Sec. A-3. Transfer from General Fund to Highway Fund. The State Controller shall transfer $20,000 from the General Fund unappropriated surplus to the Highway Fund unappropriated surplus no later than June 30, 2007.

PART B

Sec. B-1. 35-A MRSA §3212, sub-§4-A, as enacted by PL 2003, c. 665, §2, is repealed.

Sec. B-2. 35-A MRSA §3212, sub-§§4-B and 4-C are enacted to read:

4-B. Demand response and energy efficiency.__The commission may incorporate cost-effective demand response and energy efficiency into the supply of standard-offer service.__The commission shall encourage entities based in this State that are not otherwise either a standard-offer service provider or its affiliate to participate in supplying cost-effective demand response or energy efficiency pursuant to this subsection.

4-C.__Authority to establish various contract lengths and terms.__For the purpose of providing over a reasonable time period the lowest price for standard-offer service to residential and small commercial customers, the commission, with respect to residential and small commercial standard-offer service, may, in addition to incorporating cost-effective demand response and energy efficiency pursuant to subsection 4-B and to the extent authorized in section 3210-C, incorporating the energy portion of any contracts entered into pursuant to section 3210-C, establish various standard-offer service contract lengths and terms.

Sec. B-3. Review of authority to establish various contract lengths and terms. By January 15, 2008, the Public Utilities Commission shall report to the joint standing committee of the Legislature having jurisdiction over utilities matters on its use of the authority granted under the Maine Revised Statutes, Title 35-A, section 3212, subsection 4-C to establish various

standard-offer service contract lengths and terms for residential