H.P. 1034 - L.D. 1456
An Act to Establish the Northern Maine Transmission Corporation
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 10 MRSA §963-A, sub-§10, ¶P, as amended by PL 1997, c. 500, §3, is further amended to read:
P. Any workers' compensation residual market mechanism project; and
Sec. 2. 10 MRSA §963-A, sub-§10, ¶Q, as enacted by PL 1997, c. 500, §4, is further amended to read:
Q. Any clean fuel vehicle project.; and
Sec. 3. 10 MRSA §963-A, sub-§10, ¶R is enacted to read:
R. Any transmission facilities project.
Sec. 4. 10 MRSA §963-A, sub-§49-G is enacted to read:
49-G. Transmission facilities project. "Transmission facilities project" means a project to carry out the purposes of chapter 1003.
Sec. 5. 10 MRSA §1053, sub-§6, as repealed and replaced by PL 1997, c. 781, §1, is amended to read:
6. Securities outstanding. The principal amount of revenue obligation securities the authority may have outstanding at any one time, to which subsection 5 is stated to apply in the trust agreement or other document, may not exceed an aggregate principal amount equal to $657,000,000 $692,000,000 as follows:
A. The sum of $330,000,000 consisting of not more than $275,000,000 for loans and up to $55,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for electric rate stabilization projects;
B. The sum of $120,000,000 consisting of not more than $100,000,000 for loans and up to $20,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for major business expansion projects;
C. The sum of $57,000,000 consisting of not more than $45,000,000 for loans and up to $12,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to workers' compensation residual market mechanism projects; and
D. The sum of $150,000,000 less the aggregate outstanding balance of mortgage loans secured by capital reserve funds pursuant to section 1032 for all other revenue obligation securities issued pursuant to this subchapter.; and
E. The sum of $35,000,000 consisting of not more than $30,000,000 for loans and up to $5,000,000 for use of bond proceeds to fund capital reserve funds for revenue obligation securities issued pursuant to this subchapter relating to loans for transmission facilities projects.
The amount of revenue obligation securities issued to refund securities previously issued may not be taken into account in determining the principal amount of securities outstanding, provided that as long as proceeds of the refunding securities are applied as promptly as possible to the refunding of the previously issued securities. In computing the total amount of revenue obligation securities of the authority that may at any time be outstanding for any purpose, the amounts of the outstanding revenue obligation securities that have been issued as capital appreciation bonds or as similar instruments are valued as of any date of calculation at their then current accreted value rather than their face value.
Sec. 6. 10 MRSA c. 1003 is enacted to read:
CHAPTER 1003
NORTHERN MAINE TRANSMISSION CORPORATION
As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.
1. Corporation. "Corporation" means the Northern Maine Transmission Corporation established in section 9202, subsection 1.
2. Fund. "Fund" means the Northern Maine Transmission Corporation Fund established in section 9204.
3. Authority. "Authority" means the Finance Authority of Maine.
§9202. Northern Maine Transmission Corporation established
1. Establishment and purpose. The Northern Maine Transmission Corporation is established as a body corporate and politic and public instrumentality of the State. The corporation is a special purpose corporation formed and managed as a subsidiary of the authority. The exercise by the corporation of the powers conferred by this chapter shall be deemed the performance of essential public functions. The purpose of the corporation is to examine the need for and viability of and to finance, permit, construct, own and operate electric transmission lines necessary to connect electric utilities in the northern region of the State with the transmission grid of the United States in a manner adequate, in the opinion of the authority, to allow customers serviced by those electric utilities to receive the benefits of service similar to all other electric customers in this State.
2. Board. The powers of the corporation are exercised by a board of directors, referred to in this section as the "board," that consists of 7 members.
3. Membership and appointment of directors. The directors of the board are the following 7 members:
A. The chief executive officer of the authority or the chief executive officer's designee;
B. The Treasurer of State or the treasurer's designee; and
C. Five people who have substantial knowledge of or experience in the electric utility industry, appointed by the Governor, including:
(1) A representative of the investor-owned electric utilities of the northern region of the State who must be experienced in electric transmission matters;
(2) A representative of the publicly owned and member-owned electric utilities of the northern region of the State, who must be experienced in financial matters;
(3) A representative of the residential consumers of the northern region of the State, who must be experienced in business matters;
(4) A representative of industrial customers of the northern region of the State, who must be experienced in the generation, transmission or purchase of electricity; and
(5) A member of the public with a demonstrated expertise in the economic development of the northern region of the State.
4. Terms. Members designated under subsection 3, paragraphs A and B serve during their tenure in the position they fill on the board. A vacancy among members appointed by the Governor is filled in the same manner as the original appointment for the unexpired term of that position. Members appointed by the Governor serve an initial term of 4 years and, upon completion of the term, the members are appointed as follows:
A. One member for one year;
B. One member for 2 years;
C. One member for 3 years; and
D. Two members for 4 years.
5. Compensation. Directors are compensated according to Title 5, chapter 379.
The corporation has all the powers necessary or convenient to carry out this chapter including, without limitation, those general powers provided to a nonprofit corporation by the Maine Nonprofit Corporation Act, Title 13-B and including, but not limited to, the following powers.
1. Receipt of money and property. The corporation may accept gifts, grants, bequests or devises from any source, including funds from the Federal Government or any of its political subdivisions, and may do any acts necessary, useful, desirable or convenient in connection with procuring acceptance or disposition of gifts, grants, requests or devises.
2. Cooperation with public and private entities. The corporation may cooperate fully with any public and private entities as necessary, useful, desirable or convenient to carry out this chapter.
3. Acceptance of proposals for connections. The corporation shall request and receive proposals from public and private entities to finance, permit, construct or operate any transmission lines necessary to connect electric utilities in the northern part of the State with the transmission grid of the United States, and may approve those proposals if they are in keeping with the intent of this chapter.
1. Establishment of fund. There is established the Northern Maine Transmission Corporation Fund, which must be used to provide funding for activities of the corporation to further its purpose under this chapter. The fund must be deposited with and maintained and administered by the authority and must contain appropriations provided for that purpose, interest accrued on the fund balance, funds received by the corporation to be applied to the fund and funds received in payment of loans. The fund is a nonlapsing revolving fund.
2. Administrative expenses. Costs and expenses of maintaining, servicing and administering the fund may be paid out of amounts in the fund.
1. Bonds or notes. All bonds, notes or other evidences of indebtedness issued under this chapter are issued by a political subdivision or a body corporate and politic of the State and for an essential public and governmental purpose. Those bonds, notes or other evidences of indebtedness, the interest on them and the income from them, including any profit on their sale, and all activities of the corporation and fees, charges, funds, revenue, income and other money of the corporation, whether or not pledged or available to pay or secure the payment of those bonds, notes or other evidences of indebtedness or interest on them, are exempt from all taxation franchise fees or special assessments of whatever kind except for transfer, inheritance and estate taxes.
2. Property taxes. All real and personal property acquired by the corporation is subject to taxes to the same extent as real and personal property owned by other electric utilities.
Sec. 7. 35-A MRSA §2102, sub-§2-A is enacted to read:
2-A. Northern Maine Transmission Corporation. The commission's approval under subsection 1 is not required for the Northern Maine Transmission Corporation, established under Title 10, chapter 1003, or any person acting under the authority of the Northern Maine Transmission Corporation, to finance, permit, construct, own or operate any transmission lines necessary to connect electric utilities in the northern region of this State with the transmission grid of the United States. This subsection may not be construed to:
A. Authorize the Northern Maine Transmission Corporation, any person acting under the authority of the Northern Maine Transmission Corporation or any person that acquires a transmission line financed, permitted, constructed or operated by the Northern Maine Transmission Corporation to physically interconnect directly with any electric consumer within the service territory of a transmission and distribution utility without approval of the commission under subsection 1; or
B. Exempt the Northern Maine Transmission Corporation or any person acting under the authority of the Northern Maine Transmission Corporation from any other applicable provision of this Title.
Approval by the commission is required for any person owning, operating, managing or otherwise controlling any transmission line financed, constructed, permitted or operated by the Northern Maine Transmission Corporation to physically interconnect directly with any electric consumer within the service territory of a transmission and distribution utility.
Sec. 8. Transfer. Notwithstanding any other provision of law, at the close of fiscal year 1998-99, the State Controller shall transfer to the Northern Maine Transmission Corporation administered by the Finance Authority of Maine, from the available balance in the General Fund after the deduction of all appropriations, financial commitments or other designated funds, $150,000 of lapsed balances from amounts appropriated from the General Fund in fiscal year 1998-99 for the All Other line category. Funds transferred must be used to conduct the feasibility study authorized in this Act.
Sec. 9. Report. By December 1, 2000, the corporation shall issue a public report detailing its analyses of the options for construction, ownership and operation of one or more electric transmission lines to interconnect the northern region of the State directly with the electric transmission grid of the remainder of New England. The report must include alternative routes and configurations, cost estimates and feasibility analyses.
Sec. 10. Appropriation. The following funds are appropriated from the General Fund to carry out the purposes of this Act.
1999-00
FINANCE AUTHORITY OF MAINE
Northern Maine Transmission Corporation
All Other $250,000
Provides funds for the cost of conducting a feasibility study of the options for building transmission lines necessary to connect northern Maine's electric utilities with the transmission grid of the United States.
Effective September 18, 1999, unless otherwise indicated.
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