CHAPTER 529

H.P. 1272 - L.D. 1750

An Act To Improve the Ability of Water Utilities To

Maintain a Contingency Allowance

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

Sec. 1. 35-A MRSA §6105, sub-§4, ķE, as corrected by RR 1991, c. 2, §131, is amended to read:

E. To provide for a contingency reserve fund allowance as provided in section 6112; and

Sec. 2. 35-A MRSA §6112, as renumbered by RR 1991, c. 1, §49, is amended to read:

§6112. Contingency allowance

1. Annual contingency allowance. A consumer-owned water utility may provide for an annual contingency allowance by including in rates an amount up to 5% of the revenues required to operate the water utility. Each year any contingency allowance, which may not exceed 5% of the prior year's total revenue, must be credited to a contingency reserve fund. Other revenue may not be credited to the account. the amounts as follows:

A.__For a utility with total annual revenues up to $85,000, an amount up to 10% of the revenues required to operate the utility; and