Whereas, state action taken previously to mitigate volatile energy costs will expire on March 1, 2002; and

Whereas, the volatility of regional electric energy markets that necessitated previous state action continues to exist and is anticipated to continue through the next year, threatening Maine's economy; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 35-A MRSA §3204, sub-§11 is enacted to read:

11.__Asset sale gain account.__Each month, beginning March 1, 2002 and continuing until February 28, 2003, Central Maine Power Company and Bangor Hydro-Electric Company shall credit the amount of 1__per kilowatt hour to the monthly bills for Central Maine Power Company's medium and large customers and Bangor Hydro- Electric Company's large customers, respectively.__The asset sale gain account, the repository of divestiture gain, must be used as the source of funds for the credit.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill provides a new divestiture provision that will use funds from the asset sale gain account to provide relief from high energy prices to medium and large electricity consumers.