§ 35-A §3212 — Standard offer

Except as provided in subsection 6, when retail access begins, the commission shall ensure that standard-offer service is available to all consumers of electricity.
1.
Establishment of terms and conditions.
The commission shall open a rule-making proceeding no later than October 1, 1997 to establish terms and conditions for standard-offer service that include, but are not limited to:
2.
Selection of standard-offer service providers.
After terms and conditions for standard-offer service have been established under subsection 1, the commission shall administer a bid process to select a standard-offer service provider for that transmission and distribution utility's service territory. By December 1, 1999, the commission shall review the bid submissions for each transmission and distribution utility and select the standard-offer service provider or providers for that utility's service territory.
3.
Price cap; investigation.
If the qualifying bids under subsection 2 for standard-offer service in any service territory, when combined with the regulated rates of transmission and distribution service and any stranded costs charge, exceed, on average, the total rate for electricity immediately before the implementation of retail access, the commission shall investigate whether the implementation of retail access remains in the public interest or whether other mechanisms to achieve the public interest and to adequately protect consumer interests need to be put in place. Pursuant to section 3217, the commission shall notify the Legislature of the results of its investigation and its determination.
4.
Implementation period and investigation.
Standard-offer service must be available until March 1, 2005. By August 1, 2002, the commission shall begin an investigation to determine whether the continued availability of standard-offer service is necessary and in the public interest and, if so, how best to make such service available after March 1, 2005. The commission shall conclude the investigation by December 1, 2002 and report its results and recommendations to the Legislature pursuant to section 3217. In its investigation, the commission shall solicit the input of all interested parties and consider the questions in paragraphs A to D in addition to other issues the commission determines appropriate.
4-A.
Renewables; hedging.
4-B.
Demand response and energy efficiency.
The commission may incorporate cost-effective demand response, including the use of time-of-use pricing, 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, including the use of time-of-use pricing, 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.
4-D.
Community-based renewable energy.
The commission may incorporate energy generated by community-based renewable energy projects as defined in section 3602, subsection 1 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 energy from community-based renewable energy projects pursuant to this subsection.
4-E.
Combined heat and power energy.
The commission may incorporate energy generated by combined heat and power projects as defined in section 3622, subsection 1 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 energy from combined heat and power projects pursuant to this subsection.
5.
Territorial and rate class application.
Nothing in this section precludes the commission from permitting or requiring different terms and conditions for standard-offer service in different utility service territories or for different customer classes.
6.
Consumer-owned utilities.
Notwithstanding any other provision of this section, the commission is not required to conduct a competitive bidding process or select a standard-offer service provider or providers for the territory of a consumer-owned transmission and distribution utility if the consumer-owned transmission and distribution utility chooses one or more standard-offer service providers for its territory through a competitive bidding process conducted in accordance with the commission's rules governing the selection and criteria for approval of a standard-offer service provider, or if the consumer-owned transmission and distribution utility enters into one or more contracts to purchase power at wholesale for the purpose of providing retail generation service within its service territory. Selection of a standard-offer service provider or providers and agreements with or purchases from a standard-offer service provider or providers or other wholesale power supply providers are not subject to the approval requirements of section 3133 or 3133‑A. A consumer-owned transmission and distribution utility may choose a single standard-offer service provider. A consumer-owned transmission and distribution utility that intends to choose a standard-offer service provider or providers, or to enter into a wholesale power purchase contract for the purpose of providing retail generation service within its service territory, in accordance with this subsection shall notify the commission.

Legislative History

PL 1997, c. 316, §3 (NEW). PL 1997, c. 638, §§1,2 (AMD). PL 1997, c. 691, §§6,7 (AMD). PL 1999, c. 398, §F1 (AMD). PL 1999, c. 577, §§3,4 (AMD). PL 1999, c. 578, §1 (AMD). PL 2001, c. 528, §1 (AMD). PL 2003, c. 141, §2 (AMD). PL 2003, c. 665, §2 (AMD). PL 2005, c. 677, §§B1,2 (AMD). PL 2009, c. 329, Pt. A, §3 (AMD). PL 2021, c. 604, §2 (AMD). PL 2023, c. 516, Pt. B, §50 (AMD). PL 2025, c. 196, §§1, 2 (AMD).