Sec. 1. 35-A MRSA §3152, sub-§1, ¶¶A and C, as amended by PL 1999, c. 398, Pt. A, §57 and affected by §§104 and 105, are further amended to read:

A. Require the commission to relate transmission and distribution rates more closely to the costs of providing transmission and distribution service; and

C. Require the commission to consider the ability of low- income residential customers to pay in full for electric services as transmission and distribution rates are redesigned consistent with these policies.; and

Sec. 2. 35-A MRSA §3152, sub-§1, ¶D is enacted to read:

D.__Require the commission to use energy efficiency criteria in setting transmission and distribution utility rates.

Sec. 3. 35-A MRSA §3157 is enacted to read:

§3157.__Energy efficiency criteria

1. Criteria.__In addition to the other requirements of this subchapter, the commission, in determining transmission and distribution utility rates or in establishing any rate- adjustment mechanism pursuant to section 3195, shall examine and adopt rate mechanisms or designs that:

A.__Encourage efficiency in electricity use;

B.__Provide incentives for the development of new, energy- efficient business activity in the State; and

C. Take into account the costs and benefits of energy efficiency and conservation to existing business activity in the State.

2. Report.__The commission shall undertake an investigation to identify rate designs, mechanisms or other means that provide incentives for transmission and distribution utilities to promote energy efficiency and that promote the security and robustness of the electric grid by appropriately compensating transmission and distribution utilities for constructing and maintaining infrastructure with excess or redundant capacity.__ In conducting its investigation, in addition to any other issues the commission determines appropriate, the commission shall consider: