Sec. 1. 35-A MRSA §3207, sub-§1, ķA, as enacted by PL 1997, c. 316, §3, is amended to read:

A. May sell retail generation service only within their respective service territories, and are authorized to purchase electric power and energy at wholesale and to purchase such transmission and related services as may be required to effect the delivery of such power and energy to their respective service territories; and

Sec. 2. 35-A MRSA §3212, sub-§6, as enacted by PL 1997, c. 639, §2, is amended to read:

6. Consumer-owned utilities. Notwithstanding any other provision of this section, the commission is not required to conduct a competitive bidding process or select a standard- offer service provider or providers for the territory of a consumer-owned transmission and distribution utility if the consumer-owned transmission and distribution utility chooses one or more standard-offer service providers for its territory through a competitive bidding process conducted in accordance with the commission's rules governing the selection and criteria for approval of a standard-offer service provider, or if the consumer-owned transmission and distribution utility enters into one or more contracts to purchase power at wholesale for the purpose of providing retail generation service within its service territory. Selection of a standard-offer service provider or providers and agreements with or purchases from a standard-offer service provider or providers or other wholesale power supply providers are not subject to the approval requirements of section 3133 or 3133- A. A consumer-owned transmission and distribution utility may choose a single standard-offer service provider. A consumer- owned transmission and distribution utility that intends to choose a standard-offer service provider or providers, or to enter into a wholesale power purchase contract for the purpose of providing retail generation service within its service territory, in accordance with this subsection shall notify the commission.

SUMMARY

This bill provides explicit permission for consumer-owned transmission and distribution utilities to enter into wholesale power purchase agreements for the purpose of providing retail generation service within their service territories.