Sec. 1. 35-A MRSA §3205, sub-§2, as enacted by PL 1997, c. 316, §3, is amended to read:

2. Marketing permitted. On Except as provided in subsection 2-A, on and after the beginning of retail access, a large investor-owned transmission and distribution utility may not sell electric energy or capacity to any retail consumer of electricity. Pursuant to the requirements of this section, on and after the beginning of retail access, an affiliated competitive provider may sell electric energy or capacity to retail consumers of electricity:

A. Outside the service territory of the distribution utility with which it is affiliated; and

B. Within the service territory of the distribution utility with which it is affiliated, except that:

(1) The affiliated competitive provider may not sell or contract to sell more than 33% of the total kilowatt hours sold within the service territory of the distribution utility, as determined by the commission by rule; and

(2) In accordance with section 3212, the affiliated competitive provider may not at any one time provide or bid to provide standard-offer service for more than 20% of electric load within the territory of the transmission and distribution utility with which it is affiliated.

No later than January 1, 2005, based on its evaluation of the development of the competitive retail electric sales market, the commission shall complete an evaluation of the need for the market share limitation imposed under paragraph B, subparagraph (1) and shall report its findings together with any recommendations to the joint standing committee of the legislature Legislature having jurisdiction over utility matters.

Sec. 2. 35-A MRSA §3205, sub-§2-A is enacted to read:

2-A.__Contractual obligations of electric utilities after restructuring.__This chapter does not excuse a distribution utility from performing obligations to provide energy or capacity to retail consumers under contracts entered into on or before February 29, 2000 and these contracts remain in full force and effect according to the terms of the contracts.__To the extent necessary to perform its obligations under these contracts, a distribution