cost of:

1. Depreciation and debt service or return on utility investment in the service drop portion of the private fire service lines;

2. Normalized cost for the maintenance and repair of the service drop portion of private fire service lines;

3. Any maintenance, repair, inspection, or testing services performed routinely by the utility for all private fire protection service customers; and

4. A reasonable allowance for the cost of water used for flushing and testing the private fire service lines and for fire fighting.

5. A reasonable allowance for the costs of back-up facilities necessary to provide private fire protection service.

B. A water utility’s private fire protection charge shall not include any maintenance, repair, inspection, or testing services performed for private fire service customers on demand, i.e. any services beyond those included in the private fire protection charge. These additional services shall be treated as jobbing and shall be billed directly to the customer requesting the service.

C. The utility shall establish and maintain the sub-accounts necessary to account for all private fire service capital, maintenance, operating and jobbing expenditures/expenses/revenues. These sub-accounts shall be used to determine the proper level of service charges allowed under section 3(A).

4. METHODOLOGIES

A. A water utility’s private fire protection charge may be billed on the basis of the design flow demand required by the customer’s private fire protection system or the maximum available flow measured at the customer’s end of the service drop, whichever is less.

1. A water utility using a full allocation study to determine total fire service charges shall apportion such charges between public and private fire services based upon the relative flow demand required by each segment as set forth by the following formula (See Section 4(A)(4) for definition of Terms):

A= B/(C+D)

P= (AxD)+ E

T= (CxA)+ M

2. A water utility using PUC Chapter 690 to determine total public fire protection charges shall use the following formula for determining the revenues required for private fire protection services (See Section (A)(4) for definition of Terms):

P=(T/C)*D^[1]

3. Regardless of whether a water utility determines private fire protection charges by Subsection A(1) or A(2) above, for cost allocation purposes, public hydrants shall be assumed to have flow rates of 500 GPM in residential areas and 1000 GPM in all other areas. All private hydrants, except the first hydrant with each sprinkler system, shall be assumed to have flow rates of 500 GPM. The first hydrant connected to a sprinkler system is excluded from the calculation and there is no additional charge for that hydrant. In the absence of more specific information, flow rates for sprinkler systems may be determined using the National Fire Protection Association (NFPA) Table 13 provided in Appendix B. Utilities may use different flow rates if they can be justified and supported by adequate documentation.

4. TERMS

The terms contained in Sections 4(A)1 and 2 are defined as follows:

A = Indirect gallon per minute cost

B = Total indirect fire protection costs

P = Revenue requirement for private fire protection

T = Revenue requirement for municipal fire protection

C = Total flow demand required for municipal fire protection

D = Total flow demand required for private fire protection

E = Private fire protection direct costs

M = Municipal fire protection direct costs

5. This method of determining private fire protection charges may be implemented at the discretion of the water utility, or a water utility may be ordered to do so by the Commission after a finding of good cause. In either case, reallocation of charges, if excessive, may be phased-in on a case-by-case basis.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 111, 301, 310, 502, 1301, 6104 and 6105.
• EFFECTIVE DATE: June 21, 1979
• AMENDED: May 1, 1995
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• AMENDED: This rule was approved as to form and legality by the Attorney General on June 4, 1998. It was filed with the Secretary of State on June 4, 1998 and will be effective on June 9, 1998.
• NON-SUBSTANTIVE CORRECTIONS: July 6, 1998 -
• NON-SUBSTANTIVE CORRECTIONS: error in addition in Appendix A Step 3; NFPA 13 reference in Appendix B.
• NON-SUBSTANTIVE CORRECTIONS: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025
• NON-SUBSTANTIVE CORRECTIONS: Appendix A
• NON-SUBSTANTIVE CORRECTIONS: Method for Determination of Demand Based Fire Protection Charges
• NON-SUBSTANTIVE CORRECTIONS: Step 1: Determine Total Revenue Requirement
• NON-SUBSTANTIVE CORRECTIONS: 1) From Rate Case Filing or Income Statement $1,750,080
• NON-SUBSTANTIVE CORRECTIONS: Step 2: Determine Revenue Required From Municipal Fire Protection (T)
• NON-SUBSTANTIVE CORRECTIONS: 2) From Chapter 69 of PUC Rules $274,763
• NON-SUBSTANTIVE CORRECTIONS: Step 3: Determine Municipal Fire Protection Demand Flow Requirements (C)
• NON-SUBSTANTIVE CORRECTIONS: Customer Number of Demand Total
• NON-SUBSTANTIVE CORRECTIONS: Class Hydrants Flow Demand
• NON-SUBSTANTIVE CORRECTIONS: GPM GPM
• NON-SUBSTANTIVE CORRECTIONS: Residential 343 500 17,500
• NON-SUBSTANTIVE CORRECTIONS: Commercial 128 1,000 128,000
• NON-SUBSTANTIVE CORRECTIONS: Industrial 68 1,000 68,000
• NON-SUBSTANTIVE CORRECTIONS: Total 539 367,500 GPM
• NON-SUBSTANTIVE CORRECTIONS: Step 4: Determine Private Fire Protection Demand Flow Requirements (D)
• NON-SUBSTANTIVE CORRECTIONS: Private Fire Number of Average Total
• NON-SUBSTANTIVE CORRECTIONS: Protection Class Services Demand Demand
• NON-SUBSTANTIVE CORRECTIONS: GPM GPM
• NON-SUBSTANTIVE CORRECTIONS: Private Hydrants(a) 47 500 23,500
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 0-99 GPM 26 80 2,080
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 100-199 GPM 4 196 784
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 200-399 GPM 130 200 26,000
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 400-599 GPM 32 535 17,120
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 600-999 GPM 3 881 2,643
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 1000+ GPM 2 1,800 3,600
• NON-SUBSTANTIVE CORRECTIONS: Total 244 75,727 GPM
• NON-SUBSTANTIVE CORRECTIONS: (a) excludes the first hydrant with each sprinkler system
• NON-SUBSTANTIVE CORRECTIONS: Step 5: Determine the Total Revenue Required from Private Fire Protection (P)
• NON-SUBSTANTIVE CORRECTIONS: Formula: P= (T/C)D
• NON-SUBSTANTIVE CORRECTIONS: P = ($274,763/367,500) 75.727 = $56,618
• NON-SUBSTANTIVE CORRECTIONS: Step 6: Allocate Private Fire Protection Revenue Requirement Based Upon Average Demand
• NON-SUBSTANTIVE CORRECTIONS: Private Fire Number of Average Cost Average Revenue
• NON-SUBSTANTIVE CORRECTIONS: Protection Class Services Demand Per Cost Allocation
• NON-SUBSTANTIVE CORRECTIONS: GPM GPM
• NON-SUBSTANTIVE CORRECTIONS: Private Hydrants(a) 47 500 $0.747659 $373.83 $17,569.99
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 0-99 GPM 26 80 $0.747659 $59.81 $1,555.13
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 100-199 GPM 4 196 $0.747659 $146.54 $586.16
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 200-399 GPM 130 200 $0.747659 $149.53 $19,439.14
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 400-599 GPM 32 535 $0.747659 $400.00 $12,799.93
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 600-999 GPM 3 881 $0.747659 $658.69 $1,976.06
• NON-SUBSTANTIVE CORRECTIONS: Sprinkler 1000+ GPM 2 1800 $0.747659 $1,345.79 $2,691.57
• NON-SUBSTANTIVE CORRECTIONS: Total 244 $56,618.00
• NON-SUBSTANTIVE CORRECTIONS: (a) excludes the first hydrant with each sprinkler system
• NON-SUBSTANTIVE CORRECTIONS: Appendix B
• NON-SUBSTANTIVE CORRECTIONS: Demand Based Fire Protection Charges
• NON-SUBSTANTIVE CORRECTIONS: Revised September 10, 1997
• NON-SUBSTANTIVE CORRECTIONS: The “Demand Based Fire Protection” is a refinement of so called Method “A” as recommended by the Fire Protection Task Force to the Maine Public Utilities Commission on January 16, 1996. A number of water utilities have attempted to implement Method “A” and have found the lack of available data on actual sprinkler system fire flow demands to be impediment to its implementation. This refinement is necessary to address these problems of incomplete fire flow demand data for individual private sprinkler systems.
• NON-SUBSTANTIVE CORRECTIONS: The Method “A” is an allocation methodology for the equitable apportionment of cost associated with providing Public and Private Fire Protection. The allocation methodology relies on data from the actual design of individual private fire protection systems (sprinklers). The demand required for an individual sprinkler system in terms of flow design is in gpm (gallons per minute).
• NON-SUBSTANTIVE CORRECTIONS: Deficiencies in availability of fire flow data on sprinklers have been found. The State Fire Marshal Office has minimal records of sprinkler system designs.
• NON-SUBSTANTIVE CORRECTIONS: Due to this deficiency, an alternative technique is proposed to be used to provide an estimate of the Fire Flow Demand for sprinkler systems where actual system design data is not available.
• NON-SUBSTANTIVE CORRECTIONS: The following table titled “Water Sprinkler System Flows for Fire Protection Rates” shall be used in the calculation of the “Fire Flow Demand” when the design data for a sprinkler system is not available. Design data must be completed by a Sprinkler System Engineer registered in the State of Maine with the State Fire Marshal Office.
• NON-SUBSTANTIVE CORRECTIONS: Occupancy HazardSystem Flow RatePer NFPA 13Wet SystemDry SystemLight Hazard175 gpm230 gpmOrdinary Hazard 1260 gpm340 gpmOrdinary Hazard 2350 gpm460 gpmExtra Hazard 1875 gpm1140 gpmExtra Hazard 21150 gpm1500 gpm
• NON-SUBSTANTIVE CORRECTIONS: For dry sprinkler systems the flow rates are 30% above the requirement for a wet sprinkler per NFPA 13.
• NON-SUBSTANTIVE CORRECTIONS: A-1-.7 Occupancy examples in the listings as shown in the various hazard classifications are intended to represent the norm for those occupancy types. Unusual or abnormal fuel loadings or combustible characteristics and susceptibility for changes in these characteristics, for a particular occupancy, are considerations that should be weighed in the selection and classification.
• NON-SUBSTANTIVE CORRECTIONS: The Light Hazard classification is intended to encompass residential occupancies; however. this is not in preclude the use of listed residential sprinklers in residential occupancies or residential portions of other occupancies.
• NON-SUBSTANTIVE CORRECTIONS: A-14.7.1 Light Hazard Occupancies include occupancies having conditions similar to:
• NON-SUBSTANTIVE CORRECTIONS: Churches
• NON-SUBSTANTIVE CORRECTIONS: Clubs
• NON-SUBSTANTIVE CORRECTIONS: Eaves and overhangs, if combustible construction with no combustibles beneath
• NON-SUBSTANTIVE CORRECTIONS: Educational
• NON-SUBSTANTIVE CORRECTIONS: Hospitals
• NON-SUBSTANTIVE CORRECTIONS: Institutional
• NON-SUBSTANTIVE CORRECTIONS: Libraries, except large stack rooms
• NON-SUBSTANTIVE CORRECTIONS: Museums
• NON-SUBSTANTIVE CORRECTIONS: Nursing or convalescent homes
• NON-SUBSTANTIVE CORRECTIONS: Office, including data processing
• NON-SUBSTANTIVE CORRECTIONS: Residential
• NON-SUBSTANTIVE CORRECTIONS: Restaurant seating areas
• NON-SUBSTANTIVE CORRECTIONS: Theaters and Auditoriums excluding stages and prosceniums
• NON-SUBSTANTIVE CORRECTIONS: Unused attics
• NON-SUBSTANTIVE CORRECTIONS: A-1-4.7.2.1 Ordinary Hazard Occupancies (Group 1) include occupancies having conditions similar to:
• NON-SUBSTANTIVE CORRECTIONS: Automobile parking and showrooms
• NON-SUBSTANTIVE CORRECTIONS: Bakeries
• NON-SUBSTANTIVE CORRECTIONS: Beverage manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Canneries
• NON-SUBSTANTIVE CORRECTIONS: Dairy products manufacturing and processing
• NON-SUBSTANTIVE CORRECTIONS: Electronic plants
• NON-SUBSTANTIVE CORRECTIONS: Glass and glass products manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Laundries
• NON-SUBSTANTIVE CORRECTIONS: Restaurant service areas.
• NON-SUBSTANTIVE CORRECTIONS: MOVING AND STORAGE
• NON-SUBSTANTIVE CORRECTIONS: STORAGE 20' / 21' BELOW EX (1)
• NON-SUBSTANTIVE CORRECTIONS: STORAGE 22' ABOVE EX (2)
• NON-SUBSTANTIVE CORRECTIONS: RACKS EX (2)
• NON-SUBSTANTIVE CORRECTIONS: A-1-4.7.2.2 Ordinary Hazard Occupancies (Group 2) include occupancies having conditions similar to:
• NON-SUBSTANTIVE CORRECTIONS: Cereal mills
• NON-SUBSTANTIVE CORRECTIONS: Chemical plants - ordinary
• NON-SUBSTANTIVE CORRECTIONS: Confectionery products
• NON-SUBSTANTIVE CORRECTIONS: Distilleries
• NON-SUBSTANTIVE CORRECTIONS: Dry cleaners
• NON-SUBSTANTIVE CORRECTIONS: Feed mills
• NON-SUBSTANTIVE CORRECTIONS: Horse stables
• NON-SUBSTANTIVE CORRECTIONS: Leather goods manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Libraries - large stack room areas
• NON-SUBSTANTIVE CORRECTIONS: Machine shops
• NON-SUBSTANTIVE CORRECTIONS: Metal working
• NON-SUBSTANTIVE CORRECTIONS: Mercantile
• NON-SUBSTANTIVE CORRECTIONS: Paper and pulp mills
• NON-SUBSTANTIVE CORRECTIONS: Paper process plants
• NON-SUBSTANTIVE CORRECTIONS: Piers and wharves
• NON-SUBSTANTIVE CORRECTIONS: Post offices
• NON-SUBSTANTIVE CORRECTIONS: Printing and publishing
• NON-SUBSTANTIVE CORRECTIONS: Repair garages
• NON-SUBSTANTIVE CORRECTIONS: Stages
• NON-SUBSTANTIVE CORRECTIONS: Textile manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Tire manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Tobacco products manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Wood machining
• NON-SUBSTANTIVE CORRECTIONS: Wood product assembly.
• NON-SUBSTANTIVE CORRECTIONS: A-1-4.7.3.1 Extra Hazard Occupancies (Group 1) include occupancies having conditions similar to:
• NON-SUBSTANTIVE CORRECTIONS: Aircraft hangars (except as governed by NFPA-409) Combustible hydraulic fluid use areas
• NON-SUBSTANTIVE CORRECTIONS: Die casting
• NON-SUBSTANTIVE CORRECTIONS: Metal extruding
• NON-SUBSTANTIVE CORRECTIONS: Plywood and particle board manufacturing
• NON-SUBSTANTIVE CORRECTIONS: Printing [using inks having flash points below 100º F (37.9º C)]
• NON-SUBSTANTIVE CORRECTIONS: Rubber reclaiming, compounding, drying, milling, vulcanizing
• NON-SUBSTANTIVE CORRECTIONS: Saw mills
• NON-SUBSTANTIVE CORRECTIONS: Textile picking; opening. blending. garnetting, carding, combining of cotton, synthetics, wool shoddy, or burlap
• NON-SUBSTANTIVE CORRECTIONS: Upholstering with plastic foams.
• NON-SUBSTANTIVE CORRECTIONS: Extra Hazard Occupancies (Group 2) include occupancies having conditions similar to:
• NON-SUBSTANTIVE CORRECTIONS: Asphalt saturating
• NON-SUBSTANTIVE CORRECTIONS: Flammable liquids spraying
• NON-SUBSTANTIVE CORRECTIONS: Flow coating
• NON-SUBSTANTIVE CORRECTIONS: Manufactured home or modular building assemblies (where finished enclosure is present and has combustible interiors)
• NON-SUBSTANTIVE CORRECTIONS: Open oil quenching
• NON-SUBSTANTIVE CORRECTIONS: Plastics processing
• NON-SUBSTANTIVE CORRECTIONS: Solvent cleaning
• NON-SUBSTANTIVE CORRECTIONS: Varnish and paint dipping.
• NON-SUBSTANTIVE CORRECTIONS: See Appendix A for an example of this method, including allocation of revenues. ↑

Chapter 660 Consumer Protection Standards for Water Utilities

Code Me. R. 65-407 Ch. 660 Consumer Protection Standards for Water Utilities {#sec-65-407-ch.-660 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 660}

SUMMARY: This Rule establishes the minimum standards for the provision of service and the administration of credit and collection programs by water utilities. These rules govern granting and denying service, credit and deposit practices, billing, disconnection, customer complaint procedures and methods of obtaining waivers from this Rule.

§ 1 STATEMENT OF PURPOSES; APPLICABILITY; AND POLICY 5

A. Purpose 5

B. Applicability of Rule 5

§ 2 DEFINITIONS 6

§ 3 EMERGENCY MORATORIUM 9

§ 4 CUSTOMER PRIVACY 9

§ 5 CUSTOMER RIGHTS 10

§ 6 APPLICATION FOR SERVICE 10

A. Applications for Service 10

B. Obligation to Provide Service 10

1. Residential Applicants 10

a. Past overdue amount 11

b. Payment of a deposit 11

c. Provision of proper identification 11

d. Compliance with local, state, and national safety codes 11

e. Compliance with Utility Terms and Conditions 11

2. Non-residential Applicants 11

a. Past overdue amount 11

b. Payment of a deposit 12

c. Compliance with local, state, and national safety codes 12

d. Compliance with Utility Terms and Conditions 12

C. Provision of Service by Next Business Day 12

D. Service in Another’s Name 12

E. Application for Service at a Location Where an Active Account Already Exists 13

F. Explanation of Charges 13

G. Designation of Third Party to Receive Notices 13

§ 7 DEPOSITS FOR APPLICANTS AND CUSTOMERS 14

A. Residential Applicants 14

B. Non-Residential Applicants 14

C. Residential Customers 14

D. Non-Residential Customers 15

E. Amount of Deposit 15

1. Residential Applicants and Customers 15

2. Non-Residential Applicants and Customers 15

F. Payment of Deposits 15

1. Residential Applicants and Customers 15

2. Non-Residential Applicants and Customers 16

G. Disclosure 16

H. Interest 16

I. Retention and Refund 17

1. Refund 17

2. Transfer of Service 17

§ 8 BILLING AND PAYMENT STANDARDS 18

A. Bill Frequency 18

B. Due Date of Bills 18

C. Bill Content 18

D. Billing Errors 19

E. Meter malfunction, failure to read meter, and unauthorized use or fraud 19

1. Make-Up Bills 19

2. Refunds 20

F. Payment 20

1. Extension of Due Date Required 20

2. Payment by Mail 20

3. Electronic Payment 20

4. Payment at a Remote Office 20

5. Conflicting Due Dates 20

G. Late Payment Charges and Returned Check Charges 21

H. Application of Partial Payments 21

I. Non-Basic Utility Service 21

J. In-Person Payment Locations 21

K. Transfer of Service and Collection of Unpaid Account Balances 21

1. Transfer to a New Account 21

2. Transfer of Multiple Accounts 21

a. Account balance 21

b. Credit balance 22

3. Transfer of Unpaid Account Balance to a Guarantor 22

4. Fraud or Misrepresentation 22

5. Compliance with this Section 22

6. Pending Disconnection Notice 22

L. Meter Reading 22

M. Past Usage 23

§ 9 PAYMENT ARRANGEMENTS 23

A. Payment Arrangement Required 23

B. Written Confirmation of Payment Arrangement 23

C. Failure to Confirm Payment Arrangement in Writing 23

D. Basic Service Payment Arrangement to be Separate 23

E. Residential Customers 24

1. Criteria for Determining a Reasonable Payment Arrangement 24

2. Notification of Forms of Financial Assistance 24

3. Second Payment Agreement 24

F. Non-Residential Customers 24

§ 10 DISCONNECTIONS 25

A. When Disconnection Procedures Can Begin 25

B. Customer Request or Abandonment 26

C. When Disconnection Cannot Occur 26

1. Amount Overdue 26

2. Existence of Serious Medical Condition 26

D. Notice Requirements 26

1. Without Notice 26

2. 14-Day Notice and 7-Day Notice 27

3. 3-Day Notice 27

4. Time of Issuance 27

E. Disconnection Date 27

F. Period of Effectiveness 28

G. Refusal of Access by Customer 28

H. Payments Returned 28

1. Residential Customers 28

2. Non-Residential Customers 28

I. Disconnection Notice Procedures for Leased or Rented Residential Property 28

J. Content of Disconnection Notice 29

K. Plain Language Disconnection Notice 30

L. Disconnection Procedures 30

1. Time for Residential and Non-Residential Customers 30

2. Attempt to Contact 31

3. Procedure Upon Contact Before Disconnection 31

4. Post-Disconnection Notice 32

§ 11 CONTINUATION OF UTILITY SERVICE TO RESIDENTIAL

CUSTOMERS WITH SERIOUS MEDICAL CONDITIONS 32

A. Basic Service is Required for Residential Customers When a Medical

Condition Necessitates a Continuation of Service 32

B. Disconnection Postponed Pending Certification 33

C. Certification Procedures 33

D. Connection or Reconnection of Service 33

E. Length of Certification; Renewals 33

F. Customer’s Duty to Pay or Make a Payment Arrangement 34

G. Disconnection Upon Expiration of a Certification 34

§ 12 RECONNECTION OF SERVICE 34

A. Duty to Reconnect 34

B. Payment Arrangement; Deposit 34

1. Residential Customers 34

2. Non-Residential Customers 35

C. Time 35

D. Reconnection Fee 35

§ 13 DISPUTE RESOLUTION PROCEDURES 35

A. Employees Available 35

B. Disconnection of Service Prohibited 35

C. Dispute Resolution Process 36

1. Investigation Dispute. 36

2. Report Results 36

3. Attempt to Resolve Dispute 36

D. Dispute Record Maintenance 36

E. Notification of Right to File a Complaint with the CAD 36

F. Limitation of Disconnection During CAD Investigation 37

1. Limitation of Disconnection Pending Resolution 37

2. Reconnection Pending Resolution 37

G. CAD Complaint Process 37

1. CAD Acceptance of Complaint 37

2. CAD Investigation of a Complaint 37

3. Provision of Information to the CAD by a Utility 38

4. Decision 38

5. Notice of Appeal Rights 38

H. Appeal to the Commission 38

1. Appeal Process 38

2. Disconnection Delayed 39

3. Commission Review 39

4. Order 39

§ 14 CUSTOMER NOTICE OF PLANNED AND UNPLANNED SERVICE

INTERRUPTIONS DUE TO MAINTENANCE OR REPAIRS 39

A. Reasonable Notice Required 39

B. Notification of Affected Customers 39

C. Method of Notification 40

§ 15 ANNUAL REPORTS TO THE COMMISSION 40

§ 16 WAIVERS 41

A. Utility Waiver 41

B. Individual Customer Waiver 42

1. Request Requirements 42

2. CAD Review 42

3. Decision 42

4. Appeal of Waiver Decision to Commission 42

§ 1 STATEMENT OF PURPOSES; APPLICABILITY; AND POLICY

A. Purposes

The purposes of this Rule are:

1. To assure safe and adequate provision of utility service;

2. To assure that service is not disconnected or refused unreasonably;

3. To ensure that customers of water utilities are not disconnected because of their inability to pay without being afforded the opportunity to enter into a reasonable payment arrangement; and

4. To assure the utility's right to collect proper payment for utility service.

Every privilege that is granted and every duty that is required by this Rule imposes an obligation on utilities, applicants and customers to accept these privileges and perform these duties with good faith, honesty and fairness.

This Rule defines the minimum standards for nondiscriminatory practices that all water utilities must follow. It does not, however, limit the power of utilities to give greater protection to their customers above these minimum standards.

B. Applicability of Rule

1. This Rule applies to all water utilities with the exceptions described in 6 below that are subject to the jurisdiction of the Commission.

2. Any provisions of this rule that conflict with or are pre-empted by 11 U.S.C. Section 366 of the Bankruptcy Code or any order issued by a bankruptcy court or the Bankruptcy Code shall be inapplicable.

3. This Rule takes effect on January 1, 2012. A utility must submit rate schedules that correct any conflict with the provisions of this Rule before that date. Any conflicting provision in any rate schedule or term and condition after January 1, 2012 are superseded by the Rule.

4. This Rule applies to the collection of amounts owed by a customer who is provided with water utility service in Maine.

5. Any Section of this rule not specifically designated as applying to residential or non-residential customers applies to all customers.

6. A utility that has less than 1500 residential customers as reported in the utility's most recent annual report on file with the Commission is exempt from the provisions listed below. If a utility is an affiliated interest (as defined in 35-A M.R.S.A. Section 707) of one or more utilities that are subject to the Commission's jurisdiction, it qualifies for this exemption only if the total residential customers of the utility and the affiliated interests is less than 1500 residential customers. If a utility is exempt under this provision, it is not required to comply with the following provisions of this Rule:

• Section 6(C)

• Section 6(G)

• Section 7(F)(1)(d)

• Section 7(F)(2)(d)

• Section 7(G)

• Section 8(C)

• Section 10(L)(3)

• Section 10(L)(4)

• Section 13(D)

• Section 15(A)(5), (7-13), (15-18)

§ 2 DEFINITIONS

The following terms have the following meanings, unless the context clearly indicates a different meaning:

A. Account Balance . "Account balance" means the total amount owed by a customer that has been properly billed by a utility in accordance with this Rule.

B. Amount Overdue. "Amount overdue" means the amount that a utility has properly billed to a customer that has not been paid in full by the due date of the bill.

C. Applicant. "Applicant" means any person or business that applies for utility service and who has not been a customer of the utility within the past 30 calendar days.

D. Basic Service. “Basic service” means utility service where the Commission regulates the rate or charge for the service and the rate or charge for the service is contained in the utility's rate schedules. For utilities authorized to disconnect water service for the non-payment of sewer charges pursuant to 35-A M.R.S.A. Section 6111-C, sewer charges constitute as “basic” service for the purpose of this Rule.

E. Bill . "Bill" means a statement, either in written or electronic form, from a utility to a customer that states the amount owed by the customer for the current billing period, the amount overdue, the account balance, late fees and any other charges lawfully owed by the customer.

F. Commission. "Commission" means the Maine Public Utilities Commission.

G. Complaint. “Complaint” is a dispute between an applicant or customer and a utility which the CAD has decided to resolve pursuant to this Rule.

H. Consumer Assistance Division. "Consumer Assistance Division" or “CAD” is a division of the Commission assigned with the responsibility of dealing with consumer issues under this Rule.

I. Corporation. “Corporation” is a body created and authorized by law to act and be treated as a single legal entity with an identity distinct from that of its individual members. This definition includes private companies, and municipal and quasi-municipal corporations.

J. Customer. "Customer" means any person or business that has applied for or been accepted to receive, or is either receiving utility service or has agreed to be billed for utility service. This term also includes a person or business that was a customer of the same utility within the past 30 days and who requests service at the same or a different location.

K. Deposit. "Deposit" means any payment, however designated, that is held as security for future payment or performance.

L. Dispute. "Dispute" means a grievance of a customer or applicant about a utility's application of any provision of this Rule. Disputes include, but are not limited to:

1. deposit requirements;

2. the accuracy of meter readings or bill amounts;

3. the proper person to be charged;

4. the terms of a payment arrangement;

5. the terms to avoid a pending disconnection;

6. the terms to obtain a reconnection; and

7. the transfer of an account balance incurred in one customer’s name into another customer’s account.

If a customer or applicant has a grievance and then indicates that the response from the utility's employee was satisfactory, the contact between the customer or applicant and the utility will not be considered a dispute.

M. Establishment. An “Establishment” is a location at which water service is sought or is being rendered.

N. Fraud . The term “Fraud” means a false representation, by words or conduct, or the concealment of facts which should have been disclosed, which is intended to deceive a utility and upon which the utility reasonably relies in taking actions with respect to a customer.

O. Limited Service Contract. A “Limited Service Contract” means a written agreement, approved by the Commission, under which a water utility agrees to provide and the customer agrees to accept a substandard level of service described in the contract.

P. Make-up Bill. A “make-up bill” is a bill issued for previously unbilled utility service.

Q. New Customer. A “New Customer” means any person or business that has applied and been accepted for service that has not taken service from the utility within the past 30 days.

R. Non-basic Utility Service. "Non-basic utility service" means utility service that meets any of these conditions:

1. The Commission does not regulate the rate or charge for the service;

2. The rate or charge for the service is not contained in the utility's rate schedules;

3. The service is for merchandise or equipment that is not required as a condition of receiving utility service; or

4. For utilities that do not have the authority to disconnect water service for the non-payment of sewer charges pursuant to 35-A M.R.S.A., §6111-C, sewer charges are considered “Non-basic utility service” for the purpose of this Rule.

S. Occupant. "Occupant" means any person who resides at a premises that is provided with utility service.

T. Payment Arrangement. "Payment arrangement" means an agreement between a customer or applicant and a utility that allows the account balance or deposit to be paid in one or more installments.

U. Person. “Person” means an individual, partnership, or voluntary association.

V. Physician. "Physician" means any natural person authorized by law to practice medicine or osteopathy in Maine.

W. Premises. “Premises” means any residential or non-residential building or property.

X. Private Line. “Private line” means: (1) A water line constructed prior to May 7, 1986 across private property to serve one or more customers and not considered by the utility to be a main; (2) except as provided under Section 2(C) of Chapter 65, a water line constructed after May 7, 1986 across private property to serve a single customer, a single multi-unit dwelling complex or a single commercial or industrial development upon which no other person has an easement or other right of access for water line purposes.

Y. Refund. “Refund” means a cash or cash equivalent reimbursement to a customer. The application of a credit to a customer’s account is not a refund.

Z. Residential Utility Service. "Residential utility service" means utility service provided to a dwelling. It includes service provided for a nonresidential purpose, if a residential dwelling is receiving service through the same meter.

AA. Serious Medical Condition. “Serious medical condition” means a medical condition such that a lack of utility service would pose a serious risk of harm to the individual with the condition.

BB. Service Pipe. “Service Pipe” means the pipe running from the water main to the customer's establishment.

CC. Temporary Establishment. “Temporary establishment” means an establishment that a water utility reasonably believes to be of a temporary nature after giving due consideration to the location, setting, structures, and use of the establishment. The absence of a cellar or permanent foundation shall not be the sole criterion used by the water utility in determining that an establishment is temporary.

DD. Unauthorized Use. "Unauthorized use" means the interference or diversion of utility service. Unauthorized use includes, but is not limited to:

1. tampering with the meter (any act which affects the proper registration of service through a meter);

2. by-passing the meter (unmetered service that flows through a device connected between the service line and customer-owned facilities); or

3. restoring service without authorization from the utility or the CAD.

EE. Utility. "Utility" means any water utility doing business in Maine and subject to the jurisdiction of the Commission and provisions of this Rule.

FF. Water Utility. A corporation, person, or the lessee, trustee, of a corporation or person, owning, controlling, operating, or managing any water works for compensation within this State.

GG. Water Main. A water pipe, other than a service pipe or private line which is owned, operated, and maintained by a water utility, and used for the transmission or distribution of water.

HH. Third Party. “Third party” means a person or entity not employed by or working on behalf of the utility. For the purposes of this Chapter, neither Commission staff nor contractors working on behalf of the utility are considered “third parties”.

§ 3 EMERGENCY MORATORIUM

When the Commission or the Director of the CAD determines that, due to an emergency, termination of utility service by one or more utilities would present a clear danger to the health or safety of one or more customers, the Commission or the CAD Director may declare a partial or complete moratorium on the termination or disconnection of service by any or all utilities. When such a moratorium is declared, the duration of the moratorium will be specified by the Commission or the CAD Director.

§ 4 CUSTOMER PRIVACY

A utility shall not disclose, sell or transfer (other than for debt collection, credit reporting, or usage reporting pursuant to state and federal law or to law enforcement agencies pursuant to lawful process, or as otherwise authorized by law, Commission Rule or Order), individual customer information, including, but not limited to, a customer’s name, address, telephone number, water usage, or payment history, to a third party without the consent of a customer. Utilities may accept oral certification from a social service agency that they have received authorization from the customer to discuss that customer’s account information. A utility may also share customer information with State, County, tribal and local emergency management agency personnel when the customer information is requested as part of that agency’s response to an emergency situation. In addition, a utility may also share customer information with sewer and sanitary departments or districts to the extent necessary to allow these entities to bill customers for services rendered.

§ 5 CUSTOMER RIGHTS

Each utility must include a summary of customers’ rights and responsibilities under this Rule on their website or make available, under Section 1(B)(5) of this Rule, to customers a paper copy of the rights and responsibilities at the utility’s office. Water utilities meeting the criteria identified under the small utility exemption are allowed to keep a current paper version of Chapter 660 in lieu of the requirements below. The summary must contain information concerning, but not limited to:

A. procedure for billing and for estimated billing;

B. methods for customers to verify the accuracy of their bills;

C. payment methods, locations, late fees (if any) and optional payment programs and appurtenant fees offered by the utility;

D. security deposit and guarantee requirements;

E. procedures for disconnection and reconnection of service;

F. the utility’s ability to remotely disconnect service, if applicable;

G. the utility’s dispute procedures;

H. the customer’s right to bring any unresolved disputes to the CAD;

I. the CAD’s toll-free consumer telephone number, and mailing and email addresses;

J. procedure for providing third party notices; and

K. telephone number, mailing and email addresses of the utility.

§ 6 APPLICATION FOR SERVICE

A. Applications for Service. An application for service may be made by either the owner or occupant of the establishment to be served. If a new service connection or other work on the owner's premise is required, the owner must authorize the water utility to enter the premises to perform the necessary work.

B. Obligation to Provide Service

A utility may not refuse to provide service to an applicant, except as provided for below.

1. Residential Applicants

A utility may deny service to a residential applicant who fails to meet any of the following conditions.

a. Payment of past overdue amount. A utility may condition the granting of service on a residential applicant paying a past overdue amount for basic service provided by that utility if the applicant accrued the debt within the previous 6 years, provided that:

i. If the utility is aware of the debt before service is initiated, the utility must offer a payment arrangement to a residential applicant on the undisputed overdue balance before service is initiated; and

ii. If the utility discovers the debt after it has granted service, the utility has 60 days from the date of the applicant's request for service to provide written notice to the customer of the outstanding debt and its intention to collect the outstanding debt. If a utility does not notify the applicant of its intent to collect the outstanding debt within the 60-day time period, the utility is prohibited from transferring the debt to the applicant’s current account. The utility must allow the customer at least 30 days after receipt of the written notice to pay the debt or enter into a payment arrangement. If the customer fails to respond during this time period, the unpaid amount may be transferred to the customer's current account and disconnection procedures may be initiated for failure to pay or make a payment arrangement. A utility may demand payment of a past overdue amount after the 60-day period has passed if the utility was unable to discover evidence justifying the demand within the 60 days due to either fraud or material misrepresentation by the applicant.

b. Payment of a Deposit. A utility may condition the granting of service on the payment of a deposit pursuant to Section 7.

c. Provision of Proper Identification. A utility may condition the granting of residential service on the provision of adequate proof of identification, including, but not limited to, photo identification.

d. Compliance With Local, State, and National Safety Codes. A utility may condition the granting of service on the compliance of a customer’s premise equipment with local, State, and National plumbing codes.

e. Compliance with Utility Terms and Conditions. A utility may condition the granting of service on the compliance of a customer’s premise equipment with the utility’s terms and conditions.

2. Non-Residential Applicants

A utility may deny service to a non-residential applicant that fails to meet any of the following conditions

a. Past Overdue Amount. A utility may condition the granting of service on a non-residential applicant paying a past overdue amount for basic service provided by that utility if the applicant accrued the debt within the previous 6 years. If the utility discovers the debt after it has granted service, the utility must provide written notice to the customer of the outstanding debt and its intention to collect the outstanding debt.

b. Payment of a Deposit. A utility may condition the granting of service on the payment of a deposit pursuant to Section 7.

c. Compliance With Local, State, and National Safety Codes. A utility may condition the granting of service on the compliance of a customer’s premise equipment with local, State, and National plumbing codes.

d. Compliance with Utility Terms and Conditions. A utility may condition the granting of service on the compliance of a customer’s premise equipment with the utility’s terms and conditions

C. Provision of Service by Next Business Day

A utility should provide service to an applicant as soon as possible, but must provide service by the end of the next business day after the request for service is received by the utility, or a deposit and/or unpaid account balance is paid, provided that facilities exist to provide service within that timeframe. If facilities do not exist, such as in the case where a line extension must be constructed, the utility must initiate its standard procedures to provide service by the end of the next business day after the request for service is received.

D. Service in Another's Name

1. Except as provided for in this Section, a utility may not require an applicant to pay for service provided in another person's name unless a court or other administrative agency has determined that the applicant is legally obligated to pay for that service. To prevent the practice of ”name swapping,” a utility may transfer a residential account balance that was incurred for service provided by that utility within the previous 6 years from the date of the new application for service to the applicant’s new account when both people:

a. resided together at the premises when service giving rise to the arrearage was provided;

b. received the benefit of the previous utility service; and

c. will benefit from the utility service for which the application for service was filed.

2. A utility has 60 days from the date the applicant applies for service to transfer the account balance to the applicant’s new account. If the transfer does not take place within this time period, the utility may not transfer the account balance. When a utility decides to transfer an existing account balance to an applicant’s new account, the utility must add the previous customer’s name to the account and provide written notice to the new applicant of the transfer. Such written notice must state the facts upon which the utility has relied to establish conditions 1 through 3 above (typically such facts are obtained through phone records showing both parties contacting the utility regarding the account. The utility’s notice of the transfer must be provided at least 7 days prior to the transfer and, must provide the applicant the opportunity to challenge the transfer, first to the utility and then, if the matter is not resolved to the customer’s satisfaction, to the CAD. The utility must maintain a record of its investigation of the challenge pursuant to Section 13(D).

A customer who receives a transferred account balance may appeal to CAD to have the transfer reversed:

a. when the customer can provide sufficient documentary evidence to show that the arrearage was not justified under this Section, or

b. the customer can provide sufficient documentary evidence to show that the person from whom the arrearage was transferred will no longer benefit from the applied for utility service.

E. Application for Service at a Location Where an Active Account Already Exists

Unless otherwise required by 35-A M.R.S.A. §706(2), a utility may deny service to an applicant where the service location for which the applicant is seeking service already has an active customer who does not wish to terminate service.

F. Explanation of Charges

A utility must disclose the following information to the applicant at the time an applicant requests service:

1. non-recurring installation, application or registration fees charged by the utility for the type of service requested;

2. if non-basic services are available, the charge for any non-basic services selected by the customer; and

3. the utility’s authority to disconnect water service for the non-payment of sewer charges, if the utility has such authority.

G. Designation of Third Party to Receive Notices

An applicant or customer may notify the utility in writing that the customer is designating a third party to receive disconnection notices concerning the customer's account. The utility must keep a record of the third party name, address and telephone number. Whenever the utility contacts the customer about matters related to deposits, disconnections, overdue amounts, or hazardous conditions of utility service, the utility must make every reasonable effort to contact the third party and provide the same information at the same time it is provided to the customer. Any notice of disconnection provided to the third party must contain the disclosures required by Section 10(J). Nothing in this subsection shall give rise to an obligation on the part of the third party to make payment of any amount owed. Every utility must inform new customers of their right to designate a third party to receive notices pursuant to Section 5.

§ 7 DEPOSITS FOR APPLICANTS AND CUSTOMERS

A. Residential Applicants

A utility may demand a deposit from a residential applicant only if one or more of the following circumstances apply:

1. An undisputed account balance for residential utility service incurred in Maine is unpaid at the time that the applicant requests service. The unpaid balance must be either:

a. for service provided by the utility from whom the applicant requests service within the previous six years; or

b. for residential utility service provided by any utility within the previous 12 months.

2. An unpaid, undisputed account balance for residential utility service provided in Maine within the previous six years was not paid until after the utility obtained a court judgment.

3. The applicant was disconnected for nonpayment of an undisputed bill by any utility within the previous 12 months.

4. The applicant was disconnected for unauthorized use or theft of service by any utility within the previous 12 months.

5. The applicant entered into a plan of repayment under Chapter 13 of the Federal Bankruptcy Act and the Bankruptcy Court dismissed the plan for failure to comply with its terms within the previous six years.

6. The applicant has no source of income sufficient to pay the cost of utility service.

B. Non-Residential Applicants

A utility may demand a deposit from any non-residential applicant as a precondition of granting service.

C. Residential Customers

A utility may demand a deposit from a residential customer only if:

1. the customer files a petition under the Federal Bankruptcy Act when the Federal Bankruptcy Act allows the utility to demand a deposit;

2. the customer requests that service be reconnected at the same or different location after the customer was disconnected for nonpayment; or

3. the customer had an unpaid account balance at the time the customer applied for service for which the utility was unaware due to fraud or material misrepresentation by the customer.

D. Non-Residential Customers

A utility may demand a deposit from an existing non-residential customer in lieu of disconnection authorized by Section 10 of this Rule or from a customer who was not required to pay a deposit as a precondition of service but has become an unacceptable credit risk as determined by the utility.

E. Amount of Deposit

1. Residential Applicants and Customers

A utility may not demand a deposit in excess of the amount of the two largest consecutive monthly bills for water service incurred within the previous 12-month period at that location. In the case of a utility which bills for service on a quarterly basis, the utility may not demand a deposit which is more than the single largest quarterly bill within the previous 12-month period at that location. The amount of the deposit demanded of a customer at a location in which there is no previous usage history must be similar to that demanded of customers with similar expected usage.

2. Non-Residential Applicants and Customers

A utility cannot demand a deposit which is more than the amount reasonably anticipated to be due for water service for the two highest billing periods expected within a 12-month period unless the utility bills on a quarterly basis. If the utility bills per quarter, the utility can not demand a deposit which is more than the single highest billing period for water service.

F. Payment of Deposits

1. Residential Applicants and Customers

A utility must provide residential applicants and customers the option of either paying the deposit in full or entering a payment arrangement on the deposit amount that allows payment in at least three installments: 50% payable upon the determination that the deposit is required; 25% payable 30 days after the determination; and 25% payable 60 days after the determination.

a. A utility may demand full payment of the deposit amount when an applicant requests service and the applicant enters into a payment arrangement for an unpaid account balance at the same time.

b. If a customer requests reconnection following disconnection for nonpayment, the customer may elect one of the payment options according to Section 12 of this Rule.

c. A utility may negotiate payment of the deposit over a longer period as the utility determines appropriate.

d. Guarantee instead of deposit. A utility must accept a third-party guarantee agreement in lieu of a cash deposit from a residential customer if the guarantor is a customer whose account is in good standing with the utility at the time the deposit is requested. The guarantee agreement must be in writing, contain the disclosures required by this Section, and be limited to a specific time period. The utility may cancel the guarantee agreement if the guarantor incurs an arrearage with the utility that is more than 60 days old, and a guarantor may cancel the agreement upon at least 30 days written notice to the utility and the customer. If the guarantee is cancelled or the term has expired, the utility can demand a deposit from the customer. If a deposit is not paid or if a payment arrangement is not established within 30 days after the notice that requires payment of a deposit is provided, a utility may begin further collection procedures.

2. Non-Residential Applicants and Customers

The utility must offer non-residential applicants and customers the option of paying the required deposit in at least two equal installments. Deposits may be in any of the following forms, listed in order of preference:

a. Cash.

b. Irrevocable bank letter of credit.

c. Surety bond.

d. Third-party guarantee instrument acceptable to the utility.

e. Other security instrument acceptable to the utility.

G. Disclosure

When a utility demands a deposit, it must provide a written disclosure to an applicant or customer within three business days after the demand is made. If the disclosure is not provided within the 3 business day period, the utility cannot collect the deposit from the customer. If the disclosure was not provided within the 3business day period and the customer has already paid the deposit, the deposit must be refunded to the customer. A copy of the disclosure must also be provided to any guarantor within the same time period. The disclosure must contain:

1. the date that the utility demands a deposit;

2. the amount of the deposit;

3. the due date and payment options for the deposit, including the option of a third-party guarantor for residential applicants and customers; and

4. the procedure by which the applicant or customer can dispute the deposit requirement or deposit amount.

H. Interest

A utility must pay interest on deposits according to the provisions of Chapter 870 of the Rules of the Commission.

I. Retention and Refund

1. Refund

A utility must refund a deposit in any of the following circumstances:

a. When the customer establishes good credit. The water utility must return the deposit of any residential customer without an overdue account balance if the customer pays all bills or makes all payments pursuant to an established payment arrangement by the due date, for one full year. The deposit must be returned within 30 days of the customer meeting this requirement. Utilities may retain deposits collected from non-residential customers for as long as the customer remains a customer.

b. When the customer has been disconnected and has not been subsequently reconnected within 30 calendar days of the disconnection. The utility then must apply the deposit, including accrued interest, to the account balance for utility service and refund the remainder within 14 calendar days or with the final bill, whichever is later. A transfer of service from one location to another is not considered disconnection for the purpose of this paragraph.

c. When a customer closes an account. When a customer closes an account, the utility may apply the deposit to an existing account balance or other accounts for that customer that were closed within the past six years that were not fully paid when the account was closed. The utility must then refund any remaining deposit amount, including accrued interest, to the customer within 60 days of the customer closing the customer’s account.

d. When a residential customer substitutes a third-party guarantor. If a guarantor is provided in accordance with the provisions of Section 7(F)(1)(d) above, the utility must refund the deposit, including accrued interest, up to the limits of the guarantee.

e. Earlier refund. The utility may choose to refund a deposit, including accrued interest, any time earlier than this subsection requires.

2. Transfer of Service

When a customer transfers service from one location to another location, an existing deposit may be transferred to the new location and must be adjusted according to the anticipated usage at the new location. If the anticipated usage at the new location is lower than the old location, the utility must either refund the difference to the customer or must apply the difference to the customer’s account as a credit. If the amount of the refund is equal to or less than the cost the utility will incur to issue a refund check to the customer, the utility may credit the customer’s account. If the refund is greater than the cost to cut a check, the utility shall send the customer a check for the refund amount or, if the customer so chooses, the refund may be applied as a credit to the customer’s account. If the usage is higher at the new location, the utility may require the customer to pay a deposit reflecting the incremental usage amount. In this instance, the incremental amount must be collected in accordance with Section 7(F) above. The transfer and any subsequent adjustment must be made within 30 calendar days of the date the service is transferred.

§ 8 BILLING AND PAYMENT STANDARDS

A. Bill Frequency

A utility shall bill on a regular recurring basis, either quarterly or monthly, at the utility’s discretion. A utility may choose an alternate method for billing its seasonal customers, as specified in its terms and conditions.

B. Due date of Bills

The due date of a bill must be at least 25 days after the bill is mailed or otherwise delivered to the customer. A bill is considered “mailed” on the date the bill is postmarked. If there is no postmark, the utility shall date the bill and mail the bill on or before the date on the bill.

C. Bill Content

Each bill issued by a utility shall clearly state the following minimum information:

1. The beginning and ending dates of the period for which service was provided.

2. The beginning and ending meter readings for the billing period and the difference between the two meter readings, unless the customer’s usage was estimated for that billing period pursuant to Section 8(L) of this Rule or the customer’s meter was changed out by the utility during that billing period.

3. The last date by which payment must be made and that after this date the account will be considered overdue and late fees imposed, if authorized.

4. The amount due for service provided during the current billing period.

5. An itemization of State taxes.

6. An itemization of all other current unpaid charges, including, if applicable, installation fees, reconnection fees, deposit payments, and late payment fees which have accrued to the customer's account. A utility may not separately list line items on the bill that do not represent a separate, discrete utility service or a State tax.

7. The total amount of all payments or other credits made to the customer’s account during the current billing period, except that utilities that bill quarterly do not have to comply with this requirement.

8. The amount overdue, if applicable.

9. The account balance.

10. A clear and conspicuous marking of all estimates.

11. The address and telephone number where the customer may write or call to ask questions or dispute the bill with the utility.

12. A designation of the applicable class of service as stated in the utility's approved rate schedule.

D. Billing Errors

A utility shall notify promptly a customer in writing of a billing error after it discovers or is notified of the error. An explanation of the credit or charge on the bill or in a bill insert that accompanies the bill containing the credit or charge that explains the error will meet the notice requirement of this Section. The utility shall correct the error within 90 days of discovery of the error and investigate whether the billing error affects multiple customers. Discovery of the error is the point in time when the utility first becomes aware of the billing error; or, if notice of the error is provided by a third party, discovery of the error is when the utility confirms that a billing error was made. In the latter situation, the decision regarding whether or not a billing error occurred must be made within 14 days of the utility’s receipt of the third party’s notice of the error. If more than 10 customers are affected by the billing error, the utility shall immediately notify the CAD. If an under-billing occurred, a utility may issue a corrected bill for service provided in the previous 12 months. A utility shall refund any amount billed in excess of correct rates, within the previous 6 years from the date of the utility’s discovery of the error.

E. Meter Malfunction, Failure to Read Meter, and Unauthorized Use or Fraud

1. Make‑Up Bills

A utility may issue a corrected bill for previously unbilled service due to the utility’s failure to read the customer’s meter pursuant to Section 8(L) or a meter malfunction that could not have been reasonably detected by the customer or the utility, for service that was provided in the 12 months prior to the date the make-up bill is issued. In these circumstances, the utility must either apportion the usage evenly over the period in which the unbilled usage occurred or apportion the unbilled amount pursuant to the utility’s usage estimation methodology. Once the usage has been properly apportioned over the unbilled period, the utility may re-bill the customer based on the approved rate schedule rates in effect during the unbilled usage period. A utility may also agree to a settlement that abates all or a portion of the previously unbilled service.

a. If the make-up bill is for service that was previously unbilled because of unauthorized use or fraud by the customer, the utility may bill for service that occurred up to 6 years before the issuance of the "make-up" bill.

b. When a utility issues a make-up bill, it must notify the customer in writing of the right to a payment arrangement for the previously unbilled amount. The terms of a payment arrangement negotiated for the previously unbilled amount should take into account the period during which the unbilled service accrued, the length of time between the usage and the issuance of the bill, and the reason for the unbilled amount.

2. Refunds

A utility shall refund any amount billed in excess of correct rates and/or usage amounts, within the previous 6 years from the date of the utility’s discovery of the error (as defined above in Section 8(D)).

F. Payment

1. Extension of Due Date Required

If the due date for payment falls on a Saturday, Sunday, legal holiday, or any other day when the utility’s offices are not open for business, the utility shall extend the due date to the next business day.

2. Payment by Mail

If the customer sends payment by mail, payment is made on the date the utility receives the payment.

3. Electronic Payment

If the customer pays a bill electronically through a utility’s authorized vendor, either over the phone or the internet, the utility must consider the payment “received” for the purpose of avoiding credit action and a late payment charge, at the date and time the transaction is executed by the customer or the date the customer chooses for the payment to be applied to the customer’s account if that choice is available in the utility’s billing system.

4. Payment at a Remote Office

If the customer pays at a branch office or authorized agency of the utility, the utility shall consider the payment “received” for the purpose of avoiding credit action and a late payment charge, at the date and time the transaction is executed by the customer.

5. Conflicting Due Dates

When a utility provides a customer with multiple notices or contacts containing different due dates, payment is due on or before the latest due date provided, with the exception of notices issued pursuant to Section 10(H) of the Rule (dishonored check), which supersede all other notices.

G. Late Payment Charges and Returned Check Charges

Utilities must comply with Chapter 870 of the Commission’s Rules relating to late payment charges and returned check charges.

H. Application of Partial Payments

When a utility receives payment that is insufficient to pay the full account balance, the utility must apply payment to the oldest basic service balance due, unless instructions from the customer, a disputed bill, or a payment arrangement requires otherwise.

I. Non-Basic Utility Service

A utility must either issue a separate bill for non-basic utility service or apply partial payments first to basic charges and then to non-basic charges.

J. In-Person Payment Locations

A utility shall maintain a location within its service territory where customers may pay bills in person.

K. Transfer of Service and Collection of Unpaid Account Balances

1. Transfer to a New Account

When a customer requests a transfer of service to a new location, a utility may, without prior notice, transfer the customer's current account balance to the customer's new account, provided that the new account is the same type as the old account, i.e. residential or non-residential, and the transfer takes place within 60 days of the activation of service at the new location or the closing of the prior service, whichever date is later. Utilities are prohibited from transferring account balances from a residential account to a non-residential account and vice versa. In situations where a landlord is responsible for a common area meter, which is considered a business account, and also chooses to have service for the individual unleased rental units placed in the landlord’s name during periods in which they are not leased, a utility may transfer the balance from the individual units (residential) to the common area (business) account.

2. Transfer of Multiple Accounts

a. Account Balance. In situations where a customer maintains multiple accounts and chooses to close an account with an account balance, a utility may transfer the account balance to a remaining, active account, provided the accounts are of the same type, i.e., residential to residential or business to business. Any transfer must be made within 60 days of the account being closed. In these situations, a utility may not transfer a residential account balance to a business account and vice versa.

b. Credit Balance. In situations where a customer maintains multiple accounts and chooses to close an account with an account credit, the credit shall be refunded to the customer, unless the customer requests that the credit be applied to another account. The refund or credit shall be provided within 60 days of the customer closing the account.

3. Transfer of Unpaid Account Balance to a Guarantor

If a customer is disconnected, a utility may transfer to the account of a third party guarantor any portion of the account balance which is equal to the cash deposit requirement of the customer.

4. Fraud or Misrepresentation

If a utility discovers that a customer has a previous account balance incurred due to fraud or misrepresentation, the utility may transfer the unpaid account balance to the customer’s current account within 30 days of discovery by the utility of the fraud or misrepresentation. In these situations, the utility must provide notice to the customer of the transfer. The notice may be included with the first bill issued in relation to the customer’s current account that includes the transferred balance.

5. Compliance With This Section

If an unpaid account balance is not transferred according to Section 6(D), or paragraphs 1, 2, 3, or 4 above, a utility cannot demand or collect it from a current customer by any means authorized by this Rule.

6. Pending Disconnection Notice

If a disconnection notice is pending when a customer requests transfer of service to a new location, the utility may continue the disconnection process at the new location. If the notice required by Section 10(D) of this Rule has been issued and the contact required by Section 10(L)(2) has been attempted and service has not been disconnected because the customer has refused access to the customer’s premises, the utility may deny service at a new location when the customer requests a transfer of service.

L. Meter Reading

A utility must obtain an actual meter reading every billing period, unless:

1. extreme weather conditions, emergencies, equipment failure, work stoppages or other similar circumstances prevent an actual meter reading by utility employees;

2. the utility must have access to the customer’s premises to obtain a reading and the utility is unable to gain access after using reasonable efforts to obtain such access; or

3. a customer is billed on a seasonal basis according to terms included in the rate schedule of the utility.

An “actual meter read” includes an electronic read obtained via an automated read system.

M. Past Usage

Upon request, a water utility shall provide free of charge to current or prospective customers, tenants or property owners residential consumption and cost information for a dwelling unit for the prior 12-month period or figures reflecting the highest and lowest consumption and cost for the previous 12 months. If a unit has been occupied for a period of less than 12 months or for any other reasons the utility does not have information regarding water consumption or costs for a period of 12 months, the utility shall estimate the unit's cubic foot or gallon consumption or cost.

§ 9 PAYMENT ARRANGEMENTS

A. Payment Arrangement Required

A utility shall continue to serve a customer who does not pay an account balance in full if the customer agrees to enter a payment arrangement for the account balance and agrees to pay each future bill for service on or before the due date of the bill until the payment arrangement is completed. A payment arrangement may involve a single or multiple payments.

B. Written Confirmation of Payment Arrangement

A utility shall mail or deliver to the customer a written confirmation of a payment arrangement that requires two or more payments within 3 business days after a payment arrangement is established. The written confirmation shall:

1. inform the customer of the terms of the payment arrangement;

2. include the address and toll free telephone number of the CAD; and

3. inform the customer of the utility’s right to issue a 3-day disconnection notice for failure to comply with a payment arrangement.

C. Failure to Confirm Payment Arrangement in Writing

If a utility does not mail or deliver a written confirmation of a payment arrangement to the customer within 3 business days after a payment arrangement is agreed to, the utility cannot disconnect the customer for failure to comply with the payment arrangement. A utility may either attempt personal contact to negotiate a new payment arrangement or issue a 14-day disconnection notice for residential customers or a 7-day notice for non-residential customers according to Section 10(D) of this Rule.

D. Basic Service Payment Arrangement to be Separate

Any agreement permitting installment payments on an account balance for non-basic service must be separate from a payment arrangement for basic service.

E. Residential Customers

Utilities must establish payment arrangements that take into consideration the individual customer’s unique circumstances and that are most likely to result in customers becoming current with their bills and retaining their utility service. If a customer and the utility cannot agree on the terms of a payment arrangement, including a customer’s claim that the customer cannot afford to pay any amount towards the arrearage, the utility must refer the customer to the CAD for assistance.

1. Criteria for Determining a Reasonable Payment Arrangement

In determining if a particular arrangement is reasonable, the utility must take into account:

a. the customer's ability to pay;

b. the size of the overdue amount;

c. the customer's payment history;

d. the amount of time and reason why the overdue amount is outstanding; and

e. any special circumstances creating extreme hardships within the household.

The utility must make every reasonable attempt to negotiate a payment arrangement that is likely to prevent disconnection and reduce the amount overdue to zero.

2. Notification of Forms of Financial Assistance

When a customer informs a utility that the customer cannot pay a bill and the customer is in imminent threat of disconnection, the utility must provide the customer with information regarding other sources of financial assistance including, but not limited to, 211, the Department of Health and Human Services, the Community Action Agencies, and local Town or City government.

3. Second Payment Arrangement

The utility may, but is not required to, offer a second payment arrangement to a customer who is in default of a first payment arrangement.

F. Non-Residential Customers

Utilities must offer non-residential customers payment arrangements that take into consideration the customer’s unique circumstances and that are most likely to result in the customer becoming current with their bills and retaining their utility service. In determining if a particular arrangement is reasonable, the utility must take into account:

1. the size of the overdue amount;

2. the customer's payment history; and

3. the amount of time and reason why the overdue amount is outstanding.

The utility must make every reasonable attempt to negotiate a payment arrangement that is likely to prevent disconnection and reduce the amount overdue to zero. If a utility and a customer cannot agree on the terms of a payment arrangement, the utility must refer the customer to the CAD and the CAD will establish a reasonable payment arrangement.

§ 10 DISCONNECTIONS

A. When Disconnection Procedures Can Begin

A utility may begin disconnection procedures without the consent of the customer or occupant only if one or more of the following conditions exist:

1. The customer does not pay or make a payment arrangement on an undisputed overdue amount that is more than $50.00. A utility can disconnect service for an overdue amount of less than $50.00 only if the overdue amount is more than 90 days old or the utility bills 4 times a year or less. For utilities that have the right to disconnect water service for the non-payment of sewer charges, a utility may begin disconnection procedures without the consent of the customer or occupant when the undisputed amount overdue for the combined water and sewer charges is more than $100.00. A utility can disconnect service for an overdue amount of less than $100.00 only if the overdue amount is more than 90 days or the utility bills 4 times a year or less.

2. The customer does not make payment according to the terms of a payment arrangement.

3. The customer does not pay or make a payment arrangement for a deposit or provide a third-party guarantor according to the provisions of Section 7;

4. Service is being used, but no occupant or other person has applied for customer status.

5. The customer unreasonably refuses to allow access to the premises to install or read a meter or for the necessary inspection or repair of utility property.

6. There is unauthorized use (as that term is defined in Section 2(DD)) of the utility service delivered to the affected premises.

7. The utility has reason to believe there is fraud or that the customer has materially misrepresented his or her identity to obtain utility service without complying with the provisions of this Rule.

8. The occupant’s service poses a threat to the safety of any person or the integrity of the utility delivery system.

9. The utility receives a directive from the State Inspector or local code enforcement officer to disconnect service for safety reasons.

10. The customer does not comply with a decision of the CAD or the Commission according to Section 13.

B. Customer Request or Abandonment

A utility may disconnect service at the request of a customer (provided that the provisions of Section 10(I) concerning landlord/tenant disconnections are not applicable) or if the premises is clearly abandoned. A utility may require customers to give notice of requests to disconnect service. A utility cannot require more than 7 days notice. The utility may require the customer to pay for service that is actually provided until the customer gives the required notice, the utility actually disconnects the service, the utility initiates disconnection procedures for failure to apply for customer status, or there is an application for service at that location.

C. When Disconnection Cannot Occur

Disconnection without the customer’s consent cannot occur in the following situations.

1. Amount Overdue

The amount overdue stated on the disconnection notice includes:

a. non-basic utility service (defined in Section 2(R));

b. amounts owed from a different account, unless a transfer of the account balance was done according to Section 6(D) or Section 8(K);

c. amounts owed for estimated bills when the latest bill issued was based on an estimated read, unless the reason for the estimated bill was a result of the customer unreasonably refusing the utility access to the customer’s premises to read a meter; or

d. service provided in the name or names of persons other than the customer, unless a court or other administrative agency has determined that the customer is legally obligated to pay the amount overdue or a transfer of account balance was completed according to Section 6(D). This paragraph does not affect the creditor rights and remedies of a utility provided by other law.

2. Existence of Serious Medical Condition

A utility must not disconnect if it has been notified of a serious medical condition according to Section 11.

D. Notice Requirements

1. Without Notice

A utility can disconnect a customer without notice in the circumstances described in:

a. Section 10(A)(6);

b. Section 10(A)(8);

c. Section 10(A)(9); or

d. Section 10(B).

2. 14-Day Notice and 7-Day Notice

A utility must provide residential customers with written notice of the intent to disconnect at least 14 calendar days before the stated disconnection date and must provide non-residential customers with written notice of the intent to disconnect at least 7 calendar days before the stated disconnection date in the circumstances described in:

a. Section 10 (A)(1);

b. Section 10 (A)(5); or

c. Section 10 (A)(7).

3. 3-Day Notice

A utility must provide written notice of the intent to disconnect a customer at least 3 business days before the stated disconnection date in any of the circumstances described in:

a. Section 10(A)(2);

b. Section 10(A)(3);

c. Section 10(A)(4);

d. Section 10(A)(10);

e. Section 10(H); or

f. Section 11(C).

4. Time of Issuance

a. A utility cannot issue a disconnection notice for the circumstances described in Section 10(A)(1) (failure to pay an overdue amount) until at least 30 days after the original bill is mailed. A bill is considered “mailed” on the date it is postmarked. If there is no postmark, a utility must date and mail the bill on or before that date. A utility cannot issue a disconnection notice for the circumstances described in Section 10(A)(2) (broken payment arrangement) and 10(A)(3) (failure to pay a deposit) until at least one (1) business day after the due date of the payment.

b. A utility may issue a disconnection notice for the other circumstances described in Section 10(A) at any time after the applicable criteria are met.

E. Disconnection Date

The disconnection date for residential and non-residential customers stated in the notice must not be a Friday, weekend, legal holiday, the day before a legal holiday or a day when the utility's office is not open for public business. The term "legal holiday" is defined in 4 M.R.S.A. Section 1051.

F. Period of Effectiveness

A disconnection notice is effective for 10 business days after the disconnection date stated in the notice. If a utility fails to properly disconnect service within this time frame, the disconnection notice procedures must be repeated.

G. Refusal of Access by Customer

If a customer expressly refuses to allow the utility access to the meter or other fixture or device necessary to accomplish disconnection, the 10-business day period provided in Section 10(F) above shall begin on the date of the last refusal by the customer. This provision applies only if the utility:

1. records the date, time and manner of each attempt to disconnect service and each express refusal by the customer to allow access; and

2. has no other reasonable means to disconnect the customer other than that refused by the customer.

H. Payments Returned

1. Residential Customers

If a residential customer has made a payment that was not honored by the bank before the expiration of the disconnection notice, the utility must attempt to obtain payment by alternate means from the customer before disconnecting service. If a payment is not honored after the expiration of the disconnection notice, the utility can issue a 3-day disconnection notice pursuant to Section 10(D)(3) above and require payment by cash or certified check. A disconnection notice issued as a result of a dishonored payment supersedes any other pending disconnection notice.

2. Non-Residential Customers

If a non-residential customer has made a payment that was not honored by the bank before the expiration of the disconnection notice, the utility may proceed with disconnection pursuant to Section 10(L) below.

I. Disconnection Notice Procedures for Leased or Rented Residential Property

1. A utility cannot disconnect a premises when it is aware that it is leased or rented at the request of a lessor, owner, or agent ("landlord") or because the landlord (as a customer) has failed to pay an overdue amount, unless:

a. the tenant agrees in writing to the disconnection;

b. the landlord signs a statement that the premises are vacant;

c. the utility by personal inspection determines that the premises are vacant; or

d. the utility gives notice as described in paragraph 2 below.

2. A utility must post the notice at or near the front and rear entrances to the building or buildings affected. The notice must, in addition to the applicable disclosures of Section 10(J) below, inform the tenant how service can be continued. A utility must either offer the tenant the opportunity to obtain service in the tenant's name or otherwise assume responsibility for further payment.

3. The disconnection notice must be mailed or delivered at least 14 days before the disconnection date stated in the notice.

4. Before the actual disconnection of service to a single-meter, multi-unit building, a utility must:

a. have a rate schedule approved by the Commission that assesses a reasonable fee for the collection of an unpaid account balance from the landlord, in addition to an applicable reconnection fee; and

b. apply any existing deposit to the current account balance.

5. A utility cannot require the tenant to pay for any charges incurred by the landlord or demand a deposit or advance payment based on the landlord's credit history.

6. This subsection also applies if a municipality requests the utility to disconnect service at a location where the municipality has temporarily put the service in its name on behalf of the occupant.

J. Content of Disconnection Notice

A disconnection notice must be in writing and conspicuously contain the following information:

1. the overdue amount or the exact reason for the disconnection if not for an overdue amount;

2. what the customer must do to avoid disconnection;

3. the disconnection date and the period for which the disconnection notice is effective;

4. for residential customers, a statement of the customer's right to postpone disconnection due to a serious medical condition of the customer or an occupant and a description of how to postpone the disconnection according to Section 11;

5. a statement that the customer can avoid disconnection by negotiating a payment arrangement with affordable monthly installment payments and that the overdue amount must be paid in a reasonable period of time. This disclosure is not required if the disconnection notice is for a broken payment arrangement;

6. information regarding sources of financial assistance including, but not limited to, 211, the Department of Health and Human Services, the Community Action Agencies, and local Town or City government

7. a statement of the customer's right to submit a dispute before the disconnection date including the address and toll-free phone number of the CAD;

8. a statement that the customer cannot submit a dispute to the CAD until the customer has first tried to resolve the dispute with the utility;

9. a telephone number that the customer can call to resolve the situation causing the disconnection and a statement that the call may be made collect from within the utility's service area, unless a toll free number is offered or calls within the utility's service area are toll free to the designated telephone number;

10. a statement of the reconnection charge, if any; and

11. a statement of the utility's policy concerning the requirement of a deposit in the event of disconnection.

K. Plain Language Disconnection Notice

Every utility must use a plain language disconnection notice that complies with the following guidelines:

1. The type size must be no smaller than 10 points high. The typeface (shape of the letters) should be designed to improve or enhance the visual size of the type. Headlines should be in larger or bold type. All text should be in capitals and lower case as opposed to ALL IN CAPITALS;

2. The color of the disconnection notice and type must avoid problems for persons whose "color deficient" sight makes all colors appear as shades of gray;

3. The use of reverse-blocks in which letters appear as white against a black or dark gray background must be avoided; and

4. The headline on a disconnection notice must conspicuously be entitled "Disconnection Notice" in at least 12 point type.

L. Disconnection Procedures

1. Time for Residential and Non-Residential Customers

Disconnection must occur between 8:00 a.m. to 3:00 p.m. during the effective period of the notice. Disconnection cannot occur on a Friday, weekend, legal holiday, the day before a legal holiday or a day when the utility's office is not open for public business. These restrictions can be varied if:

a. the utility has made special arrangements with the customer to disconnect at an alternative time;

b. access to the premises can only be obtained at an alternative time; or

c. the disconnection is for a reason other than nonpayment.

2. Attempt to Contact

A utility must make a reasonable effort to contact the customer personally before disconnection occurs. This duty is met if the utility:

a. contacts the customer by telephone on the date specified in the Notice or during the effective period of the Notice; or

b. attempts personal contact with the customer at the time of a premise visit to disconnect.

For utilities that have the ability to remote disconnect, this duty is met if the utility makes a least two telephone attempts, one before 5:00 p.m. and one after 5:00 p.m., and the utility provides written notice of the utility’s ability to remote disconnect pursuant to Section 5(F).

3. Procedure Upon Contact Before Disconnection

a. If the utility obtains contact with the customer before disconnection, the utility must attempt to avoid disconnection. In any case, an authorized utility employee must explain:

i. the amount overdue or other reason for the proposed disconnection; and

ii. how the disconnection can be avoided, including the customer's obligation to pay the overdue amount or enter into an installment payment arrangement; notifying the customer of the right to file a dispute with the CAD in the event that the customer is unable to resolve the issue with the utility; explaining the duty of the customer to pay any portion of a bill which the customer does not dispute; and asking residential customers if anyone resides at the location that has a medical condition that would be seriously aggravated by a loss of utility service. If the answer is “yes,” the employee must explain the process for postponing disconnection due to a serious medical condition.

b. A utility employee who visits the premises to disconnect is not required to have the authority to negotiate or enter into payment arrangements or to accept payment or make change to avoid disconnection. If the utility employee is not authorized to fully explain the customer's rights and obligations as described in paragraph 3(a) above, the employee must offer the customer the opportunity to communicate with an employee who has this authority before disconnecting the service. If the utility has already made personal contact with a customer pursuant to subsection 2 above and the customer has not taken the necessary steps to avoid disconnection, the utility is not required to postpone disconnection a second time pursuant to this subsection. If a customer offers to pay the overdue amount to prevent disconnection, the utility employee must either:

i. accept payment, give a receipt and leave the service intact; or

ii. direct the customer to the nearest location where payment is accepted and postpone disconnection for a reasonable time.

c. The utility may assess a reasonable fee pursuant to a rate schedule approved by the Commission when the overdue amount is paid in the situations described in paragraph b above.

4. Post-Disconnection Notice

a. If disconnection occurs as a result of a premise visit, the utility must post or deliver a written notice to an occupant of the premises at the time of the disconnection. The written notice must contain:

i. the address and telephone number of the utility;

ii. the overdue amount or other reason for the disconnection;

iii. the requirements for reconnection; and

iv. the procedure for residential customers to declare a serious medical condition.

b. A utility must mail the written notice required by this subsection within 3 business days when:

i. a customer's billing location is different from the service location; or

ii. a premise visit was not required to disconnect.

§ 11 CONTINUATION OF UTILITY SERVICE IS REQUIRED FOR RESIDENTIAL CUSTOMERS WITH A SERIOUS MEDICAL CONDITION

A. Basic Service is Required for Residential Customers When a Medical Condition Necessitates a Continuation of Service

A utility may not disconnect service and may not refuse to connect or reconnect service to any residential customer when the customer or an occupant of the customer's residence is certified by a physician or the physician’s agent or designee to have a serious medical condition.

B. Disconnection Postponed Pending Certification

If the customer or member of the customer's household notifies the utility that the customer or an occupant of the customer's residence has a serious medical condition and that certification of the medical condition will be obtained, the utility may not disconnect service for at least 3 business days. The effective period of a pending disconnection notice can be extended to accommodate this 3-day period if the utility notified the customer of the extension at the time the utility was notified of the medical condition.

C. Certification Procedure

A physician's certification of a medical condition may be oral or written. A utility may not challenge the validity of an oral or written certification with a physician or a physician’s agent, unless the utility has reason to believe that fraudulent information has been provided by the customer. If the utility has reason to believe that certification is not valid, it should file a request for an exemption of this Section with the CAD. The utility may require written confirmation within 7 days of an oral certification. The utility may require that a written certification include the following if the utility provides a form for the physician to complete:

1. The name and service location of the customer (to be provided by the utility).

2. The name and address of the person with the serious medical condition.

3. A statement that a serious illness or medical condition exists which would be seriously aggravated by lack of utility service.

4. The anticipated length of the medical emergency.

5. The specific reason why continued service is required.

6. The name, office address, telephone number and signature of the certifying physician.

If the written certification is not provided within the 7-day period, the utility may proceed with disconnection pursuant to Section 10(D)(3).

D. Connection or Reconnection of Service

When a utility is required to connect or reconnect service under this Section, the utility shall attempt to provide service on the day it receives the certification. In any case, service must be provided by 5:00 p.m. of the next day.

E. Length of Certification; Renewals

The utility may not disconnect the customer for the time period specified in the certification or 30 days, whichever is less. If the certification does not specify a time period or it is not readily ascertainable, the utility must not disconnect for a least 30 days. A certification may be renewed a total of two times during any 12-month period. This limitation applies to the premises as a whole, i.e., regardless of how many different people with serious medical conditions reside at the same premises, the utility must accept no more than a total of three serious medical condition certifications for the premises within a 12-month period.

F. Customer's Duty to Pay or Make a Payment Arrangement

Whenever service is provided due to the existence of a serious medical condition, the utility shall inform the customer of the continuing duty to pay or make a payment arrangement for the amount overdue. A utility must offer to refer a customer to possible sources of financial assistance for the payment of the utility bill when a medical emergency is declared.

G. Disconnection Upon Expiration of a Certification

A utility may begin disconnection procedures when a certification of a serious medical condition expires if the customer has failed to pay or enter into a payment arrangement for the amount overdue.

§ 12 RECONNECTION OF SERVICE

A. Duty to Reconnect

If service has been disconnected, the utility must reconnect service pursuant to this Section when the cause of disconnection has been remedied.

B. Payment Arrangement, Deposit

1. Residential Customers

A utility must offer the customer a reasonable payment arrangement on the account balance if the disconnection was for nonpayment and the customer was not on a payment arrangement at the time of the disconnection. If the cause of the disconnection was a broken payment arrangement, the utility may require the customer to pay the catch-up amount on the arrangement, in addition to a deposit if a deposit is allowed by Section 7(A) of this Rule, and a reconnection fee as a prerequisite for reconnection. In these situations, the utility must offer the customer the option of paying the deposit in three monthly installments consistent with the process described in Section 7(F)(1) of this Chapter. If the utility demands a deposit from a residential customer that was not on a payment arrangement at the time of the disconnection before reconnecting the service, the utility must offer the following options to the customer:

a. pay the deposit and enter into a payment arrangement for the amount overdue;

b. pay the amount overdue and enter into a payment arrangement for the deposit; or

c. pay the deposit and amount overdue in full.

2. Non-Residential Customers

For non-residential customers, utilities may require the customer to pay the amount overdue and a deposit before the reconnection of service. The utility may also require the customer to pay a reconnection fee prior to reconnection or include the reconnection fee in the next bill, provided it has such a fee in its rate schedule approved by the Commission.

C. Time

The utility must make a reasonable effort to reconnect service during business hours on the same day that it receives the request to reconnect. At the latest, reconnection must be made before 5:00 p.m. the following business day after the request. If a customer requests reconnection to occur at other than regular business hours, the utility must inform the customer of the higher reconnection charge, if applicable, and make a reasonable effort to reconnect if requested, but the utility is not obligated to do so unless a medical condition exists. Any request to reconnect where the utility receives notice that the cause of the disconnection has been remedied by 3:00 p.m. must be considered as received during “normal business hours” the same day the notice was received for the purposes of assessing a reconnection fee.

D. Reconnection Fee

A utility may file a rate schedule to charge a reasonable fee for reconnection during regular business hours and a higher fee for reconnection at other times.

§ 13 DISPUTE RESOLUTION Procedures

A. Employees Available

A utility shall have an adequate number of properly trained employees available during business hours to respond to questions from applicants and customers, resolve disputes, and address requests for service. Customers calling the utility must be provided the opportunity to talk to a live customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system. If a customer call is not automatically forwarded to a live person once a menu option is selected, the option to speak to a live representative must be provided as a menu choice. A utility with fewer than 5 full-time employees or fewer than 300 customers is not required to have an informed employee available at all times during business hours. If such a utility achieves contact with a customer before disconnection, the utility must not disconnect the customer until it has offered the customer the opportunity to resolve a dispute or to avoid disconnection by contact with the employee who is authorized to resolve disputes and enter into payment arrangements.

B. Disconnection of Service Prohibited

A utility may not threaten disconnection or disconnect the service of a customer if the customer has informed the utility that the customer disputes liability for the bill, a utility's deposit request, or the terms of a payment arrangement required by a utility to avoid disconnection, until the dispute is resolved pursuant to subsection C below. When a customer disputes only a portion of the bill, the utility may require payment of that portion not in dispute to prevent disconnection.

C. Dispute Resolution Process

When a utility becomes aware of a dispute by an applicant or customer, whether or not disconnection is pending, the utility shall:

1. Investigate Dispute

Investigate the dispute, preserving a record of the substance and results of the investigation;

2. Report Results

Report the results of its investigation to the applicant or customer based on the record; and

3. Attempt to Resolve Dispute

Attempt in good faith to resolve the dispute.

D. Dispute Record Maintenance

All utilities must preserve records of disputes for a period of 10 years from the date the dispute was resolved and those records must be available for examination by the Commission. The dispute records must include:

1. the name and address of the applicant or customer with the dispute;

2. the date and subject matter of the dispute;

3. the record of investigation required by this Section;

4. all communications to or from the customer regarding the dispute;

5. the adjustment or resolution offered to the customer; and

6. the final adjustment or resolution.

E. Notification of Right to File a Complaint With the CAD

If a utility cannot resolve a dispute with an applicant or customer after the procedures set forth above have been completed, the utility shall orally inform the applicant or customer of the right to file a complaint with the CAD and of the toll‑free telephone number of the CAD. If the complaint concerns a pending disconnection of service, the utility shall orally inform the customer that the complaint must be filed before the disconnection date or within 2 business days of the oral notice, whichever is later. During that time, the utility may not disconnect the customer's service. If the 2-day extension exceeds the disconnection date of the notice, the effective period of the notice can be extended to accommodate the 2-day extension period.

F. Limitation of Disconnection During CAD Investigation

1. Limitation on Disconnection Pending Resolution

A utility may not threaten disconnection or disconnect service to a customer who disputes liability for the bill, a utility's deposit request, or the terms of a payment arrangement required by a utility to avoid disconnection and has filed a complaint with the CAD until the complaint is resolved pursuant to Section 13(G)(4) below.

2. Reconnection Pending Resolution

If a customer files a complaint after service has been disconnected, the customer is entitled to reconnection pending resolution of the complaint only if the Director of the CAD finds reasonable grounds to believe that the utility has failed to follow the disconnection provisions of this Rule (Section 10) or has failed to notify the customer of the right to file a complaint with the CAD as required by Section 13(F) above. If the CAD orders the utility to reconnect service on this basis, the utility shall reconnect the customer's service without reconnection charges or deposit.

G. CAD Complaint Process

1. CAD Acceptance of Complaint

The CAD will not accept a complaint from a customer if the customer has not first attempted to resolve the dispute with the utility, pursuant to Section 13(D) above. The CAD may also reject, without investigation, a complaint that is outside its jurisdiction or is without merit. A complaint may be considered to be "without merit" if, among other things, the CAD has previously issued a decision regarding the same issue that is the basis for the complaint. If the CAD accepts a complaint, the CAD shall investigate the complaint pursuant to paragraph 2 below.

2. CAD Investigation of a Complaint

The CAD will inform a utility that a complaint has been filed and the date of the filing by whatever means is acceptable to both the CAD and the utility, e.g., in writing, by telephone, by e-mail, or by fax. The CAD will conduct an informal investigation of the complaint that may include:

a. an informal meeting with the customer and/or the utility;

b. a review of the written record of the utility’s investigation required by Section 13(D) above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that the CAD deems relevant to the complaint.

3. Provision of Information to the CAD by a Utility

A utility shall provide information requested by the CAD within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the utility's investigation of the customer's dispute, or any other information in the utility's possession or that is readily available to the utility that the CAD deems necessary to investigate the customer's complaint. If the utility cannot provide the requested information within the 10-day time period, it may request an extension from the Director of the CAD or the Director’s designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Decision

The CAD will complete its investigation and issue a written decision within 30 days of its receipt of information from the utility that is deemed necessary by CAD staff to resolve the complaint. The decision by the CAD shall impose any just and reasonable requirements necessary to resolve the complaint, including, but not limited to:

a. reconnection of service, deposit requirements;

b. payment arrangement terms, which may include both water and sewer charges for utilities that have the ability to disconnect water service for the non-payment of sewer charges;

c. an adjustment of late fees accrued since the complaint was received;

d. a determination of whether a violation of this Rule has occurred; and

e. a determination that a utility may proceed with disconnection in appropriate circumstances.

5. Notice of Appeal Rights

When a decision is rendered, the CAD shall inform the customer and the utility of the right to appeal the decision to the Commission and of the rights of both parties while an appeal to the Commission is pending.

H. Appeal to the Commission

1. Appeal Process

The customer or the utility may appeal a CAD decision to the Commission by filing a notice of appeal with the Administrative Director of the Commission within 10 calendar days after the date of the decision. Notwithstanding Section 6(C) of the Maine Rules of Civil Procedure and Section 305 of the Commission's Rules of Practice and Procedure (Chapter 110), no additional time is allowed for mailing.

2. Disconnection Delayed

If an appeal is filed with the Commission, a utility may not disconnect or terminate the customer's service until the appeal is decided. This prohibition stands, even if the CAD’s decision allows the disconnection.

3. Commission Review

The Commission shall review the decision to determine if it complies with applicable statutory and regulatory requirements, is based on sound facts, and does not represent an abuse of discretion by the CAD.

4. Order

The Commission shall issue an order affirming the CAD's decision or, if the decision is not affirmed, the Commission shall:

a. remand the complaint to the CAD for reconsideration with an explanation of the basis for the remand;

b. remand the complaint back to CAD to gather further facts;

c. issue an order reversing or altering the CAD's decision; or

d. issue an order opening an investigation pursuant to 35‑A M.R.S.A. Section 1303.

§14 CUSTOMER NOTICE OF PLANNED AND UNPLANNED SERVICE INTERRUPTIONS DUE TO MAINTENANCE OR REPAIRS

The term "interruption" in this subsection means either a cessation of service or a substantial degradation in the quality of service normally provided. A utility may temporarily interrupt service when it is necessary to repair or maintain the utility delivery system (planned or unplanned); to eliminate an imminent threat to life, health, safety or substantial property damage; or for reasons of local, state or national emergency.

A. Reasonable Notice Required

When the utility schedules a service interruption for maintenance or repairs, the utility must give reasonable notice of the cause and expected duration of the interruption to customers and occupants who may be affected. If the service interruption is scheduled to affect more than 10 customers or a single commercial customer on a dedicated line, or last more than 5 hours, reasonable notice means 3 days if feasible, but 24 hours at a minimum. In other cases reasonable notice means notice as soon as practicable.

B. Notification of Affected Customers

When service is interrupted without notice for more than 5 hours, the utility must make reasonable efforts to notify affected customers and occupants of the cause and expected duration of the interruption as soon as possible. A utility may give priority to restoration of service when it is impossible to both restore service and notify customers at the same time.

C. Method of Notification

Notice required by paragraphs A and B can be given by the method best suited to the nature of the interruption, the size of the area affected, the time of year, and the resources available to the utility. Notice includes, but is not limited to, personal visits to affected premises, an advertisement in local papers where the interruption will or is taking place, posting outage information on a website, or making outage information available to customers that call the utility.

§15 ANNUAL REPORTS TO THE COMMISSION

A. Every utility must file the following information with the CAD by April 15 of each year, with the information listed separately for residential and non-residential customers (unless otherwise specified):

1. billing period used by utility;

2. the average number of accounts receiving service (to obtain the annual average, sum the month-end totals and divide by 12);

3. the average customer bill per billing period and per year (divide the total residential revenues receivable by the number of bills issued);

4. the average number of accounts with overdue amounts per billing period (an overdue amount is the amount billed to the customer that was not paid by the due date of the bill or by a date otherwise agreed upon);

5. the average dollar amount of overdue amounts per billing period;

6. the number of disconnection notices issued per billing period;

7. the number of disconnections for any reason other than at the request of the customer or the abandonment of the premises per billing period;

8. the number of residential reconnections following disconnection without consent per month (do not include requests for service by new customers);

9. the number of residential reconnections following disconnection without consent per month where the service was placed in another person’s name;

10. the number of payment arrangements negotiated by type;

11. the number of deposits requested and received and their average dollar amount;

12. the number of applications for service that were denied;

13. the number of residential applications for service in which the utility demanded a deposit or payment arrangement according to Section 6(A)(1)(a)(ii) (after the request for service, but within 60 days);

14. the gross revenue received;

15. the actual write off amounts and method used to ascertain those figures (and any other figures which reflect uncollectible amounts);

16. the amount recovered from previously written off amounts and method used to ascertain those figures

17. the number of cases and dollar amount of unpaid debt pursued through the court system or other means, the costs of collection by each method, with an identification of those accounts in which the utility could have but did not transfer the prior debt to a current account according to Section 6(A)(1)(a) and 6(C); and

18. the total number of customer disputes handled.

B. Utilities that have the ability to disconnect a customer’s water service for the non-payment of sewer charges must file the following information with the CAD by April 1 of each year, with the information listed separately for residential and non-residential customers (unless otherwise specified):

1. the number of disconnection notices issued per month when the amount overdue included sewer charges;

2. the number of disconnections for non-payment per month when the amount overdue included sewer charges;

3. the number of reconnections following disconnection for non-payment when the amount overdue included sewer charges per month (do not include requests for service by new customers);

§16 WAIVERS

The Commission may grant waivers to the provisions of this Rule.

A. Utility Waiver

Upon the written request of any utility subject to this Rule or upon its own motion, the Commission may, for good cause, waive any requirement of this Rule that is not required by statute. The waiver may not be inconsistent with the purposes of this Rule or Title 35‑A. The Commission, the Director of the CAD, or the Hearing Examiner assigned to a proceeding related to this Rule, may grant the waiver.

B. Individual Customer Waiver

1. Request Requirements

A utility may request that the CAD grant a waiver from any provision of this Rule in any case involving an individual applicant or customer whose conduct and known financial condition pose a clear danger of substantial losses to the utility. A request for waiver under this subsection must be made to the CAD. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation shall include a detailed statement of the facts alleged by the utility in support of the request. The utility shall immediately notify, in writing, the individual applicant or customer whose service would be affected by the proposed waiver, describing the nature and effect of the requested waiver and the facts alleged in support of the request.

2. CAD Review

The CAD may reject any request for waiver that does not present facts that satisfy the standard of Section 15(B)(1) above.

3. Decision

The CAD shall issue a written decision granting, denying, or granting in part the requested waiver. When the CAD determines that a waiver is required to avoid a clear danger of substantial losses to the utility, it shall notify the customer and the utility of the decision. The notification may be made orally, but a written confirmation of the decision must be promptly issued. The decision or written confirmation shall:

a. describe the nature and effect of the waiver;

b. explain why the waiver was granted or denied; and

c. inform the customer and the utility of the right to appeal the CAD’s decision to the Commission, as provided in Section 16(B)(4) below.

4. Appeal of Waiver Decision to Commission

By following the procedures in Section 13(H) of this Rule, a party may appeal a decision by the CAD granting or denying, in whole or in part, a request for an exemption. If the CAD grants an exemption, the utility may not act on the exemption until the appeal period expires.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 704, 716, 1308
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on October 1, 2010. It was filed with the Secretary of State on October 5, 2010, 2010 as filing 2010‑459, and became effective on October 10, 2010.
• EFFECTIVE DATE: This rule amendment was approved as to form and legality by the Attorney General on August 23, 2011. It was filed with the Secretary of State on August 23, 2011 as filing 2011-292, and became effective on August 28, 2011.
• EFFECTIVE DATE: This rule amendment was approved as to form and legality by the Attorney General on April 23, 2020. It was filed with the Secretary of State on April 23, 2020 as filing 2020‑104, and became effective on April 28, 2020.
• EFFECTIVE DATE: Nonsubstantive edits made by agency to ensure accessibility; APAO Accessibility Check: August 20, 2025

Chapter 675 Infrastructure Surcharge and Capital Reserve Accounts

Code Me. R. 65-407 Ch. 675 Infrastructure Surcharge and Capital Reserve Accounts {#sec-65-407-ch.-675 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 675}

SUMMARY: This Rule establishes procedures for water utilities to implement water infrastructure surcharges and capital reserve accounts.

STATEMENT OF PURPOSE

The purpose of this chapter is to establish guidelines and procedures for the implementation of infrastructure replacement surcharges and the funding of capital reserve accounts by water utilities and corresponding reporting requirements.

DEFINITIONS

The following terms have the following meanings:

1. Capital Reserve Accounts. “Capital reserve accounts” means revenue collected and maintained in a fund to pay for future replacement and repair of qualifying infrastructure projects.
2. Consumer-Owned Water Utility. ”Consumer-owned water utility” has the same meaning here as in 35-A M.R.S.§6101
3. Infrastructure. “Infrastructure” means the stationary physical plant assets needed to operate a water system. This definition includes, but is not limited to, water mains, storage tanks, and pumping facilities.
4. Temporary Surcharge for Infrastructure Replacement or Repair. “Temporary Surcharge for Infrastructure Replacement or Repair” means a temporary surcharge to allow recovery of the costs of completed replacement or repairs of water system infrastructure.
5. Water Utility. "Water Utility" has the same meaning here as in 35-A M.R.S. §102(22). For the purpose of this rule, the following terms have the following meanings: 1. "Large water utility" means a water utility with total annual revenues of at least $750,000 during the most recent fiscal year. 2. "Medium water utility" means a water utility with total annual revenues of less than $750,000 and at least $250,000 during the most recent fiscal year; and 3. "Small water utility" means a water utility with total annual revenues of less than $250,000 during the most recent fiscal year.

INFRASTRUCTURE NEEDS ASSESSMENT

A water utility must a file a System Infrastructure Assessment with the Commission not less than 90 days before implementing a temporary infrastructure replacement surcharge or filing a general rate case in which proposed rates include amounts for the establishment of a capital reserve account. When a water utility must undertake a project that was not foreseen when filing its System Infrastructure Assessment and the water utility wishes to reflect that project in either the calculation of the Surcharge or the use of funds from the Capital Reserve Account, it may file a revision to reflect the new project. However, any revisions must be filed no later than the filing of the Surcharge Request and within 30 days of the use of any funds from an existing Capital Reserve Account.

1. System Infrastructure Assessment

The System Infrastructure Assessment shall include, for each infrastructure replacement or repair project, the following information:

• 1. Description of the water utility’s source(s) of supply, 2. Description of the treatment facilities and year(s) installed, 3. Miles of transmission mains and general range of age of mains, 4. Description of the distribution facilities, including storage tanks, booster stations and water mains, including year(s) installed for major facilities and general range of age of mains, 5. Statement describing the need for the replacement or repair project, the age of the relevant infrastructure, and the identification of any adverse effects on water quality associated with the existing infrastructure, 6. Estimate of the cost of the project and the identification of any external funding sources for the project, and 7. Estimate of the year in which the project might be commenced, and the expected time necessary to complete the project once it is commenced.

MAXIMUM FUNDS RECOVERED

1. Temporary Surcharge for Infrastructure Replacement or Repair 1. Large water utilities. A large water utility shall not implement or modify any Temporary Surcharge for Infrastructure Replacement or Repair that would result in an increase in revenue requirements greater than 3% of current revenue requirements, or if the modification of a surcharge would result in an increase in revenue requirements of greater than 10% over rates in effect after the last general rate increase; 2. Medium water utilities. A medium water utility shall not implement a or modify any Temporary Surcharge for Infrastructure Replacement or Repair that would result in an increase in revenue requirements greater than 5% of current revenue requirements or if the modification of a surcharge would result in an increase in revenue requirements of greater than 15% over rates in effect after the last general rate increase; 3. Small water utilities. A small water utility shall not implement or modify any Temporary Surcharge for Infrastructure Replacement or Repair that would result in an increase in revenue requirements greater than 7.5% of current revenue requirements, or if the modification of a surcharge would result in an increase in revenue requirements of greater than 20% over rates in effect after the last general rate increase.
2. Capital Reserve Accounts 1. The amount of a water utility's revenue requirement attributed to funding a capital reserve account shall not exceed: 1. 1% of current gross utility plant if the utility is a large water utility; 2. 3% of current gross utility plant if the utility is a medium utility ; and 3. 5% of current gross utility plant if the utility is a small water utility. 2. The amount of the utility’s revenue requirement attributed to fund a capital reserve account shall not exceed: 1. 10% if the utility is a large water utility 2. 15% if the utility is a medium water utility; and 3. 20% if the utility is a small water utility.

AUTHORIZED USES

1. Temporary Surcharge for Infrastructure Replacement or Repair 1. A Temporary Surcharge for Infrastructure Replacement or Repair may be implemented pursuant to this rule to recover the costs of construction of completed projects that are identified in the utility's System Infrastructure Assessment and are necessary to the transmission, distribution, and treatment of water. For the purposes of this chapter, a project is considered completed when it is being used to provide service to the water utility’s customers. No project shall be included in the calculation of the surcharge if the project was completed on or before the enactment of the legislation authorizing the surcharge or August 30, 2012. 2. Increased operating costs resulting from an infrastructure replacement or repair project may not be recovered through the imposition of a Temporary Surcharge for Infrastructure Replacement or Repair.
2. Capital Reserve Accounts 1. Revenue to fund a capital reserve account shall be included in a water utility’s revenue requirement and recovered through rates set during a rate proceeding pursuant to 35-A M.R.S.§§ 307, 6104 or 6104-A. 2. Funds held in a capital reserve account shall be used to pay for the costs of construction associated with the projects identified in the utility's System Infrastructure Assessment and are necessary to the transmission, distribution, and treatment of water.

RATEMAKING TREATMENT

1. Temporary Surcharge for Infrastructure Replacement or Repair 1. Calculation of Surcharge

A water utility implementing a Temporary Surcharge for Infrastructure Replacement or Repair shall calculate the Surcharge Revenue Requirement necessary to recover the construction costs of completed projects and allocate that Surcharge Revenue Requirement to the customer classes as described below. A water utility that has implemented a Temporary Surcharge for Infrastructure Replacement or Repair may adjust the amount of revenue recovered through the surcharge no more than twice in any 12 month period. A water utility that elects to recalculate its Temporary Surcharge for Infrastructure Replacement or Repair more than once in a 12 month period must adjust its annual revenue requirement to reflect the adopted recovery period for the project. Upon the effective date of new base rates, the surcharge will be rolled back to zero.

• • 1. Revenue Requirement

The calculation of the revenue requirement to be recovered through a Temporary Surcharge for Infrastructure Repair or Replacement shall include:

• • • 1. Depreciation Expense – calculated pursuant to Chapter 68 of the Commission’s rules 2. Increases in property taxes where applicable 1. Additional Adjustments 1. An investor owned water utility shall be allowed a return on its rate base, which shall be the cost of the qualifying individual projects for the period reduced for accumulated deferred income taxes and accumulated depreciation associated with all projects being recovered through the surcharge. The rate of return shall be calculated using the current cost of debt and the return on equity and capital structure adopted in the water utility’s most recent rate proceeding. However, when calculating the rate of return for an investor-owned water utility, the investor-owned water utility, the Public Utilities Commission's advisory staff and the Office of the Public Advocate may agree in advance of the filing of the infrastructure surcharge request on the current cost of debt and return on equity and capital structure to be used. 2. A consumer owned water utility shall be allowed to recover principal payments and interim and permanent interest and other debt issuance related expense for debt issued for projects included in the surcharge. - A consumer- owned water utility must be able to document that the project was funded by the debt issuance. 1. Applicable Customer Classes 1. A water utility shall allocate the increase in revenue requirements first to public and private fire protection charges using the percentages and methodology adopted in its last rate case and the remainder to water usage rates. 2. A water utility shall calculate the surcharge revenue requirements applicable to water usage rates by subtracting from the total increased revenue requirement the amount to be recovered from both public and private fire protection as described above. The surcharge rate shall be calculated by dividing this total by the estimated sales forecast for the period that the surcharge will be effective. 2. Filing Requirements 1. A water utility shall file the proposed surcharge with a justification for the implementation of the surcharge with the Commission no less than 30 days before the effective date of the surcharge. The Commission may investigate the surcharge in accordance with 35-A M.R.S. §1303 to determine if the surcharge is just and reasonable. If the Commission investigates the surcharge, the Commission shall make its determination within 75 days of the filing and shall approve the surcharge if it is determined to be just and reasonable and deny the surcharge if it is determined not to be just and reasonable. 2. A water utility shall include in its surcharge filing a cover letter justifying the need for the charge, a surcharge rate change worksheet in an electronic format approved by the Director of Telephone and Water Industries and revised tariff sheet(s) reflecting the surcharge. 3. Notice and Billing Requirements 1. A water utility must provide notice to its customers for its first filing for a surcharge pursuant to the requirements of Chapter 307. The notice shall include in this notice the planned frequency of future changes in the surcharge. The water utility is not required to file subsequent notices of these changes. 2. A water utility may, but is not required to, show the surcharge as a separate line item on its bill. If it chooses to separately label the surcharge it must label it an infrastructure replacement surcharge on the bill.

1. Capital Reserve Accounts

Upon the effective date of terms and conditions that includes charges attributable to capital reserve accounts, a water utility must establish a separate account on its books and records for this reserve and must fund the account.

REPORTING REQUIREMENTS

A water utility shall provide an annual report updating its System Infrastructure Assessment Report, details on expected and actual collections from the Temporary Surcharge and details on its capital reserve account. This reporting shall be made in conjunction with the filing of the annual PUC report due on April 1 of each year.

WAIVERS

Upon the written request of any utility subject to this Rule or upon its own motion, the Commission may, for good cause, waive any requirement of this Rule that is not required by statute. The waiver may not be inconsistent with the purposes of this Rule or Title 35-A. The Commission, the Director of Telephone and Water Industries, or the Presiding Officer assigned to a proceeding related to this Rule, may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.§§ 6105, 6107-A and Resolves 2013, ch. 9
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 21, 2013. It was filed with the Secretary of State on May 22, 2013, and becomes effective on June 21, 2013.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 691 Sale of Water Resource Land

Code Me. R. 65-407 Ch. 691 Sale of Water Resource Land {#sec-65-407-ch.-691 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 691}

SUMMARY: This rule implements 35-A M.R.S.A. § 6109 (1990 Public Laws, Chapter 685). The rule requires an eight month advance notice period whenever a consumer-owned water utility intends to transfer water resource land, and provides an assignable right of first refusal to the municipality or municipalities where the land is located. The rule also provides a mechanism for customers to obtain information about the sale and to obtain Commission review of the sale.

1. Definition

A. Consumer-Owned Water Utility. "Consumer-owned water utility" means any water utility, as defined in 35-A M.R.S.A. § 6101 (1-A), which is wholly owned by its consumers, including, but not limited to, any municipal or quasi-municipal water district or corporation, municipal water department or the water portion of any utility wholly owned by a municipality or district.

B. Sale. "Sale" means a conveyance or transfer of title to water resource land from the utility to another person or entity. For the purposes of this rule, "sale" shall also mean an assignment of a property right, a land lease of more than twenty years, a grant of an easement or any other encumbrance of the land, whereby the utility gives up for consideration rights to the use of a substantial part of the land surface. "Sale" does not include a transfer in accordance with or pursuant to statutory or contractual rights which predate the effective date of this rule. "Sale" does not include sales of land or easement to public utilities for public utility purposes. "Sale" does not include transfers to municipalities or state agencies that could be subject to condemnation under eminent domain proceedings.

C. Transfer. "Transfer" means "sale" as defined above in 1(B).

D. Utility. "Utility" means a consumer-owned water utility.

E. Water resource land. "Water resource land" means any land or real property owned by a water utility for the purposes of providing a source of supply, storing water or protecting sources of supply or water storage, including reservoirs, lakes, ponds, rivers or streams, wetlands and watershed areas, and contains greater than five contiguous acres. "Water resource land" does not include any land on which a utility has built a facility that is used exclusively for storing water as part of that utility's transmission and distribution system.

2. Notice of intent to sell

Whenever a consumer-owned water utility intends to sell or transfer water resource land, the utility shall provide the following notices:

A. Notice to the Commission. At least eight months prior to the sale of water resource land, the utility shall notify the Commission of the utility's intent to sell the land. The notice to the Commission shall contain the following:

(i) Legal and physical descriptions and a plot plan of the property to be sold.

(ii) A statement explaining the reasons why the utility intends to sell the land.

(iii) A statement explaining why the utility no longer needs the land to provide utility service.

The Commission may, in its discretion, request that additional data be provided, in order to fully evaluate the sale under this rule.

B. Notice to municipalities and utilities with charter rights. At the time of notification to the Commission as described in paragraph 2(A) above, the utility shall also notify the municipality or municipalities where the water resource land in question is located and any other utility that has charter rights to any surface water supply directly associated with the water resource land being sold. This notice shall provide the same information as described in paragraph 2(A) above, and shall cite this rule and 35-A M.R.S.A. § 6109. The notice shall also advise the municipality or municipalities that it has an assignable right of first refusal under 35-A M.R.S.A. § 6109(5).

C. Newspaper notice. Within 30 days of notifying the Commission under paragraph 2(A) above, the utility shall provide newspaper notice of the intended sale in a newspaper of general circulation in the area served by the utility, and a newspaper of general circulation in the area in which the water resource land is located. The notice shall include all of the information specified in paragraph 2(A) above, except for the plot plan, as well as citations to 35-A M.R.S.A. § 6109 and this rule.

Copies of all notices under this paragraph shall be filed with the Commission.

3. Sale at price below market value

A. Not considered unreasonable. A sale or transfer of water resource land shall not be considered unreasonable or imprudent solely by reason of its sale at a price below market value provided that the utility has fully complied with all provisions of this rule and 35-A M.R.S.A. § 6109.

B. Use restrictions. Before the sale or transfer of water resource land under this rule at a price below market value, the utility must certify, or provide evidence to the Commission that the land will be transferred subject in perpetuity to such easements or deed restrictions, enforceable at law, as are necessary to restrict the land to the uses specified in 35-A M.R.S.A. § 6109 (3).

4. Providing customers with information regarding the sale and mechanism for obtaining PUC review.

A. Meeting. Upon the successful completion of negotiations of a sale, the utility shall hold a meeting, the purpose of which is to inform the customers of the price, terms, and conditions of the proposed sale. The meeting shall occur at least 60 days prior to the proposed date of sale or transfer while allowing for ample notice to customers as provided in 4(B) below.

B. Notice of the meeting. Notice of the meeting shall be made by both of the following methods:

(i) By mail. The notice shall be made individually to each customer by regular mail at least 14 days before the meeting.

(ii) By publication. The utility shall provide newspaper notice of the meeting in a newspaper of general circulation in the area served by the utility.

(iii) The utility shall provide written notice to any other water utility that has charter rights to the surface water supply directly associated with the water resource land being sold.

C. Content of the notice. Both notices of the meeting shall include the time, date, and purpose of the meeting as well as:

(i) A general description of the water resource land that is proposed to be sold.

(ii) An explanation of the purpose of the meeting, which is to provide the customers with the opportunity to obtain information regarding the proposed sale.

(iii) Citation to 35-A M.R.S.A. § 6109 and this rule, and a brief description of the statute.

D. Method. At the meeting, the utility shall present an explanation of the sale including a description of the water resource land proposed to be sold, why the utility no longer needs the land to provide utility service, the identity of the buyer and the proposed new use of the land, if known, and a description of the price, terms, and conditions that have been negotiated.

The utility shall permit anyone at the meeting to ask questions about the proposed sale and to express their approval or disapproval of the proposed sale. The utility shall also inform those present of their right to file a complaint with the Commission pursuant to section 4(E) of this rule.

E. Customers may file complaint. If, within 30 days of the meeting, 15% of the customers of the utility or 1,000 customers, whichever is less, file with the utility and with the Commission petitions demanding a review of the utility's decision to proceed with the sale, the Commission shall have the authority to suspend, investigate, and review the decision of the utility with respect to the proposed sale. The complaint alleged in the petition shall be processed by the Commission according to the procedure described in Chapter 110, § 1101 of the Commission's rules.

5. Right of first refusal

A. Assignable right of first refusal. The municipality in which the water resource land is located shall have an assignable right of first refusal to purchase the water resource land as provided by 35-A M.R.S.A. § 6109(5).

B. No binding contract for the sale of the water resource land under this chapter shall be concluded with any buyer unless the water resource land has been offered to the municipality or municipalities in which the water resource land is located under the same price, terms, and conditions that have been offered to the other buyer.

C. Once an offer to the municipality or municipalities has been made under section 5(B) above, the municipality shall have at least 90 days to either accept or reject the offer upon the same terms and conditions of an offer to or from another buyer. The municipality or municipalities may apply to the Commission for an extension of the ninety day period. The Commission, may, in its discretion, approve such an extension for a reasonable period of time.

6. Waiver

Where good cause exists, the Commission, its Administrative Director, or its Assistant Administrative Director may waive any requirement of this rule, provided such waiver does not unduly undermine the purposes of this Rule and is permitted by statute.

7. Violations of this rule

Any claims arising out of a violation of this rule or of the law will follow the proceeds of the sale and will not encumber the land itself.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101-104, 111, 112, 1301, 6109 and 6301
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 11, 1991. It was filed with the Secretary of State on March 11, 1991 and will be effective on March 16, 1991.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: November 9, 1999 - citation corrected in § 5(A).
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 691 page 5

Chapter 710 Auditing Requirements for all Public Utilities

Code Me. R. 65-407 Ch. 710 Auditing Requirements for All Public Utilities {#sec-65-407-ch.-710 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 710}

SUMMARY: This rule establishes auditing requirements for the accounts of all public utilities.

1. Auditing Required

Each public utility, except as noted below, shall have an annual audit made of its accounts. The audit shall be conducted by a qualified independent certified public accountant in accordance with generally accepted auditing standards. The audit may be conducted for a 12-month period other than a calendar year, provided that the same 12-month period is audited annually.

A. Pursuant to 35-A M.R.S.A. §505 (1) qualified small water utilities (those that are consumer owned with gross annual revenues that do not exceed $250,000) shall not be required to have an annual audit of its accounts except as follows:

1. A qualified small water utility with gross annual revenues of $50,000 or less shall for any year used as a test year for ratemaking purposes cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State;

2. A qualified small water utility with gross annual revenues greater than $50,000:

a. Shall cause to be conducted, in accordance with generally accepted auditing standards, an annual review of its accounts by an independent certified public accountant licensed to practice in the State; and

b. Not less than once every 5 years and for any year used as a test year for ratemaking purposes, shall cause to be conducted, in accordance with generally accepted auditing standards, an audit of its accounts by an independent certified public accountant licensed to practice in the State.

2. Qualifications

A qualified independent certified public accountant means any person or firm who holds a valid license to practice public accountancy granted by the Maine Board of Accountancy pursuant to 32 M.R.S.A. §12227 et seq.

3. Filing of Audit Required

A copy of the auditor's report, accompanied by the audited financial statements, shall be filed with the Commission not later than the first day of the fourth month following the 12-month period for which the audit was conducted, except that audit reports based on a fiscal year ending December 31 must be filed by the following July 1. Therefore, unless otherwise ordered audit reports must be filed consistent with the following schedule:

Annual Audit Period Audit Report Due

January 1 - December 31 July 1

July 1 - June 30 October 1

October 1 - September 30 January 1

The utility shall file with the audited financial statements a cover sheet describing any discrepancies between the audited financial statements and the annual report or reports of the utility covering the same 12-month period as the audit.

4. Additional Requirements

Where good cause exists, the Commission may order additional audit requirements as may be appropriate.

5. Waiver

For good cause shown, the Commission may waive any of the requirements of this Rule, except those required by statute, provided such waiver will not unduly undermine the purposes of the auditing requirement. The Commission may also subsequently rescind, alter or amend any such waiver for good cause. The Commission delegates to the Directors of Telephone and Water or Electric and Gas Industries the authority to issue, rescind, alter or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Directors or to issue, rescind, alter or amend a waiver directly.

6. Continuing Validity of Prior Orders

The enactment of this Rule or any amendment thereto shall not affect the continuing validity of prior orders or waivers issued by the Commission, unless subsequently rescinded, altered or amended pursuant to this Rule.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 103, 104, 107, 111, 112, 501, 502, 504 and 505
• EFFECTIVE DATE: The amendments in Docket No. 88-157 were approved by the Secretary of State on November 22, 1988 and will be effective on November 27, 1988. The amendments shall apply to the audit of accounts for fiscal years commencing in 1988.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on November 15, 2011. It was filed with the Secretary of State on November 16, 2011, and became effective on November 21, 2011 (filing 2011-408)
• EFFECTIVE DATE: 65-407 Chapter 710 page 3

Chapter 720 Compliance with GAAP (Generally Accepted Accounting Principles) Required of SFAS (Statement of Financial Accounting Standard) No. 106

Code Me. R. 65-407 Ch. 720 Compliance with the Gaap Requirements of Sfas No. 106 {#sec-65-407-ch.-720 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 720}

SUMMARY: This rule establishes regulatory accounting and reporting requirements related to the compliance by public utilities in Maine with the GAAP accounting requirements of SFAS 106.

1. Purpose and Scope

This rule adopts for regulatory accounting and reporting purposes the standards established by the Financial Accounting Standards Board in its Statement of Financial Accounting Standard No. 106, Employers' Accounting for Postretirement Benefits Other Than Pensions (SFAS 106). All public utilities that are required under Generally Accepted Accounting Principles (GAAP) to adopt SFAS 106 for financial reporting purposes must at the same time also do so for regulatory accounting and reporting purposes.

The rule requires the utilization of an external funding mechanism (unless the Commission grants a waiver provision from this requirement). The rule establishes guidelines for the inclusion of OPEB costs in a utility's revenue requirement.

Finally, this rule provides specific instructions applicable to all public utilities for the use of SFAS 106 standards in accounting for the cost of the utility's OPEB obligations. For telephone utilities this rule supersedes the requirement contained in Chapter 210 (8) (F) (4) that OPEB expenses be determined on a cash basis.

The Commission's authority to establish the regulatory accounting treatment of OPEBs derives from 35-A M.R.S.A. § 501.

2. Definitions

A. Deferral period. Accounting intervals during which expenditures awaiting final disposition are capitalized on a company's books of account, rather than being charged to expense as would normally be required.

B. External funding. The term "external trust fund" or "external funding" means a fund created by a utility which is under the direction of a trustee independent of the utility. The management of cash or other assets placed in such a trust are outside the control of the utility.

C. FASB. The Financial Accounting Standards Board (FASB) is the private sector organization designated to establish standards for financial accounting and reporting. FASB is officially recognized as the authoritative standard setting body by the Securities and Exchange Commission (Accounting Series Release No. 150).

D. GAAP. Accounting standards are formally embodied in a hierarchical set of rules and procedures known as Generally Accepted Accounting Principles (GAAP).

E. Internal Funding. A method of providing for the payment of a liability through the creation of a reserve account on the books of a company. The company may or may not, at its discretion, segregate cash or other specific assets to meet the established liability, but control of those assets remains within the purview of the utility.

F. Least-Cost Option. Regarding the choice between external and internal funding, the least-cost option is that option that is more likely to achieve the lowest present value revenue requirements given a reasonable range of possible futures. Risk and other appropriate factors must be considered in determining what is the least-cost option.

G. Other Post-Employment Benefits (OPEBs). Benefits other than pensions provided to retired employees and their dependents. These may include, but are not limited to, benefits such as health care, life insurance and housing allowances. OPEBs are sometimes also referred to as Postretirement Benefits Other than Pensions (PBOPs).

H. Pay-as-you-go approach. A method of accounting whereby entries are made to the books of account only when the cash account is affected.

I. SFAS 106. SFAS 106, Employer's Accounting for Postretirement Benefits Other Than Pensions is a pronouncement of the Financial Accounting Standards Board that establishes accounting rules and procedures to be used in recognizing the effects of the costs of OPEBs for financial reporting purposes. This pronouncement requires an "accrual" approach whereby the present value of the OPEB obligation is estimated through the use of actuarial techniques, with the income statement reflecting both annual accruals and changes in the balance sheet accounts from year to year.

J. Regulatory Asset. An asset established on a company's books, pursuant to a directive from a regulatory body having jurisdiction over the company, resulting from the capitalization of an expenditure that would be expensed under standard accounting procedures.

K. Transition Obligation. The transition obligation is the actuarial present value of the OPEB costs attributable to employee service rendered up to the date of adoption of SFAS 106 (that is, prior service costs representing the OPEBs already earned by existing and retired employees). The transition obligation is also known as the Accumulated Postretirement Benefit Obligation (APBO).

3. Compliance Required for Regulatory Accounting Purposes

A. SFAS 106 Accounting Compliance Required. All public utilities that are required to do so for financial reporting purposes shall adopt the requirements set forth in SFAS 106 for regulatory accounting and reporting purposes.

B. Accounting Requirements. Each public utility shall record the effects of SFAS 106 in the appropriate accounts as defined in the Uniform System of Accounts applicable to the utility. Each public utility shall maintain sufficient detail to allow identification of the components of the SFAS 106 expenses that are recorded in the accounting books. Each public utility shall maintain sufficient detail to allow specific identification of any related amounts that are recorded as deferred tax assets or liabilities. Should the regulatory body whose Uniform System of Accounts has been approved for use in this State designate or establish specific accounts or subaccounts to be used for recording the effects of SFAS 106, those accounts shall also be used for state regulatory accounting purposes.

C. Transition obligation. Utilities shall have the option of either: 1) immediately expensing the transition obligation; or 2) amortizing the transition obligation ratably over the greater of: (a) the average remaining service period of active employees; or (b) twenty years, whichever is longer. The ratemaking treatment of the transition obligation approach selected by the utility is subject to the approval by the Commission in the first rate case proceeding following the implementation of this rule by the utility.

D. Deferral Period. Upon initial implementation of the requirements of this rule, OPEB expenses may be deferred only if a specific waiver is granted by the Commission. In requesting a waiver the utility shall specify one of the two alternatives listed below. OPEB expenses as calculated in accordance with SFAS 106 which exceed the amount of expenses as calculated under the pay-as-you‑go (cash basis) methodology may be:

i) Deferred for a period of up to two years from the date of adoption of SFAS 106, or until the completion of the first rate case proceeding involving the utility following adoption, whichever occurs first. A waiver for up to two years will be granted if the utility demonstrates that it is not overearning for Maine-jurisdictional purposes; or,

ii) Deferred for a longer period, not to exceed five years, from the date of adoption of SFAS 106, if it is a part of a plan to gradually phase-in for ratemaking purposes SFAS 106-related costs. Waivers for two to five years will be granted only if: a) the utility demonstrates that it is not overearning for Maine-jurisdictional purposes; and b) the utility develops a plan, which would take effect as part of a rate case proceeding, to gradually phase-in the SFAS 106 costs for ratemaking purposes.

E. Ratemaking Policies and Practices.

i) General. Costs of OPEB obligations calculated according to SFAS 106 shall be eligible, on a case-by-case basis, for inclusion in the utility's revenue requirement for ratemaking purposes, subject to the same level of review for prudence and reasonableness as are all other utility expenses.

ii) Funding Option. In any proceeding before this Commission in which the amount of OPEB expense that can be included in rates is an issue, it shall be the responsibility of the utility to demonstrate that its chosen course of action with respect to funding was appropriate.

iii) Rate Base Treatment. In any proceeding in which the amount of OPEB expense to be included in rates is an issue, the net-of-tax amount of the net OPEB liability shall be included in the computation of the utility's rate base. The net OPEB liability to be included in rate base should be net of plan assets as so defined by SFAS 106. Within the context of a rate case proceeding, the net OPEB liability should be only that liability which has been created through OPEB expense included in cost of service and recovered through customer revenue.

4. External Funding Required

A. General. In order to meet future OPEB payment obligations, each utility must establish and make contributions to an independent external trust fund.

B. External Fund Requirements. The following requirements shall apply when a utility chooses to use an external funding vehicle for its OPEB obligations:

i) The utility is required to maximize its use of tax-advantaged funding structures to the fullest extent permitted by law, unless a waiver is granted by the Commission.

ii) Unless prohibited by IRS tax codes, when current tax deductions are not available for some portion of currently funded amounts, deferred income tax accounting must be followed for the tax effects of such transactions.

iii) The trustee of the external fund must be independent of the utility and shall be authorized to make only those investments which are consistent with sound investment policies for funds of this nature.

iv) Funding must occur at least annually, but may occur at more frequent intervals if the utility determines that to be more cost-effective over the life of the plan.

v) No contributions shall be required to be made to the trust fund when the value of the assets in the fund exceed the net present value of the OPEB obligation.

vi) Should a utility realize a gain or loss on the settlement or curtailment of an OPEB obligation, it must seek and receive express Commission approval before any accounting entry is made with respect to the gain or loss, or before any disposition is made of the funds in the trust.

vii) To the extent permitted by law and by the terms of the external trust, refunds to customers, pursuant to a Commission approved plan, may be required in the event that the funds are not needed to pay future OPEB obligations to retirees.

C. Internal Funding Requirements

A utility may seek a waiver from the Commission that permits the utility to internally fund all or a portion of its OPEB-related costs. The Commission will approve such waiver if:

1. The Commission determines that substantial evidence exists that indicates that internal-funding is the least-cost option for the utility; or,

2. The Commission determines that special circumstances exist that make it appropriate for the utility to internally fund. These special circumstances may include, but are not limited to, the following factors: a) The relatively small size of the utility's SFAS 106 funds and accruals; b) The utility's relationship with larger affiliates who do not externally fund; c) The utility's employee demographics and union status; d) Administrative costs; and e) The limited availability of external funding vehicles.

5. Mitigation Measures

A utility may seek a waiver from the Commission that permits the utility to use a method of its own design which combines the effects of SFAS 106 accounting and funding with the effects of accounting for and/or funding of its pension plan, provided such mechanism is the least-cost option, is beneficial to its ratepayers, is legal under applicable pension and benefit laws, and is permissible under GAAP and the accounting rules of this Commission.

The utility may seek a waiver of any Commission accounting rule to the extent necessary to implement such a mechanism. Any utility requesting authorization to use a combined pension/OPEB mechanism must submit its request in writing.

6. Reporting and Filing Requirements

Each utility shall submit with its annual report to the Commission all disclosures required under SFAS 106 paragraph 74, including any amendments which occur subsequent to the adoption of this rule.

In any regulatory proceeding in which the OPEB expense and rate base amounts to be included in the utility's revenue requirement are at issue, the utility shall file the information that is necessary to allow determination of the reasonableness of the amounts.

Each utility shall retain in its files for at least ten years all actuarial reports and the assumptions used in the computations of its OPEB obligation.

7. Waiver

For good cause shown, the Commission may waive any of the requirements of this Rule, provided such waiver will not unduly undermine the purposes of this Rule. The Commission may also subsequently rescind, alter or amend any such waiver for good cause. The Commission delegates to the Director of Finance the authority to issue, rescind, alter or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Director of Finance or to issue, rescind, alter or amend a waiver directly.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. § 501.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 15, 1993. It was filed with the Secretary of State on July 15, 1993 and will be effective on July 20, 1993.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 730 Compliance by Public Utilities with the Requirements of Statement of Financial Accounting Standard No. 109 Established by the Financial Accounting Standards Board

Code Me. R. 65-407 Ch. 730 Compliance by Public Utilities with the Requirements of Statement of Financial Accounting Standard No. 109 Established by the Financial Accounting Standards Board {#sec-65-407-ch.-730 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 730}

SUMMARY: This rule establishes the regulatory accounting and reporting requirements related to compliance by public utilities in Maine that are subject to the Generally Accepted Accounting Principles that are set forth by the Financial Accounting Standards Board in Statement of Financial Accounting Standard No. 109, Accounting for Income Taxes.

1. Purpose and Scope

This rule adopts for regulatory accounting and reporting purposes the standards established by the Financial Accounting Standards Board (FASB) in its Statement of Financial Accounting Standard No. 109, Accounting for Income Taxes (SFAS 109). All public utilities that are required by Generally Accepted Accounting Principles (GAAP) to adopt SFAS 109 for external reporting purposes must also do so for regulatory accounting and reporting purposes. The rule establishes the process for implementation of the standard, as well as any specific reporting requirements which public utilities must follow. Finally, the rule sets forth the mechanism by which the amounts recorded as deferred tax assets or liabilities are to be included in a utility's rate base during a rate case proceeding.

Any public utilities which are not subject to the requirements of GAAP may adopt this rule with notification to the Commission.

The Commission's authority to establish regulatory accounting procedures derives from 35-A M.R.S.A. § 501.

2. Definitions

A. Regulatory Asset. An asset established on the books of a public utility pursuant to the actions of a regulatory body having jurisdiction over the utility.

B. Flow-Through Income Tax Accounting. A methodology for calculating income tax expense for regulatory purposes whereby amounts of revenue or expense related to designated item(s) are included in the calculation of regulatory income taxes in the same time period as when the items are included on the company's actual tax return, even though the amount(s) are included on the utility's income statement for regulatory purposes in a different time period than that of the tax return, and for which no deferred taxes are recorded on the company's books.

C. Net-of-Tax Accounting. An accounting procedure whereby an asset or a liability is recorded on a company's books and reported on its financial statements at an amount which includes the effect of income taxes owed or receivable.

3. Compliance Required for Regulatory Accounting

A. SFAS 109 Compliance Required. All public utilities that are required to do so for external financial reporting purposes shall comply with the requirements of SFAS 109 for regulatory accounting and reporting purposes to the Commission. Each utility shall begin compliance with the requirements of the standard at the time required by the standard.

Any public utility that is not required by GAAP to comply with the standard may do so, but must notify the Commission of its intent at least thirty (30) days in advance of its adoption of the standard. Prior notification is not required for any public utility which chooses to voluntarily adopt the requirements of the standard for fiscal years beginning on January 1, 1993. For good cause a utility may seek a waiver of the notification requirement.

B. Accounts to be Used. Each public utility shall record any debit amount required by SFAS 109 in the appropriate miscellaneous asset account as defined in the Uniform System of Accounts applicable to the utility. Each public utility shall maintain sufficient detail to allow specific identification of the amounts recorded as deferred tax assets or liabilities. Should the regulatory body (e.g., the Federal Energy Regulatory Commission or the Federal Communications Commission) whose Uniform System of Accounts has been approved for use by the respective utilities in this State designate or establish a specific account or subaccount to be used for recording the deferred tax asset, that account shall be used for state regulatory accounting purposes.

C. Flow-Through Tax Accounting. Each public utility shall use the flow-through method when calculating regulatory income tax expense unless:

1. The flow-through method is not allowed under the then applicable requirements of the Internal Revenue Code; or

2. A waiver of this requirement has been granted by the Commission.

D. Accounting Treatment.

1. Items which are flowed through in the calculation of regulatory income tax expense shall have deferred taxes established on the utility's books of account, as required by SFAS 109.

2. The deferred tax liability so created shall be offset by a regulatory asset (deferred taxes receivable) which recognizes that the amount of future taxes payable when the timing differences reverse themselves shall be recoverable from ratepayers when approved by the Commission in a base rate proceeding. As required by SFAS 109, the regulatory asset so established is itself a timing difference for which a deferred tax liability must also be recorded.

3. The Commission retains the ability to examine the prudence of the recovery of such assets, but shall not deny recovery on grounds of retroactivity or claims that a utility failed to follow proper accounting procedures.

4. Amounts which were subject to flow-through accounting prior to the adoption of SFAS 109, and for which a deferred tax liability must be established according to SFAS 109, shall have a deferred tax asset recorded in order to recognize that such amounts are recoverable from ratepayers when the timing differences that created such amounts reverse themselves and the utility seeks recovery in a base rate proceeding.

5. Reporting and Filing Requirements

Each public utility shall submit with its first annual report to the Commission following the implementation of SFAS 109 a report showing the accounting effects of the adoption of the standard. Specifically, the utility shall indicate the accounting entries that were required in order to comply with the provisions of the standard. Sufficient detail shall be provided to identify the major categories and amounts of deferred tax assets and liabilities created by the adoption of the standard.

Utilities that recorded certain assets or liabilities at net-of-tax amounts should show any reclassification entries which were required due to the fact that this method is not allowed by SFAS 109. Utilities may seek waivers from the net-of-tax prohibition. Such requests must be in writing to the Commission and must contain justification for the use of net-of-tax accounting method.

5. Waiver

For good cause shown, the Commission may waive any of the requirements of this Rule, provided such waiver will not unduly undermine the purposes of this Rule. The Commission may also subsequently rescind, alter or amend any such waiver for good cause. The Commission delegates to the Director of Finance the authority to issue, rescind, alter or amend a waiver with respect to any of the requirements of this Rule. This delegation in no way limits the Commission's authority to review the decision of the Director of Finance or to issue, rescind, alter or amend a waiver directly.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. § 501.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 10, 1993. It was filed with the Secretary of State on September 10, 1993 and will be effective on September 15, 1993.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word.
• NON-SUBSTANTIVE CHANGES: 65-407 Chapter 730 page 1

Chapter 815 Consumer Protection Standards for Electric and Gas Transmission and Distribution Utilities

Code Me. R. 65-407 Ch. 815 Consumer Protection Standards for Gas Utilities and Electric Transmission and Distribution Utilities {#sec-65-407-ch.-815 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 815}

SUMMARY: This Rule establishes the minimum standards for the provision of service and the administration of credit and collection programs by gas utilities and electric transmission and distribution utilities. The provisions of this Rule govern granting and denying service, credit and deposit practices, billing, disconnection, a dispute resolution process, and methods of obtaining waivers and exemptions from this Rule.

1. STATEMENT OF PURPOSES; APPLICABILITY; AND POLICY 1

2. DEFINITIONS 2

3. EMERGENCY MORATORIUM 6

4. CONFIDENTIALITY OF CUSTOMER INFORMATION 6

5. CUSTOMER RIGHTS 7

6. APPLICATION FOR SERVICE 9

7. DEPOSITS FOR APPLICANTS AND CUSTOMERS 13

8. BILLING AND PAYMENT STANDARDS 18

9. PAYMENT ARRANGEMENTS 24

10 DISCONNECTIONS 27

11. CONTINUATION OF UTILITY SERVICE IS REQUIRED FOR RESIDENTIAL CUSTOMERS WITH A MEDICAL EMERGENCY 41

12. RECONNECTION OF SERVICE 42

13. INFORMAL DISPUTE RESOLUTION PROCESS 44

14 CUSTOMER NOTICE OF PLANNED AND UNPLANNED SERVICE INTERRUPTIONS DUE TO MAINTENANCE OR REPAIRS 49

15. ANNUAL REPORTS TO THE COMMISSION 50

16. WAIVERS 51

17. EXEMPTION ……………………………………………………………………………………51

1. STATEMENT OF PURPOSES; APPLICABILITY; AND POLICY

Purposes

The purposes of this Rule are:

1. To assure safe and adequate provision of Utility service;

2. To assure that service is not disconnected or refused unreasonably; and

3. To assure the Utility's right to collect proper payment for Utility service.

Every privilege that is granted and every duty that is required by this Rule imposes an obligation on Utilities, Applicants and Customers to accept these privileges and perform these duties with good faith, honesty and fairness.

This Rule defines the minimum standards for nondiscriminatory practices that all transmission and distribution utilities and gas utilities must follow. It does not, however, limit the power of Utilities to give greater protection to their Customers above these minimum standards.

B. Applicability of Rule

1. Unless otherwise stated, this Rule applies to all gas utilities and electric transmission and distribution utilities that are subject to the jurisdiction of the Commission. A particular class or individual Utility may be specifically exempt from one or more provisions of this Rule by a rule or order of the Commission.

2. Any provisions of this Rule that conflict with or are pre-empted by the Bankruptcy Code or any order issued by or agreement authorized by a bankruptcy court or the Bankruptcy Code are inapplicable.

3. Any provision in any Utility rate schedule or term and condition that conflicts with any provision of this Rule is superseded by this Rule,

4. This Rule applies to the collection of amounts owed by a Customer who is provided with electric or gas service by a Utility in Maine.

5. Any section of this Rule not specifically designated as applying to residential or non-residential Customers applies to all Customers.

C. Policy

It is the Commission’s policy that:

1. Utility bills should be paid by the date due. However, it is also the Commission's policy that Customers of electric and gas utilities should not be disconnected because of their inability to pay without being afforded the opportunity to enter into a reasonable Payment Arrangement to ensure that their Utility service is uninterrupted. It is also the Commission’s policy that during the winter months, when there is excessive heat or humidity as determined in reference to the National Weather Service, or when severe weather conditions can pose a threat to health and safety, residential Customers of Utilities should not be disconnected because of their inability to pay the entire amount owed by the due date.

2. Utilities should establish payment arrangements for Customers that take into consideration the individual Customer’s unique circumstances and that are most likely to result in the Customer becoming current with their bills and retaining their Utility service.

3. Residential Customers who enter into a Regular or Special Payment Arrangement should be required to the extent possible to pay a reasonable portion of each Utility bill when due during the Winter Disconnection Period and to avoid an accumulation of arrearages that will be difficult to pay on a reasonable schedule during the non-winter months.

These policy provisions must be taken into consideration by the Utility and the Consumer Assistance and Safety Division (CASD) when acting under this Rule.

2. DEFINITIONS

The following terms have the following meanings, unless the context clearly indicates a different meaning. Note that throughout this Rule, the following defined terms will display initial capitalization when used as defined.

A. Account Balance. "Account Balance" means the total amount owed by a Customer that has been properly billed by a Utility in accordance with this Rule.

B. Amount Overdue. "Amount overdue" means the amount that a Utility has properly billed to a Customer that has not been paid in full by the due date of the bill or by a date otherwise agreed upon.

C. Annualized Budget Payment Plan. An “Annualized Budget Payment Plan” is a Payment Arrangement comprised of equal monthly installments whereby a Customer’s anticipated annual Utility service cost is combined with any arrearage amount and divided by 12 to result in the elimination of the arrearage amount at the end of 12-month period.

D. Applicant. "Applicant" means any person or business that applies for Utility service and who has not been a Customer of the Utility within the past 30 calendar days.

E. Arrearage Management Program. “Arrearage Management Program” or “AMP” generally refers to programs created and used pursuant to Commission Rule Chapter 317.

F Authorized Medical Professional. An “Authorized Medical Professional” is either a physician licensed pursuant to 32 M.R.S. Chapter 48, a physician assistant licensed pursuant to 32 M.R.S. Chapter 48, or a nurse practitioner certified pursuant to 32 M.R.S. Chapter 31.

G. Basic Service. “Basic Service” means: 1) Utility service where the Commission regulates the rate or charge for the service and the rate or charge for the service is contained in the Utility's rate schedules; and 2) standard offer energy service provided to the Utility’s Customers.

H. Bill. "Bill" means a statement, either in written or electronic form, from a Utility to a Customer that states the amount owed by the Customer for the current billing period, the amount overdue, the account balance, late fees and any other charges lawfully owed by the Customer.

I. Billing Error. “Billing Error” is when a Customer’s bill contains an incorrect rate or charge; lacks a proper charge, fee, or tax; the total amount due is not correct; no Bill was issued; or contains charges for service provided to another Customer, for example, but not necessarily limited to, a mixed meter situation.

Catch-up Amount. “Catch-up Amount” means the amount a Customer or Applicant must pay, following missed payments, to become current with the terms of an existing or past Payment Arrangement.

K. Commission. "Commission" means the Maine Public Utilities Commission.

L. Consumer Assistance and Safety Division (CASD). "Consumer Assistance and Safety Division" or CASD is a division of the Commission with the responsibility of dealing with consumer issues under this Rule.

M. Customer. "Customer" means any person or business that has applied for, been accepted, and is either receiving Utility service or has agreed to be billed for Utility service. This term also includes a person or business that was a Customer of the same Utility within the past 30 days and who requests service at the same or a different location.

N. Deposit. "Deposit" means any payment, however designated, that is held as security for future payment or performance.

O. Disconnection. “Disconnection” means the discontinuance by the Utility of a Customer’s Utility service.

P. Dispute. "Dispute" means a grievance of a Customer or Applicant about a Utility's application of any provision of this Rule. Disputes include, but are not limited to:

1. Deposit requirements;

2. the accuracy of meter readings or Bills;

3. the proper person to be charged;

4. the terms of a Payment Arrangement;

5. the terms to avoid a pending Disconnection;

6. the terms to obtain a reconnection; and

7. the transfer of an Account Balance incurred in one Customer’s name into another Customer’s new account.

Q. Fraud. “Fraud” means a false representation, by words or conduct, or the concealment of facts which should have been disclosed, which is intended to deceive a Utility and upon which the Utility relies in taking actions with respect to a Customer.

R. Levelized Payment Arrangement. A “Levelized Payment Arrangement” is a Payment Arrangement that estimates usage for a designated period of time and divides that usage and the past due amount evenly over the number of months of the arrangement. The result is equal monthly payments for the duration of the Payment Arrangement, which may extend beyond one year’s time.

S. LIAP. “LIAP” is an acronym for “Low-Income Assistance Program,” which is a program to assist qualified low-income Customers pay their electric bills, pursuant to Chapter 314 of the Commission’s rules.

T. Make-up Bill. A “Make-up Bill” is a Bill issued for previously unbilled Utility service.

U. Medical Emergency. “Medical Emergency” means a situation where a Customer or

member of a Customer’s household has a medical emergency such that a lack of Utility

service would pose a serious risk of harm to that individual.

V. Medium Commercial Customer. A “medium commercial Customer” means a nonresidential Customer that meets the availability criteria to take service under a core Customer class of a transmission and distribution utility that includes a demand charge and in which a Customer’s maximum demand does not exceed 500 kilowatts or the Utility’s kilowatt break-point between classes that is closest to but does not exceed 500 kilowatts, whichever is lower.

W. Name Substitution. “Name Substitution” is the practice of avoiding Disconnection for nonpayment or initiating service without satisfying overdue accounts or avoiding a Deposit requirement by having a different person apply for service.

X New Customer. A “new Customer” means any person or business that has applied and been accepted for service that has not taken service from the Utility within the past 30 days.

Y. Non-basic Utility Service. "Non-basic Utility Service" means utility service that meets any of these conditions:

1. The Commission does not regulate the rate or charge for the service;

2. The rate or charge for the service is not contained in the Utility's rate schedules; or

3. The service is for merchandise or equipment that is not required as a condition of receiving Utility service.

Z. Occupant. "Occupant" means any person who resides at a Premises that is provided with Utility service.

AA. Payment Arrangement. "Payment Arrangement" means an agreement between a Customer or Applicant and a Utility that allows the Account Balance or Deposit to be paid in one or more installments.

BB. Personal Contact. "Personal Contact" means contact between the Utility and the Customer either in person, by telephone, internet chat, text message, email, or any other similar method of communication, so long as the communication medium either allows for back-and-forth communication or the option to switch to a voice call with a live Customer service representative from the Utility. The purpose of Personal Contact is to ensure that the Customer receives a summary of their rights as provided for in this Section and is given all reasonable assistance in understanding these rights. Personal Contact can be initiated either by the Customer or the Utility and may take place anywhere provided the communication is sufficient to provide the required notice and assistance. Delivery of a written notice to a Customer's residence alone does not constitute Personal Contact.

CC. Premises. “Premises” means any residential or non-residential building.

DD. Protection From Abuse Order. A “Protection from Abuse Order” is an order from a Maine court issued pursuant to 19-A M.R.S § 4101 et. seq. and includes a temporary order issued pursuant to Section 4108. An Applicant or Customer presenting a Protection from Abuse Order to a Utility as provided in this rule may redact portions of the order containing personal information. The name of the Applicant or Customer, the signature of the judge or justice, the date, and the enforceable duration of the order may not be redacted. A Utility with a reasonable belief that a Protection from Abuse Order presented by an Applicant or Customer is not authentic may require the Applicant or Customer to submit a court-certified copy of the order.

EE. Public Safety Facility. “Public Safety Facility” means a facility used primarily for the functions of local government that ensure the protection of residents, organizations and institutions in the municipality or plantation, including the provision of law enforcement, fire, and emergency services. For the purposes of this definition, “local government” includes municipal and plantation governments.

FF Refund. “Refund” means a reimbursement to a Customer in the form of cash or check, credit to a debit or credit card, or bank account, depending upon the form of the original payment.

GG. Regular Payment Arrangement. “Regular Payment Arrangement” means a Payment Arrangement whereby a Customer’s arrearage amount is divided into reasonable monthly installments and added to the Customer’s current amount due.

HH. Residential Customer. “Residential Customer” means a Customer that takes

Residential Utility Service.

II. Residential Utility Service. "Residential Utility Service" means Utility service furnished to buildings designed and used for both human habitation and sleeping, with the exception of hotels. It includes service provided for a nonresidential purpose, if a Premises is receiving service on the same meter.

JJ. Small Non-Residential Customer. “Small Non-Residential Customer” or “Small Commercial Customer” means in the case of a consumer served by an investor-owned transmission and distribution utility, a nonresidential consumer that meets the availability criteria to take service under a core Customer class of the Utility that does not pay a demand charge to the Utility or, in the case of a consumer served by a consumer-owned transmission and distribution utility, a nonresidential consumer with a demand of 20 kilowatts or less. “Small Non-Residential Customer” with respect to gas utilities means a non-residential Customer with annual consumption of 50,000 therms or less.

KK. Special Payment Arrangement. "Special Payment Arrangement" means a Payment Arrangement established during the Winter Disconnection Period that requires a Customer to make regular monthly payments according to the guidelines set forth in Section 9(E)(5) of this Rule.

LL. Third Party. “Third party” means a person or entity not employed by or working on behalf of the Utility. For the purposes of this Rule, neither Commission staff nor contractors working on behalf of the Utility are considered “third parties.”

MM. Unauthorized Use. "Unauthorized Use" means the interference or diversion of Utility service. Unauthorized Use includes, but is not limited to:

1. tampering with the meter (any act which affects the proper registration of service through a meter);

2. by-passing the meter (unmetered service that flows through a device connected between the service line and Customer-owned facilities); or

3. restoring service without authorization from the Utility or CASD.

NN. Utility. "Utility" means any gas utility or transmission and distribution utility as those terms are defined in Title 35-A M.R.S. § 102(8) and (20-B).

OO. Winter Disconnection Period. "Winter Disconnection Period" means the period beginning November 15 of each year and continuing through April 15 of the following year.

3. EMERGENCY MORATORIUM

When the Commission or the Director of CASD determines that, due to an emergency, Disconnection of utility service by one or more Utilities would present a clear danger to the health or safety of one or more Customers, the Commission or CASD Director may declare a partial or complete moratorium on Disconnections by any or all Utilities. When such a moratorium is declared, the duration of the moratorium will be specified.

4. CONFIDENTIALITY OF CUSTOMER INFORMATION

Privacy of individual Customer information. Except as provided in Subsection 4(B), a Utility may not disclose, sell or transfer, individual Customer information, including, but not limited to, a Customer’s name, physical or mailing address, email address, telephone number, electricity or gas usage, payment and credit history, financial condition or medical condition of a Customer or member of a Customer’s family to a third party without the consent of the Customer on a case-by-case basis.

Disclosure of individual Customer information. A Utility may disclose the individual Customer information set forth above in Subsection 4(A) without the consent of the Customer (a) for the purpose of debt collection, credit reporting, or usage reporting pursuant to state and federal law; (b) to law enforcement agencies pursuant to lawful process; or (c) where otherwise required by law, including but not limited to Commission rule or order. Notwithstanding subsection (a) in the previous sentence, a Utility may not disclose the individual Customer information set forth above in Subsection 4(A) without the consent of the Customer for the purposes of debt collection or credit reporting if the Customer submits to the Utility an enforceable Protection from Abuse Order.

Oral Certification. Utilities may accept oral certification from a social service agency that they have received authorization from the Customer to discuss that Customer’s account information. For a consumer-owned Utility where its Customers are members of the Utility’s corporation, the Utility may share Customer information with its corporation members only to the extent necessary to allow for the election of officers and for the Utility to perform other functions necessary for the operation of the Utility. A Utility may also share Customer information with State, County, tribal, and local emergency management agency personnel when the Customer information is requested at the time of that agency’s response to an emergency situation.

CASD treatment of individual Customer information. CASD will conduct the informal dispute resolution process set forth in this Rule in such a manner as to not disclose Customer identity.

5. CUSTOMER RIGHTS

Each Utility must provide all new Customers with a written summary of their rights and responsibilities under this Rule. The summary must be mailed or delivered to all new Customers within two months of the Customer receiving service and must be displayed prominently and available at all Utility offices that are open to the general public. The summary may be provided electronically if a Customer has requested that bills or notices be provided electronically.

A. Residential Customers. For Residential Customers, the summary must contain information concerning, but not limited to:

1. procedures for billing and for estimated billing;

2. methods for Customers to verify the accuracy of their Bills;

3. payment methods, locations, late fees (if any) and optional payment programs and appurtenant fees offered by the Utility;

4. security deposit and guarantee requirements;

5. procedures for disconnection and reconnection of service;

6. the Utility’s ability to remotely disconnect service, if applicable;

7. the Utility’s dispute procedures;

8. the Customer’s right to bring any unresolved disputes to CASD;

9. CASD’s toll-free consumer telephone number, as well as its mailing and email addresses;

10. an explanation of meter reading procedures which would enable a Customer to read the Customer’s own meter;

11. procedures that Customers or Occupants may follow during emergency service interruptions, including , with respect to transmission and distribution utilities, how to notify the Utility of the need for priority restoration due to the presence of life support systems;

12. procedures for having a third party receive copies of notices;

13. the Utility's limitations on liability for service interruptions contained in the Utility's rate schedule on file with the Commission, when a claim for abatement may be requested, and how a Customer can submit a claim for damages or abatement due to service interruptions;

14. with respect to transmission and distribution utilities, procedures for Customers using electrically powered medical equipment to obtain special identification in the Utility’s Customer information and outage management systems for Disconnections and outage situations;

15. toll-free telephone number, mailing and email addresses of the Utility where further inquiries may be made;

16. the existence of the Utility’s LIAP (if it has one) and procedures for enrollment;

17. with respect to transmission and distribution utilities, the existence of the Utility’s oxygen pump and ventilator assistance programs (if it has such programs) and procedures for enrollment pursuant to Chapter 314 of the Commission’s Rules; and

18. with respect to transmission and distribution utilities, the need to protect sensitive electronic equipment from power surges and power spikes through the use of surge protectors and other protective devices.

19. procedures that Customers may follow if they have an enforceable Protection from Abuse Order.

B. Nonresidential Customers. For non-residential Customers, the same information required by paragraph A above must be provided, with the exception of the information contained in subsections 11, 14, 16, 17, and 19.

6. APPLICATION FOR SERVICE

A. Obligation to provide service

A Utility may not refuse to provide service to an Applicant, except as provided for below.

1. Residential Applicants

A Utility may deny service to a residential Applicant who fails to meet any of the following conditions.

a. Past overdue amount. A Utility may condition the granting of service on a residential Applicant paying an amount overdue for previous basic service provided by that Utility within the prior six years, subject to the following conditions:

i. If the Utility is aware of the debt before service is initiated, and the Applicant was not previously disconnected due to the Applicant’s failure to comply with a Payment Arrangement, the Utility must offer a Payment Arrangement to a residential Applicant on the undisputed balance before service is initiated;

If the Utility is aware of the debt before service is initiated and the Applicant was previously disconnected for non-payment and was on a Payment Arrangement at the time of the Disconnection, the Utility may require the Applicant to pay the Catch-up Amount on the Payment Arrangement before service is initiated. In these situations, once the Catch-up Amount has been paid, the Utility may either reinstate the previous Payment Arrangement or establish a new Payment Arrangement for the remaining Account Balance; and

iii. If the Utility discovers the debt after it has granted service, the Utility must provide written notice to the Customer of the outstanding debt and its intention to collect the outstanding debt. If a Utility does not notify the Applicant of its intent to collect the

outstanding debt, the Utility is prohibited from transferring the debt to the Applicant’s current account. The Utility must allow the Customer at least 30 days after receipt of the written notice to pay the debt or enter into a Payment Arrangement. If the Customer fails to respond during this time period, the unpaid amount may be transferred to the Customer's current account and Disconnection procedures may be initiated for failure to pay or make a Payment Arrangement.

b. Payment of a Deposit. A Utility may condition the granting of service on the payment of a Deposit pursuant to Section 7.

c. Provision of proper identification. A Utility may condition the granting of Residential Utility Service to an Applicant on the provision of adequate proof of identification. In situations where Fraud is suspected, a Utility may require an Applicant to provide photo identification.

d. Compliance with local, state, and national electric safety codes. A Utility may condition the granting of service on a Customer’s premise equipment being in compliance with local, State, and National electric or gas safety codes.

e. Proof of right to occupy a premises. A Utility may condition the granting of service to an Applicant on the provision of adequate proof that the Applicant has a sufficient legal right to occupy the Premises where the Applicant is applying for service. In these situations, prior to requesting such proof, the Utility must have evidence that the Applicant does not have the legal right to occupy the Premises, such as a request from the Premises owner that no person be allowed to apply for service, or a situation in which Utility learns that the person(s) occupying the Premises is there without appropriate permission.

f. Protection from Abuse Order. A utility may not deny service or require the payment of a Catch-up Amount under subsection a. or require a deposit under subsection b. if an Applicant submits to the Utility an enforceable Protection from Abuse Order. This does not preclude a Utility from requiring a Payment Arrangement after service has been established.

2. Non-residential Applicants

A Utility may deny service to a non-residential Applicant that fails to meet any of the following conditions:

Past overdue amount. A Utility may condition the granting of service on a non-residential Applicant paying an amount overdue for previous Basic Service provided by that Utility if the Applicant accrued the debt within the prior six years. If the Utility discovers the debt after it has granted service, the Utility must provide written notice to the Customer of the outstanding debt and its intention to collect the outstanding debt.

Documentation. A Utility may require a non-residential Applicant to provide documentation that identifies the owners or officers of the business entity, such as Articles of Incorporation and

annual reports filed with the Maine Secretary of State.

c. Payment of a deposit. A Utility may condition the granting of service on the payment of a Deposit pursuant to Section 7.

d. Compliance with local, state, and national electric safety codes. A Utility may condition the granting of service on a Customer’s premise equipment being in compliance with local, State, and National electric or gas safety codes.

B. Provision of service by next business day

A Utility should provide service to an Applicant as soon as possible but must provide service by the end of the next business day after the request for service is received, or a Deposit and/or unpaid Account Balance is paid, provided that facilities exist to provide service within that timeframe. If facilities do not exist, such as in the case where a line extension must be constructed, the Utility must initiate its standard procedures to provide service by the end of the next business day after the request for service is received.

C. Service in another's name

Except as provided for in this Section, a Utility may not require an Applicant to pay for service provided in another person's or entity’s name unless a court or other administrative agency has determined that the Applicant is legally obligated to pay for that service. To prevent the practice of Name Substitution, a Utility may transfer an Account Balance that was incurred for service provided by that Utility within the prior six years from the date of the application in the name of another person or entity to the Applicant’s new account when the Utility can reasonably find and conclude the following:

Residential Customers

a both people resided together at the same address where the account balance was incurred;

b both people received the benefit of the Utility service; and

c both people will benefit from the applied-for Utility service. An Applicant will be presumed to benefit from the applied-for Utility service by virtue of the Applicant’s application for the service and if the above two conditions are met.

d. In situations where a residential Account Balance will be transferred from an existing account to an Applicant’s new account, a Utility may also:

i. require that the Catch-up Amount on an existing Payment Arrangement be paid before the service transfers to the new Applicant;

ii. transfer an existing Payment Arrangement from the existing account to the Applicant’s account; or

iii. transfer any Medical Emergency declaration or certification accepted by the utility made within the past 12 months on the existing account to the Applicant’s account. In these situations, the date associated with each Medical Emergency declaration must also transfer with each Medical Emergency declaration.

Non-residential Customers

One or more persons who are or were officers or owners of the partnership, business, corporation or other business entity applying for service is or was also an officer or owner of the partnership, business, corporation or business entity at the same address where the account balance was incurred.

When a Utility decides to transfer an existing account balance to an Applicant’s new account, the Utility must add the previous Customer’s name to the account, in addition to the Applicant’s name andprovide written notice to the Applicant of the transfer that includes the evidence demonstrating either 1a through 1c or 2a above. The notice must be provided at least 14 days prior to the transfer and, must provide the Applicant the opportunity to challenge the transfer, first to the Utility and if not resolved to the Customer’s satisfaction, to CASD. The Utility must maintain a record of its investigation of the challenge in compliance with the provisions of this Rule.

D. Application for service at a location where an active account already exists

A Utility may deny service to an Applicant where the service location for which the Applicant is seeking service already has an active Customer who does not wish to terminate service.

Explanation of charges

A Utility must disclose the following information at the time an Applicant requests service:

1. non-recurring installation, application or registration fees charged by the Utility for the type of service requested;

2. if Non-basic Utility Services are available, the estimated charge for any Non-basic Utility Services selected by the Customer; and

3. the recurring charge for the least cost class of service available to the Applicant.

F. Designation of Third Party to receive notices

An Applicant or Customer may notify the Utility that the Customer is designating a Third Party to receive disconnection notices concerning the Customer’s account, as well as notices of planned and unplanned outages. The Utility must keep a record of the Third Party’s name, address and telephone number. Whenever the Utility contacts the Customer about matters related to Deposits, Disconnections, overdue amounts or hazardous conditions of utility service, and planned or unplanned service interruptions, the Utility must make every reasonable effort to contact the Third Party and provide the same information at the same time it is provided to the Customer. Any notice of Disconnection provided to the Third Party must contain the disclosures required by Section 10(J). Nothing in this subsection obligates the Third Party to make payment of any amount owed by the Customer, unless there is independent evidence of an obligation to pay. Every Utility must inform new Customers of their right to designate a Third Party to receive notices pursuant to Section 5(12).

7. DEPOSITS FOR APPLICANTS AND CUSTOMERS

Residential Applicants

A Utility may demand a Deposit from a residential Applicant only if one or more of the following circumstances apply:

An account balance for residential Utility service incurred in Maine is unpaid at the time that the Applicant requests service. The amount must be either:

for service provided within the past six years from the Utility from whom the Applicant requests service; or

b. for Residential Utility Service provided by any Utility within the past 12 months.

2. An unpaid, undisputed Account Balance for residential Utility service provided in Maine within the past six years was not paid until after the Utility obtained a court judgment.

3. The Applicant was disconnected for nonpayment of an undisputed Bill by any Utility within the past 12 months.

4. The Applicant was disconnected for unauthorized use or theft of service by any Utility within the past 12 months.

5. The Applicant entered into a plan of repayment under Chapter 13 of the Federal Bankruptcy Code and the Bankruptcy Court dismissed the plan for failure to comply with its terms within the past six years.

6. The Applicant has no source of income sufficient to pay the cost of Utility service.

Notwithstanding the other provisions in this subsection, a Utility may not demand a Deposit from an Applicant who submits to the Utility an enforceable Protection from Abuse Order.

Non-residential Applicants

A Utility may demand a Deposit from any non-residential Applicant as a precondition of granting service but the Utility must consider a non-residential Customer’s prior credit history with another Utility when determining whether to require a deposit for service to a new business of that non-residential Customer provided the non-residential Customer requests this consideration and provides permission for the other Utility to share the credit history information. The Utility must consider the non-residential Customer’s prior credit history with the other Utility in the same manner it would consider the prior credit history of a non-residential Customer located in its own service territory. A Utility must also consider a non-residential Customer’s prior credit history with that Utility when determining whether to require a Deposit for service to a new business of that non-residential Customer within the Utility’s service territory.

Residential Customers

A Utility may demand a Deposit from a residential Customer only in one of the following circumstances:

the Customer files a petition under the Federal Bankruptcy Code and the Federal Bankruptcy Code or Court, if necessary, allows the Utility to demand a deposit;

the Customer is not currently participating in the Utility’s LIAP or AMP, if applicable, and requests that service be reconnected at the same or different location after the Customer was disconnected for nonpayment in the last 24 months. In these situations, the Utility must take into consideration any commitment of assistance offered by assistance agencies to reconnect the Customer’s service. If the commitment of assistance is sufficient to allow for the reconnection of service, absent the demand for a Deposit, the Utility must:

1. accept the commitment of assistance and apply the payment to the Account Balance; and
2. offer the Customer the option of paying the Deposit in three monthly installments consistent with the process described in section 7(F)(1) of this Rule, with the exception that the first monthly payment cannot be due earlier than the due date of the first bill issued following the reconnection.

the Customer requests that service be reconnected at the same or different location after the Customer was disconnected for unauthorized use or theft of services;

the Customer had an unpaid Account Balance at the time the Customer applied for service of which the Utility was unaware because of Fraud or material misrepresentation by the Customer.

Notwithstanding the other provisions in this subsection, a Utility may not demand a Deposit from a Customer who submits to the Utility an enforceable Protection from Abuse Order.

Non-residential Customers

A Utility may demand a Deposit from an existing non-residential Customer in lieu of Disconnection or from a Customer who was not required to pay a Deposit as a precondition of service but has become an unacceptable credit risk as determined by the Utility.

Amount of deposit

Residential Applicants and Customers

A Utility cannot demand a Deposit which is more than the two highest consecutive billing periods incurred within the previous 12-month period at that location. The amount of the Deposit for a location with no previous usage history with the Utility cannot exceed the two highest consecutive bills of the Utility’s other residential locations whose usage is similar or reasonably expected to be similar.

2. Non-residential Applicants and Customers

A Utility cannot demand a Deposit which is more than the amount reasonably anticipated to be due for service for the two highest billing periods expected within a 12-month period.

F. Payment of deposits

Residential Applicants and Customers

A Utility must provide residential Applicants and Customers the option of either paying the Deposit in full or entering a payment arrangement on the Deposit amount that allows payment in at least three installments: The first installment, which is due upon the determination that the deposit is required, must be no more than 50% of the full Deposit amount. Subsequent payments, to be agreed to by the Utility and the Customer, must be made in connection with the applicable monthly billing cycle.

a. A Utility may demand full payment of the Deposit amount when an Applicant requests service and the Applicant enters into a Payment Arrangement for an unpaid Account Balance at the same time.

b. If a Customer requests reconnection following Disconnection, the Customer may elect one of the payment options according to Section 12.

c. A Utility may negotiate payment of the Deposit over a longer period as the Utility determines appropriate.

d. Guarantee instead of Deposit. A Utility must accept a third-party guarantee agreement instead of a cash Deposit for a residential Customer if the guarantor is a Customer whose account is not in arrears at the time the Deposit is requested. The guarantee agreement must be in writing, contain the disclosures required by this Section, and be limited to a specific time period. The Utility may cancel the guarantee agreement if the guarantor incurs an arrearage with the Utility that is more than 60 days old, and a guarantor may cancel the agreement upon at least 30 days written notice to the Utility and the Customer. If the guarantee is cancelled or the term has expired, the Utility can demand a Deposit from the Customer. If a Deposit is not paid or if a Payment Arrangement is not established within 30 days after the notice that requires payment of a Deposit is provided, a Utility may begin further collection procedures.

2. Non-residential Applicants and Customers

The Utility must offer non-residential Applicants and Customers the option of paying the required Deposit in at least two equal installments. Deposits may be in any of the following forms, listed in order of preference:

a. Cash.

b. Irrevocable bank letter of credit.

c. Surety bond.

d. Third-party guarantee instrument acceptable to the Utility.

e. Other security instrument acceptable to the Utility.

G. Disclosure

When a Utility demands a Deposit, it must send or deliver a written disclosure to an Applicant or Customer within three business days after the demand is made. This written disclosure may be delivered electronically if the Customer has consented to electronic communication or billing. If the disclosure is not provided within the three-day period, the Utility cannot collect the Deposit from the Customer. If the disclosure was not provided within the three-day period and Customer has already paid the Deposit, the Deposit must be refunded to the Customer. A copy of the disclosure must also be provided to any guarantor within the same time period. The disclosure must contain:

1. the date that the Utility demands a Deposit;

2. the amount of the Deposit;

3. the due date and payment options for the Deposit, including the option of a third-party guarantor for residential Applicants and Customers; and

4. the procedure by which the Applicant or Customer can dispute the Deposit requirement or Deposit amount.

H. Interest

A Utility must pay interest on Deposits according to the provisions of Chapter 870 of the Commission’s Rules.

I. Retention and refund

1. Refund

A Utility must Refund a Deposit in any of the following circumstances:

a. When a residential or small non-residential Customer establishes good credit. If a residential Customer pays all Bills or makes all payments pursuant to an established Payment Arrangement by the due date for 12 consecutive months and the Customer does not have a remaining Account Balance at the end of the 12-month period, the Utility must refund the Deposit, including accrued interest, within 30 days after the 12^th Bill is paid. If a small non-residential Customer pays all Bills or makes all payments pursuant to an established Payment Arrangement by the due date for 5 consecutive years and the small non-residential Customer does not have a remaining Account Balance at the end of the 5 year period, the Utility must refund the Deposit, including accrued interest, within 30 days after the final Bill of the 5 year period is paid. Utilities may retain Deposits collected from non-residential Customers that do not meet the definition of small non-residential Customers for so long as the Customer remains a Customer.

b. When a residential or non-residential Customer has been disconnected. The Utility then must apply the Deposit, including accrued interest, to the Account Balance for Utility service and refund the remainder within 30 days or with the final Bill, whichever is later. A transfer of service from one location to another is not considered disconnection for the purpose of this paragraph.

c. When a residential or non-residential Customer closes an account. When a Customer closes an account, the Utility may apply the Deposit to an existing Account Balance or other accounts for that Customer that were closed within the past six years that were not fully paid when the account was closed. The Utility must then refund any remaining Deposit amount, including accrued interest, to the Customer within 60 days of the Customer closing the Customer’s account.

d. When a residential Customer substitutes a third-party guarantor. If a guarantor is provided in accordance with the provisions of Section 7(F)(1)(d) above, the Utility must refund the Deposit, including accrued interest, up to the limits of the guarantee.

e. Earlier Refund. The Utility may choose to refund a Deposit, including accrued interest, any time earlier than this subsection requires.

2. Transfer of service

When a Customer transfers service from one location to another location, an existing Deposit may be transferred to the new location and must be

adjusted according to the anticipated usage at the new location. If the anticipated usage at the new location is lower than the old location, the Utility must either refund the difference to the Customer or must apply the difference to the Customer’s account as a credit. If the amount of the refund is equal to or less than the cost the Utility will incur to issue a refund check to the Customer, the Utility may credit the Customer’s account. If the refund is greater than the cost to cut a check, the Utility must send the Customer a check for the refund amount or, if the Customer so chooses, the refund may be applied as a credit to the Customer’s account. If the usage is higher at the new location, the Utility may require the Customer to pay a Deposit reflecting the incremental usage amount. In this instance, the incremental amount must be collected in accordance with Section 7(F) above. The transfer and any subsequent adjustment must be made within 60 calendar days of the date the service is transferred.

8. BILLING AND PAYMENT STANDARDS

A. Bill frequency

A Utility must bill on a regular recurring basis and must offer at least one monthly billing option.

B. Due date of bills

The due date of a Bill must be at least 25 days after the Bill is mailed or otherwise delivered to the Customer. A Bill is considered “mailed” on the date the Bill is postmarked. If there is no postmark, the Utility must date the Bill and mail the Bill on or before the date on the Bill.

C. Bill content

Each Bill issued by a Utility must clearly state the following minimum information:

1. The beginning and ending dates of the period for which service was provided.

2. The beginning and ending meter readings for the billing period and the difference between the two meter readings, unless the Customer’s usage was estimated for that billing period pursuant to section 8(M).

3. The due date by which payment must be made and that after this date the account will be considered overdue and late fees imposed, if authorized.

4. The amount due for service provided during the current billing period.

5. An itemization of State and Federal taxes.

6. An itemization of all other current unpaid charges, including, if applicable, installation fees, reconnection fees, deposit payments, and late payment fees which have accrued to the Customer's account. A Utility may not separately list line items on the Bill that do not represent a separate, discrete Utility service or a State or Federal tax; with the exception of charges related to stranded costs or public policy programs and charges related to electric conservation programs.

7. The total amount of all payments or other credits made to the Customer’s account during the current billing period.

8. The amount overdue, if applicable.

9. The account balance.

10. A clear and conspicuous marking of all estimates.

11. The address and toll-free telephone number of the Utility where the Customer may write or call to ask questions or dispute the Bill with the Utility.

12. A designation of the applicable class of service as stated in the Utility's approved rate schedule.

13. The toll-free telephone number of the Commission’s Consumer Assistance and Safety Division (CASD) and a statement of the services available from CASD. Each Utility must obtain advance approval from the Director of CASD for such language. Utility

D. Additional Billing Requirements for Electric Investor-owned Transmission and Distribution Utilities

1. Electric investor-owned transmission and distribution utilities must include, once per year, as an insert or attachment to Customer Bills, an informational chart or charts produced by the Commission that displays a 10-year history of transmission, distribution, and standard-offer service rates for the Customer’s current rate class, along with a statement of the total percentage change in transmission, distribution and standard-offer service rates over the 10-year period. The insert must direct the Customer to the Utility’s website where they may access such information for all rates available to the Customer’s rate class. The Commission will post these charts on the Commission’s website.

2. Electric investor-owned transmission and distribution utilities must provide to the Commission annually by April 1 information regarding the average rate, including transmission, distribution and standard-offer rate components, of each rate class for the prior 10-year period on a calendar-year basis. Rate information must be the average revenue per kWh. The Commission will develop an informational chart for the utilities to include in Customer Bills pursuant to Section 8(D)(1) above.

E. Bill format

The Bill format must include:

1. sufficient information so that the ordinary Customer can understand the basic components of the Bill;

2. gas utilities must provide comparative usage information for at least the prior 13-month period;

3. Electric investor-owned transmission and distribution utilities must provide Customers comparative usage information for the prior 24-month period that compares each month’s usage between the first 12 months and the second 12 months of the 24-month period. This must include the equivalent billing month usage two years prior. Comparative usage data will be provided to residential, small commercial, and medium commercial Customers. Comparative usage information on transmission and distribution Utility Bills must be provided as monthly kWh usage;

4. definitions of technical terms used in the Bill; and

5. sufficient separation between sections, type size and visual highlighting to make the Bill uncluttered and easy to read.

F. Billing errors and previously unbilled service

A Utility must promptly notify a Customer in writing of a billing error after it discovers or is notified of the error. An explanation of the credit or charge on the Bill or in a Bill insert that accompanies the Bill containing the credit or charge that explains the error will meet the notice requirement of this Section. The Utility must correct the error within 45 days of discovery or notice and investigate the possibility that the billing error may affect multiple Customers. Discovery of the error is the point in time when the Utility first becomes aware of the billing error; or, if notice of the error is provided by a third party, discovery of the error is when the Utility confirms that a billing error was made. In the latter situation, the decision regarding whether or not a billing error occurred must be made within 14 days of the Utility’s receipt of the third party’s notice of the error. If more than 10 Customers are affected by the billing error, the Utility must immediately notify CASD.

1. Make‑up bills

A Utility may issue a corrected Bill for previously unbilled service, including standard offer service, caused by a billing error, failure to read the Customer’s meter pursuant to Section 8(M), or a meter malfunction, for service that was provided in the previous 12 months. In these circumstances, the Utility must either apportion the usage evenly over the period in which the unbilled usage occurred or apportion the unbilled amount pursuant to the Utility’s usage algorithm. Once the usage has been properly apportioned over the unbilled period, the Utility may re-bill the Customer based on the approved rate schedule rates in effect during the unbilled usage period. A Utility may also agree to a settlement that abates all or a portion of the previously unbilled service.

a. If the make-up Bill is for service that was previously unbilled because of unauthorized use or Fraud by the Customer, the Utility may bill for service that occurred up to six years before the issuance of the "make-up" Bill.

b. When a Utility issues a make-up Bill, it must notify the Customer in writing of the right to a Payment Arrangement for the previously unbilled amount. The terms of a Payment Arrangement negotiated for the previously unbilled amount should take into account the period during which the unbilled service accrued, the length of time between the usage and the issuance of the bill, and the reason for the unbilled amount.

2. Credits and Refunds

A Utility must credit or refund any amount billed in excess of correct rates or any amount the Customer should not have been charged, including standard offer service, within the previous six years from the date of the Utility’s discovery or its notification of the error. In these situations, a Utility may credit accounts of active Customers or issue a refund and must refund non-active Customer accounts, unless the non-active Customer has an unpaid balance with the Utility. In these situations, the Utility may credit the non-active Customer’s unpaid balance and any remaining credit must then be refunded to the non-active Customer.

Payment

1. Extension of due date required

If the due date for payment falls on a Saturday, Sunday, legal holiday, or any other day when the Utility’s offices are not open for business, the Utility must extend the due date to the next business day.

2. Payment by mail

If the Customer sends payment by mail, payment is made on the date the Utility receives the payment.

3. Electronic payment

If the Customer pays a Bill electronically from a Utility’s authorized vendor, either over the phone or the internet, the Utility must consider the payment “received,” for the purpose of avoiding credit action and a late payment charge, at the date and time the transaction is executed by the Customer.

4. Payment at a remote office

If the Customer pays at a branch office or authorized agency of the Utility, the Utility must consider the payment “received” for the purpose of avoiding credit action and a late payment charge at the date and time the transaction is executed by the Customer.

5. Conflicting due dates

When a Utility provides a Customer with multiple notices or contacts containing different due dates, payment is due on or before the latest due date provided, with the exception of notices issued pursuant to section 10(H) (payment not honored), which supersede all other notices.

H. Late payment charges and returned check charges

Utilities must comply with Chapter 870 of the Commission’s rules relating to late payment charges and returned check charges.

I. Application of partial payments

When a Utility receives payment that is insufficient to pay the full Account Balance, the Utility must apply payment to the oldest balance due, unless instructions from the Customer, a disputed bill, or a Payment Arrangement requires otherwise.

J. Non-basic Utility service

A Utility must either issue a separate Bill for non-basic Utility service or apply partial payments first to basic charges and then to non-basic charges.

K. In-person payment locations

A Utility must maintain a reasonable number of locations throughout its service territory where Customers may pay bills in person. Utilities may charge a fee for processing in-person payments pursuant to a rate schedule approved by the Commission.

L. Transfer of service and collection of unpaid account balances

1. Transfer to a new account

When a Customer requests a transfer of service to a new location, a Utility may without prior notice transfer the Customer's current Account Balance to the Customer's new account, provided that the new account is the same type as the old account, i.e., residential or non-residential, and the transfer takes place within 60 days of the activation of service at the new location or the closing of the prior service, whichever date is later. Utilities are prohibited from transferring Account Balances from a residential account to a non-residential account and vice versa. In situations where a landlord is responsible for a common area meter, which is considered a business account, and also chooses to have service for the individual rental units placed in the landlord’s name in between tenants, a Utility may transfer the balance from the individual units (residential) to the common area (business) account.

2. Transfer of multiple accounts

a. Account Balance. In situations where a Customer maintains multiple accounts and chooses to close an account with an Account Balance, a Utility may transfer the Account Balance to a remaining, active account, provided the accounts are the same, i.e., residential to residential or business to business. Any transfer must be made within 60 calendar days of the account being closed. In these situations, a Utility may not transfer a residential Account Balance to a business account and vice versa.

b. Credit balance. In situations where a Customer maintains multiple accounts and chooses to close an account with an account credit, the credit must be refunded to the Customer, unless the Customer requests that the credit be applied to another account. The refund or credit must be provided within 60 calendar days of the Customer closing the account.

3. Transfer of unpaid Account Balance to a guarantor

If a Customer is disconnected, a Utility may transfer to the account of a third party guarantor any portion of the account balance which is equal to the cash deposit requirement of the Customer.

4. Fraud or misrepresentation

If a Utility discovers that a Customer has a previous Account Balance incurred due to Fraud or misrepresentation, the Utility may transfer the unpaid Account Balance to the Customer’s current account within 30 days of the Utility’s discovery of the Fraud or misrepresentation.

5. Compliance with this Section

If an unpaid Account Balance is not transferred according to paragraphs 1, 2, or 3 above, a Utility cannot demand or collect it from a current Customer by any means authorized by this Rule.

6. Pending disconnection notice

If a disconnection notice is pending when a Customer requests transfer of service to a new location, the Utility may continue the Disconnection process at the new location. If the notice required by Section 10(D) has been issued and the contact required by Section 10(L)(2) has been attempted and service has not been disconnected because the Customer has refused access to the Customer’s premises, the Utility may deny service at a new location when the Customer requests a transfer of service.

M. Meter reading

A Utility must obtain actual meter readings on a monthly basis, unless:

extreme weather conditions, emergencies, equipment failure, work stoppages or other similar circumstances prevent an actual meter reading by Utility employees;

a meter that electronically relays readings to the Utility office malfunctions or is otherwise unable to relay a reading. In these situations, a Utility must obtain an actual meter reading by the following month and must correct the malfunction, fix the relay issue or otherwise make arrangements for actual meter reads to be obtained from that point forward;

3. the Utility must have access to the Customer’s premises to obtain a reading and the Utility is unable to gain access after using reasonable efforts to obtain access;

4. the Customer has opted-out of the Utility’s remote metering program by choosing a meter that is not set up for electronically relaying readings;

5. a Customer is billed on a seasonal basis according to terms included in the rate schedule of the Utility.

An “actual meter read” includes an electronically relayed reading.

N. Past usage

As required by 14 M.R.S.A., §6045, upon request, a transmission and distribution Utility must provide free of charge to current or prospective Customers, tenants or property owners residential electric energy consumption and cost information for a dwelling unit for the prior 12-month period or figures reflecting the highest and lowest electric energy consumption and cost for the previous 12 months. The cost must include and separately identify the cost of the transmission and distribution Utility's services and the cost of electricity. If a unit has been occupied for a period of less than 12 months or for any other reasons the Utility does not have information regarding electricity consumption or costs for a period of 12 months, the Utility must estimate the unit's annual kilowatt-hour consumption or cost. The estimated cost must be based on the applicable standard-offer service price or default service price established by the Commission.

9. PAYMENT ARRANGEMENTS

A. Payment arrangement required

A Utility must continue to serve a Customer who does not pay an Account Balance in full if the Customer agrees to enter a Payment Arrangement for the Account Balance and agrees to pay each future bill for service on or before the due date of the bill until the Payment Arrangement is completed. A Payment Arrangement may involve a single or multiple payments.

B. Written confirmation of Payment Arrangement

A Utility must mail or deliver to the Customer a written confirmation of a Payment Arrangement that requires two or more payments within three business days after a Payment Arrangement is established. The written confirmation must:

1. inform the Customer of the terms of the Payment Arrangement;

2. include CASD's address and toll-free telephone number; and

3. inform the Customer of the Utility’s right to issue a 3-day disconnection notice for failure to comply with a Payment Arrangement.

This written disclosure may be delivered electronically if the Customer has consented to

electronic communication or billing.

C. Failure to confirm Payment Arrangement in writing

If a Utility does not mail or deliver a written confirmation of a Payment Arrangement to the Customer within three business days after a Payment Arrangement is agreed to, the Utility cannot disconnect the Customer for failure to comply with the Payment Arrangement. A Utility may either attempt Personal Contact to negotiate a new Payment Arrangement or issue a 14-day Disconnection notice for residential Customers or a 7-day notice for non-residential Customers according to Section 10(D).

D. Basic Service Payment Arrangement to be separate

Any agreement permitting installment payments on an Account Balance for non-basic service must be separate from a Payment Arrangement for Basic Service.

E. Residential Customers

Utilities must establish Payment Arrangements that take into consideration the individual Customer’s unique circumstances and that are most likely to result in Customers becoming current with their bills and retaining their Utility service, including, but not limited to, Regular Payment Arrangements, Special Payment Arrangements during the Winter Disconnection Period, and Levelized Payment Arrangements. A Levelized Payment Arrangement must periodically be adjusted to account for changes in the estimated usage. In these situations, an arrangement cannot be adjusted more than four times a year. If a Customer and the Utility cannot agree on the terms of a Payment Arrangement, including a Customer’s claim that the Customer cannot afford to pay any amount towards the arrearage, the Utility must refer the Customer to CASD for assistance.

1. Criteria for determining a reasonable Payment Arrangement

In determining if a particular arrangement is reasonable, the Utility must take into account:

a. the Customer's ability to pay;

b. the size of the overdue amount;

c. the Customer's payment history;

d. the amount of time and reason why the overdue amount is outstanding; and

e. any special circumstances creating extreme hardships within the household.

The Utility must make every reasonable attempt to negotiate a Payment Arrangement that is likely to prevent disconnection and reduce the amount overdue to zero. If a Utility and a Customer cannot agree on the terms of a Payment Arrangement, the Utility must refer the Customer to CASD and CASD will establish a reasonable Payment Arrangement.

2. Notification of LIAP, AMP and other forms of financial assistance

When a Customer informs a Utility that the Customer cannot pay a bill and the Utility determines the Customer may be disconnected, the Utility must provide the following.

Source of Financial Assistance. The Utility must provide the Customer with information regarding the Utility’s LIAP (if applicable), the Utility’s AMP (if applicable) and the availability of information about financial assistance by calling 211.

Provision of information. Upon request by the Customer, the Utility must provide to the financial assistance entity or entities selected by the Customer the Customer’s total amount of arrearage and the average monthly bill of the Customer. Alternatively, the utility may provide this information directly to the Customer who can then use the information as needed.

3. Second Payment Arrangement

The Utility may, but is not required to, offer a second Payment Arrangement to a Customer who is in default of a first Payment Arrangement. If the first payment arrangement is a Special Payment Arrangement, the Utility must offer at least one additional Payment Arrangement during the non-winter disconnection period.

4. Notification of Conservation Measures to Low Income Customers

The Utility must offer any Customer eligible to participate in the Utility’s LIAP or AMP any existing no-cost energy conservation measures, including, but not limited to, any energy audit, offered by the Utility, as a condition of the second payment arrangement. LIAP and AMP Customers must accept the measures to the extent they have the authority to do so.

5. Winter Disconnection Period

a. Special Payment Arrangements. Between November 1 and March 15, utilities must offer Customers who are not currently on or failed to complete a Special Payment Arrangement established the prior Winter Disconnection Period the opportunity to enter into a Special Payment Arrangement, provided that the first payment will be due prior to April 15, when such an arrangement is the best option for keeping a Customer’s bills affordable during the Winter Disconnection Period and non-winter Disconnection period, that is, summer period, and ensuring that the Customer is not disconnected. Unless a material deterioration in financial circumstances is demonstrated by the Customer, a Customer who has failed to complete a Regular or Special Payment Arrangement on Bills accrued during the previous 12-month period will not be eligible for a Special Payment Arrangement under this subsection. This Payment Arrangement is a combination of level payments during the winter months prior to the issuance of the March bill which are not less than the customer's average summer bill, and level payments beginning with the bill issued in March that reflect one-seventh of the total of the following: the arrearage at that time; the March bill; and estimated bills through September. In any case, this Payment Arrangement must be designed to pay any arrearage incurred prior to entering the Special Payment Arrangement or as a result of the level monthly payments required by the Special Payment Arrangement by the following November 1.

b. Utility attempt to contact. Utilities must attempt to contact each Customer who was on a Special Payment Arrangement the prior Winter Disconnection Period, who did not meet the requirements of the Special Payment Arrangement, who has not been placed on an alternative Payment Arrangement, and who has an amount overdue of at least $100.00 as of November 1 and establish a Payment Arrangement that best addresses the circumstances of the Customer’s situation. The contact attempt must be made after November 1 and before November 15 and may be by letter, telephone call, or other means that is likely to achieve contact with the Customer.

c. Information required. The Utility must provide the Customers with whom they make contact information regarding financial assistance pursuant to Section 9(E)(2).

d. Written Statement Concerning Installment Payments. After March 1 and before May 31, the Utility must provide each Customer who made a Special Payment Arrangement with a written statement of the total amount due, and the amounts and payment schedule required in order to pay the total amount due by November 1.

F. Non-residential Customers

Utilities must offer non-residential Customers Payment Arrangements that take into consideration the Customer’s unique circumstances and that are most likely to result in the Customer becoming current with their bills and retaining their Utility service. In determining if a particular arrangement is reasonable, the Utility must take into account:

1. the size of the overdue amount;

2. the Customer's payment history; and

3. the amount of time and reason why the overdue amount is outstanding.

The Utility must make every reasonable attempt to negotiate a Payment Arrangement that is likely to prevent Disconnection and reduce the amount overdue to zero. If a Utility and a Customer cannot agree on the terms of a Payment Arrangement, the Utility must refer the Customer to CASD and CASD will establish a reasonable Payment Arrangement.

10. DISCONNECTIONS

A. When Disconnection procedures can begin

A Utility may begin Disconnection procedures without the consent of the Customer or occupant only if one or more of the following conditions exist:

1. The Customer does not pay or make a Payment Arrangement on an undisputed overdue amount that is more than $150.00. A Utility can disconnect service for an overdue amount of less than $150.00 only if the overdue amount is more than 90 days old or the Utility bills four times a year or less.

2. The Customer does not make payment according to the terms of a Payment Arrangement.

3. The Customer does not pay or make a Payment Arrangement for a Deposit or provide a third-party guarantor according to the provisions of Section 7;

4. Service is being used, but no occupant or other person has applied for Customer status.

5. The Customer unreasonably refuses to allow access to the premises to install or read a meter or for the necessary inspection or repair of Utility property.

6. There is Unauthorized Use of the Utility service delivered to the affected premises.

7. The Utility has reason to believe there is Fraud or that the Customer has materially misrepresented his or her identity to obtain Utility service without complying with the provisions of this Rule.

8. The occupant’s service poses a threat to the safety of any person or the integrity of the Utility delivery system.

9. The Utility receives a directive from the State Electric Inspector, State Pipeline Safety Inspector, or local code enforcement officer to disconnect service for safety reasons.

10. The Customer does not comply with a decision of CASD or the Commission according to Section 13.

B. Customer request or abandonment

A Utility may disconnect service at the request of a Customer (provided that the provisions of Section 10(I) concerning landlord/tenant disconnections are not applicable) or if the Premises is clearly abandoned. A Utility may require Customers to give notice of requests to disconnect service. A Utility cannot require more than seven days’ notice. The Utility may require the Customer to pay for service that is actually provided until the Customer gives the required notice, the Utility actually disconnects the service, the Utility initiates Disconnection procedures for failure to apply for Customer status, or there is an application for service at that location.

C. When Disconnection cannot occur

Disconnection without the Customer’s consent cannot occur in the following situations.

1. Amount Overdue

The amount overdue stated on the Disconnection notice includes:

a. Non-basic Utility service (defined in Section 2(Y));

b. amounts owed from a different account, unless a transfer of the account balance was done according to Section 8(L);

c. amounts owed for estimated bills when the latest bill issued was based on an estimated read; or

d. service provided in the name or names of persons other than the Customer, unless a court or other administrative agency has determined that the Customer is legally obligated to pay the amount overdue or a transfer of account balance was completed according to Section 6(C). This paragraph does not affect the creditor rights and remedies of a Utility provided by other law.

2. Existence of Medical Emergency

A Utility must not disconnect if it has been notified of a Medical Emergency according to Section 11.

Public Safety Facilities for nonpayment of rates, fees, or charges for Utility service

A Utility may not disconnect a Public Safety Facility's Utility service for nonpayment of rates, fees, or charges for Utility service unless the Utility has:

a. provided written notice to the local government using the Public Safety Facility of the public Utility's intention to disconnect the Public Safety Facility's Utility service at least 60 days before the disconnection date;

b. obtained from the Commission written authorization to disconnect the Public Safety Facility's Utility service; and

c. obtained from the Department of Public Safety written authorization to disconnect the Public Safety Facility's Utility service.

A letter from the Commission’s General Counsel providing the notice articulated in 35-A M.R.S. § 719(2)(B) and issued in a docket designated for the public Utility using the Commission’s electronic case management system constitutes an example of the public Utility having been explicitly notified by the Commission for the purpose of imposing an additional penalty.

Extreme heat or humidity

A Utility may not disconnect when the Customer’s Premises is located in a Public Forecast Zone as defined by the National Weather Service, and a Heat Advisory or an Excessive Heat Warning as determined by the National Weather Service is in place for that zone.

D. Notice Requirements

1. Without notice

A Utility can disconnect a Customer without notice in the circumstances described in:

a. Section 10(A)(6) (unauthorized use);

b. Section 10 (A)(8) (dangerous condition);

c. Section 10(A)(9) (directive from State or local official); or

d. Section10(B) (Customer request or abandonment).

2. 14-Day notice and 7-day notice

A Utility must provide residential Customers with written notice of the intent to disconnect at least 14 calendar days before the stated Disconnection date and must provide non-residential Customers with written notice of the intent to disconnect at least seven calendar days before the stated Disconnection date in the circumstances described in:

a. Section 10 (A)(1) (failure to pay);

b. Section 10 (A)(5) (refusal of access); or

c. Section 10 (A)(7) (Fraud or material misrepresentation).

3. 3-Day notice

A Utility must provide written notice of the intent to disconnect a Customer at least three business days before the stated Disconnection date in any of the circumstances described in:

a. Section 10(A)(2) (broken payment arrangement);

b. Section 10(A)(3) (failure to provide a deposit or guarantor);

c. Section 10(A)(4) (failure to apply for Customer status);

d. Section 10(A)(10) (failure to comply with Commission decision), unless CASD or the Commission establishes a different notice period;

e. Section 10(H) (dishonored check); or

f. Section 11(C) (certification of a Medical Emergency).

4. Time of issuance

a. A Utility cannot issue a Disconnection notice for the circumstances described in Section 10(A)(1) (failure to pay an overdue amount) until at least 30 days after the original Bill is mailed. A Bill is considered “mailed” on the date it is postmarked. If there is no postmark, a Utility must date and mail the Bill on or before that date. A Utility cannot issue a Disconnection notice for the circumstances described in Section 10(A)(2) (broken payment arrangement) and 10(A)(3) (failure to pay a deposit) until at least one business day after the due date of the payment.

b. A Utility may issue a Disconnection notice for the other circumstances described in Section 10(A) at any time after the applicable criteria are met.

E. Disconnection date

The Disconnection date for residential and non-residential Customers stated in the notice must not be a Friday, weekend, legal holiday, the day before a legal holiday or a day when the Utility's office is not open for public business. The term "legal holiday" is defined in 4 M.R.S.§ 1051.

F. Period of effectiveness

A Disconnection notice is effective for 10 business days after the Disconnection date stated in the notice. If a Utility fails to properly disconnect service within this time frame, the Disconnection notice procedures must be repeated. For residential Disconnection notices issued where the effective period of the notice extends beyond November 14, the notice must include a statement in bold lettering that the latest date the Utility can disconnect service is November 14.

G. Refusal of access by Customer

If a Customer expressly refuses to allow the Utility access to the meter or other fixture or device necessary to accomplish disconnection, the 10-business day period provided in Section 10(F) above can begin on the date of the last refusal by the Customer. This provision applies if the Utility:

1. records the date, time and manner of each attempt to disconnect service and each express refusal by the Customer to allow access; and

2. has no other reasonable means to disconnect the Customer other than that refused by the Customer.

H. Payment not honored

1. Residential Customers

If a residential Customer’s payment was not honored by the bank before the expiration of the Disconnection notice, the Utility must attempt to obtain payment by alternate means from the Customer before disconnecting service. If a payment is not honored after the expiration of the Disconnection notice, the Utility can issue a 3-day Disconnection notice pursuant to Section 10(D)(3) above and require payment by cash or certified check.

2. Non-residential Customers

If a non-residential Customer’s payment was not honored by the bank before the expiration of the Disconnection notice, the Utility may proceed with Disconnection pursuant to Section 10(L) below.

I. Disconnection notice procedures for leased or rented residential property

1. A Utility cannot disconnect a Premises when it is aware that it is leased or rented at the request of a lessor, owner, or agent ("landlord") or because the landlord (as a Customer) has failed to pay an overdue amount, unless:

a. the tenant agrees in writing to the disconnection;

b. the landlord signs a statement that the premises are vacant;

c. the Utility by personal inspection determines that the premises are vacant; or

d. the Utility gives notice as described in paragraph 2 below.

2. A Utility must make every reasonable attempt to deliver the notice in person to at least one adult occupant of each unit. With respect to a single meter, multi-unit building, the Utility must also post the notice at or near the front and rear entrances to the building or buildings affected. The notice must, in addition to the applicable disclosures of Section 10(J) below, inform the tenant how service can be continued. A Utility must either offer the tenant the opportunity to obtain service in the tenant's name or otherwise assume responsibility for further payment.

3. The Disconnection notice must be mailed or delivered at least 14 days before the Disconnection date stated in the notice.

4. Before the actual Disconnection to a single-meter, multi-unit building, a Utility must:

a. apply any existing deposit to the current Account Balance; and

b. file the lien authorized by Title 35-A M.R.S.A. §706.

5. A Utility cannot require the tenant to pay for any charges incurred by the landlord or demand a Deposit or advance payment based on the landlord's credit history.

6. This subsection also applies if a municipality requests the Utility to disconnect service at a location where the municipality has temporarily put the service in its name on behalf of the occupant.

J. Content of Disconnection notice

A Disconnection notice must be in writing and conspicuously contain the following information:

1. the overdue amount that must be paid to avoid Disconnection or the exact reason for the Disconnection if not for an overdue amount;

2. what the Customer must do to avoid Disconnection;

3. the Disconnection date and the period for which the Disconnection notice is effective;

4. for residential Customers, a statement of the Customer's right to postpone Disconnection due to a Medical Emergency with the Customer or an Occupant and a description of how to postpone the Disconnection according to Section 11;

5. a statement that the Customer can avoid Disconnection by negotiating a Payment Arrangement with affordable monthly installment payments and that the overdue amount must be paid in a reasonable period of time. This disclosure is not required if the Disconnection notice is for a broken Payment Arrangement;

6. a statement of the Customer's right to submit a dispute before the Disconnection date including the address and toll-free phone number of CASD;

7. a statement that the Customer cannot submit a dispute to CASD until the Customer has first tried to resolve the dispute with the Utility;

8. a telephone number that the Customer can call to resolve the situation causing the Disconnection and a statement that the call may be made collect from within the Utility's service area, unless a toll free number is offered or calls within the Utility's service area are toll free to the designated telephone number;

9. a statement of the reconnection charge, if any; and,

10. a statement of the Utility's policy concerning the requirement of a Deposit in the event of Disconnection.

K. Plain language Disconnection notice

Every Utility must use a plain language Disconnection notice that complies with the following guidelines:

1. The type size must be no smaller than 10 points high. The typeface (shape of the letters) should be designed to improve or enhance the visual size of the type. Headlines should be in larger or bold type. All text should be in capitals and lower case as opposed to ALL IN CAPITALS;

2. The color of the Disconnection notice and type must avoid problems for persons whose "color deficient" sight makes all colors appear as shades of gray;

3. The use of reverse-blocks in which letters appear as white against a black or dark gray background must be avoided; and

4. The headline on a disconnection notice must conspicuously be entitled "Disconnection Notice" in at least 12 point type.

L. Disconnection procedures

1. Time for Residential and non-residential Customers.

Disconnection must occur between 8:00 a.m. to 3:00 p.m. during the effective period of the notice. For Customers who have a meter with remote disconnect and reconnect functionality, Disconnection must occur between 8:00 a.m. and no later than 2 hours prior to the latest time in the same day that the Customer is able to contact the Utility to resolve the Disconnection. Disconnection cannot occur on a Friday, weekend, legal holiday, the day before a legal holiday or a day when the Utility's office is not open for public business. These restrictions can be varied if:

a. the Utility has made special arrangements with the Customer to disconnect at an alternative time;

b. access to the premises can only be obtained at an alternative time; or

c. the Disconnection is for a reason other than nonpayment.

2. Attempt to contact

A Utility must make a reasonable effort to contact the Customer personally before Disconnection occurs. This duty is met if the Utility:

a. contacts the Customer by telephone on the date specified in the notice or during the effective period of the Notice; or

b. attempts personal contact with the Customer at the time of a premise visit to disconnect.

For utilities that have the ability to remote disconnect, this duty is met if the Utility makes a least two telephone attempts, one before 5:00 p.m. and one after 5:00 p.m., and the Utility provides written notice of the Utility’s ability to remote disconnect pursuant to Section 5(A). These two telephone attempts may be made on the same day provided there is a minimum of 2 hours between the two calls.

3. Procedure upon contact before Disconnection

a. If the Utility obtains contact with the Customer before Disconnection, the Utility must attempt to avoid Disconnection. In any case, an authorized Utility employee must explain:

i. the amount overdue or other reason for the proposed Disconnection; and

ii. how the Disconnection can be avoided, including the Customer's obligation to pay the overdue amount or enter into an installment Payment Arrangement; notifying the Customer of the right to file a dispute with CASD in the event that the Customer is unable to resolve the issue with the Utility; explaining the duty of the Customer to pay any portion of a Bill which the Customer does not dispute; and asking residential Customers if anyone resides at the location that has a medical condition that would be seriously aggravated by a loss of Utility service. If the answer is “yes,” the employee must explain the process for postponing Disconnection due to a Medical Emergency.

b. A Utility employee who visits the premises to disconnect is not required to have the authority to negotiate or enter into Payment Arrangements or to accept payment or make change to avoid Disconnection. If the Utility employee is not authorized to fully explain the Customer's rights and obligations as described in paragraph 3(a) above, the employee must offer the Customer the opportunity to communicate with an employee who has this authority before disconnecting the service. If the Utility has already made Personal Contact with a Customer pursuant to subsection 2 above and the Customer has not taken the necessary steps to avoid Disconnection, the Utility is not required to postpone Disconnection a second time pursuant to this subsection to contact the Utility. If a Customer offers to pay the overdue amount to prevent Disconnection, the Utility employee must either:

i. accept payment, give a receipt and leave the service intact; or

ii. direct the Customer to the nearest location where payment is accepted and postpone Disconnection for a reasonable time.

c. The Utility may assess a reasonable fee pursuant to a rate schedule approved by the Commission when the overdue amount is paid in the situations described in paragraph b above.

4. Post-Disconnection notice

a. If Disconnection occurs as a result of a premise visit, the Utility must post or deliver a written notice to an occupant of the premises at the time of the disconnection. The written notice must contain:

i. the address and telephone number of the Utility;

ii. the overdue amount or other reason for the Disconnection;

iii. the requirements for reconnection; and

iv. the procedure for residential Customers to declare a Medical Emergency.

b. A Utility must mail the written notice required by this subsection within three business days when:

i. a Customer's billing location is different from the service location; or

ii. a premise visit was not required to disconnect.

5. Informational packet to disconnected residential Customers prior to the Winter Disconnection Period

By November 15 of each year, utilities must mail an informational packet to each residential Customer that was disconnected for non-payment between April 16 (the end of the previous Winter Disconnection Period) and October 15, who was not subsequently reconnected by November 1, that includes:

a. the address and telephone number of the Utility;

b. the overdue amount or other reason for the Disconnection;

c. the requirements for reconnection;

d. the procedure for residential Customers to declare a Medical Emergency pursuant to section 11 of this Rule;

e. the existence of the Utility’s LIAP, to the extent the Utility has one and procedures for enrollment pursuant to Chapter 314 of the Commission’s Rules;

f. the existence of the Utility’s Arrearage Management Program, to the extent the Utility has one, and procedures for enrollment pursuant to Chapter 317 of the Commission’s rules;

g. the existence of the Utility’s oxygen pump assistance program, to the extent the Utility has one and procedures for enrollment pursuant to Chapter 314 of the Commission’s Rules;

h. a copy of the Customer’s rights during the Winter Disconnection Period, pursuant to section 10(M)(7)(b);

i. the Customer’s right to bring any unresolved disputes to CASD; and

j. CASD’s toll-free consumer telephone number, as well as its mailing and email addresses.

The informational packet must be mailed to last known mailing address of the Customer.

M. Winter Disconnection of residential Customers and occupants

1. Customer Disconnection notices prohibited

A Utility may not send or deliver, orally, on paper, or electronically, to any residential Customer any notice or communication that provides for Disconnection of the Customer's Utility service on a specified date or within a specified interval of time during the Winter Disconnection Period.

2. Notice to Customers behind on their bills.

Utilities may issue notices to Customers who are behind on their bills during the Winter Disconnection Period of the need to contact the Utility to establish a Payment Arrangement or otherwise address the past due amount, provided these notices do not provide for the Disconnection of the Customer's Utility service on a specified date or within a specified interval of time during the Winter Disconnection Period. These notices must include a statement that the notice, similar to an actual Disconnection notice, can be used by the Customer to secure financial assistance.

3. Utilities seeking permission from CASD to disconnect service

In situations where a Utility plans to request permission from CASD to disconnect a Customer’s service, during the Winter Disconnection Period, the Utility must first provide notice to the Customer that: 1) states the Customer has a past due amount and that the Customer should contact the Utility to make a Payment Arrangement; 2) states the Customer may be eligible for a “Special Payment Arrangement” during the Winter Disconnection Period that includes the option of paying less than the full amount of bills as they become due; 3) states failure to respond to the notice may result in the Utility seeking permission from CASD to disconnect the Customer’s service; and 4) includes a prominent statement that the notice, similar to an actual Disconnection notice, can be used by a Customer to secure financial assistance; and 4) includes a prominent statement that Disconnection of a residential Customer's Utility service during the Winter Disconnection Period cannot take place without the advance permission of CASD, that the Customer will be notified of any request for such permission and that the Customer will have an opportunity to be heard by CASD.

Notice to Occupants where no individual has applied for Utility service

In situations where Utility service is being used but no person has applied for service, and the Utility plans to seek permission to disconnect the service during the Winter Disconnection Period, the Utility must first provide notice to the Occupant that: 1) states the Occupant needs to contact the Utility to apply for service; 2) states failure to respond to the notice may result in the Utility seeking permission to disconnect the Occupant’s service from the CASD; and 3) includes a prominent statement that Disconnection of a residential occupant's service during the Winter Disconnection Period cannot take place without the advance permission of CASD, that the occupant will be notified of any request for such permission and that the Occupant will have the opportunity to be heard by the CASD. This notice must be provided to the occupant through a premise visit. If the Occupant is not home when the premise visit is made, the notice must be left on the door. Once this notice is provided to the Occupant, if the Occupant fails to respond to the notice, the Utility may seek permission to disconnect the Occupant’s service pursuant to subsection 7 below.

5. Attempt at personal contact with residential Customer required prior to Disconnection

In situations where the Utility plans to disconnect a residential Customer, a representative from the Utility must attempt to make personal contact with the Customer in person or by telephone prior to seeking permission from CASD to disconnect the Customer’s service. When attempting to contact by telephone, the Utility must make at least two attempts to contact the Customer. One telephone call attempt should be made before 5:00 p.m. and one after 5:00 p.m. If the Utility fails to make personal contact with the Customer by telephone, but reaches the Customer’s voicemail, the Utility must leave the Customer a message stating that the Customer should contact the Utility as soon as possible to discuss the Customer’s account. If the Utility attempts personal contact through a premise visit and is unsuccessful, the Utility must leave a written Notice of Customer Rights at the premises.

Upon making personal contact, whether initiated by the Utility or the Customer, the Utility representative must orally provide the Notice of Customer Rights as specified in Section 10(M)(9) and give the Customer all reasonable assistance to ensure his or her understanding of said rights. If the Utility is not able to make personal contact with the Customer, the Utility must then proceed in accordance with paragraph 6 below and attempt contact in the manner described therein; provided that, if the Utility fails to make such personal contact by April 15, the Utility is not required to proceed in accordance with paragraph 4 but may proceed in accordance with Section 10(L)(2).

6. Failure to make personal contact with Customer

a. Unoccupied premises. If the Utility is unable to make personal contact with the Customer after at least one visit to the residential unit and it appears reasonably certain from an on-site inspection that the unit is not inhabited, the Utility must provide a written Notice of Customer Rights by first class mail to the last recorded billing address of the Customer. This Notice must be accompanied by a warning that, if a response is not received within five business days of the postmark date, the service may be disconnected. If a response is received within five business days after the postmark date, the Utility must proceed in accordance with the requirements of Section 9(E). If no response has been received by the Utility within five business days after the postmark date, the service may be disconnected in accordance with Section 10 (B). If, following disconnection, the residential unit is found to be occupied, the Utility must immediately reconnect service and proceed in accordance with the requirements of Section 9(E)(5).

b. Potentially occupied premises. If the Utility is unable to make personal contact with the Customer after at least one visit to the residential unit and is uncertain after an on-site inspection whether the unit is inhabited, the Utility must provide a written Notice of Customer Rights by first class mail to the last recorded billing address of the Customer. This Notice must be accompanied by a warning that if a response is not received by the Utility within five business days, the Utility may seek permission to disconnect from CASD. If a response is received within five business days after the receipt date of the mailing, the Utility must proceed in accordance with the requirements of Section 9(E)(5). If no response has been received by the Utility within five business days after the receipt date of the mailing or the mailing is returned to the Utility undelivered, the Utility may seek permission to disconnect from CASD pursuant to paragraph 7.

7. CASD permission required to disconnect during Winter Disconnection Period

a. During the Winter Disconnection Period, a Utility may not disconnect any Customer or Occupant except in one of the following circumstances and only after it has received the authorization of CASD:

i. The Customer rejects the opportunity to make a Payment Arrangement, if applicable, or does not agree to the terms specified by CASD.

ii. The Customer fails to comply with the terms of a second or subsequent Special Payment Arrangement or the terms of any other Payment Arrangement, if applicable.

iii. The Utility and CASD are not able to make contact with the Customer or occupant as specified in Sections 10(M)(4) or 10(M)(5) above.

b. Any Utility seeking permission to disconnect a Customer must submit its request including all supporting reasons in writing and send or deliver a copy to the Customer or the Occupant. The request must include copies of the notice(s) sent to the Customer as required by Sections 10(M)(2) or 10(M)(4) above. CASD will render its decision as soon as possible, and if rendered orally, will be confirmed in writing. In making a decision with respect to such authorization, the CASD will consider the individual circumstances of the Customer, including the Customer's efforts with respect to communication and cooperation with the Utility and CASD, ability to pay, need for Utility service during the Winter Disconnection Period, and compliance with the provisions of previous Special and Regular Payment Arrangements and will also consider the Utility's compliance with the requirements of this subsection with respect to the Customer. In addition to granting permission to disconnect a Customer, CASD may also grant a Utility permission to cycle disconnect a Customer. In this situation, the Utility would be required to follow the requirements of Section 10(M)(8) below. In denying a request to disconnect, CASD may set the terms for a Payment Arrangement for the Customer.

8. Cycle Disconnections

In situations where a Utility is granted permission to cycle disconnect a Customer, the Utility must comply with the following standards:

a. Disconnection will not occur before 8:00 a.m. and reconnection will occur no later than 5:00 p.m.

b. Disconnection will not occur on weekends or holidays.

c. Disconnection will not occur on days when the temperature is not expected to reach 32 degrees Fahrenheit or on days when predicted weather conditions might make it difficult for the Utility to reconnect. The second limitation does not apply to utilities that can cycle disconnect without making a premise visit.

d. Cycle Disconnection will not occur when standard disconnection would be prohibited at the time due to a Medical Emergency under Section 11 of this Rule.

9. Notice of Customer Rights

a. Oral Notice of Customer Rights. "Oral Notice of Customer Rights" means an easily understood explanation of the Customer's rights and responsibilities under this subsection. An oral Notice of Customer Rights must include the following information:

i. Customers will be provided an opportunity to enter into a either a Regular Payment Arrangement or a Special Payment Arrangement. If the Utility and the Customer fail to agree on the terms of the either type of Payment Arrangement, the Utility must submit the matter to CASD. If the Customer fails to contact the Utility to make a Payment Arrangement or if the Customer fails to make payments according to the Payment Arrangement, the Customer can be disconnected if the Utility receives authorization from CASD.

ii. A general description of the Payment Arrangement options offered by the Utility.

b. Written Notice of Customer Rights. All electric and gas utilities must include a copy of the Notice of Customer Rights with the first bill rendered to a residential Customer after November 1. A copy of the Notice is included in this Rule as Attachment 1.

10. Copies of notices must be filed with CASD

Each Utility shall file with CASD a copy of all notices, bill inserts or additions, forms, and instructional materials which it develops and uses pursuant to this subsection. If the Utility makes substantive changes to these materials, it must provide copies of the revised materials to CASD.

11. CONTINUATION OF UTILITY SERVICE IS REQUIRED FOR RESIDENTIAL CUSTOMERS WITH A MEDICAL EMERGENCY

A. Basic service is required for residential Customers when a Medical Emergency necessitates a continuation of service

A Utility may not disconnect service to any residential Customer when the Customer or an Occupant of the Customer's residence is certified to have a Medical Emergency by an Authorized Medical Professional . If a Utility discovers after a Disconnection of service that the Customer or an Occupant of the Customer's residence was eligible to declare a Medical Emergency pursuant to subsection E at the time of the Disconnection and is certified by an Authorized Medical Professional to have a Medical Emergency, the Utility must reconnect the service pursuant to subsection D.

B. Disconnection postponed pending certification

If the Customer or member of the Customer's household notifies the Utility that the Customer or an Occupant of the Customer's residence has a Medical Emergency and that certification of the Medical Emergency will be obtained, the Utility may not disconnect service for at least three business days. The effective period of a pending Disconnection notice can be extended three additional business days to accommodate this three-day period if the Utility notified the Customer of the extension at the time the Utility was notified of the Medical Emergency.

C. Certification procedure

Certification of a Medical Emergency from an Authorized Medical Professional may be oral or written. A Utility may not challenge the validity of an oral or written certification with an Authorized Medical Professional, unless the Utility has reason to believe that fraudulent information has been provided by the Customer. If the Utility has reason to believe that certification is not valid, it should file a request for an exemption of this Section with CASD. The Utility may require written confirmation within seven days of an oral certification. The Utility may require that a written certification include the following if the Utility provides a form for the Authorized Medical Professional to complete:

1. The name and service location of the Customer (to be provided by the Utility).

2. The name and address of the person with the Medical Emergency.

3. A statement that a serious illness or medical condition exists which would be seriously aggravated by lack of Utility service.

4. The anticipated length of the Medical Emergency.

5. The specific reason why continued service is required.

6. The name, office address, telephone number and signature of the certifying Authorized Medical Professional.

If the written certification is not provided within the seven-day period, the Utility may proceed with Disconnection if the pending Disconnection notice is still effective or may pursue Disconnection pursuant to Section 10(D)(3) if the pending Disconnection notice has expired.

D. Reconnection of service

When a Utility is required to reconnect service under this Section, the Utility must attempt to provide service on the day it receives the certification. In any case, service must be provided by 5:00 p.m. of the next day.

E. Length of certification; renewals

The Utility may not disconnect the Customer for the time period specified in the certification or 30 days, whichever is less. If the certification does not specify a time period or it is not readily ascertainable, the Utility must not disconnect for a least 30 days. A certification may be renewed a total of two times during any 12-month period. This limitation applies to the premises as a whole, i.e., regardless of how many different people with a Medical Emergency reside at the same Premises, the Utility must accept no more than a total of three Medical Emergency certifications for the Premises within a 12‑month period.

F. Customer's duty to pay or make a payment arrangement

Whenever service is provided due to the existence of a Medical Emergency, the Utility must inform the Customer of the continuing duty to pay or make a Payment Arrangement for the amount overdue. A Utility must offer to refer a Customer to possible sources of financial assistance for the payment of the Utility bill when a Medical Emergency is declared.

G. Disconnection upon expiration of a certification

A Utility may begin Disconnection procedures when a certification of a Medical Emergency expires if the Customer has failed to pay or enter into a Payment Arrangement for the amount overdue.

12. RECONNECTION OF SERVICE

A. Duty to reconnect

If service has been disconnected, the Utility must reconnect service pursuant to this Section when the cause of Disconnection has been remedied.

B. Payment Arrangement, Deposit

1. Residential Customers

a. Customers not on a Payment Arrangement at the time of Disconnection

A Utility must offer the Customer a reasonable Payment Arrangement on the Account Balance if the Disconnection was for nonpayment and the Customer was not on a Payment Arrangement at the time of the Disconnection. If the Utility demands a Deposit as a prerequisite for reconnection, the Utility must offer the following options to the Customer:

i. pay the Deposit and enter into a Payment Arrangement for the amount overdue;

ii pay the amount overdue and enter into a Payment Arrangement for the Deposit; or

iii pay the Deposit and amount overdue in full.

b. Customers on a Payment Arrangement at the time of Disconnection.

If the cause of the Disconnection was a broken Payment Arrangement, the Utility must either:

i. require the Customer to pay the Catch-up Amount on the arrangement, in addition to a Deposit if a Deposit is allowed by section 7(A) of this Rule and is requested by the Utility, and a reconnection fee, as a prerequisite for reconnection, if the customer was not participating in the Utility’s LIAP or AMP at the time of the disconnection, provided it has such a fee in its rate schedule approved by the Commission. In these situations, the Utility must offer the Customer the option of paying the Deposit in a manner consistent with the process described in section 7(F)(1) of this Chapter, with the exception that the first monthly payment cannot be due earlier than the due date of the first Bill issued following the reconnection; or

ii. offer the Customer a new Payment Arrangement. If the Utility demands a Deposit as a prerequisite for reconnection, the Utility must offer the options listed in subsection B(1)(a) above to the Customer.

2. Non-residential Customers

For non-residential Customers, utilities may require the Customer to pay the amount overdue and a Deposit before the reconnection of service. The Utility may also require the Customer to pay a reconnection fee prior to reconnection or include the reconnection fee in the next Bill, provided it has such a fee in its rate schedule approved by the Commission.

C. Time

The Utility must make a reasonable effort to reconnect service during business hours on the same day that it receives the request to reconnect. At the latest, reconnection must be made before 5:00 p.m. the following business day after the request. If a Customer requests reconnection to occur at other than regular business hours, the Utility must inform the Customer of the higher reconnection charge, if applicable, and make a reasonable effort to reconnect if requested, but the Utility is not obligated to do so unless a Medical Emergency is in effect. Any request to reconnect where the Utility receives notice that the cause of the Disconnection has been remedied by3:00 p.m. must be considered as received during “normal business hours” the same day the notice was received for the purposes of assessing a reconnection fee.

D. Reconnection fee

A Utility may file a rate schedule to charge a reasonable fee for reconnection during regular business hours and a higher fee for reconnection at other times.

13. INFORMAL DISPUTE RESOLUTION PROCESS

A. Toll‑free line

Utilities whose Customers must make a toll call to reach them must provide a toll-free line for Customers to call to resolve billing and service Disputes.

B. Employees available

A Utility must have an adequate number of properly trained employees available during business hours to respond to questions from Applicants and Customers, resolve Disputes, and address requests for service. Customers calling the Utility must be provided the opportunity to talk to a live Customer representative without spending an unreasonable amount of time on hold and without being forced to navigate through an unreasonable number of menu levels in an automated phone answer system. If a Customer’s call is not automatically forwarded to a live person once a menu option is selected, the option to speak to a live representative must be provided as a menu choice. A Utility with fewer than five full-time employees or fewer than 300 Customers is not required to have an informed employee available at all times during business hours. If such a Utility achieves contact with a Customer before Disconnection, the Utility must not disconnect the Customer until it has offered the Customer the opportunity to resolve a Dispute or to avoid Disconnection by contact with the employee who is authorized to resolve Disputes and enter into Payment Arrangements.

C. Disconnection of service prohibited

A Utility may not threaten Disconnection or disconnect the service of a Customer if the Customer has informed the Utility that the Customer disputes liability for the bill, a Utility's Deposit request, or the terms of a Payment Arrangement required by a Utility to avoid Disconnection, until the Dispute is resolved pursuant to subsection D below. When a Customer disputes only a portion of the Bill, the Utility may require payment of that portion not in dispute to prevent Disconnection.

D. Utility Dispute resolution process

When a Utility becomes aware of a Dispute by an Applicant or Customer, whether or not Disconnection is pending, the Utility must:

1. Investigate dispute

Investigate the Dispute, preserving a record of the substance and results of the investigation;

2. Report results

Report the results of its investigation to the Applicant or Customer based on the record; and

3. Attempt to resolve dispute

Attempt in good faith to resolve the Dispute.

E. Dispute record maintenance

All utilities must preserve records of Disputes for a period of ten years from the date the Dispute was resolved and those records must be available for examination by the Commission. Utilities must maintain sufficient records, either in writing or electronically, to demonstrate compliance with Title 35, the Commission’s rules, and approved terms and conditions. The dispute records must include, but are not limited to:

1. the name and address of the Applicant or Customer with the Dispute;

2. the date and subject matter of the Dispute;

3. the record of investigation required by this Section;

4. all communications to or from the Applicant or Customer regarding the Dispute;

5. the adjustment or resolution offered to the Applicant or Customer; and

6. the final adjustment or resolution.

F. Notification of right to file a complaint with the CASD

If a Utility cannot resolve a Dispute with an Applicant or Customer after the procedures set forth above have been completed, the Utility must orally inform the Applicant or Customer that they may request CASD to informally investigate the Dispute and the Utility must provide the toll‑free telephone number of the CASD. If the request for an informal investigation concerns a pending Disconnection, the Utility must orally inform the Customer that the request for an informal investigation must be filed before the Disconnection date or within two business days of the oral notice, whichever is later. During that time, the Utility may not disconnect the Customer's service. If the two-day extension exceeds the Disconnection date of the notice, the effective period of the notice can be extended to accommodate the two-day extension period.

G. Limitation of disconnection during CASD informal investigation

1. Limitation on Disconnection pending resolution

A Utility may not threaten Disconnection or disconnect service to a Customer who disputes liability for the bill, a Utility's Deposit request, or the terms of a Payment Arrangement required by a Utility to avoid Disconnection and has requested an informal investigation by CASD until the investigation is complete pursuant to Section 13(H) and (I) below. Non-residential Customers must pay their monthly charges that accrue after filing a request for investigation regarding a disputed Payment Arrangement until the investigation is complete, including the outcome of any review by the Commission.

2. Reconnection pending resolution

If a Customer files a request for informal CASD investigation after service has been disconnected, the Customer is entitled to reconnection pending completion of the investigation only if the Director of CASD finds reasonable grounds to believe that the Utility has failed to follow the Disconnection provisions of this Rule (Section 10) or has failed to notify the Customer of the right to file a request for investigation with CASD as required by Section 13(F) above. If the Director of CASD orders the Utility to reconnect service on this basis, the Utility must reconnect the Customer's service without reconnection charges or Deposit.

H. CASD review process

1. CASD acceptance of request for informal investigation

CASD will consider requests for informal investigations of Disputes pursuant to Title 35-A M.R.S. § 1303(1) CASD will not, however, investigate if the Customer has not first attempted to resolve the Dispute with the Utility, pursuant to Section 13(D) above. CASD will decline a request for an investigation if the issues raised are not substantially related to the requirements of this Rule. Further, if CASD addressed the same issue that is the basis for the request for an investigation, CASD will decline a request unless the Applicant or Customer demonstrates that there is a significant change in circumstances or substantial new information to be presented to CASD. In the event a request for a CASD investigation is declined because the issues are not substantially related to the requirements of this Rule, but the request for investigation otherwise raises issues regarding Utility compliance with applicable statutes, rules, or approved terms and conditions, the Director of the CASD may in their sole discretion refer the matter to the Commission for consideration of whether to pursue an investigation pursuant to Title 35-A section 1303.

2. CASD informal investigation of a Dispute

CASD will inform a Utility that a request for informal investigation has been filed and the date of the filing by whatever means is acceptable to both CASD and the Utility, including, for example but not limited to in writing, by telephone, or by electronic means such as e-mail. CASD will conduct an informal investigation of the Dispute that may include:

a. an informal meeting with the Customer or Applicant, and/or the Utility;

b. a review of the written record of the Utility’s investigation required by Section 13(D) above; and

c. an examination of other records, such as billing and payment information, notice of disconnection, or any other information that CASD deems relevant to the Dispute.

3. Provision of information to CASD by a Utility

A Utility must provide information requested by CASD within 10 business days of its receipt of the request. This information may include, but is not limited to, billing and payment information, notice of disconnection information, the written record of the Utility's investigation of the Applicant’s or Customer's Dispute, or any other information in the Utility's possession or that is readily available to the Utility that CASD deems necessary to review the Customer Dispute. If the Utility cannot provide the requested information within the 10-day time period, it may request an extension from the Director of CASD or the Director’s designee. The extension request may be made orally or in writing and it may be granted or denied orally or in writing.

4. Letter

CASD will complete its informal investigation and issue a written letter within 30 days of its receipt of the information from the Utility that is deemed necessary by CASD to resolve the Dispute. The decision by CASD letter will determine any just and reasonable requirements necessary to resolve the issues raised, including, but not limited to:

a. reconnection of service, deposit requirements;

b. Payment Arrangement terms;

c. an adjustment of late fees accrued since the Dispute was received;

d. a refund or a credit in situations where a Customer has paid more to the Utility than the Customer owed;

e. a determination of whether a violation of this Rule has occurred; and

f. a determination that a Utility may proceed with Disconnection in appropriate circumstances.

5. Notice of Opportunity for Commission Review

When CASD issues a letter following an informal investigation of a Dispute, it will inform the Applicant or Customer and the Utility that they may request Commission review of CASD’s letter and of the rights of both parties while a Commission review is pending.

I. Request for Commission Review of a CASD Letter

1. Request for Review Process

2. The Applicant or Customer or the Utility may request Commission review of a CASD letter by filing a request for review with the Administrative Director of the Commission within 10 calendar days after the date of the CASD letter. During the 10-day period in which a request for Commission review may be made, the Utility may not disconnect service to a Customer.

3. Comments in response to a request for review may be filed by the Applicant or Customer or Utility, that is, whoever did not file the request for review, within 10 calendar days after the date the request for review is filed.

4. The receipt of a request for review by the Commission will be treated as a request for investigation pursuant to 35-A M.R.S. § 1303. The Commission will conduct a summary investigation, after which the Commission will determine whether a formal investigation is warranted.

5. Disconnection delayed and payment required

If a request for review is filed with the Commission, a Utility may not disconnect the Customer's service until the Commission review is completed. This prohibition stands, even if CASD’s letter allows the Disconnection. If a request for review is filed with the Commission regarding a disputed Payment Arrangement, a non-residential Customer must pay its monthly charges that accrue until the Commission completes its review.

Further CASD review

Upon consideration of a request for Commission review, the Director of CASD may determine that additional CASD review is warranted. Upon such a determination, CASD will conduct further review and issue a supplemental letter.

4. Commission review

Upon consideration of a request for Commission review of a CASD letter, the

Commission may direct CASD or other Commission staff to informally

investigate the dispute further. If the Commission initiates a formal

investigation, it will issue a notice of investigation pursuant to 35-A M.R.S. §

1303(2). If the Commission

declines to further investigate the dispute, a failure to act in accordance with the

CASD letter will constitute grounds for the Commission to commence a formal

investigation pursuant to 35-A M.R.S. § 1303(2). The Commission or its staff

will inform the Applicant or Customer and the Utility of a Commission

determination not to conduct further investigation.

14. CUSTOMER NOTICE OF PLANNED AND UNPLANNED SERVICE INTERRUPTIONS DUE TO MAINTENANCE OR REPAIRS

The term "interruption" in this subsection means either a cessation of service or a substantial degradation in the quality of service normally provided. A Utility may temporarily interrupt service when it is necessary to repair or maintain the Utility delivery system (planned or unplanned); to eliminate an imminent threat to life, health, safety or substantial property damage; or for reasons of local, state or national emergency. Whenever a Utility performs any of these tasks, the Utility must take all reasonable measures to ensure the safety of its Customers and to protect Customers’ property against damage.

A. Reasonable notice required

When the Utility schedules a service interruption for maintenance or repairs, the Utility must give reasonable notice of the cause and expected duration of the interruption to Customers and occupants who may be affected. If the service interruption is scheduled to affect more than 10 Customers or Customers receiving service at the transmission or sub-transmission level, or last more than five hours, reasonable notice means three days if feasible, but 24 hours at a minimum. In other cases reasonable notice means notice as soon as practicable.

B. Notification of affected Customers

When service is interrupted without notice for more than five hours, u Utilities must make reasonable efforts to notify other affected Customers and Occupants of the cause and expected duration of the interruption through general notification means such as posting outage information on a website and making outage information available to Customers that call the Utility. Further, transmission and distribution utilities must attempt to notify directly those Customers who have informed the Utility of the presence of life support systems or other special needs that depend on Utility service of the cause and expected duration of the outage.

C. Method of notification

Notice required by paragraphs A and B can be given by the method best suited to the nature of the interruption, the size of the area affected, the time of year, and the resources available to the Utility.

D. Identification of Customers on life support

A transmission and distribution Utility must solicit Applicants and Customers to report the presence of life support systems, pursuant to Section 5(A)(11). Once reported, the transmission and distribution Utility must identify these Customers in its billing system, outage restoration system, and at the Customer’s meter.

15. ANNUAL REPORTS TO THE COMMISSION

Every Utility must file the following information with the CASD by February 15 of each year, with the information listed separately for residential and non-residential Customers (unless otherwise specified):

1. The average number of accounts receiving service (to obtain the annual average, sum the month-end totals and divide by 12);
2. The average Customer bill per billing period and per year (divide the total residential revenues receivable by the number of bills issued);
3. The average number of accounts with overdue amounts per billing period (an overdue amount is the amount billed to the Customer that was not paid by the due date of the Bill or by a date otherwise agreed upon);
4. The average dollar amount of overdue amounts per billing period;
5. The number of Disconnection notices issued per month;
6. the number of Disconnections for any reason other than at the request of the Customer or the abandonment of the premises per month;
7. The number of residential reconnections following Disconnection per month (do not include requests for service by new Customers);
8. The number of residential reconnections following Disconnection per month where the service was placed in another person’s name;
9. The number of residential accounts that were disconnected without consent that year that were not reconnected prior to the start of the Winter Disconnection Period. This number should not include accounts that were placed in another person’s name;
10. The number of Payment Arrangements negotiated by type;
11. The number of Deposits requested and received and their average dollar amount;
12. The number of applications for service that were denied;
13. The number of residential applications for service in which the Utility demanded a Deposit or Payment Arrangement according to Section 6(A)(1)(a)(iii) (after the request for service, but within 60 days);
14. The gross revenue received;
15. The actual write off amounts and method used to ascertain those figures (and any other figures which reflect uncollectible amounts);
16. The amount recovered from previously written off amounts and method used to ascertain those figures;
17. The number of cases and dollar amount of unpaid debt pursued through the court system or other means, the costs of collection by each method, with an identification of those accounts in which the Utility could have but did not transfer the prior debt to a current account according to Section 6(A)(1)(a) and 6(C); and
18. The total number of Customer Disputes handled.

16. WAIVERS

Upon the written request of any person subject to this Rule or upon its own motion, the Commission may, for good cause, waive any requirement of this Rule that is not required by statute. The waiver may not be inconsistent with the purposes of this Rule or Title 35‑A. The Commission, the Director of CASD, or the Presiding Officer assigned to a proceeding related to this Rule, may grant the waiver.

17. EXEMPTION

A Utility may request that CASD grant an exemption from any provision of this Rule in any case involving an individual Applicant or Customer whose conduct and known financial condition pose a clear danger of substantial losses to the Utility. A request for exemption under this subsection must be made to CASD. The request may be written or oral, but an oral request must be followed promptly by a written confirmation. The written request or confirmation must include a detailed statement of the facts alleged by the Utility in support of the request. The Utility must immediately notify, in writing, the individual Applicant or Customer whose service would be affected by the proposed exemption, describing the nature and effect of the requested exemption and the facts alleged in support of the request.

2. CASD review

CASD may reject any request for exemption that does not present facts that satisfy the standard of Section 17(1) above.

3. Decision

CASD will issue a written letter granting, denying, or granting in part the requested exemption. When CASD determines that an exemption is required to avoid a clear danger of substantial losses to the Utility, it will notify the Customer or Applicant and the Utility of the determination. The notification may be made orally, but a written confirmation of CASD’s determination must be promptly issued. The letter or subsequent written confirmation must:

a. describe the nature and effect of the exemption;

b. explain why the exemption was granted or denied; and

c. inform the Customer and the Utility of the opportunity to request Commission review of CASD’s letter, as provided in Section 13(I) above.

4. Request for Commission Review of CASD Letter Regarding Exemption

By following the procedures in Section 13(I) of this Rule, a party may request Commission review of a CASD letter granting or denying, in whole or in part, a request for an exemption. If CASD grants an exemption, the Utility may not act on the exemption until the opportunity to request Commission review expires.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2023-00323, issued on August 13, 2024. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111, 704, 705, 718, 719, 1308; P.L. 2021 ch. 347, P.L. 2021, ch. 586, Res. 2023, ch. 145
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 13, 2007. It was filed with the Secretary of State on September 14, 2007 (filing 2007-411) and became effective on September 19, 2007.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 19, 2009. It was filed with the Secretary of State on June 23, 2009 (filing 2009-263) and became effective on June 28, 2009.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 1, 2012. It was filed with the Secretary of State on May 2, 2012 (filing 2012-138) and became effective on June 1, 2012.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 25, 2013. It was filed with the Secretary of State on July 26, 2013 (filing 2013-182) and became effective on July 31, 2013.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General February 12, 2020. It was filed with the Secretary of State on February 18, 2020 (filing 2020-028) and became effective on February 23, 2020.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on January 4, 2022. It was filed with the Secretary of State on January 4, 2022 (filing 2022-003) and became effective on January 9, 2022.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 15, 2024. It was filed with the Secretary of State on August 23, 2024 (filing 2024-187) and became effective on August 29, 2024.
• EFFECTIVE DATE: Appendix A
• EFFECTIVE DATE: AVOID WINTER DISCONNECTION - KNOW YOUR RIGHTS
• EFFECTIVE DATE: If you are unable to pay your electric [gas] bill this winter, you can avoid losing your service. To do so ---
• EFFECTIVE DATE: 1. You must contact us. You must let us know that you cannot pay your bill. We cannot help you if you do not contact us. Please call us at ________________.
• EFFECTIVE DATE: 2. To avoid possible disconnection, you must enter into a payment arrangement. We will offer you several payment options to pay your winter electric [gas] bills in monthly payments that you can reasonably afford. In most cases, you must pay all that you owe us by the following November 1.
• EFFECTIVE DATE: 3. You may be eligible to participate in our Low Income Assistance Program. This program provides financial assistance to eligible Customers to help pay your electric bills. To learn more about our Low Income Assistance Program, you can either contact us at ________________ or contact your local Community Action Agency.
• EFFECTIVE DATE: [#4 for electric utilities only]
• EFFECTIVE DATE: 4. You may be eligible to participate in our Oxygen Pump/Ventilator Assistance Program. This program provides financial assistance to eligible Customers who for health-related reasons must use an oxygen pump or ventilator at least 8 hours each day. To learn more about our Oxygen Pump/Ventilator Assistance Program, you can either contact us at ________________ or contact your local Community Action Agency.
• EFFECTIVE DATE: 5. You may also be entitled to other financial assistance from State or local government agencies or other private sources to help you pay your Utility bills. To find out more about available financial assistance, we recommend that you call 211. While we cannot obtain assistance for you, we may also be able to refer you to others who can help you apply. In addition, we may be able to provide you with or refer you to others who can provide no-cost energy audits, weatherization or other measures to reduce high electricity [gas] usage and reduce your monthly bill.
• EFFECTIVE DATE: 6. Failure to contact us may result in disconnection with the approval of the Consumer Assistance and Safety Division of the Maine Public Utilities Commission.
• EFFECTIVE DATE: If you have questions, please call us at __________________. If you are not satisfied, call the Consumer Assistance and Safety Division of the Maine Public Utilities Commission TOLL FREE at 1-800-452-4699.
• EFFECTIVE DATE: YOU MUST TAKE THE FIRST STEP.
• EFFECTIVE DATE: DO NOT LET YOUR ELECTRIC [GAS] BILL GET AHEAD OF YOU.

Chapter 820 Utility Requirements for Non-Core Activities and Transactions Between Affiliates

Code Me. R. 65-407 Ch. 820 Utility Requirements for Non-Core Activities and Transactions Between Affiliates {#sec-65-407-ch.-820 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 820}

SUMMARY: This rule describes the record keeping, accounting and structural requirements that Maine utilities must comply with if they engage in non-core business activities consistent with the requirements in 35-A M.R.S.A. §§ 503, 707, 708, 713, 714 and 715.

1. EXEMPTIONS 4

2. DEFINITIONS 4

A. Aggregate Customer Information (ACI) 4

B. Capitalization 4

C. Core Utility Service 4

D. Customer Specific Information (CSI) 4

E. De minimis Service 4

F. Good Will 5

G. Intangibles 5

H. Investment Grade Bond Rating 5

I. Local Exchange Carrier 5

J. Mutual Aid Service 5

K. Non-Core Service 5

L. Service Territory 5

3. SEPARATE CORPORATE ENTITY FOR NON-CORE UTILITY SERVICES 6

A. Limitation 6

B. Establishment of Separate Corporate Entity 6

C. Use of Existing Affiliate 6

D. Transactions Between a Utility and Its Affiliate(s) 6

4. VALUE OF UTILITY GOODS, SERVICES AND INTANGIBLES 6

A. Valuing Utility Equipment, Facilities, Services, or Personnel used by an Affiliate or for De minimis Service 6

1. Fully Distributed Cost Methodology 6

B. Valuing Utility Assets Transferred to Affiliate 7

C. Value of Good Will 7

D. Value of Utility Intangibles Transferred to an Affiliate or Used

by an Affiliate 7

E. Valuing Use by a Utility of an Affiliate's Equipment Facilities,

Services or Personnel 7

F. Value of Affiliate Asset Transferred to a Utility 8

G. Cost Manual 8

H. Charges to Affiliate; Reports 8

5. LIMITATION ON UTILITY INVESTMENTS IN AFFILIATES 8

A. Investment Permitted without Commission Approval 8

B. Investment Not Permitted 8

C. Investment Governed by Sections 707 and 708 of Title 35-A 8

6. RATEMAKING TREATMENT 9

A. Below the Line Treatment 9

B. Value of Intangibles; Presumption in Favor of Allocation to Ratepayers 9

C. Ratemaking Methodology for Intangibles Other Than Good Will 9

7. FILING REQUIREMENTS 9

A. Notification of Intent to Undertake Non-Core Utility Activity 9

B. Type of Notification 9

1. New Corporate Entity 9

2. Use of Existing Affiliate 9

C. Information to be Included with Section 707 Filing 10

D. Information Required to Be Included with Section 708 Filing 10

8. STANDARDS OF CONDUCT 11

A. Limits on Use of Customer Information 11

1. Use by Affiliate of CSI or ACI 11

2. Availability of CSI or ACI 11

3. Affirmative Permission of Customer Required 11

B. Obligation to Provide Information 11

C. Preferences Forbidden 11

D. Additional Standards of Conduct 11

9. WAIVER 11

10. EXEMPTIONS. Consumer-owned electric utilities as defined in section 3501 of Title 35-A, telephone utilities and water utilities are exempt from this rule except that local exchange carriers and investor-owned water utilities are subject to sections 4(C), 4(D), 6(B) and 6(C) of the rule.

11. DEFINITIONS

A. Aggregate Customer Information (ACI). "Aggregate customer information" is information about a population of utility customers that does not identify any individual customer and is available to a utility solely by virtue of the utility-customer relationship.

B. Capitalization. "Capitalization" means the sum of the utility's debt and equity.

C. Core Utility Service. "Core utility service" means the generation, transmission or distribution of electricity or gas, services necessary to perform those functions, services for which the utility is the provider of last resort or services the Commission requires the utility to provide, except that any service that a utility provides outside its service territory is not a core service.

D. Customer Specific Information (CSI). "Customer specific information" is information that describes the usage, technical configuration or type of utility service subscribed to by a particular customer of a public utility and is available to the utility solely by virtue of the utility-customer relationship.

E. De minimis Service. " De minimis service" is a service for which the investment does not exceed 0.1% of the utility's capitalization and total gross revenues received from providing that service do not exceed 0.1% of the utility's annual gross revenues. If the total revenues received from providing all de minimis services exceeds 2% of the utility's gross annual revenues, or if the utility's total investment for all de minimis services exceeds 2% of the utility's capitalization, the utility shall report that fact and the associated details to the Commission, which may, at its discretion, investigate and dispose of the matter as appropriate, including a determination that one or more of the services is no longer de minimis . If the utility continues a service thus determined not to be de minimis , it must be established as a non-core service consistent with the appropriate sections of this rule. Notwithstanding the preceding sentence, the utility may, at any time, provide de minimis services up to the above-stated individual and aggregate limits.

F. Good Will. "Good will" is a benefit or advantage to the utility of having an established reputation and established customer relationships, and includes the use of the name and reputation of the utility. The use of the good will of the utility by an affiliate is conclusively established where 1) the affiliate uses the name of the utility; or 2) the affiliate engages in joint marketing or joint advertising with the utility.

G. Intangibles. "Intangibles" are assets or property that have no material existence, and include (without limitation) company name, customer relationships, reputation, good will, rights of way, copyrights, patent rights, trade secrets, trademarks, trade names, royalty interests, licenses, franchises, leases, and mortgages.

H. Investment Grade Bond Rating. "Investment grade bond rating" is a rating for senior secured debt of above BB+ for Standard and Poor’s, Duff and Phelps Credit Rating Company or Fitch Investors Service or above Ba1 for Moody's Investor Service. If a utility is not publicly rated, investment grade bond rating may be determined by a private letter rating.

I. Local Exchange Carrier. A "local exchange carrier" (LEC) is a telephone utility, as defined by 35-A M.R.S.A. § 102(19), that provides telephone exchange service or interexchange access service within a telephone exchange or interexchange access service within a telephone exchange pursuant to authority granted by or under Private and Special Law of the State of Maine; or Public Law 1895, ch. 103, § 103 or subsequent codifications or 35-A § 2102; LECs include incumbent local exchange carriers and competitive local exchange carriers, and local resellers, all as defined in Chapter 280 of the Commission's Rules. A local exchange carrier does not include a provider of commercial mobile radio service.

J. Mutual Aid Service. "Mutual aid service" means service that meets the definition of core service when provided within a utility's own service territory but that is provided temporarily outside the utility's service territory for the sole purpose of assisting another utility in meeting its service obligations.

K. Non-Core Service. "Non-core service" is any service provided by an electric or gas utility, or any affiliate of an electric or gas utility, that does not meet the definition of core utility service, de minimis service or mutual aid service.

L. Service Territory. "Service territory" means the geographic area in which the utility has been authorized to serve, as of the effective date of this rule, by:

(1) an order issued by the Commission pursuant to 35-A M.R.S.A. § 2102(1) or § 2104;

(2) private and special law preserved by 35-A M.R.S.A. § 2102(2); or otherwise authorized by law.

3. SEPARATE CORPORATE ENTITY FOR NON-CORE UTILITY SERVICES

A. Limitation. A utility may not offer core and non-core services through the same corporate entity. A utility must establish a separate corporate entity to offer non-core services.

B. Establishment of Separate Corporate Entity. When a utility establishes a separate corporate entity through which to provide non-core services, the establishment of that entity is subject to the reorganization requirements in 35-A M.R.S.A. § 708.

C. Use of Existing Affiliate. A utility may undertake non-core utility activities in an existing affiliated interest, upon complying with the notice requirements in Section 7 below. A utility must obtain Commission approval pursuant to 35-A M.R.S.A. § 707 for any new arrangement or contract between the existing subsidiary and core utility arising from the non-core activity.

D. Transactions Between a Utility and Its Affiliate(s). A utility must seek Commission approval for all transactions between the utility and its affiliate or affiliates pursuant to 35-A M.R.S.A. § 707 and section 4 of this rule.

4. VALUE OF UTILITY GOODS, SERVICES AND INTANGIBLES

A. Valuing Utility Equipment, Facilities, Services, or Personnel used by an Affiliate or for de minimis Service. Any utility equipment, facility, service or personnel used by an affiliate or used by a utility to provide de minimis service shall be charged to the affiliate at the tariffed rate, if available, or in the absence of a tariffed rate at the market price, if available, or otherwise at fully distributed cost. The amount charged in accordance with this subsection shall be recorded as income on the books of the utility.

1. Fully Distributed Cost Methodology. To the extent a utility must assign and apportion costs between its core utility service and non-core activities using the fully distributed cost methodology, it shall do so in accordance with the principles set forth in the Federal Communication Commission's rules regarding cost allocations to regulated and non regulated activities, 47 C.F.R. § 64.901(b)(1-4), attached hereto as appendix A.

B. Valuing Utility Assets Transferred to Affiliate. A utility asset transferred to an affiliate shall be recorded at the market price of the asset.

C. Value of Good Will. The value of the utility's good will used by an affiliate must be determined as follows:

1. The value of good will to be paid annually by an affiliate must be determined on an annual basis for an initial 3-year period beginning on the date that the affiliated transaction is approved or upon the date that the affiliate will commence use of the good will, whichever is later.

2. At the end of the initial 3-year period, the Commission shall reexamine the value of good will to be paid by the affiliate for the use of good will for the next 3-years;

3. The value of good will shall be presumed to be, and calculated as, 1% of the total capitalization of the affiliate, or 2% of the gross revenues of the affiliate, whichever is less, and shall be paid annually by the affiliate. Where the name of the utility has been used in Maine by the utility for less than 3 years, the value of good will shall be presumed to be zero. At the end of six years from the date the affiliated transaction is approved or upon the date that the affiliate commences use of the good will, whichever is later, the value of good will is zero.

4. Any party may present evidence that the value of good will is greater than, or less than, the presumptions stated in paragraph 3.

5. The value of good will and the payments for its use are calculated on a going-forward basis. An affiliate is not required to pay for good will used before the effective date of this rule.

6. This subsection applies only to affiliates created on or after September 19, 1997.

D. Value of Utility Intangibles Transferred to an Affiliate or Used by an Affiliate. The value of any utility intangible, other than good will, transferred to or used by an affiliate is the market value of the intangible.

E. Valuing Use by a Utility of an Affiliate's Equipment Facilities, Services or Personnel. Equipment, facilities, services or personnel of an affiliate used by a utility shall be priced at the same price charged non-affiliates. If no such price is available, the service, facility or personnel shall be priced at the market price of the use of the equipment, facility, service or personnel.

F. Value of Affiliate Asset Transferred to a Utility. An affiliate asset transferred to a utility shall be recorded at the market price of the asset.

G. Cost Manual. A utility shall maintain a cost manual or other written material documenting its cost allocation methodology.

H. Charges to Affiliate; Reports. The utility shall charge its affiliate an appropriate amount determined pursuant to subsections A through F. Any extension of payment terms beyond the terms offered in the course of normal business requires Commission approval. As part of its annual report, filed pursuant to 35-A M.R.S.A. § 504, the utility shall indicate the amount received from its affiliates for the use of the utility's equipment, facilities, services, personnel and intangibles. The utility's outside auditors must check for compliance with this chapter and applicable Commission orders.

5. LIMITATION ON UTILITY INVESTMENTS IN AFFILIATES

A. Investment Permitted without Commission Approval. A utility that has attained investment grade bond rating and has not filed for, or been granted, a temporary rate increase pursuant to 35-A M.R.S.A. § 1322 may invest in an affiliated interest a total amount not to exceed five percent of the utility's capitalization without specific Commission approval of the investment.

B. Investment Not Permitted. No petition for affiliated interest or reorganization approval for a utility to invest in a non-regulated affiliated interest shall be approved if the utility's bond rating is below investment grade or if the utility has filed for, or been granted, a temporary rate increase pursuant to 35-A M.R.S.A. § 1322 within six months of the filing for approval to invest in the affiliated interest. This subsection does not apply to a utility that has not attained investment grade bond rating because it is not publicly rated and does not have a private letter bond rating.

C. Investment Governed by Sections 707 and 708 of Title 35-A. If subsections A and B do not apply to a utility's petition to invest in an affiliate, the petition is governed by sections 707 and 708 of Title 35-A.

6. RATEMAKING TREATMENT

A. Below the Line Treatment. All non-core and de minimis utility activities will be treated as below the line for ratemaking purposes.

B. Value of Intangibles; Presumption in Favor of Allocation to Ratepayers. A rebuttable presumption exists that the positive value of utility intangibles transferred to or used by an affiliate will be allocated entirely to ratepayers. A utility may rebut this presumption by providing evidence that the intangible is wholly unrelated to the utility's provision of service to ratepayers.

C. Ratemaking Methodology for Intangibles Other Than Good Will. Subject to the allocation requirements set forth in subsection B of this section, the specific ratemaking methodology used to reflect the value of an intangible other than good will will be determined in the proceeding for approval of the affiliated transaction pursuant to 35-A M.R.S.A. § 707.

7. FILING REQUIREMENTS

A. Notification of Intent to Undertake Non-Core Utility Activity. A utility must notify the Commission of each non-core activity it intends to pursue within 30 days of the commencement of operations.

B. Type of Notification.

1. New Corporate Entity. If a utility plans to establish a new corporate entity in which to conduct the non-core utility activity, notification will be achieved when it makes its required filing pursuant to 35-A M.R.S.A. § 708(2).

2. Use of Existing Affiliate. If a utility plans to undertake a non-core activity in an existing affiliate, it shall submit a letter to the Commission describing the non-core utility activity and the name of the affiliate in which it will undertake the same activity and seek any approvals required by 35-A M.R.S.A. § 707.

C. Information to be Included with Section 707 Filing. For all requests for approval of affiliated transactions pursuant to 35-A M.R.S.A. § 707, the utility seeking approval must file prefiled testimony including the following, as applicable.

1. An indication of the specific affiliated transactions for which the utility seeks approval pursuant to section 707;

2. For any contract or arrangement expected to involve the use by an affiliated interest of any asset, including intangibles, the utility's determination of the value of the asset;

3. Supporting documentation for the utility's asset value determination as follows:

(a) Good Will. To the extent the utility contests the presumption set forth in section 4(C) for the value of good will, the utility shall file a market study or other-relevant information providing evidence that an alternative value should be considered.

(b) Intangibles Other Than Good Will. For intangibles other than good will the utility shall provide a market study or appraisal estimating the market value of the intangible asset.

(c) Tangible assets. For any tangible asset, documentation for the price charged to other affiliates, or the market price of comparable assets.

4. Any support services agreements; and

5. Any other agreements and contracts for which the utility seeks approval.

D. Information Required to Be Included with Section 708 Filing. For all requests for approval of reorganizations pursuant to 35-A M.R.S.A. § 708, the utility seeking approval must file prefiled testimony including the following information, as applicable:

1. The amount the utility seeks to invest as part of the reorganization in the affiliated interest;

2. If the utility proposes to invest any amount in the affiliated interest, it shall provide:

a. A statement of the utility's bond rating or equivalent credit rating; and

b. The utility's cash flow and earnings projections and pro forma balance sheets for a period of no less than two years from the end of the fiscal year in which the filing is made.

8. STANDARDS OF CONDUCT

A. Limits on Use of Customer Information.

1. Use by Affiliate of CSI or ACI. A utility affiliate must purchase any CSI or ACI it wishes to use from the core utility at market value.

2. Availability of CSI or ACI. If a utility makes CSI or ACI available to a non-core utility subsidiary, it must make the CSI or ACI available to any other entity requesting it, on the same terms.

3. Affirmative Permission of Customer Required. To use any CSI (as distinguished from ACI), the utility must obtain affirmative, written permission from the customer.

B. Obligation to Provide Information. If a utility provides information to an affiliate related to its status as a public utility, it must provide such information upon request to nonaffiliated companies.

C. Preferences Forbidden. The utility may not act in preference to its affiliate or affiliates in providing access to utility facilities or services or in influencing utility customers to use the services of its affiliates. A utility that provides the name of its affiliate to a customer interested in the services of its affiliate must also provide the names of non-affiliated entities providing such services.

D. Additional Standards of Conduct. This rule does not limit the Commission from imposing additional standards of conduct on a utility's activities related to its affiliated interests to the extent necessary to protect the public interest.

9. WAIVER

The Commission may, upon its own motion, or, upon the request of any utility subject to the provisions of this Chapter, waive any of the requirements of this Chapter that are not required by statute upon a finding of good cause and that the waiver would not be inconsistent with the purposes of this Chapter or sections 707, 708, 713, 714 and 715 of Title 35-A. A waiver may be granted by the Commission, the Director of Technical Analysis, or the Hearing Examiner assigned to a proceeding related to this rule.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 503, 707, 708, 713, 714 and 715.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 13, 1998. It was filed with the Secretary of State on July 15, 1998 and will be effective on August 14, 1998. Minor formatting corrections were entered on August 5, 1998.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 830 Political Activities, Charitable Contributions, Educational Expenditures, Institutional Advertising, Promotional Advertising, and Promotional Allowances by Public Utilities

Code Me. R. 65-407 Ch. 830 Political Activities, Charitable Contributions, Educational Expenditures, Institutional Advertising, Promotional Advertising, and Promotional Allowances by Public Utilities {#sec-65-407-ch.-830 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 830}

Summary: This rule requires all electric, gas, and water public utilities to file annual reports describing their political activities, charitable contributions, educational expenditures, institutional advertising, promotional advertising, and promotional allowances; requires detailed and separate accounting for expenses associated with these activities; prohibits any electric utility from providing promotional allowances without prior Commission approval; and establishes ratemaking treatment for expenses associated with these activities.

1. Definitions.

Advertising. The term "Advertising" means the use of any media, including radio, television, periodicals, newspapers, billboards, car cards, exhibits, bill inserts, handbills, brochures, and other printed matter, the Internet or social media in order to communicate a message to the general public, to a portion of the general public, or to a public utility's customers.

Affiliated Interest. The term “Affiliated Interest” has the same meaning as in 35-A M.R.S. § 707(1)(A).

Consumer-owned Transmission and Distribution Utility. The term “Consumer-owned Transmission and Distribution Utility” has the same meaning as in 35-A M.R.S. § 3201(6).

Consumer-owned Water Utility. The term “Consumer-owned Water Utility” has the same meaning as in 35-A M.R.S. § 6101(1-A).

Educational Expenditures that Serve a Public Interest. The term “Educational Expenditures that Serve a Public Interest” and thereby may be recoverable in rates means expenditures related to utility communications with customers that:

Inform customers about specific measures that they can take to conserve energy, reduce peak demand for a utility's service, or otherwise reduce consumption of the utility's service;

Inform customers about energy-efficient appliances, equipment, or services, or about practices which reduce the cost of utility service;

Is required by federal or state law or regulation or are required or permitted by Commission order;

Concern connection, disconnection, conditions of service, billing procedures, service interruptions, safety measures, or emergency conditions;

Explain existing rate schedules or provides notification of proposed rate schedules and of hearings and proceedings concerning the public utility.

Educational expenditures include expenditures relating to information delivered to the public or to public utility customers by radio, television, the Internet, print and other media or through sponsorships, paid endorsements and public relations campaigns.

Grassroots Lobbying. The term “Grassroot Lobbying” has the same meaning as in 3 M.R.S. § 312-A(7-B).

Lobbying. The term “Lobbying” has the same meaning as in 3 M.R.S. § 312-A(9).

Major Political Activities. The term “Major Political Activities” means political activities expenditures aggregating in excess of $100,000.

Membership Organization. The term “Membership Organization” means an organization in which a public utility either pays membership dues or has some other significant financial attachment to the organization or has a significant organizational attachment to the organization that includes direct participatory rights in the governance of the organization, such as the right to vote on the organization’s board, budget, or policies. The membership organization’s purpose may include, but is not limited to, connecting people together around a particular activity, industry, mission or profession and the membership organization may be not for profit or for profit.

J. Political Activities. Political activities by utilities are acts, expenditures, advertising conducted by the utility or affiliated interest or by a trade association or membership organization of which the utility is a member for the purpose of influencing federal, state, or local ordinances, legislation or legislative resolutions, campaigns for political office, referenda, initiatives, constitutional amendments or state and municipal bond issues. Without limitation, and by way of example only, political activities shall include: 1) activities before executive or administrative agencies or officials, or the general public, for the purpose of advocating a specific position with respect to a campaign as defined in 21-A M.R.S. §1052(1); 2) activities before or communications with legislative or executive officials for the purpose of influencing legislative actions or political appointments, or for the purpose of advocating initiation of legislative actions, including activities which must be reported in the Secretary of State's lobbyist disclosure report under 3 M.R.S. §317; 3) contributions, gifts, or non-monetary donations to political candidates, political parties, political or legislative committees or to any committees or organizations working to influence referendum petitions or elections; contributions to a trade association, chamber of commerce, or public charity; expenditures for lobbying or grassroots lobbying; and educational expenditures unless those expenditures serve a public interest as defined in Section 1, paragraph E. Without limitations, and by way of example only, the following do not constitute political activities: 1) proceedings before local, state, or federal executive or administrative agencies to secure licenses, permits, easements, variances, or similar authority; 2) rulemaking proceedings before state or federal agencies, unless the utility advocates a position with respect to a campaign; 3) services rendered by utility employees on behalf of government agencies, boards, commissions, or ad hoc committees created by public bodies to examine particular issues, or; 4) responding to informational requests from legislators or legislative committees where the utility is not involved in attempting to influence legislative action.

K Public Charity. The term “Public Charity” has the same meaning as in 5 M.R.S. § 194(1).

L Institutional Advertising. The term "Institutional Advertising" means any advertising conducted for the purpose of promoting the corporate image or goodwill of a public utility or the utility industry.

M. Promotional Advertising. The term "Promotional Advertising" means any advertising conducted for the purpose of encouraging any person to select or use the service or increase usage of the service of a public utility, to select, purchase, install, or use any appliance or equipment designed to use such utility's service, or to use any other particular service of the utility.

N. Promotional Allowance. The term "Promotional Allowance" means any reduction in rates or charges or any rebate or credit granted by a public utility to a customer for the purpose of encouraging any person to select or use the service or increase usage of the service of a utility, to select, purchase, install, or use any appliance or equipment designed to use such utility's service, or to use any other particular service of such utility.

O. Trade Association. The term “Trade Association” means a group of for-profit

corporations collaborating to fund joint advocacy.

2. Limitation on Rates

The following expenses, whether paid directly or indirectly, through reimbursement or otherwise, incurred by a public utility or an affiliated interest may not be included or incorporated in operating expenses to be recovered in rates:

Contributions or gifts to political candidates, political parties, political or

legislative committees or any committee or organization working to influence

referendum petitions or elections. Nothing in this paragraph prohibits a consumer-

owned water utility, a consumer-owned transmission and distribution utility or the

Casco Bay Island Transit District from undertaking expenditures related to

notifying the public of or conducting trustee elections or local referendum

elections directly related to or legally required for the operation of these utilities

or district.

Contributions to a trade association, chamber of commerce or public charity,

including, but not limited to, a charity managed by the public utility or affiliated interest. This paragraph does not apply to consumer-owned water utility.

Expenditures for lobbying or grassroots lobbying. This paragraph does not apply

to a consumer-owned water utility, a consumer-owned transmission and distribution utility or the Casco Bay Island Transit District; and

Educational expenditures unless those expenditures serve a public interest as

defined in Section 1, paragraph E. This paragraph does not apply to a consumer-

owned transmission and distribution utility or a consumer-owned water utility.

3. Reports and Public Inspection.

A. Annual Reports for Advertising, Political, Charitable, Educational, Institutional or Promotional Advertising, and Promotional Allowances Expenses.

Each public utility shall file a report annually with the Commission containing a

written itemized description of any expenses that may not be included or

incorporated in the public utility’s operating expenses pursuant to Section 2. The

report must also include a written itemized description of the expenses that may

not be included or incorporated in the utility’s operating expenses under Section 2

that are relevant to the business interests of the utility paid by a membership

organization of which the utility is a member. For each expense, the report must include the date, the payee, the amount and a description of the purpose of the expense.

Each public utility shall also include in the report a written itemized description of any expenses that may not be included or incorporated in the utility’s operating expenses for institutional advertising, promotional advertising, and promotional allowances. The report shall be included with the utility's annual report to the Commission. The Commission may review and require alteration of any reporting or accounting methods and procedures to ensure that the policies of this rule are

implemented uniformly. In addition, each public utility shall keep copies of all its

institutional and promotional advertising on file for inspection by the

Commission.

Each public utility is also required to file any reports filed at the Commission on Governmental Ethics and Election Practices (Ethics Commission) with the Commission within seven business days of the filings at the Ethics Commission.

B. Major Political Activities Quarterly Reports.

In addition to the annual report, if a public utility or an affiliated interest engages

in major political activities as defined in Section 1, paragraph H, the utility shall file a quarterly report containing a written description of those major political activities and the expenditures associated with those activities. For each expenditure, the report must include the date, the payee, the amount and a description of the purpose of the expenditure.

The Commission may review and require alteration of any reporting or accounting methods and procedures to ensure that the policies of this rule are implemented uniformly. In addition, each public utility shall keep copies of all its institutional and promotional advertising on file for inspection by the Commission.

C. Public Inspection.

Each public utility shall make available for public inspection all materials filed

with the Commission in accordance with Sections 3(A) and 3(B). Notice of the

availability of the annual reports will be prominently displayed on the

Commission’s website and the annual reports will be accessible on the website.

4. Accounting.

Each public utility shall keep a record of all expenditures, contributions, expenses and costs directly or indirectly associated with, or incurred entirely or in part with respect to, political activities, charitable contributions, educational expenditures, institutional advertising, promotional advertising, and promotional allowances. Such records shall identify, to the extent reasonably possible in accordance with applicable standards of accounting practice, all contributions, dues, fees, and other amounts paid directly or indirectly, or through license, service, or management contracts or arrangements or otherwise, to another corporation, organization, association, or individual, to the extent used to conduct such activities on the utility's behalf.

All direct and indirect expenditures associated with these activities by utilities shall be accounted for by recording the same in the appropriate non-operating account in accordance with the Uniform System of Accounts as outlined in the Commission’s rules.

5. Prior Approval Required for Promotional Allowance.

No electric utility shall provide any promotional allowance or engage in a promotional allowance program without the prior express written approval of the Commission, upon a finding that such allowance or program is just, reasonable, and in accord with applicable statutes, rules, and regulations.

6. Institutional Advertising, Promotional Advertising, and Promotional Allowances

No public utility shall recover from any person other than its shareholders or other owners any expenditures, contributions, expenses, or costs incurred by the utility with respect to institutional advertising, promotional advertising, or promotional allowances. This subsection applies to all direct or indirect expenditures, contributions, expenses, or costs incurred by a public utility with respect to institutional advertising, promotional advertising, or promotional allowances, or through a trade association or membership organization association of which the public utility is a member.

Each public utility which files with the Commission for a change in rates shall account separately for all expenditures, contributions, expenses, and costs associated with institutional advertising, promotional advertising, and promotional allowances, in accordance with the provisions of section 4 of this rule, and shall not include such expenditures, contributions, expenses, and costs as an operating expense for ratemaking purposes.

7. Other Expenses.

The inclusion or exclusion of any provision in this rule shall not restrict

or limit, nor be construed to restrict or limit, the Commission's power in any rate case involving any public utility to disallow, in whole or in part, any expense which the Commission finds to be unjust, unreasonable, excessive, or unwarranted.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Analysis, Docket No. 2024-00239, issued on February 4, 2025. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§104, 111, 112, 302 and 302-A
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on February 18, 2025. It was filed with the Secretary of State on February 21, 2025 (filing 2025-030) and became effective on February 26, 2025.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 840 Intervenor and Participant Funding

Code Me. R. 65-407 Ch. 840 Intervenor and Participant Funding {#sec-65-407-ch.-840 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 840}

SUMMARY: This rule describes the eligibility requirements for the award of intervenor and participant funding pursuant to 35-A M.R.S.A. §1310-A.

1. DEFINITIONS

A. Adjudicatory Proceeding. “Adjudicatory Proceeding” means any proceeding before the Commission in which the legal rights, duties or privileges of a specific person or persons are required by constitutional law or statute to be determined after an opportunity for hearing.

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Consumer-Owned Public Utility. “Consumer-owned public utility means any public utility wholly owned by its customers, any municipal or quasi-municipal district and any public utility department.

.

D. Environmental Justice. “Environmental Justice” means the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.

E. Environmental Justice Populations. “Environmental Justice Populations” means geographically or demographically defined groups of people with median household income and employment below the statewide median household income and unemployment rate who have environmental justice concerns. “Environmental Justice Populations” also include other similarly situated population groups as determined by the Commission in consultation with the Department of Environmental Protection.

F. Expert Witness Fees. "Expert witness fees" means any documented costs incurred by an intervenor for the services of an expert witness in preparing and delivering testimony on an issue meeting the criteria for eligibility in Section 2.

G. Funding. “Funding” means reimbursement by the utility or Commission of reasonable attorney’s fees, expert witness fees, and other reasonable expenses incurred by the eligible intervenor or participant.

H. Intervenor. "Intervenor" means any person who is permitted to intervene in a Commission adjudicatory proceeding as provided for in Chapter 110 of the Commission’s Rules.

I. Investor-Owned Public Utility. “Investor-owned public utility” means a public utility other than a consumer-owned public utility as defined in Section 1(C).

J. Other Reasonable Expenses. "Other reasonable expenses" means necessary out‑of‑pocket expenses incurred by the intervenor or participant that are directly attributable to the intervenor's or participant’s preparation, advocacy, and participation in a Commission proceeding to the extent that such expenses are determined reasonable by the Commission. Any travel expenses authorized for funding will be reimbursed at governmental rates as required by statute.

K. Non-Adjudicatory Proceeding. “Non-adjudicatory Proceeding” means a rulemaking proceeding or any Commission proceeding that is not an adjudicatory proceeding.

L. Participant. Means a person that actively participates in a non-adjudicatory Commission proceeding.

M. Person. “Person” means an individual, partnership, corporation, governmental entity, association or public or private organization that has legal status.

N. Proceeding. “Proceeding” means any proceeding conducted by the Commission under the authority of Title 35-A of the Maine Revised Statutes.

O. Reasonable Attorney’s Fees. "Reasonable attorney's fees" means the number of hours reasonably expended by the intervenor's or participant’s attorney multiplied by a reasonable hourly rate, taking into account prevailing market rates including whether the rates are comparable to those in the community for attorneys of comparable skill, experience and reputation.

P. Rulemaking Proceeding. “Rulemaking Proceeding” means a proceeding conducted pursuant to Maine’s Administrative Procedures Act, Title 5, Chapter 375.

Q. Substantial Financial Hardship. "Substantial Financial Hardship" means that the cost to the intervenor of the intervention, including the cost of foregone opportunities, when compared to the intervenor's available resources impairs the functioning of or constitutes a real hardship on the intervenor as determined by the Commission.

2. ELIGIBILITY FOR INTERVENOR OR PARTICIPANT FUNDING

An intervenor or participant is eligible for funding if:

1. The position advocated by the intervenor or participant is not adequately represented by the Public Advocate or the Staff of the Commission;

2. Participation in the proceeding by the intervenor or participant would impose a substantial financial hardship on the intervenor or participant;

3. The intervenor or participant is likely to substantially contribute to the proceeding and to assist in the resolution of the issues raised in the proceeding; and

4. The intervenor or participant complies with the eligibility determination requirements in Sections 3 and 6 of this rule.

3. PETITION FOR PRELIMINARY DETERMINATION OF ELIGIBILITY

A. Preliminary Determination. An intervenor or participant must petition the Commission to make a preliminary determination of eligibility for funding. The petition must include the information specified below and be served on all persons participating in the proceeding. Confidential financial information included in the petition will only be provided to the Commission.

B. Contents of Petition. A petition for preliminary determination of eligibility for funding must include:

1. All facts known to the intervenor or participant demonstrating that, but for the award of funding, participation in the proceeding will work a substantial financial hardship on the intervenor or participant. This showing may include certified balance sheets and income and expense statements for the last three fiscal years, in all cases where such information is available, together with all other relevant financial information that will aid the Commission in ascertaining the intervenor's or participant’s financial resources;

2. A statement describing the position that the intervenor or participant intends to advocate on each issue together with a summary of the evidence and arguments that the intervenor or participant intends to present on that issue.

3. If the intervenor or participant plans to hire an attorney or expert witness, an estimate of the amount of attorney's fees, expert witness fees, and other reasonable expenses to be incurred by the intervenor or participant preparing and advocating that position;

4. In the event that the intervenor or participant is acting as an agent of or on behalf of other persons, documentation that the intervenor or participant is the authorized representative of those represented;

5. A statement about the appropriateness or inappropriateness of consolidating the presentation with that of other intervenors or participants who will advocate the same or similar position with respect to that issue or issues; and

6. Any additional relevant information that may be required at the request of the Commission.

C. Timing of Petition. A petition for preliminary determination may be filed at any time

during the proceeding. An award of funding may not include expenses incurred prior to

filing of the petition except for expenses incurred that relate to the preparation of a

petition for intervention or a petition for a preliminary determination of eligibility for

funding.

4. OBJECTIONS TO ELIGIBILITY

A. Filing of Objections. Within seven days after the filing of a petition for a preliminary determination of eligibility for funding, any party to or participant in the proceeding may object to the request for funding by filing in the Commission’s case management system referencing the appropriate docket.

B. Hearing on Objections. If objections are received, the Commission may hold a hearing on the objections. If no objections are received, the Commission may, on its own motion, require a hearing on the request for intervenor or participant funding.

5. CERTIFICATION OF PRELIMINARY ELIGIBILITY

A. Determination of Eligibility. Within fourteen days after the filing of the petition for preliminary determination of eligibility, the Commission shall enter an order with respect to each intervenor or participant who has filed for funding. The Commission may extend this time period in the event objections to eligibility are filed. The Commission order must state, with respect to each intervenor or participant:

1. Whether the intervenor or participant is eligible for funding based on the criteria set forth in section 2 of this rule;

2. Whether those intervenors or participants advocating similar positions must consolidate their representations by requiring common legal representation chosen by the intervenors or participants. No award of funding will be made to those intervenors or participants who fail to consolidate their presentations after being so ordered by the Commission. This does not preclude consolidated intervenors or participants from retaining more than one legal representative so long as only one representative enters an appearance on behalf of the consolidated intervenors or participants. In the case where more than one legal representative or expert witness is retained, the intervenors or participants may divide the funding among the legal representatives.

B. Determination of Funding Amount. An order concluding that an intervenor or

participant is eligible for funding pursuant to section 5(A), must include a cap on the

funding amount. The Administrative Director of the Commission, in consultation with

the General Counsel for the Commission, will determine the funding cap.

C. Availability of Funds. Any funding to be paid from the regulatory fund, or any other

funding source authorized by statute, is contingent on the availability of such funds. In

the event funds are limited, priority will be given to intervenors or participants

representing environmental justice populations.

D. Change in Financial Status. A determination of preliminary eligibility under this rule is subject to change in the event the financial status of the intervenor or participant changes prior to the conclusion of the proceeding. An intervenor's or participant’s eligibility for funding is reviewable until the conclusion of the proceeding. It is the obligation of the intervenor or participant seeking funding to notify the Commission and parties involved of any change in financial position.

E. Forms or Contracts. Each eligible intervenor or participant may be required to execute a State required form or contract with the Commission that contains requirements for payments and other provisions. The Commission Staff will assist intervenors or participants in executing any State required forms or contracts.

6. FILING OF INFORMATION AND DISBURSEMENT OF FUNDING

A. Monthly Filings. Thirty days after a Commission preliminary determination of eligibility and each thirty days thereafter, the intervenor or participant must file a report that contains information detailing the expenses that were incurred within the prior thirty days that are eligible for funding. The timing of this filing requirement may be modified by the Commission’s General Counsel.

B. Periodic Funding Disbursement. Upon request of the intervenor or participant, and a showing of need, the Commission may provide periodic funding no less than every thirty days. Such periodic funding will not be subject to refund at the conclusion of the proceeding.

C. Final Funding Disbursement. Every intervenor or participant who received a preliminary determination of eligibility for an award of compensation must file a final request for funding within 30 days of the close of the proceeding containing the information listed below:

.

1. How the intervenor or participant assisted in the resolution of the issues raised in the proceeding; and

2. An itemized statement of all attorney’s and expert witness fees and other reasonable expenses incurred by the intervenor or participant in the preparation and advocacy of the intervenor's or participant’s position in the Commission proceeding.

D. Filing of Objections. Within seven (7) days after submission of the intervenor's or the participant’s claim, any person participating in the proceeding may object to the intervenor's or participant’s claim.

E. Criteria for Funding. The Commission will order funding upon a determination that expenses were reasonably incurred, and that the intervenor or participant acted reasonably in advocating for the positions for which preliminary eligibility was determined.

F . Timing of Funding. The Commission will make its final determination of the amount of funding within thirty days of the intervenor or participant filing for a disbursement of funding under this section.

G. Payment Date. The utility or the Commission, as appropriate, must pay the funding amount as ordered by the Commission within thirty days after the Commission's final order awarding funding consistent with the provision of a contract as may be required pursuant section 5(E) of this Chapter.

7. SOURCE OF FUNDING

A. Investor-Owned Public Utility Initiated Adjudicatory Proceedings. For adjudicatory proceedings initiated by an investor-owned public utility, as determined by the Commission,funding may be provided through filing fees, utility payments subject to recovery, the regulatory fund, funds from administrative penalties, or any other funding source authorized by statute.

B. Consumer-Owned Public Utility Initiated Adjudicatory Proceedings. For adjudicatory proceedings initiated by a consumer-owned public utility, as determined by the Commission, funding may be provided through the regulatory fund, funds from administrative penalties, or any other funding source authorized by statute.

C. Water Utility Exception. For Commission proceedings involving a water utility, funding shall be provided through administrative penalties or any other funding source authorized by statute.

D . Commission Initiated Proceedings. For Commission initiated proceedings, funding may be provided through the regulatory fund, funds from administrative penalties, or any other funding source authorized by statute.

8. NOTICE TO PUBLIC OF AVAILABILITY OF FUNDING

Notice of the availability of intervenor and participant funding, in a form determined by the Commission, must be prominently posted on the Commission’s website and included in all notices of proceedings. The Commission must provide notice of the availability of intervenor and participant funding through additional means as determined appropriate by the Commission.

9. WAIVER

To the extent permitted by law, where good cause exists, the Commission may permit deviation or waiver from this Chapter. The Commission or the presiding officer may grant a request for a deviation or waiver upon a finding of good cause and a finding that the deviation or waiver will not impair the policies of this Chapter.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 111, and 1310-A.
• BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2022-00299, issued on May 29, 2024. Copies may also be obtained from the Administrative, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on May 17, 1996. It was filed with the Secretary of State on May 17, 1996 and became effective on May 22, 1996.
• CONVERTED TO MS WORD: May 17, 2005
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on May 10, 2013. It was filed with the Secretary of State on May 13, 2013 (filing 2013-113), and became effective on May 18, 2013.
• EFFECTIVE DATE: This amended rule was approved as to form and legality by the Attorney General on July 3, 2024. It was filed with the Secretary of State on July 3, 2024, filing 2024-140 and became effective on July 8, 2024.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 850 Regulatory Proceeding Expenses

Code Me. R. 65-407 Ch. 850 Regulatory Proceeding Expenses {#sec-65-407-ch.-850 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 850}

SUMMARY: This rule: 1) defines regulatory proceeding expenses; 2) sets forth reporting requirements for these expenses; and 3) establishes criteria to be used in determining the reasonableness of those expenses.

1. Definitions

Regulatory Proceeding Expenses. Regulatory Proceeding Expenses shall include any expense, fee or charge paid directly or indirectly by any public utility to any person, firm, corporation, or association other than its own employees, for legal, accounting, financial or other expert or specialized services in association with any proceeding before the Maine Public Utilities Commission or in any proceeding before the Maine Supreme Judicial Court arising out of a Commission proceeding. For purposes of this rule, regulatory proceeding expenses shall not include copying, telephone, mail, courier, or other such incidental costs; such incidental expenses shall be recoverable through normalization in a Company's test-year revenue requirement.

B. Rate Case Expenses. Rate Case Expenses are those Regulatory Proceeding Expenses incurred in connection with a general increase in rates as defined in 35-A M.R.S §307.

2. Records Required

A. Contents. Every public utility seeking recovery of Regulatory Proceeding Expenses shall maintain records containing a detailed description and accounting of all Regulatory Proceeding Expenses of which it seeks recovery. Such records shall identify, by proceeding, the hours spent and fees charged by all persons whose salaries, fees or charges constitute Regulatory Proceeding Expenses.

B. Filing

1. Timing. In accordance with, Chapter 120, §5(C), every public utility seeking recovery of Rate Case Expenses shall file the applicable records required by §2(A) of this rule in every filing for a general increase in rates as defined in 35-A M.R.S. §307. Whenever a utility seeks to adjust the Rate Case Expenses incurred during the test period, it must file the records required by §2(A) of this chapter of all actual and estimated expenses which are relied on for purposes of making an adjustment to the test year. This filing shall be made in accordance with the filing requirements set forth in Chapter 120, §5(C) of the Commission's Rules.

2. Capitalized Expenses. If Regulatory Proceeding Expenses are capitalized, the utility must maintain records which identify the Regulatory Proceeding Expenses, subject to the requirements of 2(A). That record must be filed at the time the utility seeks recovery of expenses of those proceedings.

3. Ratemaking Treatment

A. Policy

No public utility shall recover from its ratepayers any Regulatory Proceeding Expense unless such expense has been found by the Commission to have been reasonable and prudently incurred. The Commission will set regulatory proceeding expenses on a normalized test year basis.

B. Criteria for Determining Reasonableness

In determining whether a Regulatory Proceeding Expense is reasonable, the Commission may use the following criteria: 1) the customary fee for similar services, including the fees rendered in the relevant market to companies of similar size in matters of similar importance to the client; 2) the amount of money at issue; 3) the extent to which the attorney's or expert's services contributed to the presentation of the case; 4) whether the utility used a negotiations or bidding process, or otherwise considered information concerning the availability, experience, quality and cost of outside attorney and expert services when hiring outside attorneys and experts; and 5) the experience and ability of the attorney or expert. Other factors may be considered if relevant to a particular proceeding.

C. Methodology for Ratemaking Treatment

Utilities may recover reasonable Regulatory Proceeding Expenses in accordance with the following formula, which shall include an adjustment for inflation.

RR-RPE = (ARPE – RCE) ÷ 5 + NRCE

Where

RR-RPE = Revenue Requirement Regulatory Proceeding Expenses

ARPE = Annual Regulatory Proceeding Expenses for the previous 5 years

RCE = Rate Case Expenses for the previous 5 years

NRCE = Normalized Rate Case Expenses

For the purposes of this section, the normalization period for Rate Case Expenses shall be ten years.

4. WAIVER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter or Title 35-A. The Commission, the Administrative Director, the Director of Electric and Natural Gas Industries, and the Director of Telephone and Water Industries, or the Presiding Officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §111
• EFFECTIVE DATE: This rule was approved by the Secretary of State on September 17, 1986 and became effective on September 22, 1986. This rule applies to all proceedings initiated after its effective date. The transition statement is set forth in the Order Adopting Rule and Statement of Factual and Policy Basis, dated August 27, 1986.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 24, 1999 - converted to MS Word
• AMENDED: This routine technical rule adoption was approved as to form and legality by the Attorney General on August 22, 2022, and became effective on August 27, 2022 (filing 2022-159).

Chapter 870 Late Payment Charges, Interest Rates to be Paid on Customer Deposits, and Charges for Returned Checks

Code Me. R. 65-407 Ch. 870 Late Payment Charges, Interest Rates to Be Paid on Customer Deposits, and Charges for Returned Checks {#sec-65-407-ch.-870 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 870}

SUMMARY: This rule establishes the maximum interest rate that public utilities may charge customers on balances that remain unpaid for no less than twenty-five days from the postmark date of the customer's bill. This rule describes under what circumstances such late payment charges may be imposed. The rule also provides for a just and reasonable interest rate for customer deposits, and establishes the maximum fee that may be charged for checks returned for nonpayment. This rule does not affect any other arrangements that utilities may have with their customers that are subject to other laws, such as the Maine Consumer Credit Code .

1. LATE PAYMENT CHARGE

A. Maximum Interest Rate. No utility may impose a late payment charge in excess of 1% per month or 12% annually on the amount overdue on any bill issued in accordance with a utility's terms and conditions of service.

B. Amount Overdue. An amount is overdue when it has not been paid by the due date. The due date must be no less than 25 days after the bill is mailed or hand delivered to the customer. A bill is considered to have been mailed on the date it is postmarked. If there is no postmark, a utility must date the bill and deliver the bill on or before that date.

C. Terms and Conditions. Any utility which chooses to impose a late payment charge must file terms and conditions conforming to this rule. Any utility that has existing terms and conditions that conflict with this rule must file revised terms and conditions at the time of its next general rate case or when it next revises its rate schedules whichever is earlier. This rule preempts any inconsistent terms and conditions from the time of its effective date.

D. Disputed Bill. No late payment fee may be imposed for any time period in which a bill is in dispute pursuant to applicable Commission rules. A customer will have a minimum of 25 days from the data of the resolution of the dispute to remit payment to a utility in order to avoid a late payment charge.

E. Exemption for Customers on Levelized Payment Plans. No late payment charges may be imposed for an amount overdue that is the sole result of a budget payment plan (in which interest is paid on credit balances) or from levelized payments under a special payment arrangement developed according to the winter disconnection requirements of the Commission's rules (Chapter 815(9)(F)(5)).

F. Exemption for Customers Adhering to Terms of Payment Arrangements. No late payment charges may be imposed on a customer’s past due balance while a payment arrangement is in effect, provided that the customer adheres to the terms of the payment arrangement for those arrearages.

G. Minimum Amount. A utility may adopt a minimum billed amount for which a late payment charge is imposed.

H. Disclosure. At least 30 days or one billing cycle, before a late payment charge program is begun or an existing late payment charge is increased, a utility must disclose to the affected customers the interest rate and methods which will be used to calculate late payment charges. Every bill issued after an approved late payment charge program begins must state the due date of the bill and the effective monthly interest rate that will be imposed if the bill is not paid by the due date.

I. Applicability. A utility may seek a late payment charge for overdue residential and non-residential customers or both.

J. Exemption for Low Income Customers. A transmission and distribution utility may not charge a residential customer late fees if the customer 1) receives or received a benefit from the utility’s Low Income Assistance Program under Chapter 314 of the Commission’s rules in the current or previous program year or, 2) receives a benefit from the utility’s Arrearage Management Program under Chapter 317 of the Commission’s rules.

2. INTEREST ON DEPOSITS

A. General Policy. Interest on all customer deposits held by a utility shall equal the rate on one-year Treasury Securities in effect on November 1 of each year, as published in the Weekly Update of the Federal Reserve’s H.15 Statistical Release (http://www.federalreserve.gov/releases/h15/Current/). If November 1 falls on a weekend, the applicable one-year Treasury rate will be the one in effect on the first business day of November. To ensure that customers earn a modest return on deposits held by utilities, in no case may the customer deposit rate be set at less than a floor of 0.20%.

B. Annual Notice. Each year no later than November 15, the Commission's Administrative Director shall issue a notice to all public utilities setting the rate to be paid by public utilities on customer deposits for the next calendar year beginning January 1.

C. Effective Date of Interest Rate. The effective date for the annual change described in §2(A) shall be January 1.

D. Effective Date of Deposit. The effective date of the deposit is the date that the first payment of the deposit is made. If the effective interest rate changes while a deposit is held by the utility, the new interest rate shall be applied during its effective period. Interest shall accrue until the deposit is returned to the customer, regardless of the amount of time the deposit is held by the utility. All interest shall be credited to the customer annually and upon termination of the service or the return of the deposit by the utility. Compounding of interest is not required. The utility shall have the option of crediting accrued interest to the customer's deposit and paying the interest to the customer when the deposit is returned or crediting that accrued interest to the customer's bill. If credited to the customer's bill, the reason for the credit shall be specified on the customer's bill.

E. Terms and Conditions. Every utility must file terms and conditions stating that the interest rate on customer deposits shall be the rate set by the Public Utilities Commission in accordance with Chapter 870 of the Public Utilities Commission Rules.

3. CHARGE FOR RETURNED PAYMENT

All utilities that choose to charge customers a fee for nonpayment due to returned payment may charge the customer the greater of $5.00 per account to which the returned payment applies or the amount that the bank charges the utility, not to exceed $20.00. If the utility charges the customer more than $5.00, the utility shall furnish the customer with proof of the bank charge. Any utility which chooses to impose a charge for returned payment must file terms and conditions that conform to this rule.

4. WAIVER

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of the Consumer Assistance and Safety Division, or the Presiding Officer assigned to a proceeding related to the Chapter may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2024-00288, issued on February 19, 2025. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 101, 104, 111, 301, 304, and 705(3).
• EFFECTIVE DATE: May 1, 1985 – as Ch. 87, filing 85-117
• AMENDED: June 24, 1986 – filing 86-227
• AMENDED: August 2, 1989 – as Ch. 870, filing 89-304
• AMENDED: This rule was approved as to form and legality by the Attorney General on October 23, 1995. It was filed with the Secretary of State on October 23, 1995 (filing 95-408), and became effective on October 28, 1995.
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 4, 1996
• NON-SUBSTANTIVE CHANGES: March 26, 1999 - converted to MS Word
• NON-SUBSTANTIVE CHANGES: December 18, 2006 – restored language in Section 2(A)
• AMENDED: This rule was approved as to form and legality by the Attorney General on October 30, 2009. It was filed with the Secretary of State on November 2, 2009 (filing 2009-578) and became effective on November 7, 2009.
• AMENDED: This rule was approved as to form and legality by the Attorney General on May 30, 2014. It was filed with the Secretary of State on June 2, 2014 (filing 2014-114) and became effective on June 7, 2014.
• AMENDED: This rule was approved as to form and legality by the Attorney General on May 16, 2022. It was filed with the Secretary of State on May 23, 2022 (filing 2022-095) and became effective on May 28, 2022.
• AMENDED: This rule was approved as to form and legality by the Attorney General on March 12, 2025. It was filed with the Secretary of State on March 26, 2025 (filing 2025-037) and became effective on March 31, 2025

Chapter 880 Attachments to Joint-Use Utility Poles; Determination and Allocation of Costs; Procedure

Code Me. R. 65-407 Ch. 880 Attachments to Joint-Use Utility Poles; Determination and Allocation of Costs; Procedure {#sec-65-407-ch.-880 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 880}

SUMMARY: This chapter establishes the amounts which pole owners may include in their cost of service for attachments to joint-use utility poles; the allocation of those costs among joint users; the procedure for establishing cost responsibility and rates, the terms and conditions of attachment to joint-use utility poles, and the procedure for resolving pole attachment disputes.

1. DEFINITIONS 1

2. TERMS AND CONDITIONS 4

A. Reasonable Terms and Conditions 4

B. Unreasonable Terms and Conditions 14

C. Presumptions Rebuttable 14

3. APPROVAL OF ATTACHING ENTITIES 14

A. Application Requirements for Attaching Entities 15

4. CALCULATION OF RATES JOINT-USE UTILITY POLES 16

5. JOINT-USE SOFTWARE SYSTEM 17

A. Use of and Access to the System 17

B. Confidentiality 17

C. Commission Oversight 18

6. SEPARATE CHARGES 18

A. Make-Ready Work 18

B. Tree Trimming; Brush Control 19

C. Excess Height 19

7. JOINT RESPONSIBILITY AGREEMENTS 19

8. REVENUE-NEUTRAL RATE ADJUSTMENTS FOR UTILITIES 20

A. Flow Through of Changes in Revenues From Joint-Use Entities 20

B. Immediate Flow-Through 20

C. Delayed Flow-Through; Suspense Account 20

9. RESOLUTION OF DISPUTES 20

10. NEGOTIATED AGREEMENTS 21

11. WAIVER 21

ATTACHMENT A - EXPEDITED POLE ATTACHMENT COMPLAINT PROCESS

65-407 PUBLIC UTILITIES COMMISSION

Chapter 880: ATTACHMENTS TO JOINT-USE UTILITY POLES; DETERMINATION AND ALLOCATION OF COSTS; PROCEDURE

1. DEFINITIONS

A. Abandoned Joint-Use Utility Pole. "Abandoned joint-use utility pole" means a joint-use utility pole from which all attachments have been removed.

B. Assigned Space. "Assigned space" on a utility pole is the space assigned by this Rule or by an order in a proceeding under 35-A M.R.S. §711 for the attachments of conductors or circuitry by joint-use entities, consistent with the provisions of the National Electrical Safety Code, Blue Book, or other reasonable practices. Assigned space does not include common space, including the communications worker safety zone. Space which may be available on a joint-use utility pole for an additional attaching entity must not be considered assigned space until an additional attachment is made, but must instead be considered common space.

C. Attaching Entity. "Attaching entity" means a joint-use entity with an attachment to a joint-use utility pole.

D. Average Joint-Use Utility Pole. An "average joint-use utility pole" is a joint-use utility pole which is 37.5 feet long, including the portion of the pole which is in the ground, with 13.5 feet of total usable space.

E. Blue Book. The "Blue Book" is "SR-1421, Blue Book – Manual of Construction Procedures" published by Telcordia.

F. Cable Television System. A "cable television system" is as defined by in Title 47 of the United States Code.

G. Common Space. The "common space" of a joint-use utility pole is space used by all of the joint users in common and consists of the portion of a pole beneath ground level, the portion from ground level to the lowest place on the pole at which a telecommunications circuit may be attached, plus all but 6 inches of the telecommunications worker safety zone. The common space is equal to the length of the pole minus the assigned spaces for each attaching entity. In addition, for the purpose of assigning and allocating space and costs on a joint-use utility pole, space which may be available for an additional attachment, and which would become assigned space if an additional attachment were made, must be considered common space until such an attachment is made.

H. Complex Make-Ready. "Complex make-ready" means any make ready work above the communications space; transfers and work within the communications space that would be reasonably likely to cause a service outage or facility damage, including the splicing of any communication attachment or relocation of an existing wireless attachment; and the replacement of a joint-use utility pole. Any and all wireless activities, including those involving mobile, fixed, and point-to-point wireless communications and wireless internet service providers, are to be considered complex.

I. Communications Space. The "communications space" is the portion on a joint-use utility pole that begins at the bottom of the communications worker safety zone and ends at the lowest point above grade to which a horizontal communications wire can be attached consistent with the National Electrical Safety Code.

J. Communication Worker Safety Zone. The "communication worker safety zone" is a 40-inch vertical space, or other amount as required by the National Electrical Safety Code for the purpose of safety, on which no electric or communications circuitry may be attached. It is located between the areas to which electric conductors and communication circuitry may be attached. All but six inches of the "communications worker safety zone" must be considered part of the common space of a utility pole.

K. Electric Utility. An "electric utility" is as defined in Title 35-A of the Maine Revised Statutes.

L. FCC Cable Rate Formula. The "FCC Cable Rate Formula" is the formula currently set forth in 47 C.F.R. §1.1406(d)(1), and as may subsequently be amended or redesignated by the Federal Communications Commission.

M. Information Service Provider. “Information service provider” means a provider of “information service” as that term is defined in Title 47 of the United States Code.

N. Joint-Use Entity. “Joint-use entity” means a public utility, voice service provider, wholesale or retail competitive local exchange carrier, cable television system, unlit fiber provider, telecommunications service provider or information service provider.

O. Joint-Use Software System. “Joint-use software system means a system (e.g. Alden One) that processes, coordinates, and/or consolidates joint-use utility pole-related data that may include data related to the ownership, geographic location, size, class, and communications and electric facilities on joint-use utility poles to facilitate notifications regarding the placement, replacement, or removal of joint-use utility poles and the placement, replacement, or removal of attachments to joint-use utility poles.

P. Joint-Use Utility Pole. A "joint-use utility pole" is a utility pole on which there are circuit or electric conductor attachments by an electric utility and attachments by one or more joint-use entities. Joint-use utility poles do not include poles whose sole purpose is supporting electrical transmission conductors as defined by the Federal Energy Regulatory Commission. However, if an electric utility under-builds a transmission line with distribution, those poles are considered joint-use utility poles.

Q. Large Pole Owner. “Large pole owner” means Versant Power, Central Maine Power Company, and Consolidated Communications of Maine Company or their successors.

R. Make-Ready Work. "Make-ready work" or "make-ready" means the modification or replacement of a joint-use utility pole, or of the lines or equipment on the joint-use utility pole, to accommodate additional facilities on the joint-use utility pole.

S. National Electrical Safety Code. The "National Electric Safety Code" or "NESC" is published by the Institute of Electrical and Electronics Engineers and approved by the American National Standards Institute Code C2. The NESC is also described in 35-A M.R.S. §2305-A.

T. Overlash. "Overlash" means the tying or lashing of additional communications wires, cables, and facilities to existing communications wires, cables, or supporting strand already attached to poles.

U. Pole Attachment. "Pole attachment" or "attachment" is the physical connection of a facility that a joint-use entity uses to provide communications or electric service.

V. Pole Owner. "Pole owner" means an entity that owns or jointly owns a joint-use utility pole, or controls usable space on a joint-use utility pole.

W. Replaced Joint-Use Utility-Pole. "Replaced joint-use utility pole" means a joint-use utility pole that has been replaced by a new joint-use utility pole. Once the last attachment has been removed from the pole, the pole becomes an abandoned joint-use utility pole.

X. Requesting Party. "Requesting party” means a utility or joint-use entity that is seeking to place attachments on joint-use utility poles.

Y. Responsibility Requirement. The "responsibility requirement" of an attaching entity is the portion of joint-use utility pole costs for which the attaching entity is responsible.

Z. Simple Make-Ready. "Simple make-ready" means make-ready work where existing attachments in the communications space of a joint-use utility pole can be transferred without any reasonable expectation of a service outage or facility damage and where the transfer does not require splicing of any existing communication attachment or relocation of an existing wireless attachment. Simple make ready does not apply to attachments above the communications space or pole replacements.

AA. Space Factor. "Space factor" is the quotient derived from dividing the space occupied by a single attachment on a joint-use utility pole by the total usable space on a joint-use utility pole.

BB. Telecommunications Carrier. "Telecommunications carrier" is as defined in Title 47 of the United States Code.

CC. Telecommunications Service Provider. Telecommunications service provider means a provider of telecommunications service as that term is defined in Title 47 of the United States Code.

DD. Telecommunications Service. "Telecommunications service” is as defined in Title 47 of the United States Code.

EE. Telephone Utility. A "telephone utility" is as defined in Title 35-A of the Maine Revised Statutes.

FF. Unlit Fiber. “Unlit fiber” means one or more strands within a bundle of fiber-optic cable through which an associated light signal or light communication transmission must be provided to provide communications service, but excluding the electronic equipment required in order to render the fiber capable of transmitting communications.

GG. Unlit Fiber Provider. “Unlit fiber provider” means a provider of “unlit fiber.” Unlit fiber provider also includes a "dark fiber provider" as defined in Title 35-A of the Maine Revised Statutes.

HH. Usable Space. "Usable Space" means the space on a joint-use utility pole above the minimum grade level which can be used for the attachment of wires, cables, and associated equipment.

II. Utility. "Utility" has the same definition as "Public Utility" in Title 35-A of the Maine Revised Statutes.

JJ. Voice Service Provider. "Voice service provider” is as defined in Title 35-A of the Maine Revised Statutes.

KK. Wholesale Competitive Local Exchange Carrier. "Wholesale competitive local exchange carrier” is as defined in Title 35-A of the Maine Revised Statutes.

2. TERMS AND CONDITIONS

A. Reasonable Terms and Conditions. The following terms and conditions are presumed to be reasonable for the joint use of utility poles:

1. Request. A pole owner must provide a requesting party with nondiscriminatory access to any joint-use utility pole owned or controlled by it for the attachment of conductors, circuitry, antennas, or other facilities. A request to attach facilities to a joint-use utility pole must be in writing and must provide the pole owner with the information necessary under its procedures to begin to survey the poles to which attachment is sought. A pole owner must review a requesting party's attachment application for completeness before reviewing the application on its merits. A requesting party's attachment application is considered complete if it provides the pole owner with the information necessary under its procedures, as specified in a master service agreement or in requirements that are available in writing publicly at the time of submission of the application, to begin to survey the affected poles.

a. A pole owner must determine within 10 business days after receipt of a requesting party's attachment application whether the application is complete and notify the requesting party of that decision. If the pole owner does not respond within 10 business days after receipt of the application, or if the pole owner rejects the application as incomplete but fails to specify any reasons in its response, then the application is deemed complete. If the pole owner timely notifies the requesting party that its attachment application is not complete, then the pole owner must specify all reasons for finding it incomplete.

b. Any resubmitted application need only address the pole owner's reasons for finding the application incomplete and will be deemed complete within five business days after its resubmission, unless the pole owner specifies to the requesting party which reasons were not addressed and how the resubmitted application did not sufficiently address the reasons. The requesting party may follow the resubmission procedure in this paragraph as many times as it chooses so long as in each case it makes a bona fide attempt to correct the reasons identified by the pole owner, and in each case the deadline set forth in this paragraph will apply to the pole owner's review.

Notwithstanding the foregoing, a joint-use entity may submit a request to attach a service drop to a pole within 45 calendar days after the fact, and need not submit a request to overlash to existing facilities, so long as the joint-use entity provides written notice of the overlash within 10 calendar days after making it. The pole owner then has 30 calendar days in which to inspect the overlash and determine compliance.

2. Survey. A pole owner must complete a survey and respond to a requesting party within 45 calendar days of receipt of a complete request to attach facilities to its utility poles (or within 60 calendar days, in the case of larger orders as described in Section 2(A)(7) of this Chapter). This response may be a notification that the pole owner has completed a survey of poles for which access has been requested.

3. Denial. A pole owner may deny a requesting party access to its poles on a non- discriminatory basis where there is insufficient capacity or for reasons of safety, reliability and generally applicable engineering purposes. A denial must be in writing and must be issued within 45 calendar days of the pole owner’s receipt of the request. The denial of access must be specific, must include all relevant evidence and information supporting its denial, and must explain how such evidence and information relate to a denial of access for reasons of lack of capacity, safety, reliability or engineering standards.

4. Estimate. Where a request for access is not denied, a pole owner must present to a requesting party an estimate of charges to perform all necessary make-ready work within 14 calendar days of providing the survey required by Section 2(A)(2) of this Chapter, or in the case where a requesting party's contractor has performed a survey, within 14 calendar days of receipt by the pole owner of such survey. The estimate must be detailed and include documentation sufficient to determine the basis for all charges.

a. A pole owner may withdraw an outstanding estimate of charges to perform make-ready work beginning 60 calendar days after the estimate is presented.

b. A requesting party may accept a valid estimate and make payment any time after receipt of an estimate but before the estimate is withdrawn.

5. Make-Ready. Upon receipt of payment specified in Section 2(A)(4)(b) of this Chapter, a pole owner must notify immediately and in writing all known joint-use entities with existing attachments that may be affected by the make-ready.

a. For attachments in the communications space, the notice must:

i. Specify where and what make-ready will be performed.

ii. Set a date for completion of make-ready in the communications space that is no later than 30 days after notification is sent (or up to 75 days in the case of larger orders as described in Section 2(A)(7)(c) of this Chapter).

iii. State that any attaching entity with an existing attachment may modify the attachment consistent with the specified make-ready before the date set for completion.

iv State that if make-ready is not completed within the allotted time period requesting party may complete the specified make-ready.

v. State the name, telephone number, and e-mail address of a person to contact for more information about the make-ready procedure.

vi. State that the attaching entity must affix an identification tag to each attachment within five feet of each joint-use utility pole that identifies the joint use entity and contains a contact telephone number, and that the tags must be maintained in a legible condition with current information. Attachers must tag all attachments installed after the effective date of this Chapter upon installation. Attachments installed prior to the effective date of this Chapter must be tagged within seven years of the effective date of this Chapter.

b. For attachments above the communications space, the notice must:

i. Specify where and what make-ready will be performed.

ii. Set a date for completion of make-ready that is no later than 90 calendar days after notification is sent (or 135 calendar days in the case of larger orders, as described in Section 2(A)(7)(c) of this Chapter).

iii. State that any entity with an existing attachment may modify the attachment consistent with the specified make-ready before the date set for completion.

iv. State that the pole owner has and may assert a right to 15 additional calendar days to complete make-ready.

v. State the name, telephone number, and e-mail address of a person to contact for more information about the make-ready procedure.

6. Attachments Above the Communications Space. For attachments above the communications space, a pole owner must ensure that make-ready is completed within the time periods established in Section 2(A)(5)(b) of this Chapter (or, if the pole owner has asserted its 15-calendar day right, 15 calendar days later).

7. Compliance with Time Periods. For the purposes of compliance with the time periods in this section:

a. A pole owner must apply the time periods described in Sections 2(A)(1)-(6) of this Chapter to all requests for pole attachment up to the lesser of 300 poles or 0.5 percent of the pole owner's poles in Maine.

b. A pole owner may add 15 calendar days to the survey period described in Section 2(A)(2) of this Chapter to larger orders up to the lesser of 3000 poles or 5 percent of the pole owner's poles in Maine.

c. A pole owner may add 45 calendar days to the make-ready periods described in Section 2(A)(5) of this Chapter to larger orders up to the lesser of 3000 poles or 5 percent of the pole owner's poles in Maine.

d. A pole owner must negotiate in good faith the timing of all requests for pole attachment larger than the lesser of 3000 poles or 5 percent of the pole owner's poles in Maine.

e. A pole owner may treat multiple requests from a requesting party as one request when the requests are filed within 30 calendar days of one another.

f. A pole owner may add up to 45 calendar days to the make-ready periods described in Section 2(A)(5) if a force majeure event interrupts compliance.

8. Deviation from Time Periods. A pole owner or attaching entity may deviate from the time limits specified in this section during performance of make-ready for good and sufficient cause that renders it infeasible for the pole owner or attaching entity to complete the make-ready work within the prescribed time frame. A pole owner or attaching entity that so deviates must immediately notify, in writing, the requesting party and other affected attaching entities, and must include the reason for and date and duration of the deviation. The pole owner or attaching entity may deviate from the time limits specified in this section for a period no longer than necessary and must resume make-ready performance without discrimination when it returns to routine operations. For pole replacements, a pole owner may add 45 calendar days to the make-ready periods described in Section 2(A)(5) of this Chapter for orders requiring the replacement of 10 or fewer poles, or 90 calendar days for orders requiring the replacement of more than 10 but less than 25 poles. For orders requiring the replacement of 25 poles or more, the pole owner and the attaching entity may deviate from the time limits specified in this section for a period no longer than reasonably necessary to perform the pole replacements.

9. Self-Help.

a. Survey. If a pole owner fails to respond as specified in Sections 2(A)(2) or 2(A)(3) of this Chapter, a requesting party may hire a contractor to complete a survey so long as it provides the pole owner 10 calendar days’ written notice of its intent to do so. If a requesting party exercises this option, the requesting party must permit the pole owner and any affected attaching entities to be present for any field inspections and must provide the pole owner and any affected attaching entities three business days' notice of any field inspections.

b. Make-Ready Work. If make-ready is not complete within the time period specified in Section 2(A)(5) through (7) of this Chapter, a requesting party may hire a contractor to complete the make-ready:

i. Immediately, if the pole owner has failed to assert its right to perform remaining make-ready work by notifying the requesting party that it will do so; or

ii. After 15 calendar days if the pole owner has asserted its right to perform make-ready by the date specified in Section 2(A)(5) of this Chapter and has failed to complete make-ready.

In addition:

iii. The requesting party must permit the pole owner and any affected attaching entity to be present for any make-ready work and must provide the pole owner and any affected attaching entities five business days' notice of the make-ready work;

iv. The requesting party must immediately notify a pole owner or affected attaching entity if the make-ready work damages any equipment or causes an outage that is reasonably likely to interrupt service. Upon receiving notice from the requesting party, the pole owner or affected attaching entity may either:

1. Complete any necessary remedial work and bill the requesting party for the reasonable costs related to fixing the damage; or

2. Require the requesting party to fix the damage at its expense immediately following notice from the pole owner or affected attaching entity; and

v. The requesting party must notify the pole owner and any affected attaching entity of the completion of the make-ready work within 15 calendar days of completion. Such notice must provide the pole owner and any affected attaching entities 90 calendar days from receipt of the notice to inspect the make-ready work, and advise that the pole owner and any affected attaching entities have 14 calendar days from the completion of their inspection to notify the requesting party of any damage or code violation resulting from the make-ready work. The pole owner or affected attaching entity may either complete any necessary remedial work and bill the requesting party for reasonable costs associated with the remediation or require the requesting party to perform the remediation at the requesting party's expense within 14 calendar days of notification.

10. Approved Contractors for Survey and Make-Ready.

a. A pole owner may make available a list of contractors it authorizes to perform surveys and make-ready in the communications space on its utility poles in cases involving One Touch Make-Ready under Section 2(A)(13) of this Chapter and in cases where the utility has failed to meet deadlines specified in Sections 2(A)(2) and 2(A)(5) of this Chapter. Listed contractors must be trained to work with coaxial and fiber optic cable and be reasonably insured or bonded.

b. A pole owner may make available a list of contractors it authorizes to perform surveys and make-ready above the communications space on its utility poles in cases where the utility has failed to meet deadlines specified in Sections 2(A)(2) and 2(A)(5) of this Chapter. Listed contractors must be trained and appropriately licensed to work above the communications space and be reasonably insured or bonded.

c. If a requesting party hires a contractor for purposes specified in Section 2(A)(9) of this Chapter, the requesting party may choose from the pole owner's list of authorized contractors or request the addition to the pole owner’s authorized contractor list any contractor that meets the minimum qualifications in Section 2(A)(10)(f) of this Chapter, and the pole owner may not unreasonably deny such a request.

d. If a pole owner does not provide a list of approved contractors for surveys or simple make-ready or no contractor on the pole owner’s contractor list is available within a reasonable time period then the requesting party may choose its own qualified contractor that meets the requirements in Section 2(A)(10)(f) of this Chapter. When choosing a contractor that is not on the pole owner’s list, the requesting party must certify to pole owner that its contractor meets the minimum qualifications described in Section 2(A)(10)(f) of this Chapter when providing notices required by Sections 2(A)(9) and 2(A)(13) of this Chapter.

e. A pole owner may disqualify any contractor chosen by a requesting party that is not on the pole owner’s contractor list, but such disqualification must be based on reasonable safety or reliability concerns related to the contractor’s failure to meet any of the minimum qualifications described in Section 2(A)(10)(f) of this Chapter or to meet the pole owner’s publicly available and commercially reasonable safety or reliability standards. The pole owner must provide notice of its contractor objection within the notice requirements of Sections 2(A)(9) and 2(A)(13) of this Chapter and in its objection must identify at least one available qualified contractor.

f. In addition to the requirements in Sections 2(A)(10)(a) and (b) of this Chapter, pole owners must ensure that contractors on their lists as described in this Chapter, and requesting parties must ensure that contractors they select pursuant to Section 2(A)(10)(d) of this Chapter, meet the following minimum requirements:

i. The contractor has agreed to follow published safety and operational guidelines of the pole owner, if available, but if unavailable, the contractor shall agree to follow National Electrical Safety Code guidelines;

ii. The contractor has acknowledged that it knows how to read and follow licensed-engineered pole designs for make-ready, if required by the pole owner;

iii. The contractor has agreed to follow all local, state, and federal laws and regulations including, but not limited to, the rules regarding Qualified and Competent Persons under the requirements of the Occupational and Safety Health Administration rules; and

iv. The contractor has agreed to meet or exceed any uniformly applied and reasonable safety and reliability thresholds set by the pole owner, if made available.

g. A requesting party that hires a contractor for survey or make-ready work must provide a pole owner or affected attaching entity with a reasonable opportunity for a representative to accompany and consult with the authorized contractor and the requesting party.

h. The consulting representative of an electric utility may make determinations, on a nondiscriminatory basis, where there is insufficient capacity and for reasons of safety, reliability, and generally applicable engineering purposes.

11. Non-Compliant Poles and Attachments.

A requesting party is not responsible for make-ready costs to the extent that those costs are included in the pole owner’s maintenance as administrative expenses or booked asset costs. A requesting party is not required to bear the costs of modifying attachments that are on the pole at the time of the requesting party’s application but that were not in compliance with applicable safety, engineering, and construction codes and standards at the time of the attachments' construction or installation.

12. Notice. A pole owner must provide a utility or joint-use entity no less than 60 calendar days written notice prior to:

a. Any increase in pole attachment rates; or

b. Any modification of facilities other than routine maintenance or modification in response to emergencies.

13. One Touch Make-Ready Option for Simple Make-Ready.

For attachments involving simple make-ready, a requesting party may elect to proceed with the process described in this Subsection instead of the process described in Section 2(A)(1)-(9) of this Chapter. It is the responsibility of the requesting party to ensure that its contractor determines whether the make-ready requested in an attachment application is simple make-ready.

a. Attachment Application.

i. An application for attachment must be submitted in writing and must provide the pole owner with the information necessary to grant or deny the application.

ii. A requesting party electing the one touch make-ready option must indicate that it intends to perform one-touch make-ready in its attachment application and must identify the simple make-ready it will perform.

iii. A pole owner must review the requesting party's attachment application for completeness before reviewing the application on its merits. An attachment application is considered complete if it provides the pole owner with the information necessary under its procedures, as specified in a master service agreement or in publicly-released requirements at the time of submission of the application, to make an informed decision on the application.

iv. A pole owner must complete its review for completeness within 10 business days of receipt of the application and notify the requesting party of that decision. If the pole owner does not respond within 10 business days after receipt of the application, or if the pole owner rejects the application as incomplete but fails to specify any reasons in the application, then the application is deemed complete.

v. If the pole owner timely notifies the requesting party that its attachment application is not complete, then the pole owner must specify all reasons for finding it incomplete. Any resubmitted application need only address the pole owner's reasons for finding the application incomplete and must be deemed complete within 5 business days after its resubmission, unless the pole owner specifies to the requesting party which reasons were not addressed and how the resubmitted application did not sufficiently address the reasons. The requesting party may follow the resubmission procedure in this paragraph as many times as it chooses so long as in each case it makes a bona fide attempt to correct the reasons identified by the pole owner, and in each case the deadline set forth in this paragraph shall apply to the utility's review.

vi. The pole owner shall review on the merits a complete application requesting one-touch make-ready and respond to the requesting party either granting or denying an application within 15 days of the pole owner's receipt of a complete application (or within 30 days in the case of larger orders as described in Section 2(A)(7)(c) of this Chapter).

vii. If the pole owner denies the application on its merits, then its decision shall be specific, shall include all relevant evidence and information supporting its decision, and shall explain how such evidence and information relate to a denial of access for reasons of lack of capacity, safety, reliability, or engineering standards.

viii. Within the 15–day application review period (or within 30 days in the case of larger orders as described in Section 2(A)(7)(c) of this Chapter), a pole owner may object to the designation by the requesting party's contractor that certain make-ready is simple. If the pole owner objects to the contractor's determination that make-ready is simple, then it is deemed complex. The pole owner's objection is final and determinative so long as it is specific and in writing, includes all relevant evidence and information supporting its decision, made in good faith, and explains how such evidence and information relate to a determination that the make-ready is not simple.

b. Surveys. The requesting party is responsible for all surveys required as part of the one-touch make-ready process and must use a contractor that is appropriately trained and licensed as well as reasonably insured or bonded and otherwise meets the requirements of Section 2(A)(10)(f) of this Chapter.

i. A requesting party may need to perform a survey to determine whether the necessary make-ready work is simple or complex before filing an application for one-touch make-ready.

ii. The requesting party must permit the pole owner and any affected attaching entity to be present for any field inspection conducted as part of the requesting party's surveys. The requesting party must use commercially reasonable efforts to notify the pole owner and any affected attaching entities three business days before a field inspection as part of any survey and must provide the date, time, and location of the surveys, and the name of the contractor performing the surveys.

c. Make-Ready. If the pole owner approves the requesting party's attachment application and if the requesting party has provided 15 calendar days’ prior written notice of the make-ready to the pole owner and affected attaching entities, the requesting party may proceed with make-ready using a contractor that is appropriately trained and licensed as well as reasonably insured or bonded and otherwise meets the requirements of Section 2(A)(10)(f) of this Chapter.

i. The prior written notice must include the date and time of the make-ready work, a description of the work involved, and the name of the contractor being used by the requesting party and must provide the pole owner and any affected attaching entities a reasonable opportunity to be present for any make-ready work.

ii. The requesting party must immediately notify a pole owner or affected attaching entity if the make-ready work damages any equipment or causes an outage that is reasonably likely to interrupt service. Upon receiving notice from the requesting party, the pole owner or affected attaching entity may either:

1. Complete any necessary remedial work and bill the requesting party for the reasonable costs related to fixing the damage; or

2. Require the requesting party to fix the damage at its expense immediately following notice from the pole owner or affected attaching entity.

iii. In performing make-ready work, if the requesting party, the pole owner, or an affected attaching entity determines that any work classified as simple make-ready is actually complex make-ready, then that specific make-ready work must be halted, and the determining party must provide immediate notice to the other parties of its determination and the affected poles. The affected make-ready will then be governed by Section 2(A)(1)-(9) of this Chapter, and the pole owner must provide notice required by Section 2(A)(5) of this Chapter as soon as reasonably practicable.

d. Post-Make-Ready Timeline. A requesting party must notify the pole owner and any affected attaching entities with notice of the completion of the make-ready work within 15 calendar days of completion. Such notice must provide the pole owner and any affected attaching entities 90 calendar days from receipt of the notice to inspect the make-ready work, and that the pole owner and any affected attaching entities have 14 calendar days from the completion of their inspection to notify the requesting party of any damage or code violation resulting from the make-ready work. The pole owner or affected attaching entity may either complete any necessary remedial work and bill the requesting party for reasonable costs associate with the remediation or require the requesting party to perform the remediation at the requesting party's expense within 14 calendar days of notification

14. Replaced and Abandoned Joint Use-Utility Poles.

a. Replaced Poles. All attaching entities with attachments above the communications space on a replaced joint-use utility pole must move their attachments to the new pole within 30 calendar days of the setting of the new pole. All attaching entities with attachments in the communications space of a replaced joint-use utility pole must move their attachments to the new pole in a sequential manner. The move process must begin:

i. In the case of a pole with attachments above the communications space, within 30 calendar days of the completion of the move of those attachments to the new pole; or

ii. In the case of a pole without attachments above the communications space, within 30 calendar days of the setting of the new pole.

Once an attachment is moved, that attacher must so indicate in the joint-use software system, or, in the absence of a joint-use software system, notify the pole owner who in turn must notify the next attacher. Each subsequent attacher must move its attachment within 15 calendar days of notification.

b. Abandoned Poles. The owner responsible for the maintenance of an abandoned joint-use utility pole must remove the abandoned pole within 120 calendar days of the removal of the last communications or electric attachment (whichever is removed last) from the pole. Pole owners must remove poles that were abandoned before the effective date of this Chapter within 180 calendar days of the effective date of this Chapter. If the owner of a pole cannot be determined, the responsibility for removal of the pole lies with the utility responsible for maintenance of the pole.

c. Disputes. Any aggrieved party may bring a dispute regarding the removal of an abandoned pole to the Commission using the dispute resolution provisions of Section 8 of this Chapter.

B. Unreasonable Terms and Conditions. The following terms and conditions are presumed to be unreasonable for the joint-use of utility poles:

1. Boxing. A prohibition on boxing poles (i.e., placing cables on both the road side and the field side of a pole) which can be safely accessed by emergency equipment and bucket trucks or ladders provided that such technique complies with the requirements of applicable codes.

2. Extension Arms. A prohibition on using extension arms to clear obstacles, improve alignment, or provide space that would not otherwise be available without a replacement pole, to the extent that the installation of extension arms complies with applicable codes.

3. Lowest Pole Position. A prohibition against attachments below existing attachments, to the extent that space is not available above existing attachments along the proposed route (or most of the route) of the additional attachments.

4. Pole Top Attachments. A prohibition against pole top attachments and the use of space above the primary or secondary power for wireless attachments, to the extent such proposed pole top installations comply with the NESC.

C. Presumptions Rebuttable. A pole owner or joint-use entity may overcome the presumption that a term or condition described in paragraph A or B of this Section is reasonable or unreasonable by presenting clear and convincing evidence that the dispute involves unique circumstances in which applying the presumption would produce an unreasonable or unsafe result.

3. APPROVAL OF ATTACHING ENTITIES

Any prospective attaching entity that is not attached to any joint-use utility poles in Maine prior to the effective date of this Chapter must obtain a Pole Attachment License from the Commission prior to attaching to any joint-use utility pole in Maine.

A. Application Requirements for Attaching Entities.

1. Evidence of Financial Capability.

All applications by attaching entities must include the entity's most recent financial disclosures. If an attaching entity does not make financial disclosures, it must include the most recent financial disclosures of its corporate parent. If the applicant is a newly formed entity that is not part of another organization, the Commission may accept other documentation to demonstrate financial capability.

2. Evidence of Technical Capability.

All applications by attaching entities must include a description of the entity's applicable industry experience, including the experience, if any, of the corporate parent of the attaching entity, and the experience of the individuals that will be responsible for the provision of service in Maine. Industry experience includes the telecommunications industry, electricity industry, pole attachments, and other experience related to pole attachments.

3. Authorization to Conduct Business in Maine.

All applications by attaching entities must include evidence that demonstrates that the entity is authorized to conduct business in Maine.

4. Application Information. An applicant must provide the following information:

a. Legal name and name(s) under which the attaching entity does or will do business in Maine;

b. Business street and mailing address;

c. Location and mailing address of any office available to the general public or Maine customers of the attaching entity;

d. Contact person, address, e-mail and telephone number for regulatory matters;

e. A list of all jurisdictions in which the attaching entity or any affiliated interest of the attaching entity is engaged or has been engaged in deploying pole attachments;

f. Whether the attaching entity or affiliated interest of the attaching entity has filed for bankruptcy within the past six years;

g. A copy of the documents which demonstrate the type of organization of the attaching entity (sole proprietor, corporation, partnership, association, or other business form);

h. The state(s) in which the attaching entity is incorporated or otherwise registered or licensed to do business and a copy of its registration or license number, where applicable; and

i. The name, business address, and title of each officer and director, partner, or other similar officer.

5. Commission Review.

The Commission will review applications and may request additional information. The Commission will issue a license, deny the application, or initiate a formal investigation of the application within 30 calendar days of the submission of a complete application. If the Commission requires additional time for the initial review, the Administrative Director, the Director of Telephone and Water Industries, the Director of Consumer Assistance, or the Presiding Officer assigned to a proceeding related to this Chapter may extend the review period for an additional 30 calendar days. In the event the Commission initiates a formal investigation, it must provide notice to interested persons.

6. Issuance Criteria.

The Commission will issue a license unless it finds that the attaching entity has not complied with all applicable licensing requirements of this Chapter, that the attaching entity does not have the financial and technical capability to conduct its business, or that sufficient reason exists to conclude that issuance of a license is not in the public interest.

7. Term of License.

Licenses are valid until revoked by the Commission or abandoned by the attaching entity.

8. Transfer of License.

A license cannot be transferred without prior Commission approval. A request for transfer of a license must be in writing accompanied by a completed license application from the transferee.

9. Abandonment of License.

A licensee cannot abandon service without providing at least 30 calendar days written notice to the Commission.

4. CALCULATION OF RATES FOR JOINT-USE UTILITY POLES

In determining a just and reasonable rate for attachments to joint-use utility poles, the Commission will employ the FCC Cable Rate Formula, presuming an average joint-use utility pole with a space factor of 7.4% per foot used by an attachment. Pole top attachments are presumed to occupy one foot of usable space for the purposes of Cable Rate calculations. The use of an average joint-use utility pole, and the one-foot space for pole-top attachments are rebuttable presumptions.

5. JOINT-USE SOFTWARE SYSTEM

A. Use of and Access to the System.

1. Large pole owners must participate in a joint-use software system upon implementation and activation of such a system. Participation by large pole owners includes, but is not limited to, providing pole ownership and attachment data to the system such that the system may be effectively used to facilitate make-ready work, placement and removal of pole attachments, and pole transfers and removals. Once implemented, all attaching entities and prospective attaching entities must use the system when applying for pole attachments, performing make ready work, placing or removing pole attachments, performing pole transfers, or performing pole removals within the service territory of a large pole owner. Pole owners who are not large pole owners may, but are not required, to participate in the joint-use software system. If a pole owner who is not a large pole owner chooses to participate in the joint-use software system, all attaching entities and prospective attaching entities must use the system applying for pole attachments, performing make ready work, placing or removing pole attachments, performing pole transfers, or performing pole removals within the service territory of that pole owner.

2. Once implemented and activated, the joint-use software system must generally be accessible to attachers 24 hours a day, 7 days a week, through the use of conventional office computer systems. Users will not be required to acquire special hardware, and any required software applications must be provided at no or at most nominal cost by the system operator(s).

3. Use of and access to the joint-use software system is subject to:

a. the confidentiality provisions in Section 5(B) of this Chapter;

b. reasonable measures to protect the security and integrity of the system and its data; and

c. reasonable user training requirements.

4. The owner or owners of the joint-use software system must design, implement, and operate the joint use software system in a non-discriminatory manner.

B. Confidentiality.

Data contained in or submitted to the joint-use software system, including but not limited to pole attachment locations, descriptions, and specifications; pole attachment applications; requests for information and responses thereto; and any maps, plans, drawings or other information, including those that disclose an attacher’s plans for where it intends to compete against an incumbent telephone utility, are confidential and subject to the nondisclosure provisions of this Section. All owners, operators, and users of the joint-use software system have a duty not to disclose any information contained in or downloaded or derived from the system except to such personnel that have an actual, verifiable “need to know” in order to respond to requests for information or requests for access. Under no circumstances may an owner, operator, or user of the joint-use software system disclose such information to marketing, sales or customer representative personnel.

C. Commission Oversight.

1. The dispute resolution process in Section 9 of this Chapter is available as a non-exclusive means of resolving disputes regarding the joint-use software system.

2. The Commission or its designee may require large pole owners to periodically provide reports regarding the implementation and operation of the system. In addition to information regarding the general operation of the system, such reports may also include:

a. modifications to the joint-use software system;

b. outages, breakdowns, or failures of the system, results of any investigation thereof, and a description of remedial measures taken; and

c. any disputes regarding the joint-use software system and any resolution of those disputes.

6. SEPARATE CHARGES

Pole owners must charge attaching entities separately for the following expenses and investments:

A. Make-Ready Work. An additional attaching entity or an existing attaching entity placing an additional attachment must be charged reasonable expenses incurred in surveying existing joint-use utility poles or in performing make-ready work. The attaching entity requiring additional space on an existing joint-use utility pole is presumed to be the attaching entity which must incur or be charged for the cost of all make-ready work, unless the other attaching entities otherwise agree.

1. Municipal Exemption.

a. Definitions. The following definitions are applicable to Section 5(A)(1) of this Chapter:

i. Make Ready Work. "Make-ready work" means the rearrangement or transfer of existing facilities, replacement of a pole, complete removal of any pole replaced or any other changes required to make space available for an additional attachment to a shared-use pole.

ii. Municipality. "Municipality" means a town, city, plantation, county, regional council of governments, quasi-municipal corporation or district as defined in 30-A M.R.S. § 2351, regional municipal utility district established according to 30-A M.R.S. § 2203(9) or a corporation wholly or partially owned by an entity specified in this Subsection.

iii. Unserved or Underserved Area. "Unserved or underserved area" has the same meaning as in 35-A M.R.S § 9202(5).

b. Exemption. Notwithstanding any provision of law to the contrary, for the purpose of safeguarding access to infrastructure essential to public health, safety and welfare, an owner of a joint-use utility pole and each attaching entity to that pole is responsible for that owner's or entity's own expenses for make-ready work to accommodate a municipality's attaching its facilities to that joint-use utility pole:

i. For a governmental purpose consistent with the police power of the municipality; or

ii. For the purpose of providing broadband service to an unserved or underserved area.

B. Tree Trimming; Brush Control. Joint-use entities occupying the same joint-use utility poles as the pole owner must be charged forty percent of expenses borne by the pole owner for tree trimming and brush control, multiplied by the ratio of joint-use entity attachments to joint-use utility poles occupied by pole owners in the same municipality or municipalities served by the joint-use entity. Pole owners that are telephone utilities must not charge electric utilities, and electric utilities must not charge pole owners that are telephone utilities or other joint-use entities, for tree trimming or brush control unless the attaching entity demonstrates a benefit to another attaching entity from either the tree trimming or brush control that it has performed and establishes a reasonable quantification of that benefit.

C. Excess Height

1. Solely Assigned; Excess Height. When an existing or a proposed attaching entity requires additional space which is not available on that joint-use utility pole, and the joint-use utility pole must be replaced by a taller joint-use utility pole, the existing or proposed attaching entity causing the need for replacement must pay for (i) the difference between the cost for the taller joint-use utility pole and supporting equipment such as guys and anchors and the cost for a new 35-foot joint-use utility pole and supporting equipment in the same location, plus (ii) a reasonable estimate of the net book value of the joint-use utility pole and supporting equipment, if any, which has been replaced.

2. Mutual Assignment. When a joint-use utility pole taller than 35 feet is required to provide minimum clearances, or when more space for attachments than is available on a 35-foot joint-use utility pole is required by two or more attaching entities, the cost (i) of the additional height of the excess height joint-use utility pole and supporting equipment and (ii) the reasonable estimate of the net book value of replaced joint-use utility pole and supporting equipment, if any, must be shared equally among the users requiring the replacement.

7. JOINT RESPONSIBILITY AGREEMENTS

Attaching entities may enter agreements which establish joint responsibility for joint-use utility poles in their common service territories and which may eliminate or reduce the need for the payment of direct compensation. Joint responsibility may include the joint ownership of joint-use utility poles, sole ownership of joint-use utility poles in an agreed proportion, compensation or any combination thereof, provided that the net effect of the agreement assigns responsibility for joint-use utility pole costs in amounts generally consistent with this Chapter. In determining whether an existing agreement is generally consistent with this Chapter, the parties may take into account the burden of litigating a rate or charges before the Commission and the overall net effect of any reasonably likely change on their respective ratepayers or customers.

8. REVENUE-NEUTRAL RATE ADJUSTMENTS

A. Flow Through of Changes in Revenues From Joint-Use Entities.

Increases in joint-use utility pole attachment revenues received by utility pole owner from a joint-use entity resulting from an order of the Commission under 35-A M.R.S. § 711 or from an agreement between utility pole owner and a joint-use entity must be flowed through to customers of the pole owner by a revenue-neutral change in the pole owner's rates as provided in this Section. Following initial implementation of a new rate as described above, increases in revenues which are attributable solely to increased costs of the pole owner, rather than to changes in the inclusion or exclusion of costs contained in a joint-use utility pole attachment rate or to changes in the allocation of costs, must not be subject to the flow‑through provisions of this Section.

B. Immediate Flow-Through.

The rate change required by this Section may be implemented by the pole owner at the time of the increase in revenues. If an electric utility chooses this option, the electric utility must make the change in its rates for residential classes.

C. Delayed Flow-Through; Suspense Account.

1. Timing. A pole owner may choose to delay the rate change required by this Section until the conclusion of its next general rate case, if applicable. If the next general rate case is not commenced (or notice provided under Chapter 120, § 6 of the Commission's Rules) within four years of the change in revenues, the pole owner's rate must be changed not later than 5 years following the effective date of the rate change.

2. Rate Design. If the change in joint-use utility pole rates is made at the conclusion of a general rate case, the change must apply to the rates for services or to customer classes as ordered in that case. If the change is made outside of a general rate case, the change must apply to rates for residential customers of the electric utility.

3. Suspense Account. A pole owner which delays implementation of a rate change pursuant to this Section must defer all increased revenues in a suspense account and the rate change to its customers must take into account the deferred amounts.

9. RESOLUTION OF DISPUTES

The Commission will adjudicate any disputes regarding joint-use utility poles, including disputes pursuant to 35-A M.R.S. § 711, in accordance with the Expedited Complaint Resolution Process of Disputes Regarding Utility Pole Attachments established in Maine Public Utilities Commission, Investigation into Practices and Acts Regarding Access to Utility Poles , Docket No. 2010-00371, Order (July 12, 2011). A summary of the dispute procedure is attached to this Chapter as Attachment A. On or before January 31 of each calendar year, or any time the contact information changes, owners of joint-use utility poles must submit to the Commission contact information for use by current or prospective attaching entities. Contact information must include name, title, address, business phone number, and business email address.

10. NEGOTIATED AGREEMENTS

Notwithstanding anything to the contrary in this Chapter, pole owners and attaching entities may enter into negotiated agreements for attachment to joint-use utility poles that contain rates, terms, or conditions that differ from those described in this Chapter. However, the Commission will apply the provisions of this Chapter in any dispute regarding rates, terms, or conditions for attachment to joint-use utility poles.

11. WAIVER

To the extent permitted by law, and for good cause shown, the Commission, the Director of Electric and Gas Utility Industries, the Director of Telephone and Water Utility Industries, the Director of Consumer Assistance and Safety, or the Presiding Officer assigned to a proceeding involving the provisions of this Chapter, may permit a temporary or permanent deviation, waiver or exemption from any provision of this Chapter. A finding that compliance would be unduly burdensome or that the deviation or waiver will not impair the policies of this Chapter may constitute a finding of good cause.

Activities Prior to Filing a Complaint

1. Complainant must call the contact for the party with whom there is a dispute and give notice that they are planning to file a complaint with the Commission Rapid Response Team the next business day

.

Filing Complaints

1. Complainant files Complaint electronically to the RRPT (rapidresponse.PUC@maine.gov) and the responding party contact. The filing must contain the appropriate caption for the Complaint (name of company and date of filing), and the actual Complaint must be a document attached to the email.
2. A Complaint must contain sufficient information to indicate: 1. the facts underlying the Complaint; 2. the harm which is resulting or could result to the Complainant due to the situation; 3. a description of the steps which the parties have taken to resolve the situation prior to the filing of the Complaint; and 4. whether or not Complainant is requesting a preliminary finding. The Complainant must also indicate the times both parties will be available for a conference call within 2 business days after the Complaint is filed.

Response to Complaint

1. Respondent acknowledges the by email. The acknowledgement and any response must be emailed to the RRPT and the Complainant. The Respondent may: 1. respond to the factual issues in the Complaint; 2. argue the Complaint should be dismissed or is otherwise not ripe for review; or
2. The RRPT will schedule a time for the Preliminary Conference Call within 2 business days of the date when the Complaint is filed.

Preliminary Conference Call and Intermediate Dispute Resolution Process.

1. Preliminary Conference Call: The following may occur: 1. Respondent may provide oral response to Complaint; 2. Deadline established for written response, if appropriate; 3. RRPT may request additional information from each party and set a schedule for its production; 4. RRPT may schedule follow-up telephone conference among the parties; 5. RRPT may issue a Preliminary Finding or dismiss the complaint; either party may appeal to the Commission an adverse Preliminary Finding or dismissal; 6. The issue may be resolved to the satisfaction of both parties.
2. Follow-up conference calls will be held at a time determined by RRPT and the following may occur: 1. Parties will update RRPT on progress since last call; 2. Parties will discuss information provided in response to any RRPT requests; 3. RRPT may issue a Preliminary Finding or dismiss the Complaint; either party may appeal to the Commission an adverse Preliminary Finding or dismissal; 4. The issue may be resolved to the satisfaction of both parties; or 5. RRPT may request written comments and/or schedule a Notice of Decision Call.

Notice of Decision and Final Order

1. If required by RRPT, a final conference call is held and the following may occur: 1. RRPT hears closing argument from parties and issues oral decision. 2. RRPT hears closing argument from parties and schedules time for written decision.
2. Within 7 business days of the filing of the Complaint, the RRPT will issue a final written decision (Final Order). Unless stayed by RRPT, the Final Order remains in effect pending appeal.
3. Within 5 business days after written decision is issued, a party may: 1. Appeal the Final Order to full Commission. 2. Request a stay of the Final Order by the Commission pending appeal.

BASIS STATEMENT: The factual and policy basis for this Chapter is set forth in the MPUC's Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2023-00058, issued on September 12, 2023. Copies of the Order have been filed with this Chapter at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 111, 301, 711, 2524, 7903 and 8302., P.L. 2017, ch. 199.
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on September 20, 2023. It was filed with the Secretary of State on September 20, 2023 (filing 2023-174) and became effective on September 25, 2023.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 885 Land Use Regulation Exemption

Code Me. R. 65-407 Ch. 885 Land Use Regulation Exemptions {#sec-65-407-ch.-885 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 885}

SUMMARY: This Chapter establishes the procedures and standards that govern public utility and energy infrastructure developer requests for exemptions from municipal zoning ordinances and Land Use Regulation Commission regulations.

§ 1 PURPOSE 2

§ 2 DEFINITIONS 2

§ 3 PETITION FOR EXEMPTION 2

A. Petition 2

B. Municipal or LURC Review 2

C. Prior Project Approval 3

D. Court or Local Review 3

E. Contents 3

§ 4 PROCEDURES FOR REVIEW 4

A. Filing 4

B. Notice and Opportunity for Intervention 4

C. Public Hearing 4

D. Commission Order 4

§ 5 STANDARDS FOR GRANTING EXEMPTION 4

A. Impact on Development 4

B. Ratepayer or Public Interest 4

§ 6 WAIVER OR EXEMPTION 5

§ 1 PURPOSE

The purpose of this Chapter is to establish procedures and standards to govern public utility and energy infrastructure developer requests for the Commission to grant exemptions from municipal zoning ordinances and Land Use Regulation Commission regulations.

§ 2 DEFINITIONS

Commission. “Commission” means the Maine Public Utilities Commission.

Corridor Developer. “Corridor developer” means a person that seeks to develop an energy corridor project.

Energy Corridor Project. “Energy corridor project” means the development of energy infrastructure as defined in Title 35-A, section 122, subsection 1, paragraph B within an energy infrastructure corridor pursuant to Title 35-A, section 122.

LURC. “LURC” means the Maine Land Use Regulation Commission.

Public Utility. “Public utility” has the same meaning as defined in Title 35-A, section 102, subsection 13.

Public Utility Project. “Public utility project” means the development of infrastructure or other construction by a public utility that is necessary or useful to furnish safe, reasonable and adequate facilities and service.

§ 3 PETITION FOR EXEMPTION

A. Petition. A public utility or corridor developer may seek a whole or partial Commission exemption from a municipal zoning ordinance or LURC regulation applicable to a public utility project or energy corridor project through a petition for exemption.

B. Municipal or LURC Review. A public utility or corridor developer may not file a petition for exemption until after the following has occurred:

1. the public utility or corridor developer has requested the applicable municipal planning board or LURC to issue a permit or other ruling required by a municipal zoning ordinance or LURC regulation or has requested a modification, variance, exception, waiver or other action from the municipal planning board or LURC necessary for the development of the public utility project or energy corridor project;

2. the municipal planning board or LURC has issued a denial of the request in whole or in part or has granted the request with conditions;

3. the denial of the request or the granting of the request with conditions has the effect of prohibiting the development the public utility project or the energy corridor project, rendering the development of the project uneconomic, or significantly increasing the costs of the project.; and

4. the public utility or corridor developer has informed the applicable municipal planning board or LURC of the impact of the granting of the request with conditions on the public utility project or the energy corridor project.

C. Prior Project Approval. A petition for exemption for projects that require prior Commission approval must be filed as specified in this subsection.

1. Transmission lines. A public utility may not file a petition for exemption for the construction of a transmission line of 69 kilovolts or more unless it has obtained a certificate of public convenience and necessity from the Commission as required by Title 35-A, section 3132.

2. Energy Corridor Projects. A corridor developer may not file a petition for exemption for the construction of an energy corridor project unless it has obtained a corridor use certificate from the Commission as required by Title 35-A, section 122, subsections 4 and 5.

3. Other Utility Projects. A public utility may not file a petition for exemption for the construction of a public utility project that requires prior Commission approval until after that approval is obtained.

D. Court or Local Review

1. Denied Request. A public utility or corridor developer is not required to seek review, or an appeal from a court or a municipal board of appeal of the municipal planning board or LURC determination or ruling required by subsection B prior to filing a petition for exemption. A public utility or corridor developer that seeks a court or municipal board of appeal review or appeal may not file a petition for exemption while the review or appeal proceeding is pending.

2. Granted Request. A public utility or corridor developers may file a petition for exemption during the pendency of a court or municipal board of appeal review or appeal proceeding filed by an entity other than the public utility or corridor developer.

E. Contents. A petition for exemption must include:

1. a copy of the municipal ordinance or LURC regulation from which an exemption is sought;

2. a copy of the decision or ruling of the municipality or LURC denying or granting with conditions the necessary permit, or modification, variance, exception, or waiver from the municipal ordinance or LURC regulation, and related decisions of a reviewing body, if any;

3. a statement explaining that the denial of the request or the granting of the request with conditions has the effect of preventing the development of the public utility project or the energy corridor project, of rendering the development of the project uneconomic, of significantly increasing the costs of the project; and

4. a statement explaining that a Commission exemption from the applicable ordinance or regulation is necessary or desirable for the public welfare and convenience and otherwise satisfies the standards contained in this Chapter.

§ 4 PROCEDURES FOR REVIEW

A. Filing. The public utility or corridor developer shall file the petition for exemption with the Commission and provide a copy of the petition for exemption to the municipality or LURC, as applicable. The copy of the petition to the municipality shall be provided the municipal clerk, the chairman of the planning board, and chairman of the board of appeals if an appeal was filed.

B. Notice and Opportunity for Intervention. The Commission shall provide notice of the filing of a petition for exemption and an opportunity for intervention to the municipality or LURC as applicable, the Public Advocate, all parties in any prior Commission proceedings involving the approval of the public utility project or energy corridor project, all parties to the LURC proceeding if an exemption is sought from a LURC regulation, all persons entitled to notice of the request for a municipal permit if an exemption is sought from a municipal ordinance, and to other interested persons.

C. Public Hearing. The Commission shall conduct a public hearing on the petition for exemption and shall provide parties the opportunity to submit evidence and argument.

D. Commission Order. The Commission shall issue an order on the petition for exemption. The Order shall address the relevant evidence and arguments presented by the parties and determine whether the public utility or the corridor developer has met the standards for granting an exemption as stated in section 5 of this Chapter.

§ 5 STANDARDS FOR GRANTING EXEMPTION

To exempt a public utility project or an energy corridor project wholly or partially from a municipal zoning ordinance or a LURC regulation, the Commission must determine that the exemption is necessary or desirable for the public welfare and convenience. A determination that the exemption is necessary or desirable for the public welfare or convenience must be based on the findings specified in subsections A and B.

A. Impact on Development. The whole or partial exemption of the municipal ordinance or LURC regulation is necessary to allow the public utility project or energy corridor project to be developed, to render the project economic or to avoid a significant increase in the costs of the project.

B. Ratepayer or Public Interest. The interests of the general body of ratepayers with respect to a public utility project or the broad public interest with respect to an energy corridor project outweigh the interests represented by the municipal ordinance or the LURC regulation.

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or Title 35-A. The Commission, the Director of Technical Analysis, or the presiding officer assigned to a proceeding related to this Chapter may grant the waiver.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111; 12 M.R.S.A. §685-A(11);
• STATUTORY AUTHORITY: 30-A M.R.S.A. §4352(4)
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on September 10, 2008. It was filed with the Secretary of State on October 20, 2008 and became effective on October 25, 2008.
• EFFECTIVE DATE: 65-407 Chapter 885 page 2

Chapter 895 Underground Facility Damage Prevention Requirements

Code Me. R. 65-407 Ch. 895 Underground Facility Damage Prevention Requirements {#sec-65-407-ch.-895 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 895}

SUMMARY: This rule describes the responsibilities of excavators, underground facility operators, the damage prevention system (Dig Safe System, Inc.), and the Public Utilities Commission in implementing Maine’s underground facility damage prevention statute. The rule establishes notification, marking, and reporting procedures, defines violations and penalties, and describes the process by which the Public Utilities Commission will enforce the program and monitor its success.

§ 1 GENERAL PROVISIONS 4

A. Purpose and scope 4

B. Applicability 4

§ 2 DEFINITIONS 4

§ 3 [Repealed] 6

§ 4 Responsibilities of the Excavator 6

A. Pre-marking 6

B. Notification 6

1. Notification to the Dig Safe system 6

2. Additional notifications 8

3. Subcontractors and multiple excavators 8

C. Excavation 9

1. Emergency excavations 9

2. Safety zone 9

3. Maintenance of markings 9

4. Unmarked underground facilities 9

D. Reporting 9

1. Notice of damage to operator 9

2. Report to Commission 9

3. Calling 9-1-1…………………………………………………………………… 10

E. Legal effect of non-compliance 10

Excavator …….. 10

Member Operator … 10

3. Non-member Operator 10

F. Exemptions 10

1. Commercial forestry 10

2. Cemeteries 11

3. Shoulder-grading activity 11

4. Quarries and borrow pits……………………………………………………….. 12

5. Unpaved public road grading procedures …………………………………....... 14 6. Unpaved private road grading ………………………………………………… 15

§ 5 Responsibilities of DIG SAFE SYSTEM 15

A. notification 15

B. System requirements 15

C. public awareness programs 16

§ 6 Responsibilities of the Operator 17

A. Dig Safe system membership 17

1. Members 17

2. Non-members 18

B. Marking 18

1. Purpose 18

2. Time requirements 18

3. Markers 19

4. Marking procedures 19

5. Newly installed facilities 20

6. Discovered facilities 20

C. Reporting 21

1. Report to Commission 21

2. Annual activity report 21

3. New underground facilities 21

4. Non-member operator registration 21

D. Natural Gas Operators 21

1. Applicability 21

2. Excavation notice to fire departments 22

3. Emergency management information 22

E. Legal effect of non-compliance 22

1. Members 22

2. Non-members 22

F. Abandoned or inactive facilities 22

1. Operators with an electronic mapping system 22

2. Operators without an electronic mapping system 23

§ 7 Commission activities 23

A. Monitoring 23

A-1. OKTODIG database 23

B. Enforcement action procedure 23

1. Notice of enforcement investigation 24

2. Informal review 25

3. Recommended decision 26

4. Adjudicatory hearing 26

5. Remedial orders 26

6. Consent agreements 27

C. Commission action 27

§ 8 Administrative Penalties 28

A. Approval required 28

B. Penalty assessment 28

C. Violations 28

D. Penalty level 28

1. Maximum penalty level 28

2. Conditions 29

3. Other consequences of violation 29

E. Training requirements 29

§ 9 CONTEMPT 29

§ 10 Imprudent Action 29

§ 11 INJUNCTIONS 30

§ 12 Waiver or EXEMPTION 30

§ 1 GENERAL PROVISIONS

A. Purpose and scope. The purpose of this rule is to implement the provisions of the State’s underground facility damage prevention requirements contained in 23 M.R.S.A. §3360-A, "Protection of Underground Facilities.” The rule establishes the responsibilities of excavators, operators and Dig Safe System, Inc. The rule also establishes the process by which the Public Utilities Commission enforces this program.

B. Applicability. Dig Safe System, Inc. shall be the damage prevention system that operates in Maine. Unless otherwise indicated, the provisions of this rule apply to all operators of underground facilities, excavators, and Dig Safe System, Inc.

§ 2 DEFINITIONS

As used in this section, unless the context otherwise indicates, the following terms shall have the following meanings.

A. Business day. "Business day" means a 24-hour day other than Saturday, Sunday or a legal Maine holiday.

B. Borrow pit. “Borrow pit” has the same meaning as provided in 38 M.R.S.A. §482(1-A).

C. Commercial timber harvesting activity. “Commercial timber harvesting activity” means the cutting or removal of timber for the primary purpose of selling or processing forest products and includes the attendant operation of mobile or portable chipping mills and of cutting and skidding machinery and the creation, use and maintenance of skid trails, skid roads, winter haul roads and other roads to facilitate timber harvesting.

D. Commission. "Commission" means the Maine Public Utilities Commission.

E. Damage. "Damage" means any impact upon, or removal of support from, an underground facility as a result of excavation or demolition, which according to the operating practices of the operator would necessitate the repair of such facility.

E-1. Damage prevention incident. “Damage prevention incident” means an occurrence in which one or more provisions of the Dig Safe law are violated, regardless of whether there is damage to underground facilities.

F. Damage prevention system or system. "Damage prevention system" or "system" means an organization whose membership is open to all operators of underground facilities located within the State of Maine, which maintains a database, provided by its member operators, that includes the geographic areas in which its member operators desire transmission of notices of proposed excavation and which has the capability to transmit notices of proposed excavation to member operators by teletype, facsimile, computer or telephone.

G. Demolition. "Demolition" means any operation by which a structure or material is wrecked, razed, rendered, moved or removed by means of any tools, equipment or discharge of explosives which could damage underground facilities.

H. Dig Safe System, Inc. or Dig Safe. “Dig Safe System, Inc.” or “the Dig Safe System” means the damage prevention system operating in Maine.

I. Emergency excavation. "Emergency excavation" means immediate excavation necessary to prevent injury, death, or loss of an existing vital service.

J. Excavation. "Excavation" means any operation in which earth, rock or other material below the ground is moved or otherwise displaced, by means of power tools, power equipment or explosives and includes grading, trenching, digging, ditching, drilling, auguring, tunneling, scraping and cable or pipe driving, except tilling of soil and gardening or displacement of earth, rock or other material for agricultural purposes.

K. Excavator. "Excavator" means any person proposing to make, making or contracting for an excavation.

L. Mechanical means of excavation. “Mechanical means of excavation” means excavation using any device or tool powered by an engine except air vacuum methods of excavation.

M. Member operator. “Member operator” means an operator that is a member of Dig Safe, Inc.

N. Notify, notice or notification. "Notice" or "notification" means the delivery of all required information to the person to be notified and the receipt of it by such person in accordance with this rule. To “notify” means to give notice in accordance with the requirements of this rule.

O. Non-member operator. “Non-member operator” means an operator that is not a member of Dig Safe, Inc.

P. Operator. “Operator” means the owner or operator of an underground facility. Within this rule, operators are further categorized as “member operators” and “non-member operators.”

Q. Person. "Person" means an individual, partnership, municipality, state, county, political subdivision, public utility, joint venture or corporation and includes the employer of an individual.

R. Respondent. “Respondent” means a person alleged to have committed a violation under this rule or 23 M.R.S.A. §3360-A.

S. Serious damage prevention incident. "Serious damage prevention incident" means a damage prevention incident that results in the loss of human life, personal injury requiring in-patient hospital admission, evacuation, or potential damages exceeding $10,000, or that has the potential to pose a significant hazard to the health or welfare of the public.

T. Shoulder-grading activity. “Shoulder-grading Activity” means highway maintenance work that involves the use of a motorgrader or other suitable construction equipment with a blade on the shoulder of a road to remove accumulated sand, gravel, sod or other material to establish drainage away from the traveled portion of the highway.

U. Underground facility or facility. "Underground facility" or “facility” means any item of personal property buried or placed below ground for use in connection with the storage or conveyance of water, sewage, electronic, telephonic or telegraphic communications, cable television service,electric energy, oil, gas, liquefied propane gas or other substances and including, but not limited to, pipes, sewers, conduits, cables, valves, lines, wires, manholes, attachments, appurtenances thereto and those parts of poles below ground. This definition shall not include:

(1) Highway drainage culverts or under drains; or

(2) Liquefied propane gas distribution systems that have underground pipes located on a residential lot if:

(a) The residential lot has no more than one structure connected by underground pipes to a liquefied propane gas distribution system;

(b) The structure that is connected by underground pipes to a liquefied propane gas distribution system contains no more than 2 dwelling units; and

(c) The liquefied propane gas tank is located 25 feet or less from that structure.

V. Underground facility operator. “Underground facility operator" means the owner or operator of any underground facility, other than an underground oil storage facility as defined in 38 M.R.S. §562-A(21) or an airport aviation fuel hydrant piping system, used in furnishing electric, telephone, telegraph, gas, petroleum transportation, liquified propane gas, or cable television service. An "underground facility operator" does not include a municipality or a public utility with fewer than five full-time employees or fewer than 300 customers or a person that owns underground facilities on its own property for commercial or residential purposes.

W. Violation. "Violation" means any of the actions identified in 23 M.R.S. §3360-A(6-C) (the Dig Safe law) as violations subject to the imposition of an administrative penalty and acts of non-compliance with the provisions of this rule.

.

§ 3 [Repealed]

§ 4 RESPONSIBILITIES OF THE EXCAVATOR

A. Pre-marking. The excavator shall mark the approximate boundary of a proposed excavation and the excavator’s initials in white, or as otherwise established by the Dig Safe System, prior to notifying the Dig Safe System, as required by Section 4(B). If an excavator uses a single stake or other single point indicator as a pre-mark, the excavator must indicate the radius of the proposed excavation area. Alternative colors, pink or black, may be used by the excavator during snow or ice conditions.

B. Notification

1. Notification to the Dig Safe system

Notice process. Except for emergency notifications and as provided in Subsection 4(B)(1)(a)(i), an excavator shall notify the Dig Safe System of the location of the intended excavation at least 72 hours, not including Saturdays, Sundays and legal Maine holidays, but not more than 30 calendar days, prior to the commencement of excavation. The excavation must commence within 30 days of the notification to the Dig Safe System. Notification may be given in writing, by telephone, or by electronic means. Non-emergency notification shall take place between the hours of 7 a.m. and 5 p.m. on normal business days. In the event of an emergency, an excavator shall notify the Dig Safe System and non-member operators as required by Subsection 4(C)(1), and shall indicate that it is an emergency notification.

i. No facilities. If an excavator notifies the Dig Safe System and nonmember operators as required by this Section, and is informed by the Dig Safe System and each nonmember operator, including private landowners, that no underground facilities exist in the proposed excavation area, then the excavator is not required to wait 3 days as required by Subsection 4(B)(1)(a) and may begin excavation immediately.

ii. PUC OKTODIG database. An excavator may check the Commission’s OKTODIG database within 30 days of the date excavation begins to determine whether any non-member operators have underground facilities in the municipality in which the excavation area is located. The excavator may re-check the OKTODIG database pursuant to this subsection for each successive 60-day period. If the Commission’s OKTODIG database indicates that there are no member facilities located in the municipality in which excavation is planned, the excavator is not required to notify the Dig Safe System of the planned excavation. The excavator must notify all non-member operators that are listed on the Commission's OKTODIG database as having underground facilities in the municipality in which the excavation area is located as required in Subsection 4(B)(2).

b. Acknowledgement. An excavator shall acquire and record an acknowledgement from the Dig Safe System for any notice the excavator sends by electronic means.

c. Blasting. If an excavation involves blasting, the excavator shall notify the Dig Safe System in writing of the date and location of the blasting. This written notice must be given and received at least 24 hours in advance of the blasting, except that, in the case of an unanticipated obstruction requiring blasting, the excavator shall provide written notice not less than four hours in advance of that blasting.

d. Renotification. If the proposed excavation or blasting is not completed 60 calendar days after notification or the excavation or blasting will be expanded outside the location originally specified in the notification, the excavator shall renotify the Dig Safe System as specified in this section.

e. Contents of notice. Notification to the Dig Safe System shall contain the following information:

i. the name of the individual serving such notice;

ii. the location of the proposed excavation must be clearly identified and defined in Dig Safe's System by choosing the most precise excavation site option(s):

a. Street Address, enter the parcel address or enter the address range, or enter the street name when working on the entire length of the road;

b. Global Positioning System (GPS) Coordinates;

c. Intersection of two streets; or

d. Between Intersections.

If the location can’t be identified and defined using one or more of the above tools, the map draw function must be used. The excavation location information shall include the name of the city or town where the excavation will take place; and the street, way, or route number where appropriate; and the name of the streets at the nearest intersection to the excavation; and the number of the buildings closest to the excavation and/or any other description, including landmarks, utility pole numbers or other information which will accurately define the location of the excavation and the date and location of any blasting.

iii. the name, address, telephone number and the telefacsimile (fax) number, if available, of the excavator;

iv. the excavator's field telephone number, if available; and

v. the type and extent of the proposed excavation.

2. Additional notifications. In addition to notifying the Dig Safe System as required in Subsection 4(B)(1), an excavator shall notify any non-member operator in the area of the proposed excavation. This notice must be in accordance with Subsection 4(B)(1) except that it will be provided directly to the non-member operator and not to the Dig Safe System.

a. If the underground facilities are located on private property, provide service to a single-family residence, and are owned and operated by the owner of that property:

i. That landowner may mark the underground facilities in accordance with Subsection 6(B);

ii. The excavator may wait 3 business days from the date of notification to commence the excavation or may commence the excavation upon notification;

iii. If the excavator waits 3 business days from the date of notification or until after the underground facilities are marked, if sooner, to commence excavation or if the markings made by the landowner pursuant to subparagraph (i) fail to identify the location of the underground facilities in accordance with subsection 6(B), an excavator damaging or injuring underground facilities is not liable for any damage or injury caused by the excavation, except on proof of negligence; and

iv. If the excavator does not wait until the underground facilities are marked or 3 business days from the date of notification to commence excavation, whichever occurs earlier, the excavator is liable for all damages to the underground facilities as a result of the excavation.

3. Subcontractors and multiple excavators. In the case of an excavation involving subcontractors or other arrangements in which more than one entity qualifies as the excavator under this rule, the excavator directly responsible for performing the excavation shall ascertain that all notifications required by this rule are performed.

C. Excavation

1. Emergency excavations. In an emergency, an excavator may commence an excavation after taking all reasonable steps, consistent with the emergency, to pre-mark the excavation site and notify the Dig Safe System and non-member operators pursuant to Section 4(B).

2. Safety zone. An excavator may not use mechanical means of excavation when excavating within 18 inches in any direction of any marked underground facilities until the underground facilities have been exposed, except that mechanical means may be used, as necessary, for initial penetration and removal of pavement, rock or other materials requiring use of mechanical means of excavation. Once underground facilities have been exposed, further excavation must be performed employing reasonable precautions to avoid damage to the underground facilities (unless the operator of the underground facilities has positively identified the facilities as inactive or abandoned, pursuant to Subsection 6(F)(3), and has indicated that there is no need to protect them from damage), including, but not limited to, any substantial weakening of structural or lateral support of the facilities or penetration or destruction of the facilities or their protective coatings. The lateral boundaries of the safety zone shall be the operator’s tolerance zone markings as directed in Subsection 6(B)(4)(b).

3. Maintenance of markings. An excavator shall maintain markings made by an operator pursuant to Section 6(B). If an excavator cannot maintain the markings, the excavator shall request that the operator reapply the markings.

4. Unmarked underground facilities. Any unmarked underground facility discovered during an excavation must be treated as an active facility until the facility operator has been notified by the excavator (pursuant to Subsection 4(D)(1)) and has visited the site and positively identified the facility as inactive or abandoned.

D. Reporting

1. Notice of damage to operator. An excavator who damages an underground facility or discovers an unmarked underground facility shall immediately notify the affected operator. The excavator shall not backfill an excavation where damage has occurred or where an unmarked facility has been discovered without first receiving permission from the affected operator.

2. Report to Commission. An excavator involved in an excavation shall report to the Commission when it has reason to believe that one or more damage prevention incidents as defined in Section 2(E-1) have occurred associated with that excavation.

The damage prevention incident shall be reported by 1) calling the Commission as soon as possible at (207) 287-3831 or emailing the Commission at IncidentReport.PUC@maine.gov and 2) completing the Underground Facility Damage Prevention Incident Report form available from the Commission (207) 287-3831 or http://www.maine.gov/mpuc ). The excavator shall submit this written report within 10 days of discovering a damage prevention incident.

Any person may report to the Commission any other failure to comply with this rule or other concerns regarding underground facilities damage prevention, using the Underground Facility Damage Prevention Incident Report form.

Calling 9-1-1. If contact with or damage to an underground pipe or another

underground facility results in the escape of any natural gas or other hazardous

substance or material regulated by the United States Department of

Transportation, Pipeline and Hazardous Materials Safety Administration, the

excavator shall immediately report the contact or damage by calling 9-1-1.

E. Legal Effect of Non-compliance

1. Excavator. The failure of an excavator to provide any or all notices required by Subsections 4(B)(1) and 4(B)(2) for an excavation that results in damage to an underground facility or facilities shall be prima facie evidence in any civil or administrative proceeding that the damage was caused by the negligence of the excavator.

2. Member Operator. If an excavator complies with all excavator responsibilities described in Section 4(A) and Subsection 4(B)(1), and if the Dig Safe System does not provide all information pursuant to Section 5(A) or an operator does not provide all information pursuant to Section 6(B) or the information provided fails to identify the location of the underground facilities in accordance with Section 6(B), then an excavator is not liable for any damage or injury caused by the excavation, except on proof of negligence.

3. Non-member Operator. If an excavator provides notice to non-member operators pursuant to Subsection 4(B)(2), and if a non-member operator fails to mark the location of its facilities or if the facilities are not properly marked pursuant to Section 6(B), then an excavator is not liable for any damage or injury caused by the excavation, except on proof of negligence.

F. Exemptions

1. Commercial Forestry

a. Activity requiring no written agreement. An excavator is exempt from the notice requirements of Sections 4(A) and 4(B) for any excavation undertaken in conjunction with a commercial timber harvesting activity provided the excavation:

i. is not conducted in a public place, on public land or within a public easement, including, but not limited to, a public way;

ii. is not conducted within 100 feet of an easement or land owned by an underground facility operator;

iii. is not conducted within 100 feet of an underground facility; and

iv. does not involve the use of explosives.

b. Activity requiring written agreement. An excavator is exempt from the requirements of Sections 4(A), 4(B) and 4(C) for any excavation undertaken in conjunction with a commercial timber harvesting activity, when that excavation is within 100 feet of an underground facility or on an easement or land owned by an operator or within 100 feet of an easement or land owned by an operator if the excavator:

i. contacts the Dig Safe System to identify all member operators within the area of the excavation;

ii. enters into written agreements with all operators within the area of the excavation and with all persons owning the land on which the excavation occurs; and

iii. undertakes the excavation in accordance with the terms of the written agreements.

2. Cemeteries. An excavator is exempt from the notice requirements of Section 4(B) for any excavation undertaken within the boundaries of a cemetery if the following procedures are followed.

a. The person responsible for operating the cemetery shall provide notice pursuant to Section 4(B) identifying the entire cemetery as a potential excavation site. Owners and operators of underground facilities within the cemetery shall mark those facilities in accordance with Section 6(B) as applicable. Thereafter, the person responsible for operating the cemetery shall maintain sufficient records or markings to identify the location of underground facilities within the cemetery.

b. The person responsible for operating the cemetery shall identify the location of any underground facilities within the excavation area and take appropriate action to avoid damage to the facilities.

3. Shoulder-grading Activity. An excavator that is a licensing authority as defined by 35-A M.R.S.A. §2502(1) or its designee is exempt from Subsection 4(C)(2) for any excavation that is shoulder-grading activity if the excavator complies with this subsection. If an excavator chooses to excavate under this subsection, all owners of underground facilities within the area of excavation must comply with this subsection.

a. The excavator shall provide notice as required by Section 4(B) and the owner or operator of underground facilities shall respond as required by Section 6(B).

b. The excavator shall contact each owner or operator of underground facilities within the area of proposed shoulder-grading activity and describe the scope of its proposed shoulder-grading activity, including the anticipated depth of grading.

c. The owner or operator of each underground facility shall within 3 business days determine and notify the excavator whether the depth of its facility is sufficient to avoid damage.

d. After receipt of notice pursuant to Subsection 4(F)(3)(c), the excavator

may commence its shoulder-grading activity in a manner that does not disturb the facilities indicated by the owners or operators of the underground facilities or, if a facility is located at an insufficient depth to allow the proposed shoulder-grading activity, prior to the shoulder-grading activity the licensing authority may require the owner or operator of the underground facility to lower or otherwise move its facility in accordance with applicable law and the terms of its license.

Exemption; quarries and borrow pits. An excavator may undertake an

excavation within a quarry or borrow pit in accordance with this subsection.

As used in this subsection, unless the context otherwise indicates, the following terms have the following meanings.

(i) "Lawfully expanded after March 1, 2011" means an expansion of a quarry or borrow pit after March 1, 2011:

That requires an authorization, license, permit or variance issued by the Department of Environmental Protection pursuant to Title 38, chapter 3, article 6, 7 or 8-A or by the former Maine Land Use Regulation Commission or the Maine Land Use Planning Commission under Title 12, chapter 206-A and for which a valid authorization, license, permit or variance has been issued; or

That requires a filing of a notice of intent to comply pursuant to Title 38, chapter 3, article 7 or 8-A and a complete filing has been made.

(ii) "Lawfully located on March 1, 2011" means that on March 1, 2011 the quarry or borrow pit existed and:

The owner or operator had been issued all authorizations, licenses, permits or variances by the Department of Environmental Protection pursuant to Title 38, chapter 3, article 6, 7 or 8-A or by the former Maine Land Use Regulation Commission under Title 12, chapter 206-A necessary to operate that quarry or borrow pit; and

The quarry or borrow pit was in compliance with any applicable requirements of Title 38, chapter 3, article 7 or 8-A or with any applicable land use district standards of the former Maine Land Use Regulation Commission adopted under Title 12, chapter 206-A.

(iii) "Lawfully located after March 1, 2011" means that the quarry or borrow pit is established after March 1, 2011 and:

The owner or operator possesses all authorizations, licenses, permits or variances issued by the Department of Environmental Protection pursuant to Title 38, chapter 3, article 6, 7 or 8-A or by the former Maine Land Use Regulation Commission or the Maine Land Use Planning Commission under Title 12, chapter 206-A necessary to operate that quarry or borrow pit; and

The quarry or borrow pit is in compliance with the requirements of Title 38, chapter 3, article 7 or 8-A or with applicable land use district standards of the former Maine Land Use Regulation Commission or the Maine Land Use Planning Commission adopted under Title 12, chapter 206-A.

(iv) "Quarry" has the same meaning as in Title 38, section 490-W, subsection 17.

Except as provided in paragraph c, an excavator is exempt from the

notice requirements of subsection 4(B) when undertaking an excavation within a quarry or borrow pit lawfully located on March 1, 2011.

An excavator undertaking an excavation within a quarry or borrow pit

lawfully located after March 1, 2011 or lawfully expanded after March 1, 2011 is governed by the following.

The owner or operator of the quarry or borrow pit shall provide notice pursuant to subsections 4(B) identifying the entire area potentially subject to excavation.

Owners and operators of underground facilities in the area identified pursuant to subparagraph i shall mark those facilities in accordance with subsection 6(B), as applicable. Thereafter, the owner or operator of the quarry or borrow pit shall maintain sufficient records or markings to identify the location of underground facilities within the area identified pursuant to subparagraph (i) and an excavator undertaking an excavation in that area is exempt from any further notice requirements under subsection 4(B).

The owner or operator of the quarry or borrow pit shall take appropriate action to avoid damage to the underground facilities identified pursuant to subparagraph (ii).

Unpaved public road grading procedure. A person may undertake qualified

grading activity in accordance with this subsection.

1. As used in this subsection, unless the context otherwise indicates, the following terms have the following meanings.

“Approved road" means a public way, or portion of a public way, on which a person may undertake qualified grading activity in accordance with this subsection.

"Licensing authority" has the same meaning as in Title 35-A, section 2502, subsection 1.

"Qualified grading activity" means maintenance work that involves the use of suitable equipment with a blade to level or otherwise maintain the sand, gravel, sod or other surface of an unpaved public way.

"Requested road" means a public way, or portion of a public way, on which a licensing authority requests authority to conduct qualified grading activity under this subsection.

"Shallow-depth facilities" means underground facilities located at an insufficient depth to allow qualified grading activity.

1. A licensing authority shall provide notice identifying the requested road and the intended depth of the qualified grading activity to the system and to persons who are not members of the system who own or operate underground facilities in the requested road.

2. Upon receiving notice pursuant to paragraph b, the system shall notify immediately all members whose underground facilities may be affected in accordance with subsection 5(A).

3. The owner or operator of each underground facility within the requested road shall within 3 business days of receiving notice advise the licensing authority of the location and size of the owner's or operator's underground facilities and all underground facilities used in furnishing electric or gas service that are connected to the owner's or operator's facilities and known to the owner or operator that are located in the requested road and whether the depth of the facilities is sufficient to avoid damage by qualified grading activity.

4. After waiting 3 business days of providing notice under paragraph b the licensing authority may file with the Public Utilities Commission a notice of intent to conduct qualified grading activity on the requested road. Upon filing the notice of intent, the requested road becomes an approved road and any person may undertake qualified grading activity on the approved road at any time during the 12 months following filing of the notice of intent and is not required to provide any further notices under this section during those 12 months. If the licensing authority has been notified pursuant to paragraph d that there are shallow-depth facilities within the requested road, any qualified grading activity must be conducted in a manner that does not disturb the shallow-depth facilities. The licensing authority may require the owner or operator of the shallow-depth facilities to lower or otherwise move its facility in accordance with applicable law and the terms of its license.

5. Unpaved private road grading. A person is exempt from the requirements of

this section for any grading activities undertaken on private roads that meet the following criteria:

The grading activities are limited to the shaping, maintaining or scraping of a road surface or road shoulder to allow for proper drainage; and

The depth of the grading activities is no deeper than 6 inches as measured from the road surface or shoulder of the road surface prior to the commencement of those grading activities.

§ 5 Responsibilities of THE DIG SAFE SYSTEM

A. Notification. Upon receiving notice of excavation as required by Section 4(B), the Dig Safe System shall immediately notify all member operators whose underground facilities may be affected by the notice.

B. System Requirements

1. The Dig Safe System shall provide a single, statewide, toll-free telephone number. All telephone directories shall prominently display the toll-free number: 1-(888)-DIGSAFE (1-(888)-344-7233) or such other number that may be established.

2. At a minimum, the Dig Safe System shall staff its operation from 7 a.m. to 5 p.m. each day excluding Saturdays, Sundays and legal Maine holidays. The Dig Safe System shall provide emergency notification 24 hours per day, 7 days per week.

3. The Dig Safe System shall provide adequate communication equipment and personnel sufficient to answer calls within 20 seconds under normal operating conditions or otherwise as soon as practicable.

4. The Dig Safe System shall maintain its draw functionality to allow excavators to define a planned excavation area by drawing the confines of the planned excavation on Dig Safe System interactive maps.

5. The Dig Safe System shall transmit non-emergency messages to member operators by 6:00 p.m. on the date of receipt. The Dig Safe System shall transmit emergency messages to member operators within 10 minutes of receipt under normal operating conditions or otherwise as soon as practicable.

6. The Dig Safe System may adopt rules requiring face-to-face meetings between excavators and member operators.

7. The cost of operating the Dig Safe System shall be apportioned equitably among its member operators.

8. The Dig Safe System shall maintain adequate records to document compliance with the requirements of this rule. The Dig Safe System shall annually report to the Commission information adequate to demonstrate the extent to which it answers calls and transmits messages within the time frames required by this rule.

9. The Dig Safe System shall assist the Commission to the extent practicable in coordinating access for Maine excavators calling the Dig Safe System to the Commission’s OKTODIG database.

10. The Dig Safe System shall restrict the use of facility location information provided by Maine operators to those uses required to perform its duties under this Rule and will restrict access to the facility location information to those employees of the Dig Safe System performing such duties. Access to Maine facility location information shall not be available to the general public by electronic or digital technology or by copies of maps and plans. The Dig Safe System shall use reasonable care to maintain all facility location information provided by Maine operators in a secure manner and the Commission may initiate an appropriate investigation to review security protocols.

11. No later than 21 business days after receiving notification of newly installed facilities or planned new facilities pursuant to subsection 6(A)(1)(d)(iii), or discovered facilities pursuant to subsection 6(B)(6), the Dig Safe System shall update its records to reflect the location of these facilities.

C. Public Awareness Programs

1. The Dig Safe System shall provide all member operators with a brochure explaining Dig Safe’s objectives, procedural guidelines and opportunities for member participation.

2. Upon request, the Dig Safe System shall provide training to operators and excavators regarding its operations.

3. The Dig Safe System shall conduct a public awareness program, including but not limited to making literature available describing the Dig Safe System, distributing such literature to the public, and making such literature available for purchase and distribution to requesting parties.

§ 6 Responsibilities of the Operator

A. Dig Safe System Membership

1. Members

a. An underground facility operator, as defined in Section 2(V), must join the Dig Safe System. Any other operator may voluntarily join the Dig Safe System.

b. All members of the Dig Safe System shall pay to the Dig Safe System the cost of operation apportioned to the members pursuant to Subsection 5(B)(6).

c. All members of the Dig Safe System shall maintain communications equipment that is compatible with the Dig Safe System’s communication equipment maintained pursuant to Subsection 5(B)(3).

d. Except as otherwise provided in this provision of the rule, each Dig Safe System member shall provide to the Dig Safe System the location of all underground facilities that the member would be obligated to mark upon receipt of notice pursuant to Section 6(B). The location of facilities may be indexed by street or in any more specific manner consistent with Dig Safe System methodology. The operator shall provide the information to the Dig Safe System to use in its notification process and, unless otherwise specified in this rule, the operator shall provide the information in a format that the Dig Safe System is capable of using, such as electronic or digital format, or by drawing the specific location of any underground facilities on maps provided by the Dig Safe System.

i. Telephone and cable service drops exempt. Telephone utilities and cable operators are not required under this provision to provide to the Dig Safe System the location of service drops from a main line to customer premises. As a result, if a telephone utility or cable operator only has a service drop in the area of a proposed excavation, the telephone utility or cable operator will not receive notice from the Dig Safe System of the proposed excavation and will not therefore be required to mark the service drop. If, however, the telephone utility or cable operator has other underground facilities in the area of the proposed excavation, the telephone utility or cable operator will receive notice from the Dig Safe System of the proposed excavation and the telephone utility or cable operator will be required to mark all of its underground facilities within the area of the proposed excavation including telephone or cable drops.

ii. Water utility transmission mains waiver. The Commission shall grant a waiver from this provision for any water utility transmission mains that are downstream of a treatment plant or underground water source and may require the water utility to provide the Dig Safe System with an alternative method of facility location specification, such as a corridor, for notification purposes.

iii. Unless a member operator has provided the Dig Safe System with the location of planned new facilities no fewer than 21 business days prior to installation, the member operator shall provide to the Dig Safe System the location of newly installed and newly discovered facilities or portions of those facilities, no later than 21 business days after a newly installed facility or portion of a facility is covered with soil or other material or after the location of a facility is discovered pursuant to subsection 6(B)(6). For the purposes of this subsection, a facility or portion of a facility is considered covered with soil or other material if it is not visible because of the presence of the soil or other material.

2. Non-members. An operator that is not a member of the Dig Safe System pursuant to Subsection 6(A)(1) shall, upon receipt of the notice provided for in Subsection 4(B)(2), mark the location of its underground facilities in accordance with Section 6(B).

B. Marking

1. Purpose. An operator shall, upon receipt of the notice provided in Subsection 4(B)(2) or Section 5, advise the excavator of the location and size of the operator’s underground facilities and all underground facilities used in furnishing electric or gas service that are connected to the operator’s facilities, located in the public way and known to the operator within the area of the proposed excavation by marking the location of the facilities in accordance with this subsection. If the operator determines that there are no facilities in the proposed excavation area that it is obligated to mark, it shall inform the excavator in writing, prior to the expiration of the excavator's waiting period, either by electronic facsimile, text or e-mail or by placing marks at the excavation site that so indicate.

2. Time requirements

a. Initial marking. The operator shall complete marking no later than two business days after receipt of the notice provided for in Section 5 or Subsection 4(B)(2), unless the proposed excavation is of such length or size that the operator cannot reasonably mark all its underground facilities within two business days. In such an instance, the operator shall inform the excavator, and the excavator shall notify the operator of the location in which excavation will first be made. The operator shall mark the underground facilities in that location within two business days and will mark the remaining facilities as soon as practicable.

b. Re-marking. Following an excavator’s request to re-mark an excavation area pursuant to Subsection 4(C)(3), an operator shall again mark this location within one business day.

c. Emergencies. An operator shall mark its underground facilities as soon as practicable after receiving notification of an emergency excavation pursuant to Subsection 4(C)(1).

d. Test holes. After receiving notification pursuant to Section 5 or Subsection 4(B)(2), if an operator must dig test holes in order to locate its underground facilities, other operators within the premarked area shall mark their facilities within one business day of notification from the excavating operator or within a time frame agreed upon by the excavator.

3. Markers. The operator shall use paint, stakes, flags or other appropriate means to mark its underground facilities. The physical characteristics in the area of the proposed excavation shall be considered when determining the type of marker to be utilized. Markers shall conform to the color code established by the Dig Safe System, as follows:

a. Red: electric power lines, cables, conduit, or lighting cables;

b. Yellow: gas, oil, steam, petroleum, or gaseous materials;

c. Orange: communication, alarm, or signal lines, cables, or conduits;

d. Blue: water, irrigation, or slurry lines;

e. Green: sewers or drain lines; and

f. Purple: reclaimed water, irrigation, and slurry lines.

4. Marking procedures

a. Identification. Marking shall identify changes in direction or terminations occurring within the immediate area of the proposed excavation. Where practical, all marking methods shall indicate the width of the underground facility. Markings shall be made at intervals of no more than 25 feet.

b. Tolerance zone. Except if using the centerline marking method described in Subsection 6(B)(4)(c)(2), the operator shall mark a finite area, designated the “tolerance zone,” on each side of the underground facility. The operator shall also indicate the depth of the facility, if known. In all circumstances, the tolerance zone for each facility will be an area 18 inches for member operators and 36 inches for non-member operators on each side of the facility for the length of the facility.

c. Marking methods. The operator shall use one of the following marking methods to establish the tolerance zone of an underground facility:

i. The corridor marking method. This method involves placing markers at either boundary of the tolerance zone, such that the markers will be placed away from the facility centerline 18 inches for member operators and 36 inches for non-member operators, plus one-half the width of the facility. If an operator maintains two or more facilities in close proximity to each other within the excavation area, one tolerance zone may include both facilities. In this instance, the boundaries of the zone shall be established by locating the boundaries of each separate facility and placing markers 18 inches for member operators and 36 inches for non-member operators from the outer boundaries of the multiple facilities. In this circumstance, the operator shall mark the centerline of each facility within the marked boundaries.

ii. The centerline marking method. This method involves placing markers directly over the centerline of the facility, permitting the excavator to establish boundaries of the tolerance zone at points located 18 inches for member operators and 36 inches for non-member operators, plus half the width of the facility from the markers. The width of the facility shall be indicated upon the markers. If an operator maintains two or more facilities in close proximity to each other within the excavation area, the operator shall place markers over the centerline of each facility.

iii. The offset marking method. This method involves locating the centerline of the facility by placing markers at locations that parallel the facility. The offset marking methods shall be used only when it is impractical to use either the corridor or centerline methods. The markers used for the offset marking methods shall indicate the distance and direction to the centerline of the facility and its width.

5. Newly installed facilities. Unless an operator has reason to know that no other excavation will occur in the excavation area within 30 calendar days of the time a newly installed facility is covered with soil or other material, the operator shall mark the location of the newly installed facility or portion of the facility in accordance with subsections 6(B)(3) and 6(B)(4), no later than one business day after the newly installed facility or portion of that facility is covered with soil or other material. For the purposes of this section, a facility or portion of a facility is considered covered with soil or other material if it is not visible because of the presence of the soil or other material.

Discovered facilities. Following an excavator’s notification of discovery of an unmarked facility pursuant to Subsection 4(D)(1), an operator shall determine the location of the facility from the point of discovery to the points at which the facility intersects with a known facility or the points at which the facility ends without intersecting with a known facility. No later than 21 business days after the excavator notifies the operator of the discovery of the facility, the operator shall notify the Commission of the location of the facility and, if the operator is a member operator, of its notification of the Dig Safe System pursuant to subsection 6(A)(1)(d)(iii). If the operator believes that it is unable to locate the facility pursuant to this subsection, it shall provide an explanation to the Commission of the reasons for its failure to locate. If the Commission determines that location is unreasonably difficult, it may grant a waiver from the locating requirements of this subsection.

C. Reporting

1. Report to Commission. An operator shall report to the Commission when it has reason to believe that one or more damage prevention incidents as defined in Section 2(E-1) have occurred regardless of whether there is damage to underground facilities.

The damage prevention incident shall be reported by 1) calling the Commission as soon as possible at (207) 287-3831 and 2) completing the Underground Facilities Damage Prevention Incident Report form available from the Commission (207‑287-3831 or http://www.maine.gov/mpuc ). The operator shall submit this written report within 10 days of discovering a suspected violation.

In the event of a serious damage prevention incident as defined in Section 2(S-1) occurs, the operator shall also provide notice to the Commission immediately, after all urgent safety matters have been addressed, in a manner consistent with the most recent notification procedures provided by the Commission.

Any person may report to the Commission any other failure to comply with this rule or other concerns regarding underground facilities damage prevention, using the Underground Facility Damage Prevention Incident Report form.

2. Annual activity report. An operator, except a municipality or a utility with fewer than 5 full time employees or fewer than 300 customers, shall submit a report to the Commission within 75 days after the end of each calendar year that states the total number of excavation notifications received by the operator during the previous year and the total miles of underground facilities it operates.

3. New underground facilities. An operator shall notify the Commission in writing immediately when installing, or when it newly identifies, underground facilities that it is obligated to mark pursuant to Section 6(B) in a municipality in which it did not previously have such underground facilities and shall indicate whether it is a member or a non-member of the Dig Safe System.

4. Non-member operator registration. Each non-member operator shall register with the Commission providing its name, the name and telephone number of a contact person for excavation notifications, an email address and fax number where available, and the municipalities, townships, or other civil divisions or territories in which it has underground facilities for use in the Commission’s OKTODIG database. The non-member operator shall notify the Commission in writing within 10 business days of any changes to this information and shall renew its registration annually by January 31 each year certifying the accuracy of the information on file with the Commission. This requirement does not apply to an entity that only owns underground facilities on its own property for commercial or residential purposes.

D. Natural Gas Operators

1. Applicability. The provisions of this subsection are applicable to gas operators. For the purposes of this subsection, a gas operator is a natural gas pipeline utility or a gas utility other than a gas utility over which the Commission has limited safety jurisdiction pursuant to 35-A M.R.S.A. §4702.

2. Excavation notice to fire departments. In addition to providing other notices required under this rule, before commencing any excavation for the purpose of working on an underground transmission line, a gas operator shall provide notice of any excavation to the Fire Department within whose service area the excavation will occur. This notice must be in writing or by telephone and must be given at least three business days prior to excavation. Work may not commence until the operator has received from the Fire Department an acknowledgement of the notice either by telephone or in writing.

3. Emergency management information. Each gas operator shall provide maps that clearly indicate the location and depth of all main supply underground gas facilities to the following jurisdictions:

a. each municipality within which it operates;

b. each fire department within whose service territory it operates;

c. the county emergency management agency for each county within which it operates; and

d. the Maine Emergency Management Agency.

Within 21 business days of changing the configuration of a gas operator’s main supply underground gas facility, the gas operator must provide updated maps to the appropriate entities.

E. Legal Effect of Non-compliance

1. Members. If an operator does not provide all information pursuant to Section 6(B) or the information provided fails to identify the location of the underground facilities in accordance with Section 6(B) or if the Dig Safe System does not provide all information pursuant to Section 5(A), and an excavator complies with all excavator responsibilities described in Section 4(A) and Subsection 4(B)(1) or Subsection 4(B)(1)(a)(ii), then an excavator is not liable for any damage or injury caused by the excavation, except on proof of negligence.

2. Non-members. If an excavator provides notice to non-member operators pursuant to Subsection 4(B)(2), and if a non-member operator fails to mark the location of its facilities pursuant to Section 6(B), then an excavator is not liable for any damage or injury caused by the excavation, except on proof of negligence.

F. Abandoned or Inactive Facilities

1. Operators with an electronic mapping system. Beginning on the date an owner or operator of underground facilities is required by the Public Utilities Commission to implement electronic mapping under Chapter 140 of the Commission’s Rules, the owner or operator shall indicate the existence of facilities abandoned or inactive after that date in its electronic mapping system and shall notify an excavator when abandoned or inactive underground facilities exist in the area of a proposed excavation.

2. Operators without an electronic mapping system. If an owner or operator of an underground facility is not required to maintain an electronic mapping system under Chapter 140 of the Commission's rules, the owner or operator shall notify an excavator of any abandoned or inactive facilities in the area of a proposed excavation of which it is aware. An operator shall be conclusively presumed to be aware of any facilities abandoned after March 28, 2002.

3. When notifying an excavator that abandoned or inactive underground facilities exist in the area of the proposed excavation, the operator must also inform the excavator that:

a. In addition to the abandoned or inactive facilities, there may also be unmarked, active facilities within the excavation area; and

b. Anytime an unmarked underground facility is discovered during excavation, the excavator must treat the line as active and notify the operator of the facility, as soon as possible.

Upon receiving notification from the excavator that an unmarked facility has been discovered, the operator must visit the site and positively identify whether the facility is active or inactive.

§ 7 Commission ACTIVITIES

A. Monitoring. The Commission may require operators, excavators, or the Dig Safe System to report information that the Commission determines is needed to monitor the operation of the underground facilities damage program, or to hear and resolve complaints concerning failure to comply with the provisions of 23 M.R.S.A. §3360-A (the Dig Safe Law) or this rule.

A-1. OKTODIG database. The Commission shall develop and maintain a database for excavator reference listing the non-member operators that have registered with the Commission as having underground facilities and indicating those municipalities, townships or other civil divisions or territories of the State in which the underground facilities are located, and indicating those in which member operators do not have underground facilities.The Commission will make the OKTODIG database accessible by telephone and internet or by other reasonable means. The Commission will update the OKTODIG database upon notification by anoperator of the presence of underground facilities in a municipality

B. Enforcement Action Procedure. The Commission shall use the following process when it initiates an enforcement action:

1. Notice of enforcement investigation

a. Preliminary incident investigation. The Commission staff shall engage in a preliminary investigation regarding any potential violation of the Dig Safe Law or rules. The preliminary investigation shall include a good faith effort to contact the potential violator and afford that person an opportunity to discuss the matter prior to the issuance of a Notice of Enforcement Investigation (NOEI). In addition, the preliminary investigation shall include the Commission staff assessing the number of excavations and markings undertaken by the potential violator within the previous 12 months, including which excavations and markings resulted in Dig Safe violations and which excavations or markings resulted in successfully completed excavations. Nothing herein shall preclude the issuance of a NOEI if a person cannot be located with reasonable effort or fails to respond to a communication from the staff.

b. Potential violation. If the Commission finds evidence of a potential violation of the Dig Safe Law (23 M.R.S.A. §3360-A) or this rule, it shall issue a NOEI to the respondent. The Commission may delegate the decision concerning the issuance of a NOEI to its staff.

c. Content of notice. The NOEI shall state the name of the respondent, the factual basis for the alleged violation, and the amount of the administrative penalty recommended to resolve the matter.

• • • 1. the specific subsection of 23 M.R.S.A. §3360-A(6-C) that may have been violated; 2. whether and to what extent there was damage to property; 3. whether and to what extent there was injury to a person or persons; 4. the number of violations of the dig safe law or rules by the respondent in the past 12 months; 5. whether the respondent has been required to attend mandatory training sessions within the past 12 months for a violation of the same section of the law or rule that is the subject of the NOEI; 6. where applicable, an explanation of the legal basis for determining the respondent acted in a negligent or reckless manner; 7. whether Commission staff is recommending mandatory training or an administrative penalty; and

ix. where applicable, the amount of administrative penalty recommended to resolve the matter.

d. Right to contest. The NOEI shall state that the respondent has a right to contest the allegation of potential violation by requesting, in writing within 30 days, an informal review or a formal hearing.

e. Default. If the respondent fails to request an informal review of the NOEI within 30 days of its receipt, the respondent shall be deemed, upon issuance of an appropriate Commission order, to have defaulted and to have committed the violations alleged. A Commission order on default shall be treated as a finding of a violation for purposes of future applications of this rule.

f. Penalty. If the respondent is declared to have defaulted by a Commission order, the respondent shall, upon issuance of the Commission order be liable to pay the administrative penalty or take the action designated in the NOEI unless the Commission orders otherwise. The Commission may not impose a greater administrative penalty than contained in the NOEI without holding an adjudicatory hearing or obtaining the consent of the respondent. The Commission may reduce the penalty or modify any required remedial action as it determines is warranted.

2. Informal review

a. Staff review. If a respondent contests a NOEI, a staff member designated by the Commission shall conduct an informal review. The review shall consist of an informal conference or an analysis of the respondent's written reply, if any, or both. At the request of the respondent, the staff member designated by the Commission shall waive the informal conference.

b. Date for informal conference. The informal conference, if not waived, shall be scheduled no less than 21 days, and no more than 60 days, from the issue date of the NOEI.

c. Written reply. The respondent may file a written reply with the Commission on or before the day scheduled for the informal conference. The respondent or the respondent's designee must sign the written reply and shall include a statement of all relevant facts and authority and the basis for respondent’s dispute of the alleged violation.

d. Informal conference

i. At the informal conference, the respondent shall have the right to be represented by an attorney or other person, to present evidence and make arguments in support of respondent’s’ position.

ii. The Commission shall make available to the respondent any evidence that indicates that the respondent may have violated these rules or 23 M.R.S.A. §3360-A.

iii. The Commission may require any person who may have information relevant to determining responsibility for a damage prevention incident to attend the informal conference, and/or to provide documentation or other evidence.

3. Recommended decision

a. Following the informal conference or the waiver of the informal conference, the Commission staff member shall issue in writing, a recommended decision indicating whether or not the respondent has violated the Dig Safe Law or these rules and the basis for that conclusion, and the recommended disposition.

b. The recommended decision will be sent to the respondent by mail, return receipt requested and forwarded to the Commission.

c. If the recommended decision is adverse to the respondent, the respondent may request an adjudicatory hearing.

4. Adjudicatory hearing

a. Election. A respondent may request an adjudicatory hearing. Such request must be made in writing no later than 30 days of the date of receipt of the Staff’s recommended decision and shall identify the findings or conclusions in the recommended decision with which the respondent disagrees and indicate the respondent’s position on these matters.

b. Failure to request hearing. A respondent that fails to make a timely request for an adjudicatory hearing shall be liable to pay the administrative penalty or take the remedial action designated in the staff's recommended decision upon issuance of a Commission order. Unless otherwise ordered, the Commission will consider this order as a finding of a violation for purposes of future applications of this rule. The Commission may not impose a greater administrative penalty than contained in the NOEI without holding an adjudicatory hearing or obtaining the consent of the respondent. The Commission may reduce the penalty or modify any required remedial action as it determines is warranted.

c. Hearing. The adjudicatory hearing shall be a de novo hearing and shall be conducted in accordance with 5 M.R.S.A. §§ 9051-9064.

5. Remedial orders. After considering all of the evidence, if the Commission finds that a violation has occurred, it may issue a remedial order.

a. Content. The remedial order shall set forth the factual and legal basis of the Commission's findings and may direct the respondent to take any action, including the payment of an administrative penalty, as authorized by this rule.

b. Effect. A remedial order issued by the Commission shall have the same effect as any order issued by the Commission.

6. Consent agreements. Notwithstanding any other provision of this rule, the Commission may at any time resolve an alleged violation with a consent agreement.

a. Content. A consent agreement must be signed by the respondent, or a duly authorized representative, and must indicate that the respondent does not contest the imposition of the penalties set forth in the NOEI.

b. Order. A consent agreement is effective only if approved by the Commission through the issuance of an order.

c. Effect of consent. Signing a consent agreement shall not be taken as admission to, or agreement with, the legal conclusions set forth in the NOEI. It shall, however, act as an agreement that the underlying incident shall be treated as a violation of the dig safe laws and rules for the purpose of this rule.

Commission action

1. In all cases in which respondent has not requested an adjudicatory hearing, the Commission will consider the evidence along with the proposed disposition (uncontested NOEI or staff’s recommended decision, or consent agreement), in deliberative session, and take one of the following actions:

a. If the proposed disposition finds that respondent did not commit a violation, the Commission may, by order,

i. accept that finding and take no further action, or

ii. reject that finding and notify the respondent that the matter will be scheduled for an adjudicatory hearing and decision.

b. If the proposed disposition finds that respondent did commit a violation and the respondent agrees to the proposed disposition, the Commission may, by order,

i. Accept the finding and order an equal or lesser penalty or disposition without giving respondent further notice,

ii. Accept the finding but not the disposition and notify the respondent that it has set the matter for adjudicatory hearing to consider a higher penalty or more burdensome disposition, or

iii. Reject the finding and proposed disposition and dismiss the NIPV or notify the respondent that it has set the matter for adjudicatory hearing.

2. In cases in which the Commission has held an adjudicatory hearing, the Commission will consider the evidence in deliberative session and determine whether respondent has violated the Dig Safe Law or this rule.

a. If the Commission finds no violation, it will dismiss the NIPV and take no further action.

b. If the Commission finds that respondent has committed a violation, it may impose any penalty authorized by law.

§ 8 Administrative Penalties

A. Approval required

1. The Commission must approve in a deliberative session the disposition of every alleged violation that requires payment of an administrative penalty or other remedial action.

2. The Commission’s deliberation and approval by order of the imposition of an administrative penalty or other remedial action satisfies the statutory requirement for an adjudicatory proceeding in 23 M.R.S.A. §3360-A(6-C).

B. Penalty assessment. The Commission may impose an administrative penalty on an excavator or member operator that is found by the Commission in a proceeding under Section 7 to have committed a violation included in Section 8(C) below.

C. Violations. The Commission may impose an administrative penalty for any of the following violations:

1. Excavation that does not comply with the requirements of Section 4(A), Subsection 4(B)(1)(a) through 4(B)(1)(d), or Subsection 4(C)(2), except to the extent the excavator is exempt from the provisions of these subsections;

2. Excavation done in a reckless or negligent manner that poses a threat to an underground facility;

3. Failure of a member operator to comply with the requirements of Subsection 6(B)(2)(a) or 6(B)(2)(b), except to the extent the member operator is exempt from the provisions of the subsection;

4. Marking by a member operator of the location of an underground facility in a reckless or negligent manner; and

5. Failure of an excavator to comply with the exemption requirements and procedures of Subsections 4(F)(1), (2), or (3).

D. Penalty level

1. Maximum penalty level

a. First damage prevention incident within 12 month period. Except as specified in Subsection 8(E), the administrative penalty for each violation associated with the first damage prevention incident shall not exceed $1,000 per violation.

b. Subsequent damage prevention incidents. The administrative penalty shall not exceed $10,000 per violation if during the 12 months preceding the date of the violation the excavator or member operator has been found in violation of this rule.

2. Conditions. In determining the amount of an administrative penalty under this section, the commission shall take into account:

a. Record of the violator, including, to the extent applicable, the number of successful excavations undertaken by the violator or the number of locations successfully marked by the violator during the prior 12 months;

b. Whether the violation resulted in death or personal injury, the degree to which it posed a risk of death or personal injury, and the degree to which it caused or posed a risk of public inconvenience;

c. Amount of property damage caused by the violation;

d. Degree of compliance with other provisions of this rule;

e. Good faith attempts to comply with the violated provision of this rule;

f. Steps to ensure future compliance; and

g. Amount necessary to deter future violation.

3. Other consequences of violation. Administrative penalties imposed pursuant to these rules are in addition to any other remedies or forfeitures provided by law and any liability that may result from the act or omission constituting the violation.

E. Training requirements. In addition to other actions taken by the Commission, the Commission may require an excavator or member operator who is found pursuant to Section 7 to have violated this rule or 23 M.R.S.A. §3360-A to participate, at the expense of the violator, in an educational program developed and conducted by the Dig Safe System.

§ 9 CONTEMPT

Failure to comply with any order, decision, rule, or requirement of the Commission may be punished using its contempt authority in 35‑A M.R.S.A. §1502.

§ 10 Imprudent action

Compliance with this rule does not excuse a person from acting in a careful and prudent manner nor does compliance with this rule excuse a person from liability for damage or injury for failure to so act.

§11 INJUNCTIONS

Under appropriate conditions, the Commission or an operator may act under the authority of 23 M.R.S.A. §3360-A(12) and seek a temporary restraining order or injunction to prevent a person from undertaking an excavation that may result in damage to an underground facility.

§12 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter that are not required by the statute. Where good cause exists, the Commission, the Director of Technical Analysis, or Presiding Officer in a proceeding related to this Chapter may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Title 35-A.

BASIS STATEMENT: The factual and policy basis for this Chapter is set forth in the Commission's Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2024-00157, issued on July 23, 2024. Copies of the Order have been filed with this Chapter at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

AUTHORITY: 23 M.R.S.A. §3360-A, 35-A M.R.S.A. §§ 104 and 111; PL 2013, ch. 557, Resolves 2015, ch. 9, PL 2015, ch. 213, and PL 2023, ch. 572.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on July 7, 2004. It was filed with the Secretary of State on July 9, 2004 (filing 2004-269, major substantive) and became effective on August 8, 2004.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on May 31, 2006. It was filed with the Secretary of State on June 1, 2006 (filing 2006-236, major substantive) and became effective on July 1, 2006.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on June 22, 2011. It was filed with the Secretary of State on June 24, 2011 (filing 2011-207, major substantive) and became effective on July 24, 2011.

EFFECTIVE DATE: This Chapter was approved as to form and legality by the Attorney General on May 8, 2012. It was filed with the Secretary of State on May 10, 2012 (filing 2012-149, major substantive) and became effective on June 9, 2012.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 11, 2015. It was filed with the Secretary of State on June 12, 2015 (filing 2015-109, major substantive) and became effective on July 12, 2015.

CORRECTION: Language missing from Section 6(A)(1)(d)(i) regarding cable service drops was re‑inserted on the authority of Assistant Attorney General Linda Conti on August 17, 2015.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on March 8, 2016. It was filed with the Secretary of State on March 9, 2016 and became effective on March 14, 2016 (filing 2016-042).

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on July 6, 2021. It was filed with the Secretary of State on July 6, 2021 (filing 2020-264, major substantive) and became effective on August 5, 2021.

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 4, 2024. It was filed with the Secretary of State on December 6, 2024 (filing 2024-157) and became effective on December 11, 2024.

CORRECTION: This rule was corrected on February 26, 2025 to modify sections 4(B)(2), 4(D)(2), 4(E)(3), 6(B)(1), 6(C)(1), and 8(D)(1); add sections 4(D)(3), 4(F)(4)(5) and(6); and delete section 4(F)(1), all of which changes were previously adopted through major substantive rulemaking ( see filing 2020-264, effective August 5, 2021), but were omitted in error from the previously posted version of the rule. An erroneous filing number previously included in the rule history section also was corrected.

Chapter 910 Safety of Overhead Utility Lines Crossing Water and Adjacent Areas Suitable for Rigging, Launching, and Operation Boats

Code Me. R. 65-407 Ch. 910 Safety of Overhead Utility Lines Crossing Water and Adjacent Areas Suitable for Rigging, Launching, and Operating Boats: {#sec-65-407-ch.-910 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-407 Ch. 910}

SUMMARY: This Rule establishes safety requirements for overhead utility lines crossing areas of water and adjacent rigging and launching areas where boats may come into contact with overhead lines.

§ 1 DEFINITIONS

A. Areas Posted for Rigging or Launching Sailboats. "Areas posted for rigging or launching sailboats" means any area that by signs, launching ramps, or other special facilities, land improvements or use indicates that the area is intended to be used by the public for rigging or launching sailboats.

B. Aerial Utility. “Aerial Utility” means any transmission and distribution utility, telephone utility or cable television company that owns overhead lines. This definition of aerial utility shall apply for the purposes of this rule only.

C. Transmission and Distribution Utility. ”Transmission and distribution utility means any person, firm or corporation as defined in 35-A M.R.S.A. §102(20-B).

D. Telephone Utility. "Telephone utility" means any person, firm or corporation as defined in 35-A M.R.S.A. §102(19), except for radio common carriers as defined in 35-A M.R.S.A. §102(14), mobile telecommunications services as defined in 35-A M.R.S.A. §102(9-A), and owners of customer-owned coin-operated telephones (COCOTs) subject to Chapter 25 of the Commission's Rules.

E. Cable Television Company. “Cable television company” means any person, firm or corporation as defined by 30-A M.R.S.A. §2001.

F. National Electrical Safety Code. “National Electrical Safety Code” means the American National Standard approved by the American National Standards Institute (ANSI C2-1997) on June 6, 1996, the 1997 Edition, or the most recent edition of the National Electrical Safety Code, including the substantive provisions of any applicable footnotes whether or not renumbered, or any successor publication in effect pursuant to 35-A M.R.S.A. §2305-A. Copies of the applicable provisions of the National Electrical Safety Code may be viewed at the Public Utilities Commission, 242 State Street, State House Station #18, Augusta, Maine 04333-0018, telephone: (207) 287-3831 or obtained from the Institute of Electrical and Electronics Engineers, Inc., 345 East 47th Street, New York, New York, 10017-2394, www.ieee.org.

§ 2 PURPOSE

This Rule establishes minimum safety requirements for overhead utility lines crossing areas of water and adjacent rigging and launching areas where boats may come into contact with overhead lines. Nothing in this Rule shall be interpreted to prohibit or discourage aerial utilities from taking other action to warn the boating public of the presence of their lines, including without limitation, marking lines with warning devices, such as orange spheres, furnishing appropriate warning signs to the owners of rigging or launching areas and educating the public as to the significance of warning devices and the dangers of utility lines.

§ 3 VERTICAL CLEARANCE REQUIREMENTS

All overhead lines of an aerial utility crossing water areas suitable for sailing, or public or private land and water areas posted for rigging or launching sailboats, shall comply with the vertical clearance requirements of Section 232 of the National Electrical Safety Code, Table 232-1, sections 7 and 8 thereof, together with all applicable footnotes, with the following modifications:

A. Water Areas of 20 to 2,000 Acres

The same vertical clearance requirements shall apply to all water areas with unobstructed areas of 20 to 2,000 acres. These requirements shall be the higher clearance requirements set forth by the National Electrical Safety Code for water areas of 200 to 2,000 acres. To accomplish this, the following modifications are made:

1. Section 7(b) of Table 232-1 is eliminated, and the vertical clearance requirements of Section 7(c) (minimum clearances of 31.5 feet to 34.5 feet) shall apply to all water areas suitable for sailing with an unobstructed surface area of 20 acres to 2,000 acres.

2. Similarly, Section 7(b) is eliminated for the purposes of Section 8 and the vertical clearance requirements of five (5) feet greater than the Section 7(c) requirements (36.5 feet to 39.5 feet) shall apply to all water areas posted for rigging or launching sailboats on water areas of 20 to 2,000 acres.

3. In footnote 18 of Table 232-1, referring to Table 232-3, the 20 to 200 acre surface area category (f(2)) is eliminated and the reference vessel height of 30 feet shall apply to surface areas of 20 acres to 2,000 acres.

B. Existing Communications and Neutral Conductors

Telephone utilities and cable television companies may maintain existing communications conductors and cables on existing poles, and electric utilities may maintain existing neutral conductors that meet the requirements of Rule 230 E(l) of the Code on existing poles, until such time as the pole is replaced, removed, or reconstructed, at which time any remaining conductors and cables shall meet the requirements of this Rule.

C. Lesser Requirements Superseded

With respect to footnote 19 to Table 232-1, the vertical clearance requirements of this Rule shall supersede any requirements for less vertical clearance allowed by the State of Maine, or a surrogate thereof, or the U.S. Army Corps of Engineers, to the extent allowed by law.

§ 4 DELEGATION OF AUTHORITY

The Commission delegates to the Director of the Technical Analysis Division of the Commission (or other staff member as delegated by the Commission) the authority to determine whether a line at a particular location is governed by this Rule or complies with this Rule.

§ 5 CIVIL VIOLATION FOR FAILURE TO COMPLY

An aerial utility that fails or refuses to comply with any provision of the Rule commits a civil violation pursuant to 35-A M.R.S.A. §1508 for which a forfeiture not to exceed $1,000 may be adjudged for each offense. Each day that the utility willfully fails to comply with the requirements of this Rule constitutes a separate offense.

§ 6 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may waive any of the requirements of this Chapter that are not required by statute. Where good cause exists, the Commission, the Director of the Technical Analysis, or Presiding Officer in a proceeding related to this Rule may grant the requested waiver, provided that the granting of the waiver would not be inconsistent with the purposes of this Chapter or Title 35-A.

BASIS STATEMENT:

The factual and policy basis for this original rule is set forth in the Commission's Order Adopting Rule and Statement of Factual and Policy Basis, Commission Docket No. 88-97, issued on July 19, 1988. The factual and policy basis for the amended rule is set forth in the Commission's Order Adopting Amended Rule, Commission Docket No. 2001-374, issued on September 10, 2001. Copies of the Order and Statement have been filed with this rule at the office of the Secretary of State. Copies may also be obtained from the Administrative Director of the Public Utilities Commission, 242 State Street, Augusta, ME 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, 301(1), and 2305-A
• EFFECTIVE DATE: August 9, 1988 - as Chapter 91, "Safety of Overhead Utility Lines Crossing Water and Adjacent Areas Suitable for Rigging, Launching, and Operating Boats"
• REPEALED AND REPLACED: This Rule was approved as to form and legality by the Attorney General on September 14, 2001. It was filed with the Secretary of State on September 14, 2001 and will be effective on September 19, 2001 as Chapter 910 with the same title.
• CORRECTIONS: November 8, 2001 - brought the electronic version into line with the paper version in filing 2001-401.
• CORRECTIONS: 65-407 Chapter 910 page 4

65-625 Emergency Services Communication Bureau**

Chapter 1 Standards for Establishing a Statewide Enhanced 9-1-1 System

Code Me. R. 65-625 Ch. 1 Standards for Establishing a Statewide Enhanced 9-1-1 System {#sec-65-625-ch.-1 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 1}

SUMMARY: This chapter outlines the standards, specifications, and procedures to establish a statewide Enhanced 9-1-1 system pursuant to 25 M.R.S.A. §2926.

§1. Definitions

1. Automatic Location Identification (ALI): the automatic display at the Public Safety Answering Point (PSAP) of the caller’s telephone number, the address/location of the telephone and supplementary emergency services information.

2. Automatic Number Identification (ANI): The telephone number associated with the access line from which a call originates.

3. Computer-linked Communication Center (CLCC): A facility equipped, at an agency's own expense, with ALI/ANI display and print out capability. It receives a 9-1-1 call only when it is transferred from a PSAP and dispatches emergency services to the caller.

4. Continuous Logging Recorder: A device that records both sides of a conversation on each incoming 9-1-1 call and contemporaneously documents the year, date and time of each recorded event.

5. Emergency Services Communication Bureau (Bureau): The Bureau within the Public Utilities Commission authorized to develop, establish and manage the statewide Enhanced 9-1-1 system in Maine, pursuant to 25 M.R.S.A. §2926.

6. Emergency Service Zone (ESZ): A defined geographical territory consisting of a specific combination of law enforcement, fire, and emergency medical service coverage areas.

7. Enhanced 9-1-1 (E-9-1-1) Service: An emergency telecommunications service that automatically displays a caller's location and telephone number on a screen at a call answering center. This service uses the caller's location, not telephone exchange, to direct a call to the appropriate Public Safety Answering Point.

8. Instant Playback Recorder: A device that allows for the instant playback of the audio portion of the last 9-1-1 call.

9. Master Street Address Guide (MSAG): The database of street names and number ranges with their associated communities defining Emergency Service Zones and their associated Emergency Service Numbers (a 3 or 4 digit number used to uniquely identify an Emergency Service Zone).

10. Public Safety Answering Point (PSAP): A facility equipped to receive ANI/ALI and assigned the responsibility of initially receiving 9-1-1 calls and, as appropriate, directly dispatching emergency response services or transferring the calls to other public or private safety agencies for dispatch.

11. Service Provider(s): The vendor or vendors selected by the Emergency Services Communication Bureau to provide the network, routing capabilities, databases, and equipment necessary to operate a statewide E-9-1-1 system.

12. TTY/TDD: A telecommunications device for the deaf that permits typed telephone conversations with or between deaf, hard of hearing, or speech impaired people, including Hearing Carry Over (HCO) and Voice Carry Over (VCO).

13. Uninterruptible Power Supply (UPS): A device designed to provide a continuing source of power without regard to the interruption or loss of commercial power.

14. Public Safety Dispatcher: A person who works in a PSAP or other public safety communications or dispatch center and is trained to receive, evaluate and dispatch emergency calls.

15. Full-time Public Safety Dispatcher: A person employed as a public safety dispatcher with the reasonable expectation of working at least 1,040 hours in any one calendar or fiscal year.

§2. Network design specifications. Repealed. See Chapter 2.

§3. Minimum Public Safety Answering Point Requirements and Public Safety Dispatcher Requirements

1. Call answering and call transfer performance standards

A. Call answering. Ninety percent of all 9-1-1 calls received by a PSAP shall be answered in 10 seconds or less.

B. Call transfer. Ninety percent of all transfers from a PSAP to dispatching centers shall be initiated within 15 seconds from receipt of call.

2. Administration

A. PSAP Coordinator. Each PSAP shall designate an individual to serve as its PSAP Coordinator for all issues involving E-9-1-1 service and the Bureau.

B. Call handling procedures. Each PSAP shall work with the public safety providers served by the PSAP to establish call handling procedures. Each PSAP shall review these procedures regularly with the Bureau.

C. Back-up arrangements. Each PSAP shall have written backup arrangements in place, for both its primary and secondary backup PSAP sites, in the event that its dispatch capability is compromised and its calls must be rerouted and handled by either one of these sites.

D. 24-hour operation and staffing. Each PSAP shall operate and have call answering staff on duty 24 hours per day, seven days per week.

E. Discrepancies. Each PSAP shall constantly compare the ALI information from the database with information supplied by the caller to identify discrepancies. Errors shall be documented and forwarded to the Bureau for correction in a manner prescribed by the Bureau.

F. Seven-digit telephone numbers. Each PSAP shall maintain, at its own expense, at least one unpublished telephone number to allow for administrative purposes associated with the PSAP. Each PSAP shall also maintain, at Bureau expense, one seven-digit emergency telephone number to be published in the white pages of the telephone book as a backup to dialing 9-1-1. This number will also be used for the receipt of incoming emergency calls transferred to the PSAP by other PSAPs for certain alternate and default routing arrangements.

G. PSAP security. All access to a PSAP shall be secured to prevent entry by the public or unauthorized persons.

H. Data security

(1) Caller information provided during a 9-1-1 call shall be used only for the purpose of processing an emergency call and subject to existing statutory limitations on such information.

(2) The Bureau shall establish personnel security clearance standards for PSAPs to protect the confidentiality of ANI and ALI data. These criteria may include:

(a) A state and national III record check by fingerprint identification.

(b) A review of state and national arrest and fugitive files.

(c) Disqualification for PSAP employment if any criminal record, employment history, or character issue so warrants.

(3) The physical layout of a PSAP shall insure that no unauthorized individual is able to view ANI/ALI information.

I. Records retention. All voice and TDD recordings of incoming 9-1-1 calls shall be retained for a minimum of 30 days. It is recommended that such materials be retained for a minimum of 60 days.

J. Public comment and complaint process. Each PSAP shall develop a written procedure for receiving comments and complaints from the public and from public and private safety agencies served by the PSAP. Each PSAP's public comment and complaint documents shall include the name, title and contact information for the person designated by the PASP to receive comments and complaints pursuant to this subsection. The Bureau shall assist each PSAP to develop and publicize these procedures, particularly through training on such procedures.

K. Quality Assurance (QA) Program. Each PSAP shall establish a quality assurance program which shall include a process for auditing the performance of each of its public safety dispatchers. The Bureau shall assist each PSAP to develop its Quality Assurance Program, particularly through training on the development of such plans.

3. Reports and Records

Annual Report. Within 30 days of the close of each calendar year, the highest elected official of each political subdivision and the head of each state department and agency employing public safety dispatchers shall provide the Bureau with a report containing a list of the names and dates of employment of all public safety dispatchers.

Report on New Public Safety Dispatchers. Whenever a public safety dispatcher is newly appointed, the official or department or agency head shall send notice of appointment within 30 days to the Bureau on a form provided for that purpose. The form is deemed an application for admission to the training program or for other certification as required by this chapter.

Report of Termination of Public Safety Dispatchers. Whenever the employment of a public safety dispatcher is terminated, the official or department or agency head shall send notice of the termination within 30 days to the Bureau on a form provided for that purpose.

Reports of Convictions or Misconduct by Public Safety Dispatchers. In the event that a public safety dispatcher is convicted of a crime or violation or engages in conduct that could result in suspension or revocation of the dispatcher’s certificate pursuant to this chapter, the official department or agency head shall immediately notify the Director of the Bureau with the name of the dispatcher and a brief description of the conviction or conduct.

E. Maintenance of Training Records. The official or department or agency head shall maintain records regarding the basic and in-service training of public safety dispatchers as provided in this chapter. Such training records shall document at a minimum, the subject taught, duration of training, instructor(s), test scores as applicable, and signed attendance rosters, and be made available for review as requested by the Bureau.

3-A. Training

A. Basic Public Safety Dispatcher Training; Minimum Mandatory Staff Training Requirements. All full-time public safety dispatchers must successfully complete, within the first 12 months of initial employment, the Basic Public Safety Dispatcher Training Course at the Maine Criminal Justice Academy approved by the Bureau. All full-time public safety dispatchers must satisfactorily maintain the basic certification by completing any recertification requirements as may be prescribed by the Bureau. The Bureau, for good cause, may extend the 12-month period for not more than 180 days and may waive the Basic Public Safety Dispatcher Training Course requirement when an equivalent course has been successfully completed. This section does not apply to any person employed as a full-time public safety dispatch personnel on or before 1 January, 2008.

B. Training on PSAP E-9-1-1 Call Answering Technology. All persons, full or part-time, who are employed as a public safety dispatcher at a PSAP, must within 90 days of assignment, complete a Bureau approved course on the proper operation of Bureau-provided PSAP equipment and on proper call handling and processing of 9-1-1 emergency calls. Such public safety dispatchers may be assigned call taking responsibilities prior to the completion of the approved course when working under the immediate supervision of another certified dispatcher.

C. Courses. The Bureau shall provide tuition-free training courses, the successful completion of which meets the basic training requirements in 3-A(A) and (B). The Bureau shall include in the Basic Public Safety Dispatcher Training course, a program a block of instruction aimed specifically at the requirements of the Americans with Disabilities Act (ADA) for direct and equal access to 9-1-1 services for persons with disabilities who communicate via TTY/TDD.

D. Continuing Education Public Safety Dispatcher Training as Required. As a condition of continued employment, each public safety dispatcher must successfully complete continuing education training as prescribed by the Bureau with the advice and comment of the E9-1-1 Council. The minimum continuing education requirements for all public safety dispatchers shall be at least 12 hours of approved education each year. The Bureau, with the advice and comment of the E9-1-1 Council, may establish requirements for specific training topics and hours as a portion of the annual requirements and must include annual refresher training for dispatchers in the recognition and processing of TTY/TDD calls.

E. Credit for Courses. The Bureau may grant training credits to be applied to recertification training requirements for courses completed at accredited colleges and universities, through professional journals, audio and visual media, teleconferencing and the Internet. The Bureau shall establish a process for the approval of training courses that may be applied toward annual certification training requirements, coordinate delivery of training with postsecondary schools and other institutions and public safety emergency communications agencies, and administer training programs.

3-B. Certification

A. Granting of Certification. The Bureau shall certify each public safety dispatcher who completes the Basic Public Safety Dispatcher Training Course. Such certification shall be granted for two years from date of issuance, upon which time the person must apply for recertification within 90 days prior to expiration to retain certification. All full-time public safety dispatchers must satisfactorily maintain the basic certification by completing any recertification requirements. Courses and certifications attained out of state may be evaluated by the Bureau on a case-by-case basis, comparing them with Bureau-approved courses for possible partial or full credit.

B. Recertification The Bureau, with the advice and comment of the E9-1-1 Council, shall establish requirements for the recertification of all public safety dispatchers, to include the timeframe for recertification, the completion of specified in-service training hours, and the application form.

C. Revocation of Certificate for Conviction or Misconduct by a Public Safety Dispatcher. In the event that a public safety dispatcher is convicted of a crime or misdemeanor or engages in unlawful conduct, the Bureau Director, with advice and comment by the E9-1-1 Council, may revoke or suspend the certification of a public safety dispatcher for cause, after affording the person a hearing before the E9-1-1 Council.

D. Additional certificates. The Bureau may offer additional certificates to be awarded for completion of additional education, experience and certified Bureau-approved training including, but not limited to, executive, mid-management, instructor and communications specialists certificates.

E. Falsification of Application. Knowing or willful falsification of an application for employment or application for certification or recertification as a public safety dispatcher shall be justification for denying admission to training and/or continued certification as a public safety dispatcher.

4. Equipment

A. Telephone equipment. Each PSAP shall have telephone equipment that ensures system and functional compatibility with the network. All telephone equipment shall have the following features:

(1) Barge-in capability: To allow a PSAP operator to enter a call without the original call taker having to do anything.

(2) Monitoring capability: To provide for the monitoring of incoming emergency calls for supervisory and training purposes.

B. Continuous logging equipment. Each PSAP shall provide and run continuously a logging recorder that will record both sides of a conversation on each incoming 9-1-1 call, and contemporaneously document the year, date and time of each recorded event.

C. Instant playback recorders. Each PSAP shall provide and run an instant playback voice recorder capable of recording the voice conversations for each answering position.

D. Equipment Tests. PSAPs shall ensure that all call answering and dispatch equipment is maintained in operable working order. All PSAPs shall conduct periodic tests of all call answering workstations that include spare or backup workstations, exercising all critical functions and features, and TTY/TDD call reception and transmission. Equipment checks shall be conducted on a routine basis, but no less than monthly. PSAPs shall complete and maintain records of such tests and make them available for review by the Bureau. The Bureau will assist with the development of equipment test procedures and forms.

E. TTY/TDD Test Calls. PSAPs shall conduct internal TTY/TDD test calls in which random test calls are processed at each call answering position. Test calls shall include two types of calls (1) silent, open line calls, and (2) calls that are introduced by transmitting TTY/TDD tones. PSAPs shall require each dispatcher to conduct TTY/TDD test calls, as needed to ensure all dispatchers are able to process both sending and receiving calls, on a routine basis, but no less than every three months. PSAPs shall complete and maintain records of such test calls that identify the dispatcher, date/time of call, call taking position, silent or transmitted tone, and whether the call met standard operating procedures. Such test records shall be made available for review by the Bureau. The Bureau will assist with the development of TTY/TDD test call procedures and forms.

5. Facilities

A. Emergency power provision. Each PSAP shall have an emergency power generator capable of providing for the essential power requirements of the facility to ensure continuous operation for a minimum of twenty-four hours during commercial power outages. Sufficient fuel should be available for 12 hours operation at full load, at any time, on two hours notice. If a source of supply is not reliable or readily available, or if special arrangements must be made for refueling as necessary, a supply sufficient for 24 hours operation at full load shall be maintained. (NFPA 1221)

B. Uninterruptible power supply. Each PSAP shall provide uninterruptible power supply (UPS) capability on all critical pieces of the system, particularly the telephone system itself. (The Bureau shall provide UPS on all Bureau-provided 9-1-1 equipment.) UPS equipment will ensure that emergency calls in progress and subsequent calls will not be interrupted during commercial power fluctuations and outages. The UPS shall supply uninterruptible power for a minimum of 30 minutes to allow for manual or automatic transfer from the public service AC power to localized auxiliary AC power.

6. Standards for Computer-linked Communication Centers

A. Computer-linked Communication Center. A Computer-linked Communication Center (CLCC) shall receive the same caller name, number, and emergency service provider information received at the PSAP as the call is transferred from the PSAP to the CLCC. A CLCC will directly dispatch the appropriate service based on the needs of the caller.

B. CLCC operating standards

(1) Training. Call answering personnel shall be trained at CLCC expense in the following areas:

(a) Training on the proper operation of PSAP equipment purchased at CLCC expense.

(b) Training on the proper handling of incoming 9-1-1 emergency calls.

(2) Data security. Each CLCC shall provide protection and confidentiality for ANI and ALI data as described under Subsection 2, Paragraphs G and H of this section.

(3) Records Retention. All voice recordings and TDD records of incoming 9-1-1 calls shall be retained for a minimum of 30 days. It is recommended that such materials be retained for a minimum of 60 days.

§4. Public Safety Answering Point Sites

1. Compliance. Public Safety Answering Point sites shall comply with the PSAP standards set forth in Section 3, Subsections 1 through 5.

2. PSAP Sites

A. Minimum PSAP Designation. There may be at least one PSAP designated in each County.

B. Total Number of PSAPs. As of October 15, 2007, the Bureau will support with funds collected by the surcharge authorized in 25 M.R.S.A. §2927, no more than the following number of PSAPs: 5 in Cumberland County; 3 in York County; 2 in Androscoggin County; 2 in Penobscot County; and 1 each in all other counties in the State. The State Police PSAPs in Gray and Orono shall not be included in these limits.

C. Consolidation

(1) Ten calls or Less. Any municipal PSAP existing as of July 1, 2005 that answered on average less than 10 calls per day for the time period January 1, 2004 – December 31, 2004 must file a plan with the ESCB no later than July 1, 2006 describing how it plans to consolidate with another entity taking greater than 10 calls per day, no later than October 15, 2007, unless it chooses the option in Section 4.2.D.

(2) Consolidation in Androscoggin, Cumberland, Hancock, Kennebec, and York Counties. For those counties in which PSAPs must be consolidated to reach the limits specified in section 4(2)(B) of this rule (Androscoggin, Cumberland, Hancock, Kennebec, and York), plans shall be submitted to the ESCB no later than July 1, 2006 reflecting agreements that have been reached to bring about that consolidation.

(3) State Police Consolidation. The State Police shall file a report no later than July 1, 2006 reflecting agreements that it has reached for consolidating its PSAPs.

(4) Use of Consolidation Savings. The Bureau may dedicate up to 25% of the funds saved from eliminating PSAPs, for use by any PSAP consolidating PSAP and dispatch functions for improved interoperability.

(5) Implementation. The Bureau shall accept any consolidation plans meeting the requirements stated in C (1-3) above. If plans meeting these requirements are not submitted, the Bureau shall determine which PSAPs will continue to receive financial support from the 911 surcharge funds.

D. Locally-funded PSAPs. Any PSAP receiving fewer than 10 calls per day as described in Section 4.2.C (1) or a PSAP no longer receiving surcharge funding as described in 4.2.C(5), may continue to act as a PSAP if it reimburses ESCB all costs associated with PSAP status. Such election must be made no later than July 1, 2006, with reimbursement to begin October 15, 2007.

§5. Public Safety Answering Point equipment

1. Technology for system network. Repealed. See Chapter 2.

2. Public Safety Answering Point equipment. The Bureau shall provide each PSAP with the following at no charge:

A. Equipment.

(1) Automatic telephone number identification (ANI) display capability.

(2) Automatic location identification (ALI) display capability.

(3) Call detail information reporting capable of identifying, at a minimum, the caller's ANI, the trunk number to the PSAP, the call taker position at the PSAP, the time the call is answered, transferred or terminated, and the duration of the call.

(4) Call record management system.

(5) Printer for call detail information.

(6) 30-minute uninterruptible power supply (UPS) on Bureau-provided equipment.

(7) TDD communications capability with record printout.

B. Interface capabilities. Essential Bureau-provided equipment shall have the capability to interface with existing call logging and instant playback recording devices.

C. Maintenance. The Bureau shall provide ongoing maintenance on all Bureau-provided equipment.

§6. Procedures for developing and maintaining address and routing databases

1. Address and Routing Database Development

A. Physical addresses. Each municipality participating in the E-9-1-1 system shall provide the Bureau with a list of accurate physical addresses for all published residential and business telephone subscribers and coin-telephones within its municipal boundaries. These addresses shall be linked with corresponding telephone numbers in telephone companies' customer service databases.

B. Master Street Address Guide. Each municipality participating in the E-9-1-1 system shall provide the Bureau with accurate road names, number ranges, and emergency service zones (ESZ) for the purpose of creating the Master Street Address Guide (MSAG). The MSAG shall be used to route 9-1-1 calls to the proper PSAP and display the correct ANI/ALI information.

2. Address and routing database maintenance

A. Municipal maintenance. After establishment of the MSAG, each municipality participating in the E-9-1-1 system shall continue to verify the accuracy of the routing information contained in the MSAG and to advise the Bureau, on an as-occurred basis, of any changes in road names, the establishment of new roads, changes in address numbers used on existing roads, closing and abandonment of roads, changes in police, fire, emergency medical service or other appropriate agencies, jurisdiction over any address, annexations and other changes in municipal and county boundaries, incorporation of new communities or any other matter that will affect the routing of 9-1-1 calls to the proper PSAP.

§7. Procedures for cooperation and coordination with telephone utilities and municipalities for implementation

1. Municipal Coordinator. Each municipality participating in the E-9-1-1 system shall designate an individual to serve as their Municipal Coordinator for all issues involving the development and maintenance of address information for the E-9-1-1 addressing and routing databases.

2. Database maintenance. Each Municipal Coordinator shall notify the Bureau and Service Provider of any changes, deletions and additions to the MSAG on an as-occurred basis. The Service Provider shall update the MSAG within 24 hours of notification by a municipality. Each municipality shall review the MSAG yearly, at a minimum, to ensure accuracy of the data and the emergency service zones.

3. Discrepancy reporting. Repealed. See Chapter 2.

4. Trouble reporting. Each PSAP call taker shall fill out a trouble report when a call is found to have erroneous database information. The information shall be forwarded through the PSAP Coordinator to the Bureau, the Service Provider, and the telephone companies in a format established by the Bureau.

History

• STATUTORY AUTHORITY: 35-A M.R.S.A. §§ 104, 111, and 25 M.R.S.A. §2926
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on September 6, 2007. It was filed with the Secretary of State on September 10, 2007 and became effective on September 15, 2007.
• EFFECTIVE DATE: EFFECTIVE DATE -- DEPARTMENT OF PUBLIC SAFETY, EMERGENCY SERVICES COMMUNICATION BUREAU, 16-574 CMR c.1:
• EFFECTIVE DATE: December 24, 1995 - filing 95-498
• EFFECTIVE DATE (ELECTRONIC CONVERSION): May 15, 1996
• NON-SUBSTANTIVE CHANGES: July 29, 1996 - §2(G) - removal of "the" before the word "Maine" as approved by the agency.
• NON-SUBSTANTIVE CHANGES: January 28, 1999 - converted to Microsoft Word.
• MOVED TO PUBLIC UTILITIES COMMISSION, 65-407: September 13, 2003 - authorized by P.L. 2003 c.359
• MOVED TO PUBLIC UTILITIES COMMISSION, 65-407: ADJUSTED TO 65-625 (NEW UNIT NUMBER ASSIGNED BY BUREAU OF THE BUDGET):
• MOVED TO PUBLIC UTILITIES COMMISSION, 65-407: September 16, 2003
• AMENDED: May 28, 2005 – Section 4, filing 2005-182
• AMENDED: January 29, 2007 – filing 2007-23
• AMENDED: September 15, 2007 – filing 2007-388
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 2 Requirements for the Enhanced 9-1-1 Service Provider and Local Exchange Carriers

Code Me. R. 65-625 Ch. 2 Requirements for the Enhanced 9-1-1 System Service Provider and Local Exchange Carriers {#sec-65-625-ch.-2 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 2}

SUMMARY: This Chapter establishes requirements for the Enhanced 9-1-1 System Service Provider and Local Exchange Carriers pursuant to 25 M.R.S. §2933. The Chapter includes requirements for network design, connectivity, database provisioning, outage notification procedures and financial reimbursements for LECs.

§ 1 GENERAL PROVISIONS AND DEFINITIONS 3

A. Purpose 3

B. Definitions 3

§ 2 GENERAL REQUIREMENTS FOR LECS 5

A. Provisioning of Enhanced 9-1-1 5

B. Reporting Requirements 6

C. Required Information for E9-1-1 Database 6

§ 3 CENTRAL OFFICE REQUIREMENTS 6

A. General Central Office Requirements for LECs 6

B. Central Office Upgrades by LECs 6

§ 4 NETWORK TRUNKING AND CONNECTIVITY REQUIREMENTS 7

A. General Network Requirements for LECs 7

B. Requirements of LECs 7

§ 5 ENSURING SYSTEM RELIABILITY 8

A. Requirements of LECs 8

§ 6 ALI DATABASE REQUIREMENTS 8

A. Requirements of the Database Management System Provider (DMSP) 8

B. General Requirements of Data Providers 9

C. Service Order Error Correction Requirements 9

D. No Record Found Conditions 10

E. ALI Discrepancy Standards 10

F. Database Reconciliation Standards 11

G. Master Street Address Guide (MSAG) 11

§ 7 LEC DATABASE PROVIDER REIMBURSEMENT 12

A. Reimbursement of Local Exchange Carriers 12

B. Petition for Different Reimbursement 12

§ 8 WAIVER OR EXEMPTION 12

§ 1 GENERAL PROVISIONS AND DEFINITIONS

A. Purpose

This Chapter contains the requirements for the Enhanced 9-1-1 System Service Provider and Local Exchange Carriers associated with the operation of the statewide E9-1-1 system.

B. Definitions

1. Addressing Officer. “Addressing Officer” means the designated individual appointed by the municipality or county for all issues involving the development and maintenance of address information for the E9-1-1 addressing and routing databases.

2. Automatic Location Identification (ALI). “Automatic Location Identification (ALI)” means the automatic display at the Public Safety Answering Point (PSAP) of the caller’s telephone number, the address/location of the telephone and supplementary emergency services information.

3. ALI Discrepancy. “ALI Discrepancy” means a record retrieved from the ALI Database during an actual E9-1-1 call with an incorrect address.

4. Automatic Number Identification (ANI). “Automatic Number Identification” means the telephone number associated with the access line from which a call originates.

5. Alternate Routing. “Alternate Routing” means the capability of routing 9-1-1 calls to a designated alternate location if all 9-1-1 trunks are busy or out of service. The capability may be activated upon request or automatically, if detectable, when 9-1-1 equipment fails or the PSAP itself is disabled.

6. Central Office (CO). “Central Office” means the LEC facility where access lines are connected to switching equipment for connection to the Public Switched Telephone Network (PSN).

7. Company Identifier. “Company Identifier” means a 3 to 5 character identifier that distinguishes the entity providing voice service to the end user. The company identifier registry is maintained by the National Emergency Number Association (NENA) in a nationally accessible database.

8. Data Provider. “Data Provider” means an entity that provides customer service records to the ALI Database. This entity may be the Local Exchange Carrier or another entity acting on the carrier’s behalf.

9. Database Management System Provider (DMSP). “Database Management System Provider (DMSP)” means the entity providing Selective Routing and/or Automatic Location Identification (ALI) services. This may be the same entity as the System Service Provider or another entity depending on contractual situations.

10. Default Routing. “Default Routing” means the capability to route a E9-1-1 call to a designated (default) PSAP when an incoming E9-1-1 call cannot be routed due to an ANI failure or other cause.

11. Diverse Routing. “Diverse Routing” means the practice of routing circuits along different physical paths, sheath/technology diversity over the same route, and system diversity such as separate DS1s on the same T-carrier or fiber cable, in order to prevent total loss of 9-1-1 service in the event of a facility failure.

12. Emergency Services Communication Bureau (Bureau). “Emergency Services Communications Bureau (Bureau)” is the bureau within the Public Utilities Commission authorized to develop, establish, and manage the statewide Enhanced 9-1-1 system in Maine, pursuant to 25 M.R.S.A. § 2926.

13. Enhanced 9-1-1 Network. “E9-1-1 Network” means any E9-1-1 circuit or facility including but not limited to Central Office to E9-1-1 tandem trunks, ALI links between E9-1-1 tandem and ALI Database, ALI links between PSAP and ALI Database, E9-1-1 tandem to PSAP Trunks.

14. Enhanced 9-1-1 System. “Enhanced 9-1-1 System” means the network, database and customer premise equipment required to provide Enhanced 9-1-1 service.

15. Enhanced 9-1-1 Service (E9-1-1). “Enhanced 9-1-1 service” is an emergency telecommunications service that automatically displays a caller’s location and telephone number on a screen at a PSAP. This service uses the caller’s location, not telephone exchange, to route a call to the appropriate call answering center known as a Public Safety Answering Point.

16. Enhanced 9-1-1 System Service Provider (SP). The “E9-1-1 System Service Provider” is the vendor or vendors that provide the network, routing capabilities, databases, and equipment necessary to operate a statewide E9-1-1 system.

17. Foreign Exchange. “Foreign Exchange” is a service that provides local phone service from a central office that is outside the customer’s local calling area.

18. Host-Remote. “Host-Remote” is the relationship between conventional central office switching equipment and a Remote Switching Unit in another facility which usually has limited capability and may not be able to function independently if connecting links from the host office are interrupted.

19. Local Exchange Carrier (LEC). “Local Exchange Carrier (LEC)” is a telephone utility, as defined by 35-A M.R.S.A. § 102(19), that provides telephone exchange service or interexchange access service within a telephone exchange pursuant to authority granted by the Maine Legislature or the Public Utilities Commission. LECs include incumbent local exchange carriers (ILECS) and competitive local exchange carriers (CLECs).

20. Master Street Address Guide (MSAG). “Master Street Address Guide (MSAG)” means a database of street names and house number ranges with their associated communities defining Emergency Service Zones (A defined geographical territory consisting of a specific combination of law enforcement, fire, and emergency medical service coverage areas.) and their associated Emergency Service Numbers ( a 3 or 4 digit number used to uniquely identify an Emergency Service Zone) to enable proper routing of E9-1-1 calls.

21. No Record Found. “No Record Found” means a condition where no ALI information is available for display at the PSAP.

22. P.01 Grade of Service. “P.01 Grade of Service” means the grade of service reflecting the probability that one call out of 100 during the average busy hour will be blocked. P.01 is the minimum recommended Grade of Service for E9-1-1 trunk groups.

23. Public Safety Answering Point (PSAP). “Public Safety Answering Point (PSAP)” means a facility equipped to receive ANI/ALI and assigned the responsibility of initially receiving 9-1-1 calls and, as appropriate, directly dispatching emergency response services or transferring the calls to other public or private safety agencies for dispatch.

24. Public Switched Telephone Network (PSTN). “Public Switched Telephone Network (PSTN)” means the network of equipment, lines, and controls assembled to establish communication paths between calling and called parties in North America.

25. Selective Router. “Selective Router” means the Central Office that provides the tandem switching of E9-1-1 calls. It controls delivery of the voice call with ANI to the PSAP and provides Selective Routing, Speed Dialing, Selective Transfer, Fixed Transfer and certain maintenance functions for each PSAP. This term is also known as the Enhanced 9-1-1 Control Office or Tandem.

26. Signaling System 7 (SS7). “Signaling System 7” means an out-of-band signaling system used to provide basic routing information, call set-up and other call termination functions. Signaling is removed from the voice channel itself and put on a separate data network.

§ 2 GENERAL REQUIREMENTS FOR LECs

A. Provisioning of Enhanced 9-1-1

1. Each LEC offering service over the PSTN in the State of Maine shall provide 9-1-1 toll-free for any individual to call within the State.

2. Each LEC shall make all necessary arrangements for the provisioning, testing, operation, and maintenance of E9-1-1 service directly with the Bureau. Such provider shall receive approval from the Bureau prior to activation of E9-1-1 service.

B. Reporting Requirements

1. Each LEC shall submit to the Bureau the State of Maine Local Exchange Carrier Questionnaire provided by the Bureau.

a. The questionnaire shall be updated by April 1st of each year to include any changes to a previously submitted questionnaire, or to confirm the absence of any changes.

b. The questionnaire shall be updated and submitted to the Bureau within 5 business days upon the following instances:

(i) Change in ownership of the LEC;

(ii) Any changes in the LEC’s topology that affects the routing of E9-1-1 calls from the central office to the E9-1-1 tandems or;

(iii) Change in any of the LEC’s contact(s) for E9-1-1 service.

C. Required Information for E9-1-1 Database

1. Each LEC shall supply to the Bureau or its designee any information necessary to establish and maintain the E9-1-1 Databases in accordance with the rules established by this Chapter.

§ 3 CENTRAL OFFICE REQUIREMENTS

A. General Central Office Requirements for LECs

1. Host-remote central office technology shall not degrade E9-1-1 service.

2. In host‑remote central office arrangements, LECs shall useemergency stand-alone technology, where technically feasible, and where the Bureau has provided an alternate routing number for the host-remote central office in question. When connectivity to the E9-1-1 network has been lost, LECs shall re-route 9-1-1 calls to the alternate number provided by the Bureau. The Bureau shall provide LECs with updated alternate routing numbers on an annual basis or as otherwise required.

B. Central Office Upgrades by LECs

1. All LECs shall provide notice to the Bureau of scheduled central office upgrades which may require any part of the 9-1-1 network to be out of service during the upgrade process, at least 10 days prior to the scheduled upgrade. Status of the upgrade shall be provided within one (1) hour of its completion.

2. E9-1-1 modifications in central offices shall be coordinated with general central office upgrades when practical, and where such coordination does not negatively affect E9-1-1 system implementation or operation.

3. When designing and scheduling central office upgrades, LECs shall take into consideration the following:

a. the critical nature of the performance and reliability of the statewide E9-1-1 system;

b. the need for any additional E9-1-1 capability and growth; and

c. the provision of voice and data switching and transmission services to the statewide E9-1-1 system.

§ 4 NETWORK TRUNKING AND CONNECTIVITY REQUIREMENTS

A. General Network Requirements for the SP and LECs

1. The 9-1-1 trunks on the E9-1-1 network shall be dedicated facilities that are not shared with any other telecommunications traffic, i.e., trunks carrying 9-1-1 traffic between the Central Office and the E9-1-1 tandems.

2. All telephone circuits or equipment used exclusively for 9-1-1, or essential to the operation of the E9-1-1 system, shall be clearly identified (beginning with the trunks from the Central Office to the Selective Router) to insure proper handling. This requirement applies to equipment accessible as of the effective date of the rule and any equipment installed or repaired after the effective date of the rule.

3. Any entity connecting to the Maine E9-1-1 network shall ensure that the 9-1-1 trunks will have interoffice, loop and carrier system diversity when such diversity can be achieved using existing facilities. Trunks shall be divided as equally as possible across available carrier systems.

B. Requirements of LECs

1. Connecting to the E9-1-1 Network

a. Trunks. Each LEC shall provide a minimum of two redundant trunks using SS7 to each of the two selective routers (tandems). The number of incoming E9-1-1 trunk lines to each selective router shall be based upon a grade of service of P.01. Diverse routes should be used when possible within the existing network.

b. Certification and Compliance. Each LEC shall certify annually to the Bureau that it meets the P.01 grade of service. If P.01 grade of service is not being met, the Bureau may request the LEC to conduct a traffic study. The Bureau, in cooperation with the SP and LEC, will determine the required trunking increases to meet the P.01 grade of service. The LEC shall implement any trunking increases within 60 days.

§ 5 ENSURING SYSTEM RELIABILITY

A. Requirements of LECs

1. Testing and Monitoring of 9-1-1 Circuits

At least once every 24 hours, each LEC owning, operating, or maintaining any portion of any dedicated 9-1-1 circuit shall manually test, for continuity, the portion of the 9-1-1 circuit that it owns, operates, or maintains. This section does not apply to any dedicated 9-1-1 circuit satisfying any of the following conditions:

a. the circuit is carried by a transmission system that is equipped with one or more alarms to detect loss of signal continuity;

b. the circuit itself is equipped with one or more alarms to detect loss of signal continuity; or

c. the circuit is automatically tested for signal continuity at least once every 24 hours.

2. Outage Notification

a. A LEC shall notify the Bureau, or the SP if so designated by the Bureau, of any unplanned E9-1-1 network service outage that affects E9-1-1 service no later than 30 minutes after such occurrence. Repairs shall be undertaken promptly. Updates on restoration efforts shall be provided at the Bureau’s request. The LEC shall notify the Bureau or its designee within one hour of resolution of the outage or condition confirmed by testing.

b. Any dedicated 9-1-1 circuit found to be defective must be reported to the Bureau, or the SP if so designated by the Bureau, and any affected PSAP within 30 minutes of discovery. Repairs shall be undertaken promptly. The LEC shall notify the Bureau and affected PSAPs within one hour of resolution.

§ 6 ALI DATABASE REQUIREMENTS

A. General Requirements of the Database Management System Provider (DMSP)

1. The DMSP shall construct the database to be redundant and fault tolerant and shall include safeguards to ensure the security of the data.

2. The DMSP shall prevent unauthorized access to, or alteration of, any data or databases used in conjunction with E9-1-1 service.

3. The data format used by the DMSP shall follow National Emergency Number Association (NENA 2) or standards as otherwise approved by the Bureau.

4. Data transfers between the DMSP and all other data providers shall follow the NENA 2 or higher standards or standards as otherwise approved by the Bureau.

5. The DMSP shall process order updates received from data providers within one business day of receipt by electronic file transfer.

6. The DMSP shall maintain an audit trial of all database changes and provide source documentation to identify the time, date, and origin of any database change to the Bureau upon request.

B. General Requirements of Data Providers

1. Each data provider shall use a unique NENA Company Identifier for each operating company for which it provides ALI records.

2. The data format used by data providers shall follow NENA 2 or standards as otherwise approved by the Bureau.

3. Data transfers between the DMSP and all other data providers shall follow the NENA 2 or standards as otherwise approved by the Bureau.

4. Each data provider shall work directly with Addressing Officers for database error resolution and verifying problematic addresses at the time of service order provisioning.

5. Each data provider shall use error correction codes provided by the Bureau when reporting resolution of data base errors.

6. Each data provider shall Master Street Address Guide (MSAG) validate its own customer 9-1-1 service addresses before transmitting them to the DMSP.

7. Each data provider shall deliver E9-1-1 service order updates to the DMSP within one business day of the close of service order activity.

C. Service Order Error Correction Requirements

1. Requirements of DMSP

The DMSP shall distribute errors from E9-1-1 updates to the appropriate data provider within one business day of detection.

2. Requirements of Data Providers

a. Each data provider shall retrieve E9-1-1 error files each business day as distributed by the DMSP from E9-1-1 update processing.

b. Each data provider shall correct all E9-1-1database processing errors within three business days of retrieval of the error file by the data provider.

c. After making three unsuccessful attempts to reach either the customer or the Addressing Officer of the affected town to correct E9-1-1 database processing errors, each data provider shall refer such errors to the Bureau for assistance with resolution.

3. Service Quality Requirement for Data Providers

Service Order (SO) accuracy for data providers on a monthly basis should be 97 percent or higher as measured by the following formula (this does not include informational errors, only hard errors ):

Data Provider Total SO Records Processed - Company’s Total SO Errors = % SO Accuracy

Company’s Total SO processed

D. No Record Found Conditions

1. Requirements of DMSP

The DMSP shall identify No Record Found conditions through the ALI audit trail. Such conditions shall be distributed to the appropriate data provider within one business day of identification.

2. Requirements of Data Providers

a. Each data provider shall resolve each No Record Found condition within three business days of notification to the data provider by the DMSP.

b. Each No Record Found condition shall be considered resolved when the corrected record via the service order process successfully updates the ALI Database.

c. Each data provider shall refer unresolved No Record Found database errors and inquiries to the Bureau if not resolved within three working days of receipt.

3. No Record Found Quality Standard for Data Providers

A data provider’s percentage of all No Record Founds in a month shall not exceed its percentage of records in the ALI database. If a data provider’s six‑month average exceeds such percentage, it shall submit a corrective action plan to the Bureau.

E. ALI Discrepancy Standards

1. Requirements of DMSP

a. The DMSP shall use an electronic form developed by the Bureau for reporting inaccuracies of ALI information and the misrouting of 9-1-1 calls, and for distribution of the ALI discrepancy to the appropriate database provider for resolution. The form shall include, but not be limited to, a description of the problem, appropriate corrective action or information.

b. The DMSP shall inform a data provider of any resulting form problems with a data provider’s records within one business day of receipt.

2. Requirements of Data Providers

a. A data provider shall resolve each ALI discrepancy within three business days of receipt. Such discrepancies will be considered to be resolved either when the appropriate Addressing Officer denies a suggested change or when the correction successfully updates the ALI Database.

b. A data provider shall refer unresolved ALI discrepancies to the Bureau if not resolved within three working days of receipt.

F. Database Reconciliation Standards

1. Requirement of DMSP

The DMSP shall provide, on an annual basis, to each data provider a copy such data provider’s data that resides on the ALI system such that the data provider is able to validate the accuracy of the data.

2. Requirement of Data Providers

Each data provider shall schedule a date for its annual data validation by June 30th of each year. Each data provider shall have completed its annual data validation by December 31st of each year.

G. Master Street Address Guide (MSAG)

1. Requirement of DMSP

a. The DMSP shall provide to each data provider a copy of the MSAG at least quarterly.

b. The DMSP shall provide Data Providers access to electronic MSAG delta files each business day and a fill MSAG extract on a weekly basis.

2. Requirements of Data Providers

a. Each data provider shall reload its internal MSAG at least quarterly.

b. Each data provider shall establish a documented process to receive and use weekly MSAG updates provider by the DMSP.

§ 7 LEC DATABASE PROVIDER REIMBURSEMENT

A. Reimbursement of Local Exchange Carriers

1. Rate

The Bureau will reimburse LECs for activities as a Data Provider at a rate of $0.057 per access line in the E9-1-1 database per month if the LEC has fulfilled the requirements of Section 7 of this Chapter and if sufficient funds are available pursuant to 25 M.R.S. §2927(3).

2. Invoices

LECs shall submit invoices to the Bureau for maintenance costs on a quarterly basis, within 30 days of each quarter ending on the last day of March, June, September, and December.

3. Notice

If the Bureau determines the LEC has not met the requirements of Section 7 of this Chapter, it shall notify the LEC and the Commission within 30 days of receipt of the invoice. The notice shall include reasons for denial of payment.

B. Petition for Different Reimbursement

A LEC may petition the Commission to revise the payment level if it can demonstrate that the $0.057 is insufficient to cover its expenses in preparing, correcting and verifying or updating subscriber information. The LEC and the Bureau shall attempt to agree on a revised payment level. Should agreement not be reached, the Commission shall determine whether a revised payment level should be implemented and the appropriate level.

§ 8 WAIVER OR EXEMPTION

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or any statute. The Commission, the Presiding Officer assigned to a proceeding regarding this Chapter, or the Director of the Bureau may grant the waiver.

History

• STATUTORY AUTHORITY: 25 M.R.S. §§ 2926, 2927, 2933; 35-A M.R.S. §§ 103(2)(D), 111
• EFFECTIVE DATE: The rule was approved as to form and legality by the Attorney General on September 6, 2007. It was filed with the Secretary of State on September 10, 2007 (filing 2007-389) and became effective on September 15, 2007.
• EFFECTIVE DATE: This rule was approved as to the form and legality by the Attorney General on August 7, 2017. It was filed with the Secretary of State on August 8, 2017 (filing 2017-122) and became effective on August 13, 2017.
• EFFECTIVE DATE: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 3 Provision of Enhanced 9-1-1 Access-only

Code Me. R. 65-625 Ch. 3 Provision of 9-1-1 Access-Only Service {#sec-65-625-ch.-3 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 3}

SUMMARY: This Chapter implements the requirements of 25 M.R.S. § 2935, by establishing requirements associated with the provision of 9-1-1 Access-Only Service, or “Soft Dialtone” service

§1. DEFINITIONS

As used in this Chapter, the following words and phrases have the following meanings:

A . 9-1-1 Access-Only Service. “9-1-1 Access-Only Service” means the provision of 9-1-1 access to a residential telephone customer's premises when telephone service to the premises has been otherwise suspended or disconnected.

B. 9-1-1 Call. “9-1-1 Call” means any use of 9-1-1 services initiated by any means or medium, including, but not limited to, voice calls and text messaging.

C. 9-1-1 Services. “9-1-1 Services” or “9-1-1” means means the delivery of 9-1-1 Calls to the proper PSAPs with the ALI and ANI of an entity requesting emergency services. 9-1-1 Services or 9-1-1 includes Internet protocol enabled services.

D. ALI Database. “ALI Database” means the set of ALI records residing within a computer or other digital storage system.

E. Automatic Location Identification. “Automatic Location Identification” or “ALI” means a 9-1-1 service capability that enables the automatic display of information defining the geographical location of the telephone used to place a 9-1-1 Call..

F. Automatic Number Identification. “Automatic Number Identification” or “ANI” means a 9-1-1 service capability that enables the automatic display of the 7-digit number used to place a 9-1-1 Call.

G. Emergency Services Communication Bureau. “Emergency Services Communications Bureau” or “Bureau” is the bureau within the Public Utilities Commission which is responsible for the statewide implementation and management of 9-1-1.

H. Commission. “Commission” means the Maine Public Utilities Commission.

I. Intercept Process. “Intercept process” means a process to stop a telephone call directed to a disconnected or suspended telephone number and redirect that call to a recorded announcement.

J. Involuntary Disconnection. “Involuntary Disconnection” means cessation of local exchange service that is not requested by the customer. It includes but is not limited to disconnection for non-payment. For the purposes of this Chapter, an involuntary disconnection begins when the customer no longer is provided access to the public switched network from the premise, i.e., after any period of involuntary suspension.

K. Involuntary Suspension. “Involuntary Suspension” means the temporary period immediately before a customer is involuntarily disconnected but during which the telephone continues to have access to the public switched network.

L. Lifeline-Eligible Customer. “Lifeline-Eligible Customer” means a customer qualifying for the Lifeline or Linkup services pursuant to Chapter 294 of the Commission’s rules, whether or not the customer receives either of the services.

M. Local Exchange Carrier. “Local Exchange Carrier” or “LEC” is as defined by 35-A M.R.S. § 102(9-E).

N. Telephone Exchange Service. “Telephone Exchange Service” is as defined by 35-A M.R.S. § 102(18-B)

O. Public Safety Answering Point. “Public Safety Answering Point” or “PSAP” means the physical or virtual entity where 9-1-1 Calls are received that is directly dispatching emergency response services or transferring the calls to other public or private safety agencies for dispatch.

P. Public Switched Telepone Network. “Public Switched Telephone Network” or “PSTN” is as defined by 35-A M.R.S. § 102(12-A).

Q. Soft Dialtone. “Soft Dialtone” means access to some PSTN services after telephone service has been otherwise suspended or disconnected at a residential premise. For the purpose of this Chapter, Soft Dialtone provides, at a minimum, 9-1-1 Access-Only Service capability, but may provide additional telecommunication services.

R. Soft Dialtone Record. “Soft Dialtone Record” is the record residing on the ALI Database that corresponds to a location that receives soft dialtone.

S. Telephone Utility. “Telephone Utility” is as defined by 35 M.R.S. § 102(19).

T. Voluntary Disconnection. “Voluntary Disconnection” means cessation of local exchange service made at the request of the customer.

U. Voluntary Suspension. “Voluntary Suspension” means a hiaitus of the provision of local exchange service, provided at the customer’s request, when the carrier and the customer have an agreement under which the customer may pay a fee and the carrier resumes service after a period of time.

§2. APPLICABILITY

This rule is applicable to all LECs.

§3. PROVISION OF SOFT DIALTONE

A. Involuntary Disconnections

1. Duration. If a residential customer is subject to an Involuntary Disconnection, the LEC must provide Soft Dialtone to the telephone line of the customer for no less than 90 days following the date on which the line was involuntarily disconnected.

2. Exceptions. Notwithstanding Section 3(A)(1) of this Chapter, a LEC is not required to provide, or may cease providing, Soft Dialtone caused by an Involuntary Disconnection if any of the following conditions occur:

a. the LEC must install additional equipment to provide Soft Dialtone;

b. the LEC must expend resources to provide equipment or services that provide Soft Dialtone;

c. the LEC is unable technically or operationally to provide Soft Dialtone;

d. the customer voluntarily relinquishes Soft Dialtone at the location;

e. the LEC determines that the customer location receives active service to the PSTN by some means other than the line that was disconnected, regardless of the technology used to provide the connection; or

f. the LEC determines that the customer premises have been vacant for a minimum of 60 days, the line has been or is scheduled to be physically disconnected by an entity other than the LEC, or the line is associated with a structure that has been destroyed.

3. Software Required. For the purpose of Section 3(A)(2)(a) and (b) of this Chapter, equipment, resources, and services do not include new or upgraded software necessary to provide Soft Dialtone and do not include equipment, resources, or services associated with non-utility service.

4. Customers with Inability to Pay. Upon request, a customer may be treated like an Involuntary Disconnection if the customer:

a. provides evidence to the LEC, in writing, that he or she is a Lifeline-Eligible Customer; and

b. asserts to the LEC, in writing, that the customer requires a disconnection because of inability to afford telephone service.

B. Voluntary and Involuntary Suspensions. If a residential customer is subject to a Voluntary Suspension or Involuntary Suspension, the LEC must provide Soft Dialtone to the telephone line during the period of suspension.

C. Other Soft Dialtone Provisions

1. Additional Telephone Services. When providing Soft Dialtone pursuant to this Chapter, a LEC may, at its option, provide other telephone services in addition to 9-1-1 Access-Only Service.

2. Optional Provision of Soft Dialtone. A LEC may, at its option, provide Soft Dialtone under circumstances different than those required by Sections 3(A) and 3(B) of this Chapter and for a period of time that exceeds the durations required by sections 3(A) and 3(B) of this Chapter.

3. Soft Dialtone Required when Dialtone is Present. A LEC must provide Soft Dialtone whenever a telephone provides access to dialtone.

D. Customer Notification. A LEC must provide residential customers with periodic written information regarding the presence of Soft Dialtone. The notice shall be in clear language.

§4. ALI DATABASE AND OTHER 9-1-1 REQUIREMENTS

A. General Provisions

1. Database Record Required. Every location receiving Soft Dialtone must have a corresponding record in the ALI Database until such time as Soft Dialtone is removed.

2. Database Record Removed. When telephone service is restored or a new installation is performed in a location that receives Soft Dialtone caused by an Involuntary Disconnection, the Soft Dialtone Record corresponding to that location shall be removed from the ALI Database by the close of the next business day.

3. Location Dialed. If a Soft Dialtone number is dialed, the LEC must redirect the call using an Intercept Process.

B. Record Formats

1. Customer Name Field. The customer name field in a Soft Dialtone Record must be designated as follows:

a. Involuntary Disconnection. “INVOLUNTARY DISC—NO CALL BACK.”

b. Voluntary or Involuntary Suspension. Retain customer’s name appended with “NO CALL BACK.”

c. Optional Provision of Soft Dialtone. “LEFT-IN SERVICE-NO CALL BACK.”

2. Class of Service. The class of service field in a Soft Dialtone Record caused by an involuntary disconnection or optional provision of Soft Dialtone must be “NON‑PUBLISHED.”

C. Annual Audit. As part of its 9-1-1 annual data validation required by Chapter 2, §6(F)(2) of the Bureau’s rules, each LEC must perform the following review of its Soft Dialtone Records:

1. Removal of Obsolete Records. Verify that each location corresponding to a Soft Dialtone Record currently receives Soft Dialtone and remove all Soft Dialtone Records for which Soft Dialtone no longer exists;

2. Review of Time Limitations. Review the length of time each Soft Dialtone Record has resided in the ALI Database and, for each Soft Dialtone Record that has exceeded the time limitations established in this Chapter, disconnect Soft Dialtone and remove the corresponding record from the ALI Database.

3. Reporting of Results. Within 30 days of completing its annual audit, each LEC will provide to the Bureau the number of Soft Dialtone Records caused by Involuntary Disconnections that continue to exist after the annual audit is complete

§5. WAIVER

Upon the request of any person subject to the provisions of this Chapter or upon its own motion, the Commission, the Administrative Director, the Director of Emergency Services Communication, the Director of Consumer Assistance and Safety, or the Presiding Officer assigned to a proceeding related to this Chapter may, for good cause, consider waivers of any of the requirements of this Chapter that are not required by statute. The waiver may not be inconsistent with the purpose of this Chapter, Title 25, or Title 35-A.

BASIS STATEMENT: The factual and policy basis for this Chapter is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Docket No. 2025-00322, issued on Janaury 22, 2026. Copies of the Order have been filed with this Chapter at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 35‑A M.R.S. §§ 104 and 111; 25 M.R.S. § 2935.
• EFFECTIVE DATE: This Rule was approved as to form and legality by the Attorney General on January 28, 2026. It was filed with the Secretary of State on January 28, 2026 (filing 2026-025) and became effective on February 2, 2026.
• APAO ACCESSIBILITY CHECK: January 28, 2026 (no issues detected)

Chapter 4 Requirements for the Dispatch Center Consolidation Grant Program

Code Me. R. 65-625 Ch. 4 Requirements for the Dispatch Center and Public Safety Answering Point Consolidation Grant Program {#sec-65-625-ch.-4 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 4}

SUMMARY: This Chapter establishes the requirements for the dispatch center and public safety answering point consolidation grant program.

§ 1 PURPOSE AND APPLICABILITY

A. Purpose

The purpose of this Chapter is to establish the requirements for the dispatch center and public safety answering point (PSAP) consolidation grant program. This Chapter establishes the application process for the distribution of grants for nonrecurring costs incurred by 1) dispatch centers consolidating into PSAPs; 2) two or more PSAPs and dispatch centers consolidating into a regional PSAP and dispatch center; or 3) transferring a PSAP and all its dispatch services to another existing PSAP. This Rule also establishes allowable uses of grant funds.

B. Applicability

This Chapter applies to all dispatch centers and public safety answering points located in Maine.

§ 2 DEFINITIONS

A. Bureau. "Bureau" means the Emergency Services Communication Bureau.

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Dispatch Center. "Dispatch Center" means an emergency dispatch center that receives its 911 calls from a PSAP rather than receiving the call directly.

D. Grant. "Grant" means money awarded by the Bureau for the limited purposes and pursuant to the terms contained in this Chapter.

E. Grant Recipient. “Grant recipient” means an eligible dispatch center or PSAP that is awarded a grant.

F. Grant Program. “Grant Program” means the dispatch center and PSAP consolidation grant program established by 25 M.R.S.A. § 2927-A.

G. Public Safety Answering Point. "Public Safety Answering Point" has the same meaning as set forth in 25 M.R.S. §2921.

§ 3. Program implementation

The grant program shall be administered by the Bureau. The Bureau may investigate any alleged violations of this Chapter and may take appropriate action, including action pursuant to the Commission's authority in Chapter 15 of Title 35-A of the Maine Revised Statutes .

§ 4. ELIGIBILITY

To be eligible for a grant under this program, an applicant must:

be a dispatch center located in Maine that is consolidating into a PSAP and has submitted a completed grant application pursuant to the requirements of Section 5 of this Chapter which includes all the required information by a date determined by the Bureau;

be an existing PSAP or dispatch center located in Maine that is consolidating into a new regional PSAP and dispatch center and has completed a grant application pursuant to the requirements of Section 5 of this Chapter which includes all the required information by a date determined by the Bureau;

be an existing PSAP located in Maine that is transferring the PSAP and all of its dispatch services to another existing PSAP and has submitted a completed grant application pursuant to the requirements of Section 5 of this Chapter which includes all the required information by a date determined by the Bureau.

§ 5. APPLICATION PROCESS

The grant application must include the following information:

Dispatch Centers Planning to Consolidate into a PSAP

a brief narrative on how the consolidation came about and expected public safety benefits, such as operational, improvement or enhancement in services provided to the public and or ability to respond to 911 calls;

a detailed description of the emergency services offered by the dispatch center that will be relocated to the PSAP, this may include services related to all towns that are dispatched through the applying dispatch center that will be consolidated into the PSAP;

A letter from the PSAP that the dispatch center is consolidating into attesting to that fact and the expected timing of the consolidation.

a detailed list of eligible costs related to the consolidation for which the dispatch center is seeking grant funds, this should contain the applicant’s best estimates of these costs and may include costs to towns for dispatch services being moved to the PSAP, such as moving equipment and reprogramming frequencies. If nonrecurring costs incurred with the consolidation are greater than what the applicant estimated and requested, the applicant may amend its application and the Bureau will consider the request for additional grant funds subject to fund availability. Before receiving grant funds, the applicant shall provide supporting documentation to the Bureau for the actual costs incurred related to the consolidation (e.g., itemized bill and proof of payment (e.g. a copy of the check/cancelled check/electronic funds transfer number)) and documentation that the consolidation was completed.

The Bureau may request additional or clarifying information deemed necessary to properly evaluate the application.

PSAP and Dispatch Centers Planning to Consolidate into a Regional PSAP and Dispatch Center

a brief narrative on how the consolidation came about and expected public safety benefits from the consolidation, such as operational, improvement or enhancement in services provided to the public and or ability to respond to 911 calls;

a detailed description of the emergency services offered by the PSAPs and dispatch centers that will be relocated to the new regional PSAP, this may include services related to all towns that are dispatched through the applying PSAPs and dispatch centers that will be consolidated into the new regional PSAP;

a letter from the new regional PSAP that the PSAPs and dispatch centers consolidated into attesting to that fact and the expected timing of the consolidation;

a detailed list of eligible costs related to the consolidation for which the PSAP and dispatch center is seeking grant funds, this should contain the applicant’s best estimate of these costs and may include costs to towns for dispatch services moved to the new regional PSAP, such as moving equipment and reprogramming frequencies. In the event that nonrecurring costs incurred with the consolidation are greater than what the applicant estimated and requested, the applicant may amend its application, and the Bureau will consider the request for additional grant funds subject to fund availability. Before receiving grant funds, the applicant shall provide supporting documentation to the Bureau for the actual costs incurred related to the consolidation (e.g., itemized bill and proof of payment (e.g. a copy of the check/cancelled check/electronic funds transfer number) and documentation that the consolidation was completed.

The Bureau may request additional or clarifying information deemed necessary to properly evaluate the application.

Planning to Transfer a PSAP and all its Dispatch Services to Another Existing PSAP

a brief narrative on how the transfer came about and expected public safety benefits from the transfer, such as operational, improvement or enhancement in services provided to the public and or ability to respond to 911 calls;

a detailed description of the emergency services offered by the PSAP that will be relocated to the other PSAP, this may include services related to all towns that are dispatched through the applying PSAP that will be transferred with its dispatch services to the other PSAP;

a letter from the other PSAP that the PSAP transferred to attesting to that fact and the expected timing of the transfer;

a detailed list of eligible costs related to the transfer for which the PSAP is seeking grant funds, this should contain the applicant’s best estimates of these costs and may include costs to towns for dispatch services moved to the other PSAP, such as moving equipment and reprogramming frequencies. If nonrecurring costs incurred with the transfer are greater than what the applicant estimated and requested, the applicant may amend its application and the Bureau will consider the request for additional grant funds subject to fund availability. Before receiving grant funds, the applicant shall provide supporting documentation to the Bureau of the costs incurred related to the consolidation (e.g., itemized bill and proof of payment (e.g. a copy of the check/cancelled check/electronic funds transfer number) and documentation that the transfer was completed.

The Bureau may request additional or clarifying information deemed necessary to properly evaluate the application.

Grant Awards

There is an overall cap on grants of $1,000,000 per biennium. The Bureau will open applications for 60 days beginning July 1 of the biennium. Grants will be limited by the availability of funds and subject to approval by the Bureau. No application will be approved unless the Bureau determines that the application is complete and the applicant is eligible. The Bureau may award an applicant a grant amount less than the original amount requested. The Bureau may reopen application submissions should available funds remain.

§ 6. ALLOWABLE USES OF GRANT FUNDS

The following are allowable nonrecurring costs that would be eligible for grant funds.

Moving of existing emergency telecommunications system;

Costs associated with providing additional functional capacity at the regional PSAP;

Changes to existing radio systems of the affected parties that are required by the move for emergency dispatch services;

Emergency telecommunications equipment or software required by the regional PSAP to facilitate the incorporation of another municipality;

A study or plan for consolidation into an existing PSAP to be reimbursed if consolidation occurs, the cost for the study or plan shall not exceed $15,000; and

Incidental construction or remodeling costs of the PSAP to accommodate the consolidation.

The Commission, in its discretion, may determine that additional types of nonrecurring costs are eligible for grant funds.

The following are costs that would not be eligible for grant funding. The Bureau may determine other costs that would not be eligible for grant funding.

Contingencies or Escalation Fees;

Salaries and Personnel expenses;

Legal Fees;

Operational Costs;

Monthly Recurring Fees;

Maintenance or Warranty Cost;

Community Notification System;

Personnel Training Costs;

Voice Mail;

Microsoft Office Suite;

Law Enforcement Scanners;

Payment for Performance Bonds or Insurance of Contractors;

Payments Not Tied to Deliverables, such as payment due at contract signing; progress billing); and

New Building Construction or addition.

§ 7. WAIVER

Upon the request of any person subject to the provisions of this Chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter or any statute. The Commission, the Hearing Examiner assigned to a proceeding regarding this Chapter, or the Director of the Bureau may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission’s Order Amending Rule and Statement of Factual and Policy Basis, Commission Docket No. 2025-00323, issued on February 3, 2026. Copies of this Order and Statement have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine 04333-0018.

History

• STATUTORY AUTHORITY: 25 M.R.S. §2927 subsection 3-D; P.L. 2017 ch. 428 and P.L. 2025, ch. 167.
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on December 20, 2018. It was filed with the Secretary of State on December 27, 2018 and became effective on January 1, 2019.
• APAO ACCESSIBILITY CHECK (Word): February 18, 2026 (no issues detected by agency of jurisdiction)
• EFFECTIVE DATE: This chapter was approved as to form and legality by the Attorney General on February 17, 2026. It was filed with the Secretary of State on February 18, 2026 and became effective on February 23, 2026 (filing 2026-050).

Chapter 5 Standards for the Implementation and Administration of Emergency Fire Dispatch Protocols

Code Me. R. 65-625 Ch. 5 Standards for the Implementation and Administration of Emergency Fire Dispatch Protocols {#sec-65-625-ch.-5 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 5}

SUMMARY: This chapter establishes standards for implementation and administration of emergency fire dispatch protocols by Public Safety Answering Points and other Emergency Fire Dispatch Agencies.

§ 1 PURPOSE AND SCOPE

A. Purpose

The purpose of this chapter is to adopt and implement standardized dispatch protocols for answering fire 9-1-1 calls and to adopt and implement standards for training, continuing education, certification, recertification, compliance oversight, quality assurance, and management of Emergency Fire Dispatch Agencies and dispatchers certifying as Emergency Fire Dispatchers.

B. Applicability

This chapter applies to all Public Safety Answering Points, Emergency Fire Dispatchers, and Emergency Fire Dispatch Agencies.

§ 2 DEFINITIONS

A. Bureau. "Bureau" means the Emergency Services Communication Bureau

B. Commission. "Commission" means the Maine Public Utilities Commission.

C. Compliance to Protocol. "Compliance to Protocol" means adherence to written text or scripts and other processes within the approved Emergency Fire Dispatch Priority Reference System (EFDPRS) except to the extent that deviation from the text or script is necessary for the express purpose of clarifying the meaning or intent of a question or facilitating clear understanding of a required action, instruction, or response from the caller.

D. Continuing Dispatcher Education (CDE). "Continuing Dispatcher Education" means fire dispatch relevant educational experiences in accordance with standards set forth in national standards established for the practice of Emergency Fire Dispatch.

E. Dispatch Life Support. "Dispatch Life Support" means the knowledge, procedures, and skills used by trained EFDs in proving service through Pre-Arrival Instructions and Post-Dispatch Instructions to callers requesting fire service assistance.

F. Emergency Fire Dispatcher (EFD). "Emergency Fire Dispatcher" means a person trained to provide Emergency Fire Dispatch and certified in accordance with this chapter.

G. Emergency Fire Dispatch. "Emergency Fire Dispatch" means the reception, evaluation, processing, and provision of dispatch life support, management of requests for emergency fire assistance, and participation in ongoing evaluation and improvement of the Emergency Fire Dispatch process. This process includes identifying the nature of the request, prioritizing the severity of the request, dispatching the necessary resources, providing safety related instructions to the callers and coordinating the responding resources as needed.

H. Emergency Fire Dispatch Agency (EFDA). "Emergency Fire Dispatch Agency" means any company, organization or government agency that provides Emergency Fire Dispatch in accordance with the provisions of this chapter.

I. Emergency Fire Dispatch Director. "Emergency Fire Dispatch Director" means a management level employee of an EFDA or of the Fire Authority Having Jurisdiction, possessing primary responsibility for oversight and direction of the Emergency Fire Dispatch program.

J. Emergency Fire Dispatch Priority Reference System (EFDPRS). "Emergency Fire Dispatch Priority Reference System" means a system approved the Bureau with the following attributes:

1. A protocol for Emergency Fire Dispatch response to calls that includes:

a. Verification of address/location, phone number;

b. Chief complaint/incident type selection;

c. Systemized interrogation questions;

d. Post-dispatch instructions;

e. Pre-arrival instructions; and

f. Dispatch Code Selection

2. A continuous quality improvement program that measures compliance with the protocol through ongoing random case review of each emergency fire dispatcher; and

3. A training curriculum and testing process consistent with the protocol.

K. Emergency Fire Dispatch Protocol Vendor. "Emergency Fire Dispatch Protocol Vendor" or "Protocol Vendor" means the vendor contracted by the Bureau to provide the approved Emergency Fire Dispatch Priority Reference System.

L. Fire Authority Having Jurisdiction. "Fire Authority Having Jurisdiction" means the entity with Emergency Fire Dispatch process oversight, responsibility and accountability for the fire service operational aspects of an EFDA including: responsibility for the decision making process and instructions rendered by an EFD and the EFDA; approval of the operational EFDPRS; direct participation in the Emergency Fire Dispatch system evaluation, and continuous quality improvement processes. This entity could be, but is not limited to Fire Department(s), Fire Service Chief Officer(s), or Fire Service Board(s).

M. Post-Dispatch Instructions. "Post-Dispatch Instructions" means case-specific advice, warnings, and instructions given by trained EFDs whenever possible and appropriate after dispatching field responders.

N. Pre-Arrival Instructions. "Pre-Arrival Instructions" means telephone rendered, scripted instructions provided by a trained EFD to callers that help to provide aid to the victim and control the situation prior to arrival of fire personnel.

O. Public Safety Answering Point (PSAP). "Public Safety Answering Point" has the same meaning as set forth in 25 M.R.S. §2921.

P. Quality Assurance and Quality Improvement Program (QA/QI). "Quality Assurance and Quality Improvement Program" means a program approved by the Bureau and administered by an EFDA for the purpose of insuring safe, efficient, and effective performance of EFDs in connection with the use of the EFDPRS.

§ 3. Bureau Authority and Responsibility

The Bureau shall approve and provide the EFDPRS; establish minimum training requirements for EFD certification and recertification; provide for the certification and recertification of EFDs; provide for the enrollment of each candidate for EFD certification or recertification in training courses or examinations for certification and recertification; ensure the provision of a certificate to EFDs setting forth that the EFD has fulfilled the requirements of EFDPRS training; and provide for oversight of all EFDAs.

§ 4. EFDA Responsibility

Each PSAP and EFDA shall provide Emergency Fire Dispatch service in accordance with the EFDPRS, and shall ensure that the EFDPRS, including its questions, instructions, codes and protocols is implemented without modification; the EFDPRS is used for every request for fire and rescue assistance by certified EFDs; administering a QA/QI program consistent with this rule; and that certificates, training records, and CDE records of each EFD employed by the EFDA are maintained and made available for inspection by the Bureau.

§ 5. EFD Eligibility and Certification

To qualify for certification by the protocol vendor as an EFD, an individual must: be at least 18 years old; possess a high school diploma or equivalent; be employed by an EFDA; and successfully complete an approved EFD training course.

To qualify for recertification as an EFD, the EFD must submit an application for recertification before the expiration of the certification to the protocol vendor and demonstrate that the EFD has completed Continuing Dispatch Education sufficient to meet the vendor’s requirement for recertification.

Initial certification and timely recertification will be provided at the Bureau's expense only if the EFD is an employee of a PSAP. If failure to certify necessitates reexamination or other retraining, any associated expenses will be the responsibility of the EFDA.

In the case of a lapse in certification of less than six months, recertification fees will be paid by the EFDA. If failure to certify necessitates reexamination or other retraining, any associated expenses will be the responsibility of the EFDA

In the case of a lapse in certification of greater than six months, any certification, reexamination, or retraining fees will be paid by the EFD.

The Bureau will recognize an EFD with a valid certification from an approved EFDPRS if the EFD provides the Bureau with an Emergency Fire Dispatch training completion certificate obtained within the last two years, and verification that the training course meets the requirement of this chapter.

§ 6. Continuing Dispatch Education (CDE)

All Continuing Dispatch Education courses completed by EFDs for the purposes of recertification must meet the CDE requirements of the protocol vendor.

§ 7. EFD DIRECTORS

Each EFDA must designate an Emergency Fire Dispatch Director who must ensure that:

Each EFD is properly certified by the protocol vendor;

EFD training and CDE is conducted as required by this chapter;

A QA/QI program is conducted as required by this chapter;

An EFD-in-training who has not received certification only processes calls using the Emergency Fire Dispatch protocol after the EFD-in-training has attended an approved certification course, and only under the direct supervision of a certified EFD. For purposes of this paragraph, direct supervision means that the designated certified EFD is contemporaneously listening to any call for fire assistance being processed by the EFD-in-training and is able to assume control of the call;

Their EFDA is using the most current version of the EFDPRS; and

An EFD interrogating a caller and coding an incident is the same EFD that gives Dispatch Life Support instructions.

§ 8. Quality Assurance and QUALITY Improvement Program (QA/QI)

A. Overview

Each EFDA shall establish a continuous quality assurance, improvement and management program. The Bureau will establish a single QA/QI Program to be used by EFDAs and EFDs. Any person engaged in a QA/QI review of EFDs must be properly certified by the protocol vendor as an EFD case reviewer.

B. Responsibilities

EFDAs must:

Participate in a Bureau approved QA/QI program;

Conduct the QA/QI program as required by Maine law and this chapter; and

Designate a QA/QI Manager to oversee the EFDA's QA/QI program.

C. Levels

Each QA/QI program must comprise the following levels:

Field level—Direct Observation.

Administrative level—Case review, identification of positive and negative trends.

Management level—High-level coordination of fire oversight.

D. Scope

The goal of QA/QI is to ensure effective and efficient Emergency Fire Dispatch. Each EFD employed by an EFDA must be regularly and routinely evaluated to ensure compliance with Emergency Fire Dispatch protocol and operating policies and procedures. Evaluation, using the selected protocol vendor's standards and evaluation instruments, must be qualitative and quantitative and must include retrospective review of non-edited logged recordings of Emergency Fire Dispatch calls and any associated documentation. Cases chosen for evaluation must be randomly selected and equitably representative of each EFD's work.

1. Tracking

The following variables must be tracked for each EFD:

Address/location, phone number;

Chief complaint/incident type selection;

Systemized interrogation questions;

Post-Dispatch Instructions;

Pre-Arrival Instructions;

Dispatch code selection;

Overall or aggregate performance score; and

Customer Service score.

2. Data Maintenance

Data must be maintained electronically at each EFDA and must include:

Individual compliance;

Shift compliance; and

Service compliance.

3. Reporting

EFDA's must report compliance results monthly to the Bureau in the format requested by the Bureau by the 15th day of the month for the previous month.

4. Challenging Callers and Text Messaging

Challenging callers ( e.g. , hysterical, speech or hearing impaired, developmentally disabled, non-English speakers, etc.) and persons requesting Emergency Fire Dispatch via text message are not exceptions to the Emergency Fire Dispatch requirements. Challenging callers must receive the same systematized and comprehensive approach to Emergency Fire Dispatch as any other caller.

5. Case Review

Random Case Review

EFDAs will conduct random case reviews of a minimum number of Emergency Fire Dispatch cases according to the following table:

Yearly Number of 9-1-1 Calls

Estimated Yearly

Fire Calls

Monthly Call Review as Second Discipline

0 to 10,000

0 to 1,000

30

10,001 to 50,000

1,001 to 5,000

61

50,001 to 150,000

5,001 to 15,000

65

The number of case reviews in the above table assumes that each EFDA is also providing Emergency Medical Dispatch Protocols and assumes fire calls account for 10% of the total number of 9-1-1 calls.

Focused Case Review

Every EFDA must have a Focused Call Review Plan. The structure of the Focused Call Review Plan should clearly indicate how calls will be selected for a given month. Focus reviews should address data that cannot be captured during random case review such as, but not limited to:

Case review of infrequently used protocols.

Case review of EFDs not selected by random case review.

Specific investigations that arise in the field

High risk calls that should be screened for compliance.

6. Follow-up on QA findings

EFDAs must mitigate all noted deviations to protocol;

EFDAs must emphasize retraining and behavior modification in their QA/QI programs; and

EFDAs must provide regular feedback to EFDs.

§ 9. Training Programs and Instructor Requirements

A. Program Requirements

The Bureau shall approve all certification training for Emergency Fire Dispatch programs.

B. Training Requirements

All instructors for Emergency Fire Dispatch training courses must be properly certified by the protocol vendor and training course administration requirements must be consistently met, including reports to the Bureau of the following upon request:

Student attendance and performance records;

Identity and qualifications of the instructor(s);

Student Evaluation of the instructor(s); and

Student Evaluation of course content.

§ 10. Discipline

The Bureau may investigate any alleged violations of this chapter and may take appropriate action, including action pursuant to the Commission's authority in Chapter 15 of Title 35-A of the Maine Revised Statutes .

§ 11. IMPLEMENTATION

Each PSAP shall designate an individual to be the point of contact with the protocol vendor in establishing phases of implementation and site visits.

Each PSAP must complete implementation of Emergency Fire Dispatch services by May 31, 2018.

§ 12. WAIVER

Upon the request of any person subject to the provisions of this chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this chapter or any statute. The Commission, the Hearing Examiner assigned to a proceeding regarding this chapter, or the Director of the Bureau may grant the waiver.

History

• STATUTORY AUTHORITY: 25 M.R.S. §2927(3-C)(A)
• EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on August 26, 2016. It was filed with the Secretary of State on August 29, 2016, and became effective on September 3, 2016 (filing 2016-146).
• AMENDED: This rule was approved as to form and legality by the Attorney General on March 23, 2020. It was filed with the Secretary of State on March 26, 2020 and became effective on March 31, 2020 (filing 2020-061).
• AMENDED: APAO WORD VERSION CONVERSION (IF NEEDED) AND ACCESSIBILITY CHECK: July 19, 2025

Chapter 6 Requirements for Public Safety Answering Point and Dispatch Center Annual Reports Regarding Costs to Provision Enhanced 9-1-1 Services

Code Me. R. 65-625 Ch. 6 Requirements for Public Safety Answering Point and Dispatch Center Annual Reports on the Costs to Provision Enhanced 911 Services {#sec-65-625-ch.-6 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 6}

SUMMARY: This chapter establishes requirements for Public Safety Answering Point and Dispatch Center annual reports on the costs to provision Enhanced 9-1-1 services.

§ 1 PURPOSE, APPLICABILITY AND ENFORCEMENT

Purpose

The purpose of this chapter is to establish requirements for annual reports to be submitted by Public Safety Answering Points (PSAPs) and Dispatch Centers on the costs to provision Enhanced 9-1-1 services.

Applicability

This chapter applies to all PSAPs and Dispatch Centers.

Enforcement

The Emergency Services Communication Bureau (Bureau) may investigate any alleged violations of this chapter and may take appropriate action, including action pursuant to the Commission's authority in Chapter 15 of Title 35-A of the Maine Revised Statutes .

§ 2 DEFINITIONS

Bureau. "Bureau" has the same meaning as set forth in 25 M.R.S. §2921.

Commission. "Commission" means the Maine Public Utilities Commission.

Direct costs. “Direct costs” are those costs that can be easily identified with a high degree of accuracy and assigned to the cost of operating the PSAP or Dispatch Center. These costs include, but are not limited to, personnel (e.g., salaries and overtime, benefits, training); buildings and grounds insurance (e.g., for equipment replacement, buildings, liability, rental space); communications (e.g., the administrative phone system); operations (e.g., computer aided dispatch (CAD) system, mapping/geographic information system (GIS)); and capital expenditures (e.g., hardware, software, CAD system, mapping, and repairs).

Dispatch Center. "Dispatch Center" has the same meaning as set forth in 25 M.R.S. §2921.

Center. “Emergency Communications Center” has the same meaning as set forth in 25 M.R.S. §2921.

Enhanced 9-1-1 Services. “Enhanced 9-1-1 Services” has the same meaning as set forth in 25 M.R.S. §2921.

Public Safety Answering Point (PSAP). "Public Safety Answering Point" has the same meaning as set forth in 25 M.R.S. §2921.

§ 3. annual Reports

Each PSAP and Dispatch Center must submit to the Bureau annual reports regarding the costs to provision Enhanced 9-1-1 services in the reporting form format requested by the Bureau. The reporting form contains the cost component categories to be contained in the reports and allows for additional cost components to be added as needed. Reports must be filed with the Bureau by May 1, for the prior completed fiscal year.

§ 4. WAIVER

Upon the request of any person subject to the provisions of this Chapter, or upon its own motion, the Commission may, for good cause, waive any requirement of this Chapter that is not required by statute. The waiver may not be inconsistent with the purposes of this Chapter, Title 25 or Title 35-A. The Commission, the Presiding Officer assigned to a proceeding regarding this Chapter, or the Director of the Bureau may grant the waiver.

BASIS STATEMENT: The factual and policy basis for this Rule is set forth in the Commission’s Order Adopting Rule and Statement of Factual and Policy Basis, Docket No. 2024-00327, issued on April 23, 2025. Copies of this Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 18 State House Station, Augusta, Maine, 04333-0018.

History

• STATUTORY AUTHORITY: 35-A M.R.S. §§ 104, 111 and 25 M.R.S. §§ 2921 and 2923-C.
• EFFECTIVE DATE (NEW): This rule was approved as to form and legality by the Attorney General on April 25, 2025. It was filed with the Secretary of State on April 25, 2025, and became effective on April 30, 2025. (Filing 2025-100)

Chapter 11 PBX/Multiline Telephone System (MLTS) Requirements

Code Me. R. 65-625 Ch. 11 Pbx/Multiline Telephone System (mlts) Requirements {#sec-65-625-ch.-11 omnilex-key=us-me-regs-official--dept-public-utilities-commission--65-625 Ch. 11}

SUMMARY: The Rule establishes the requirements to allow timely emergency response in facilities with multiline telephone systems.

Section 1. Applicability

The provisions of this Chapter shall apply to multiline telephone systems introduced or installed on or after the effective date of this Chapter, and to multiline telephone systems which are substantially upgraded on or after the effective date of this Chapter.

Section 2. Definitions

“Alternative Methods of Notification” means a method of locating an emergency caller and initiating an emergency response for users of Multiline Telephone Service other than the use of Automatic Location Identification and Automatic Number Identification standards used in processing enhanced 9-1-1 calls.

“Alternative Methods to Support Enhanced 9-1-1” means any method used by a MLTS Operator to give emergency response teams a reasonable opportunity to quickly locate a caller as an alternative to the MLTS signaling needed to produce the automatic display of caller location information on the video terminal of the call-taker.

“Automatic Location Identification (ALI)” means the automatic display at the PSAP of the caller’s telephone number, the address/location of the telephone, and supplementary emergency services information.

“Automatic Number Identification (ANI)” means the automatic display at the PSAP of the telephone number associated with the access line from which a 9-1-1 call originates.

“Building Unit Identifier (BUI)” means a room number or equivalent designation of a portion of a structure and/or building that uses a multiline telephone system.

“Centrex” means a business telephone service offered by some Local Exchange Carriers that provides PBX type features over access lines.

“Emergency Location Identification Number (ELIN)” means a valid North American Numbering Plan format telephone number (assigned to the MLTS Operator by the appropriate authority), which is used to route the call to a PSAP and used to retrieve the ALI for the PSAP. The ELIN may be the same number as the ANI. In some cases, the number my not be a dialable number.

“Emergency Response Location (ERL)” means a location to which a 9-1-1 emergency response team may be dispatched. The location should be specific enough to provide a reasonable opportunity for the emergency response team to quickly locate a caller anywhere within it.

“Emergency Services Communication Bureau (the Bureau)” means the Emergency Services Communication Bureau created pursuant to 25 M.R.S.A. §2934.

“9-1-1 Service Provider” means an entity providing one or more of the following 9-1-1 elements: Network, Customer Premise Equipment, or database service.

“Master Street Address Guide (MSAG)” means a database of street names and house number ranges within their associated communities defining emergency service zones (ESZs) and their associated emergency service numbers (ESNs) to enable proper routing of 9-1-1 calls.

“Multiline Telephone System (MLTS)” means a system comprised of common control unit(s), telephone sets, and control hardware and software. This includes, but is not limited to, network and premises based systems (e.g., Centrex and PBX, Hybrid, and Key Telephone Systems) that are owned or leased by municipal or government entities, non-profit entities, and for-profit businesses.

“MLTS operator” means the entity that either owns, or leases/rents from a third party, and operates a MLTS through which a caller/person may place a 9-1-1 call through the public switched network.

“Private Emergency Answering Point (PEAP)” means an answering point operated by non-public safety entities with alternative and adequate means of signaling and directing a response to emergencies.

“Private Branch Exchange (PBX)” means a private telephone switch that is connected to the Public Switched Telephone Network.

“Public Switched Telephone Network (PSTN)” means the network of equipment, lines, and controls assembled to establish communication paths between calling and called parties in North America.

“Public Safety Answering Point (PSAP)” means a facility equipped and staffed to receive 9-1-1 calls.

“Residence or residence facility” means multi-family facilities including apartments, townhouses, condominiums, dormitories, hotels, motels, resorts, extended care facilities, or similar entities, facilities, or structures.

“Shared Residential MLTS Service” means the use of a MLTS to provide service to residential facilities even if the service is not so delineated for purposes of billing.

“Substantially Upgraded” means having increased the capacity of a multiline telephone system by more than 75% of its previous capacity.

Section 3. Shared Residential Multiline Telephone System Service.

Operators of Shared MLTS service with residential customers are required to ensure that the telecommunications system is connected to the Public Switched Telephone Network in a manner that calls to 9-1-1 result in one distinct ANI and one distinct ALI for each living unit, unless the facility at all times maintains Alternative Methods of Notification that have been approved by the Bureau.

Section 4. Business Multiline Telephone System

Any entity that is responsible for operation of a private business switch service shall ensure that such a system is connected to the Public Switched Telephone Network in a manner such that dialing “9-1-1” will result in the display of the ANI and ALI at the appropriate PSAP.

The ANI shall meet at least the following minimum standards:

For buildings having their own street address and containing workspace of 40,000 square feet or less, one ANI shall be transmitted to the appropriate jurisdictional PSAP.

For buildings having their own street address and containing workspace of more than 40,000 square feet, one ANI per 40,000 square feet of workspace shall be transmitted to the appropriate jurisdictional PSAP.

For buildings having their own street address with multiple floors occupied by one entity, one ANI per floor per 40,000 square feet of workspace shall be transmitted to the appropriate jurisdictional PSAP.

For private business switch operators/owners providing service in multi-floor buildings and sharing space with other non-related entities, a distinct ANI for each entity shall be transmitted to the appropriate jurisdictional PSAP per 40,000 square feet of workspace.

For private business switch operators/owners providing service in multi-building locations and sharing space with other non-related entities, a distinct ANI for each building and each entity shall be transmitted to the appropriate jurisdictional PSAP per 40,000 square feet of workspace per building.

The ALI shall follow the database format currently being used in the State of Maine ALI database that is owned and maintained by the ESCB. ALI requirements are based on the following criteria when a 9-1-1 call is placed:

For buildings having their own street address and containing workspace of 40,000 square feet or less, one ALI shall be transmitted to the PSAP and shall include the building's street address.

For buildings having their own street address and containing workspace of more than 40,000 square feet, the ALI shall include the building's street address along with one Emergency Response Location (ERL) per 40,000 square feet of workspace. The ALI and ERL shall be transmitted to the appropriate jurisdictional PSAP. The ERL shall, as accurately as possible, specify the location from which the 9-1-1 call was placed. The ERL must be able to identify the entire 40,000 square feet of workspace. Multiple ERLs shall be used to the extent necessary to identify the 40,000 square feet of workspace.

For private business switch operators/providers providing service in multi-floor buildings and sharing space with other non-related entities, an ERL for each entity and floor shall be transmitted to the appropriate jurisdictional PSAP per 40,000 square feet of workspace. Multiple ERLs shall be used to the extent necessary to identify the 40,000 square feet of workspace.

For private business switch operators/providers providing service in multi-building locations and sharing space with other non-related entities, an ERL for each entity and building shall be transmitted to the appropriate jurisdictional PSAP per 40,000 square feet of workspace. Multiple ERLs shall be used to the extent necessary to identify each 40,000 square feet of workspace.

For private business switch operators/providers providing service in separate buildings containing workspace of 40,000 square feet or less and having a common public street address, an ERL for each building shall be transmitted to the appropriate jurisdictional PSAP, in addition to the street address. Multiple ERLs shall be used to the extent necessary to identify each 40,000 square feet of workspace.

Section 5. Hotel/Motel Multiline Telephone System

A hotel and motel MLTS shall permit the dialing of 9-1-1 in emergencies. The MLTS Operator shall ensure that the MLTS is connected to the Public Switched Telephone Network using one of the following methods:

All 9-1-1 calls originating from the hotel or motel MLTS shall provide the jurisdictional PSAP with the ability to clearly identify the address and Building Unit Identifier of the 9-1-1 caller through the delivery of an ANI and/or ELIN, which results in the subsequent retrieval of the ALI for each telephone set within the facility; or

The MLTS shall provide an automated means that will connect the caller, PSAP, and knowledgeable designated individual(s) at the facility when 9-1-1 is dialed. For option (b), the designated individual(s) may supplement or replace the ALI record with specific location information, by effectively communicating to the PSAP the specific location of the caller; or

The hotel or motel operating the MLTS shall adopt and use Alternative Methods of Notification that have been approved by the Bureau, as provided in Section 10 of this Chapter.

Section 6. ALI Database Maintenance

Unless a waiver has been granted under Section 14, MLTS Operators shall arrange to update the ALI Database with the appropriate Master Street Address Guide (MSAG) valid address and callback information for each MLTS telephone, so that the location information specifies the ERL of the caller. These updates shall be made as soon as practicable for new MLTS installation, or within one business day of record completion of the actual changes for previously installed systems.

Section 7. Industry Standards

MLTS Operators shall use accepted and current industry standards, as approved by the Bureau, for interconnection into the State of Maine 9-1-1 system. Telecommunication carriers are responsible for providing interconnectivity using generally accepted industry standards.

Section 8. Dialing Instructions

Notwithstanding any exemptions or exceptions granted pursuant to this Chapter, the MLTS Operator shall make every reasonable effort to ensure that potential 9-1-1 callers are aware of the proper procedures for requesting emergency assistance. The MLTS Operator shall provide each potential 9-1-1 caller with written information that clearly and accurately describes the proper method of accessing emergency telephone service, or 9-1-1, in an emergency.

Such written information shall be provided to each caller by placing stickers or cards containing the appropriate method to access 9-1-1 on or next to each MLTS telephone. Such written information shall be provided to each individual caller annually and at the time of hire in the case of an employer, at the time of registration in the case of a school, and at the time of occupancy in the case of a residence facility, hotel, or motel.

At a minimum, such written information shall include the following words: In an emergency, dial _____ [insert proper dialing sequence].

If calls to access 9-1-1 from an MLTS do not give one distinctive ANI or one distinctive ALI, or both, for each end user, the MLTS operator shall provide written instructions to direct each caller to stay on the telephone and tell the 9-1-1 call-taker his or her telephone number and exact location.

Such written information shall be provided to each individual caller annually and at the time of hire in the case of an employer, at the time of registration in the case of a school, and at the time of occupancy in the case of a residence facility, hotel, or motel. Whenever possible, such information also shall be placed on cards or stickers on or next to the MLTS telephone.

At a minimum, such written information shall include the following words: “When calling 9-1-1 from this telephone, you must tell the 9-1-1 operator your phone number and exact location. This telephone does not automatically give the 9-1-1 operator your phone number and exact location. This information is critical to a quick response by emergency medical, fire, or law enforcement responders.”

If an MLTS operator provides telephones that may be used by the public, the MLTS operator shall place a sticker or card on or next to that telephone that identifies the method for dialing 9-1-1 from that telephone.

The disclosure requirements of this Chapter shall not apply to MLTS provided to inmates in penal institutions, jails, or correctional facilities, to residents of mental health facilities, including substance abuse and mental health treatment facilities, or other such facilities where access to 9-1-1 is not required.

Section 9. MLTS Signaling

All multiline telephone systems shall support E 9-1-1 calling by using any generally accepted industry standard signaling protocol that is designed to produce an automatic display of caller information and location at the PSAP.

Section 10. Alternative Methods of Notification, Communication, and Emergency Response

Operators of buildings containing workspace of more than 40,000 square feet may seek Bureau approval of alternative methods of notification, communication, and response to emergencies. The alternative method shall include, at a minimum, the following:

1. A telephone system that provides the physical location of 9-1-1 calls coming from the building;

Staff available to meet the public safety agency responding to the 9-1-1 call at the designated address. Such staff must be able to direct the public safety agency to the site of the emergency;

A telephone system that does not intercept calls and instead directly routes calls to the appropriate jurisdictional PSAP; and

A telephone system that provides the appropriate building street address from where the call originated, directed to the appropriate jurisdictional PSAP.

Any business seeking to qualify under this section shall provide notice to the Bureau that it is seeking to qualify under this section, and shall notify the PSAP with jurisdiction over the physical location of the building. The Bureau may investigate any building or business for which approval has been granted or is being sought under this section, and may revoke or impose conditions or any such approval if the Bureau determines, after notice and hearing, that such revocation or imposition of conditions is reasonably necessary to protect public safety.

Health care facilities are exempt from paragraphs 1-3 above if such facilities are staffed with medical or nursing personnel 24 hours per day and an alternative means of providing information about the source of an emergency call exists. Facilities operating under this exemption shall provide access to 9-1-1 service that provides the building address.

Section 11. Application for Private Emergency Answering Point

Buildings containing workspace of more than 40,000 square feet, sites that contain multiple buildings that share the same address, or businesses, entities or institutions that occupy multiple buildings in close proximity with different addresses may maintain a Private Emergency Answering Point (PEAP).

Such businesses, entities, or institutions shall seek authorization as a PEAP under the provisions of this section and Section 12 of this Chapter. Authorization by the Bureau is necessary prior to a business answering and dispatching its own internal emergency calls. Entities that qualify under this section must be either multi-floor buildings or multi-building locations and provide their own medical, fire, and law enforcement either internally or by contract.

Any business, entity, or institution that seeks to operate a PEAP within its own facility shall follow the procedures established herein to petition the Bureau for authorization.

Each business, entity, or institution shall submit a Proposed Plan to the Bureau for review, prior to filing its final plan. The Bureau shall review the Proposed Plan and provide written comments to the applicant.

Proposed and final plans shall consist of a narrative that provides an explanation of the proposed system's operation and shall include, but not be limited to, the following exhibits:

Exhibit 1: A description of the facility's medical, fire, and law enforcement departments. The description shall include emergency responders' responsibilities, and how they are capable of responding to an incident internally in a manner equivalent to an outside agency. In addition, this exhibit shall indicate how each emergency responder will be dispatched within the facility.

Exhibit 2: Call handling agreements with the internal emergency responders, including, but not limited to, the internal medical, fire, and law enforcement services. These agreements shall include a commitment from the parties that appropriate action shall be taken in response to emergency calls and subsequent dispatches and that top priority shall be given to such emergency calls by the parties.

Exhibit 3: Call handling agreements with the existing jurisdictional PSAP for additional back-up medical, fire, and law enforcement assistance.

Exhibit 4: Agreements and provisions providing for back-up PSAP services.

Exhibit 5: Standard Operating Procedures. Such procedures shall specify how calls will be dispatched to emergency responders within its facility. In addition, such procedures shall specify how additional public safety agencies or other emergency response services outside of the business will be dispatched in the event that additional emergency assistance is needed.

Exhibit 6: Disaster Procedures.

Exhibit 7: Network Diagram—a chart showing the trunking configuration from the applicant's switch to the jurisdictional PSAP.

Exhibit 8: Facility Floor Plan.

After review by the Bureau, the business, entity, or institution shall submit a Final Plan to the Bureau. Such Plan shall be effective upon signature by the Bureau Director.

Section 12. Private Emergency Answering Point

Any entity or business that has been authorized by the Bureau to operate a PEAP and to handle its own internal emergency calls must meet the following minimum standards:

the PEAP shall use the digits “9-1-1” as its primary emergency telephone number;

the PEAP shall be operational 24 hours a day, 7 days a week, except in cases where the entity is closed or shut down and no employees are or could be present in any part of the facility;

the PEAP shall have a written agreement with the existing jurisdictional PSAP to be the remote back-up/overflow answering point. Such agreement shall contain or provide procedures for routing calls to the jurisdictional PSAP;

the phone switch shall be configured to automatically transfer calls to the jurisdictional PSAP if a call to the primary answering point goes unanswered or if the primary answering point has to be evacuated;

the PEAP shall have ring down or transfer capability to the jurisdictional PSAP via the 9-1-1 network to transfer 9-1-1 calls appropriately;

personnel answering the emergency phone shall be trained on how to respond to emergency callers and how to summon appropriate inside and outside assistance in an emergency. All such personnel shall attend state-provided dispatcher training, if available. Each PEAP shall be responsible for the costs of such training;

the PEAP shall meet minimum PSAP requirements as established by the Bureau; and

emergency calls shall be identified by the telecommunications equipment in such a manner that the operator can give priority to the call. Where possible, the telephone switching system shall provide top priority to all emergency calls if a blocking condition occurs in the phone system.

The Bureau shall have the authority to inspect and audit the PEAP to verify compliance. Should the Bureau find an entity in non-compliance and the entity is unable to correct the issue to remain compliant, the Bureau may remove PEAP authority from the entity.

Each PEAP shall develop and use written Standard Operating Procedures and Disaster Procedures for its emergency operations and for the use by its personnel who will be handling emergency calls.

Each PEAP shall enter into call handling agreements with its internal emergency responders for medical, fire, or law enforcement services. Such agreements shall specify the method of dispatch that will be used in contacting these responders.

Each PEAP shall enter into call handling agreements with the jurisdictional PSAP for medical, fire, or law enforcement services in the event that additional assistance is needed beyond what the PEAP itself can provide, or in the event the PEAP becomes inoperable.

Each PEAP shall provide an annual report to the Bureau on January 1 of each year, to be submitted in electronic format. The annual report shall provide the following information:

The business' name and street address.

The name and telephone number of a contact person.

The recertification of all agreements, including but not limited to, agreements with the jurisdictional PSAP.

Current Standard Operating Procedures.

Current Disaster Procedures.

Modification to an approved application or system shall be submitted to the Bureau in writing no later than 10 days before the change is to take place.

Section 13. Exemptions

A MLTS with a single ERL and fewer than 49 stations is exempt from the signaling and database maintenance regulations. Requirements for MLTS and cordless MLTS Operators to provide dialing instructions shall still apply.

MLTS Operators that employ alternative methods of Enhanced 9-1-1 support are exempt from the signaling and database maintenance requirements.

Section 14. Application for Local Units of Government

In accordance with 25 M.R.S.A. §2934(1)(A), a local unit of government is not required to comply with any provision of this Chapter if compliance would require the local unit of government to expand or modify its activities so as to necessitate additional expenditures from local revenues.

Section15. Waivers

Only the Bureau is authorized to grant waivers from, or enforce compliance with, this Chapter.

Nothing in this section is intended to relieve employers or MLTS operators of their obligations under federal and state workplace Occupational Safety and Health Act (OSHA) statutes and under the Americans with Disabilities Act (ADA) and any associated rules.

BASIS STATEMENT: The factual and policy basis for this rule is set forth in the Commission's Order Adopting Final Rule, Docket No. 2005-86, issued on 06/21/05; Order Provisionally Adopting Rule, Docket No. 2005-86, issued on April 25, 2005; Copies of the Statement and Order have been filed with this rule at the Office of the Secretary of State. Copies may also be obtained from the Administrative Director, Public Utilities Commission, 242 State Street, 18 State House Station, Augusta, Maine 04333-0018.

AUTHORITY: 25 M.R.S.A. § 2934

EFFECTIVE DATE: This rule was approved as to form and legality by the Attorney General on June 24, 2005. It was filed with the Secretary of State (filing 2005-253) on June 27, 2005 and will be effective on July 27, 2005.

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