3.__Municipal approval.__An election under subsection 1 takes effect when the municipal officers of a municipality within the consumer-owner water utility's service area vote to approve the utility's election.__For utilities serving more than one municipality, the approval of municipalities representing a majority of the population within the utility's service area is required.__Prior to requesting a vote by any municipality under this subsection, the utility shall provide to the clerk of the municipality or municipalities a copy of the utility's certified vote pursuant to subsection 1.

4.__Effective date.__An election takes effect 30 days after the commission receives the certified vote of any municipality required to approve the election under subsection 3.__The utility shall record the election in its bylaws once the election takes effect.

§6204.__Scope

1.__Chapter governs affairs.__Notwithstanding any other provision of this Title, this chapter governs the affairs of locally governed water districts.__Locally governed water districts are not subject to the provisions of this Title outside this chapter, except as specifically provided in subsection 2.

2.__Regulation of districts.__To the extent applicable to water utilities, the following laws apply to locally governed water districts:

A.__Section 706, subsections 3, 4, 5 and 6;

B.__Section 761, subsection 3;

C.__Section 2102;

D.__Section 2110, but only to the extent the governing body of a locally governed water district consents to the extension of service under section 2110;

E.__Sections 2303, 2307, 2308 and 2309;

F.__Chapter 25;

G.__Section 6103;

H.__Section 6110;

I.__Section 6111;

J.__Chapter 64, but only to the extent the locally governed water district is chartered as a standard district;

K.__Section 6705; and

L.__Section 6706.

The application of these laws is not intended to permit the commission to issue any order or condition regulating locally governed water districts except as specifically permitted under this subsection or in this chapter.

3.__Scope or application.__This section may not be interpreted to affect the scope or application of any provision of law outside this Title.__Although this chapter provides for a reduced level of regulation by the commission of locally governed water districts, the districts remain water utilities for purposes of the applicable provisions of this Title listed in subsection 2 and for all laws outside of this Title.__Any reference outside this Title to entities that include water utilities, including, but not limited to, references to public utilities, water districts and public service corporations, includes locally governed water districts.__Once a proposed rate becomes final, a copy of the rate must remain on file at the main office of the district for public inspection.

§6205.__Establishment of rates

1.__Authority.__The governing body of a locally governed water district shall establish rates, tolls, deposits, customer contributions or charges in accordance with this section.

2.__Purposes.__The governing body of a locally governed water district may establish rates or charges to provide revenue to the district in order to carry out any lawful purpose of the locally governed water district, including, but not limited to, the following purposes:

A.__To pay the current expenses for operating and maintaining the water system and to provide for normal renewals and replacements;

B.__To provide for the payment of the interest on the indebtedness created or assumed by the district;

C.__To create a sinking fund for the extinguishment of term indebtedness;

D.__To provide annual principal payments on serial indebtedness created or assumed by the district;

E.__To provide for a contingency reserve fund to pay losses of the district in the event of insufficient revenues;

F.__To provide for a water supply protection fund to acquire interests in land in order to protect the district's sources of supply;

G.__To provide for system development related to an increase in demand for service; and

H.__To provide for capital improvements and expansions to the system.

3.__Process.__Prior to the adoption of a new rate schedule, the governing body of a locally governed water district shall hold a public hearing regarding the proposed rate schedule.__The governing body shall publish the proposed rates and notice of the hearing in a newspaper having a general circulation in the district not less than 7 days prior to the hearing.__The district shall mail to each ratepayer a notice of the public hearing and the proposed new rate at least 14 days prior to the hearing.

4.__Just and reasonable rates.__The governing body of a locally governed water district shall establish rates that are just and reasonable and that do not give any undue or reasonable preference, advantage, prejudice or disadvantage to a particular person.__This subsection is not intended to limit the ability of a locally governed water district to charge different rates or enter into special contracts upon a determination by the governing body that such a practice is in the best interest of the district.

§6206.__Eminent domain

A locally governed water district is authorized to acquire and hold real and personal property necessary or convenient for its purposes and is granted the right of eminent domain.__For these purposes a locally governed water district is authorized to take and to hold, by exercising its right of eminent domain or by purchase or__lease or otherwise, any land, real estate or easements or interest in these for any source of water supply or location for storage and for the protection of such locations, as well as for the transmission and distribution of water to the public.__This section is not intended to limit any right of eminent domain contained in the charter of any locally governed water district.

§6207.__Annual audit

A locally governed water district shall conduct an annual audit of its books and records by an independent accountant.__ Within 3 months after the audit is completed, the district shall submit a copy of the audit to the commission.__For good cause shown, the commission may extend the deadline for submitting the audit.

§6208.__Service standards; appeal

1.__Final decision; action.__This section applies to any final decision or action of a locally governed water district with regard to the provision of water service by the district, including matters relating to denial or termination of service, terms and conditions of service and billing, metering and collection for service.

2.__Right of appeal.__A person aggrieved by a final decision or action covered by this section may appeal that decision or action to the governing body of the locally governed water district.__The governing body shall establish rules concerning the manner in which an appeal may be taken.__A decision on appeal constitutes the final decision of the governing body.

3.__Delegation of authority.__The governing body of a locally governed water district may elect to delegate its authority to make a final decision on appeal under subsection 2 to any person, board or entity that may lawfully review and decide the appeals, including an ombudsman or appeals board appointed by the governing body.

§6209.__Remedy

Except as otherwise provided in the charter of a locally governed water district, any person aggrieved by a final decision of the governing body of that district has a right of appeal to the Superior Court on questions of law in the same manner as an appeal taken to the Law Court from a judgment of the Superior Court in a civil action.__Appeal pursuant to this section is the exclusive remedy under this chapter.

§6210.__Relation to private and special laws

This chapter is not intended to limit or restrict the terms of a private and special law or a valid charter of a locally governed water district, except that a law or charter may not prohibit or interfere with the ability of a consumer-owned water utility to make an election under section 6203.

§6211.__District-initiated termination of local control

1.__Election of governing body.__Upon the affirmative vote of its governing body, a locally governed water district may elect to terminate its status as a locally governed water district and no longer be subject to this chapter.__The election must be certified by the secretary or clerk of the district.

2.__Municipal approval.__In order for an election under subsection 1 to become effective, the municipal officers of a municipality within the district must vote to approve the district's election.__For districts serving more than one municipality, the approval of municipalities representing a majority of the population within the district is required.__ Prior to requesting a vote by a municipality under this subsection, the district shall provide to the clerk of the municipality or municipalities a copy of the district's certified vote pursuant to subsection 1.

3.__Effective date.__An election under this section becomes effective 30 days after the commission receives the certified vote of a municipality required to approve the election under subsection 2.__The district shall record the election in its bylaws once the election becomes effective.

§6212.__Consumer-initiated termination of local control

1.__Consumer-initiated petition.__Fifteen percent of the customers of a locally governed water district or 1,000 customers, whichever is less, may file with the clerk of the utility petitions demanding that the district terminate its status as a locally governed water district and no longer remain subject to this chapter.__A signature is valid for purposes of this section only if it meets the requirements set forth in section 6104, subsection 9.

2.__Scheduling of district-wide referendum.__Upon receipt of petitions meeting the requirements of subsection 1, the governing body of the district shall within 30 days certify the petitions.__ Within 30 days following the certification, the clerk of the district shall deliver a copy of the certificate to the clerk of each municipality within the district along with a request of each municipality to conduct a referendum.__Upon receipt of the certification, the municipal officers of the municipalities shall call a referendum to take place at a time no less than 90 days following receipt of the certification, and further providing that the referendum must be held simultaneously with a statewide election.

3.__Manner of voting.__The district shall prepare and furnish to each municipality the required number of ballots for carrying out a referendum properly called under subsection 2, including absentee ballots.__The referendum must place before the voters the following question: "Do you favor having (name of district) terminate its status as a locally governed water district so that its business affairs may be fully regulated by Maine's Public Utilities Commission?"__Voting in the towns must be held and conducted in accordance with Title 21-A.

4.__Certification of referendum results.__Once the results of the referendum become final within each municipality, each municipal clerk shall certify and send to the governing body the total number of votes cast in the affirmative and negative within the municipality.__Once all of the results from all of the municipalities have been returned, the governing body shall meet and compute the total number of votes cast in all of the affected municipalities in the affirmative and the negative.__If the governing body determines that there were more votes cast in the affirmative than the negative, it shall declare that the referendum has passed, which result must be certified by the district and submitted to the commission within 30 days.__An affirmative vote becomes effective 60 days after submitted to the commission.__The district shall record an affirmative vote in its bylaws along with the date submitted to the commission.

5.__Suspension of petition process.__Prior to the holding of a referendum under this section, a petition process initiated under this section must be terminated at such time as any termination process initiated under section 6211 becomes effective.

SUMMARY

This bill permits consumer-owned water utilities to exercise local control by opting out of regulation by the Public Utilities Commission with respect to their rates, terms of service and business affairs.