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LD 839

An Act To Lower Consumer Electricity Costs By Prohibiting The Recovery Through Rates Of Costs Attributable To Net Energy Billing

132nd Legislature (2025-2026) Introduced by Rick Bennett and 7 co-sponsors

The bill would remove NEB program costs from utility rates and fund them via a General Fund appropriation, to be allocated by the PUC.

Became Law without Governor's Signature
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Bill Summary · LD 839

Summary — LD 839 (132nd Maine Legislature)

Title: An Act To Lower Consumer Electricity Costs By Prohibiting The Recovery Through Rates Of Costs Attributable To Net Energy Billing
Sponsor: Sen. Stewart (Aroostook) | Committee: Energy, Utilities and Technology
Status: Held by the Governor (7/8/2025). Introduced: 3/4/2025.

Purpose / Intent

The bill seeks to reduce consumer electricity rates by preventing electric utilities from recovering, through customer rates, costs that are attributable to Net Energy Billing (NEB) programs. Instead, it creates a statutory mechanism for those NEB-related costs to be allocated and funded outside routine utility rate recovery.

Key provisions

  • Creates a Net Energy Billing Cost Stabilization Fund (also referred to in amended fiscal notes as the Net Energy Billing Stabilization Fund) administered by the Public Utilities Commission (PUC).
  • Directs the PUC to undertake rulemaking to:
    • Establish a process to calculate and allocate the “net costs” (defined as program costs less monetized benefits) associated with:
    • the kilowatt-hour credit NEB program, and
    • the commercial and institutional NEB program,
    • Allocate those net costs among transmission and distribution utilities and distributed generation resources.
  • Requires the PUC to submit legislation requesting General Fund appropriations to pay the NEB-attributable costs (i.e., instead of recovery via customer electricity rates).

Fiscal impact

  • Preliminary fiscal notes state the total General Fund cost could be “significant,” but the final amount depends on PUC rulemaking and allocation methodology.
  • An amended fiscal note records a one-time General Fund appropriation of $500 to the newly established fund in FY 2025‑26 (other fiscal years show $0 in that note). The PUC is expected to request additional appropriations later as rulemaking defines actual liabilities.

Who is affected

  • Electricity consumers (ratepayers): Intended to lower electricity rates by removing certain NEB costs from rate recovery.
  • State General Fund: Potentially responsible for funding NEB-attributable costs, increasing state expenditures depending on allocation outcomes.
  • Utilities and distributed generation owners: Subject to new allocation rules; the bill shifts how program costs and benefits are assigned.
  • Public Utilities Commission: Required to conduct rulemaking and to request implementing appropriations.

Procedural / timeline notes

  • Committee amendment S‑223 was adopted in the Legislature. The bill passed both chambers (passed to be enacted) in June 2025 and was placed on the Special Appropriations Table pending enactment. As of 7/8/2025 the bill is held by the Governor.
  • Further legislative appropriations would be needed after PUC rulemaking defines the amounts to be funded from the General Fund.

Key tradeoffs to consider

  • Consumers could see lower electricity rates if costs are removed from rate recovery.
  • The state’s General Fund may absorb potentially significant new costs, shifting burdens from ratepayers to taxpayers unless alternative funding is provided.

Compiled from official sources — confirm details with the bill’s official record.

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