Sec. 4. 35-A MRSA §3210, sub-§3-A is enacted to read:

3-A.__Tier 2 portfolio requirements.__Beginning March 1, 2005, as a condition of licensing pursuant to section 3203, each competitive electricity provider in this State must demonstrate in a manner satisfactory to the commission that the competitive electricity provider meets the Tier 2 portfolio requirement.__For purposes of this section, the Tier 2 portfolio requirement is met if at least 1% of the competitive electricity provider's portfolio of supply sources for retail electricity sales in this State is accounted for by the resources listed in subsection 2, paragraph C, subparagraphs (1) to (6).__This percentage increases by 1/2% each March 1st until it reaches 5% on March 1, 2013.

Sec. 5. 35-A MRSA §3210, sub-§4, as amended by PL 1999, c. 398, Pt. I, §3, is repealed.

Sec. 6. 35-A MRSA §3210, sub-§§4-A to 4-D are enacted to read:

4-A.__Ineligible resources.__If a competitive electricity provider represents to a customer that the provider is selling to the customer a portfolio of supply sources that includes more than 30% eligible resources, the resources necessary to supply more than 30% of that customer's load may not be applied to meet the aggregate 30% portfolio requirement.

4-B. Alternative compliance mechanism.__Beginning March 1, 2005, a competitive electricity provider may meet all or part of the Tier 2 portfolio requirements under subsection 3-A by making an alternative compliance payment to the Maine Renewable Power Fund established in subsection 4-C.__The payment to meet any unmet requirements is calculated by multiplying the unmet megawatt hour requirement for the Tier 2 portfolio requirement by $35 per megawatt hour.__The commission shall determine whether, due to changes in electricity markets or the changes in law, the alternative compliance amounts established in this subsection should be increased or decreased in order to ensure that the goals of this section are being achieved at the lowest cost to