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Amend the bill by striking out the title and substituting the following:
‘An Act To Enable Low-income and Other Customers Greater Access To Efficient Electric Heat Pumps through Unique Financing and Third-party Installation and Maintenance’
Amend the bill by striking out all of section 1 and inserting the following:
‘Sec. 1.  35-A MRSA §3105  is enacted to read:
§ 3105. Heat pump program
Notwithstanding any other provision of law, a transmission and distribution utility may develop and implement, upon approval of the commission, a program within its service territory to enable customers to access the benefits of efficient electric heat pumps as set forth in this section and may advertise the availability of its program to its customers. The program may serve any customer but must target low-income customers, senior citizens, customers who are unable to finance the purchase of a heat pump, customers who reside in rental dwellings and small businesses. For purposes of this section, "efficient electric heat pump" means an electric heat pump that is consistent with eligibility criteria of the Efficiency Maine Trust, as established in section 10103, or criteria established by the commission by rule if the Efficiency Maine Trust does not establish such criteria. Rules adopted by the commission pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
 
1.  Approval; activities of the utility.     A transmission and distribution utility that elects to offer a program pursuant to this section must submit a proposed program to the commission for approval. The commission shall examine the proposed program and, if it finds the proposed program is reasonably designed and consistent with the provisions and program elements of this section, shall approve the program. Notwithstanding any provision of law limiting the amount of investment or revenue a utility may make or receive in a business venture separate from the delivery of electricity, all activities of a transmission and distribution utility under an approved program must be considered an unregulated business venture of the utility in accordance with section 713. The prudent costs associated with the program are recoverable only from customers participating in a program through just and reasonable rates and charges approved by the commission.
 
2.  Program elements.     A transmission and distribution utility may, subject to approval under subsection 1, elect to offer a program consistent with the program elements set forth under paragraph A or B, or both. Based on the best available information at the outset of the program, the overall energy costs to customers under a program must be expected to decrease as a result of participation in the program, as measured by the overall energy costs to customers over the lifespan of the efficient electric heat pumps, regardless of the source of energy, and the costs associated with participation in the program.
 
A.  A transmission and distribution utility may offer incentives to customers participating in the program to acquire efficient electric heat pumps from 3rd-party sellers or installers to be used to reduce the total installation cost of such heat pumps.
 
B.  A transmission and distribution utility may provide an efficient electric heat pump to a customer within its service territory who requests a heat pump and who elects not to purchase and install a heat pump due to income or other reasons. The utility may own the heat pump provided to a customer participating in the program and may charge the customer for the costs associated with providing and maintaining the heat pump. Any such program must meet the following requirements:
 
(1) If the participating customer is delinquent in payments under the program, the utility may undertake reasonable debt collection activities as approved by the commission and otherwise consistent with applicable law, but in no event may the customer's primary electric service be disconnected as a result of the customer's delinquency under the program nor may electric service to a heat pump serving as the only heating source for the customer be disconnected during the winter;
 
(2) The utility must allow participating customers to select a qualified 3rd-party heat pump seller and installer and must use qualified 3rd-party installers to maintain and repair the heat pumps provided to customers. To be qualified, an installer must be listed as a registered vendor by the Efficiency Maine Trust, as established in section 10103, for purposes of heat pump installations or determined qualified by the commission by rule if the Efficiency Maine Trust does not maintain a registry of vendors;
 
(3) The utility must provide participating customers with the option, through a plain language notice, to later buy the heat pump provided at reasonable terms approved by the commission;
 
(4) At any time, a participating customer may elect to have the customer's heat pump removed at no cost or penalty; and
 
(5) Before a customer elects to participate in the program, the customer must be provided a plain language notice comparing the costs of the program with the costs of directly purchasing a heat pump, including any applicable rebates or incentives available for purchasing such equipment.
 
3.  Utility to provide information.     A transmission and distribution utility that implements a program under this section shall, upon request from the commission, provide sufficient information to demonstrate that the program is meeting the requirements of this section. In addition, the utility shall provide a triennial report to the commission outlining the degree to which the program is meeting the needs of customers, including the needs of customers required to be targeted under this section.
Nothing in this section is intended to limit the authority of the commission to establish electric distribution rates for customers participating in a program under this section.’
 
SUMMARY
This amendment is the majority report of the committee. Like the bill, the amendment allows a transmission and distribution utility to implement a program to provide efficient electric heat pumps to its customers. Unlike the bill, the amendment clarifies that all activities of a transmission and distribution utility under an approved program are considered an unregulated business venture of the utility, rather than regulated activities of the utility subject to regulation by the Public Utilities Commission as a utility service.
The amendment also does the following.
1. It specifies that while all customers of a utility may participate in a program, the program is to target specific customers, such as low-income customers, senior citizens, customers who are unable to finance the purchase of a heat pump, customers who reside in rental dwellings and small businesses.
2. It makes clear that the sale, installation and maintenance of a heat pump are to occur through 3rd-party sellers and installers chosen by the customer.
3. It prohibits a transmission and distribution utility from disconnecting for delinquent payments electric service to a heat pump serving as the only heating source for the customer during the winter.
4. It specifies that, at any time, a participating customer may elect to have that customer's heat pump removed at no cost or penalty.
5. It requires that a transmission and distribution utility must provide participating customers a plain language notice that they have the option to buy the heat pump.
6. It requires a plain language notice be provided before a customer elects to participate in the program that compares the costs of the program with the costs of directly purchasing a heat pump, including any applicable rebates or incentives available for purchasing such equipment.
7. It clarifies that an efficient electric heat pump is one that is consistent with the Efficiency Maine Trust eligibility criteria or criteria established by the commission by rule if the Efficiency Maine Trust does not establish such criteria and that a qualified heat pump installer is any installer that is listed as a registered vendor by the Efficiency Maine Trust for purposes of heat pump installations or as determined by the commission by rule if the Efficiency Maine Trust does not maintain a registry of vendors.
8. It clarifies that the determination that the overall energy costs to customers under a program decrease as a result of participation in the program is based on the best available information at the outset of the program.
9. It requires the utility to provide a triennial report to the commission outlining the degree to which the program is meeting the needs of customers, including the needs of customers targeted under this legislation.
The amendment retains the provision of the bill that repeals the provision of Public Law 2011, chapter 637 that allows transmission and distribution utilities to develop and implement similar pilot programs.
FISCAL NOTE REQUIRED
(See attached)