Maine House Bill LD1358

Maine 2025-2026 Regular Session

• Introduced: 3/28/25
• Refer: 3/28/25
• Failed: 5/29/25

Caption

An Act to Reduce Electricity Rates by Removing Limitations on the Ownership of Generation by an Affiliate of an Investor-owned Transmission and Distribution Utility

Summary

LD 1358 would change Maine’s electric utility law to allow an affiliate of an investor-owned transmission and distribution utility to own generation or generation-related assets even when those assets are directly interconnected to the utility’s facilities, so long as the arrangement complies with standards of conduct adopted by the Public Utilities Commission. Under current law, affiliate-owned generation is allowed only if it is not directly interconnected to the utility’s facilities. The bill also removes the existing prohibition on certain affiliate generation or generation-related assets participating in long-term contracts under Title 35-A. The bill directs the Public Utilities Commission to establish rules governing these affiliate relationships, including requirements that the utility not favor its affiliate or disadvantage competitors, that the affiliate relationship remain separate and independent, and that ratepayers be protected. It would therefore alter the regulatory framework for utility-affiliate ownership and contracting, potentially expanding the role of vertically related corporate entities in Maine’s electricity market.

Impact

If enacted, the bill would amend Title 35-A to loosen restrictions on affiliate ownership of generation by investor-owned transmission and distribution utilities and to eliminate a statutory bar on certain affiliate generation assets entering long-term contracts. The practical effect would be to give the Public Utilities Commission broader rulemaking authority over these arrangements while changing the legal limits that currently separate utility wires businesses from affiliated generation interests. The bill could affect utilities, their corporate affiliates, competing generators, and electricity customers through changes in market participation and rate regulation.

Sentiment

The bill appears to have faced significant opposition in the Legislature. In the recorded vote, the motion was an “Ought Not To Pass” report and it passed by a vote of 81 to 65, indicating a majority of members supported rejecting the bill. The bill title and sponsor lineup suggest it was promoted as a way to reduce electricity rates, but the vote outcome indicates that many legislators were not persuaded that loosening affiliate restrictions would achieve that goal or protect consumers adequately.

Contention

The main point of contention is whether allowing utility affiliates to own directly interconnected generation and participate in long-term contracts would lower electricity rates or instead create conflicts of interest and weaken competition. Supporters likely view the bill as a way to expand supply options and potentially reduce costs, while opponents appear concerned about favoritism, market concentration, and the risk that ratepayers could be harmed if utility-affiliate relationships are not tightly constrained. The bill’s reliance on PUC standards of conduct suggests that the adequacy of regulatory safeguards was also a central issue.