The Maine House of Representatives moved Tuesday to indefinitely postpone Gov. Janet Mills’ plan to tighten accountability standards on the state’s electric utilities. 

The bill would create a system for the Public Utilities Commision to grade Central Maine Power and Versant Power on their performance, requiring the PUC to fine the utilities or consider removing them outright if they fall short. The bill also strengthens whistleblower protections and requires new plans from the utilities and PUC on climate change and grid modernization. 

The bill has drawn criticism from lawmakers on both sides of the aisle and all sides of the debate over how to improve reliability and customer service at the utilities, which oppose the bill. Some legislators have argued the bill is too lenient or will lead to increased costs for ratepayers. 

The House could not agree on two separate proposed versions of the bill – one approach approved earlier in the day by the state Senate, and another version backed by Rep. Seth Berry (D-Bowdoinham) and other lawmakers who want to replace CMP and Versant with a nonprofit.

After heated debate, House members voted down both the Senate-approved version of the bill and an alternative authored by Berry. Berry then proposed waiting until later in the waning hours of the legislative session to consider a third version of the bill, spearheaded by Republican Sen. Trey Stewart of Presque Isle. The House rejected that motion too.

Finally, lawmakers voted to indefinitely postpone the bill on a 100 to 34 margin. That vote now goes back to the Senate for its sign-off, either later Tuesday or on the final day of the session, on Wednesday. If the Senate concurs, it would kill Mills’ bill at least for this year. 

Berry had earlier criticized the version of the bill the Senate sent down to the House, saying in a statement: “Absurdly, most of the current Senate version only reiterates powers the PUC already has. … As written it fails to keep its promise to ‘ensure’ accountability.” 

The version the Senate approved hours earlier, on a vote of 20 to 14, is in line with the approach of Mills’ energy office, the bill’s lead Democratic sponsors and the Public Advocate. 

This Senate version included some key changes to the original bill. It specifies that only utilities with more than 50,000 customers – meaning CMP and Versant in Maine – must comply with the report card process. The bill also includes some pieces of Stewart’s version, such as allowing the utilities to request court review during a divestiture process, where the PUC would require a utility that has fallen short on performance standards to sell its assets to a new provider. 

The Senate’s version of the bill adjusts some aspects of the so-called report card process by which the PUC would grade the utilities’ performance. It removes a timeframe for when the PUC can audit the quarterly data provided by the utilities, making an audit optional at any point rather than every three years. Critics of the bill, such as Berry, want audits to be required.

The Senate version would also require the PUC to penalize the utilities for poor performance in a calendar year, rather than over two consecutive quarters, and says each year with poor performance will be considered a separate punishable offense, rather than each quarter.

The required penalties the Senate approved are up to $1 million or 10% of the utility’s annual revenue in Maine, whichever is less. Critics want the bill to include much higher penalties. 

Stewart, originally a co-sponsor of the bill, urged against it on the Senate floor. He argued it will allow the utilities to spend with impunity and pass costs onto ratepayers in order to avoid fines and, in Stewart’s words, placate renewable energy lobbyists.   

“The cold hard reality is that the PUC, if they felt that these things were actually already prudent, they could initiate rulemaking and do these things tomorrow,” Stewart said. “They have not done that because there are legitimate questions to be asked around, how important is it?” 

Senator Eloise Vitelli (D-Arrowsic), a lead author on the version of the bill the Senate adopted, called it a great compromise that will pressure the utilities to lower both costs and emissions. 

“This represents a critical step forward for accountability and for protecting ratepayers as we move toward a modernized grid powered by clean energy,” Vitelli said in advocating for the bill on the Senate floor. “We need this approach in order to build the most cost effective grid possible – a grid designed for Maine ratepayers, not utility shareholders.” 

Senator Stacy Brenner (D-Scarborough), who co-sponsored the original legislation, said on the Senate floor that she supports Berry’s consumer-owned utility plan but thinks the governor’s bill in its current form can and should come first. 

“This bill creates a simple framework for our utilities: They'll need to perform well or face penalties, and if they fail consistently, they will be replaced,” Brenner said. “This bill is about performance accountability and planning accountability.” 

The Natural Resources Council of Maine praised the Senate version of the bill in a statement, calling it “one of the most important climate bills this year.” CMP and Versant declined to comment on the bill Tuesday. 

This story was updated Tuesday after the Houes vote.