[¶ 1] Cеntral Maine Power Company (CMP) appeals the Public Utilities Commission’s promulgation of a rule (Commission Rule) requiring electric transmission and distribution (T & D) facilities to file with the Commission any educational materials the T & D facilities plan to distribute to the public in regard to retail access to electricity generation services. CMP contends, inter alia, that: (1) the Commission Rule regulates noncommercial core speech; (2) the Commission Rule’s section 6(B) pre-dissemination submission requirement constitutes an unconstitutional prior restraint on core speech; and (8) the Commission Rule’s section 7 inclusion and correction requirements constitute unconstitutional content-based restrictions on core speech. Although we find no constitutional infirmity in section 7 of the Commission Rule, we agree that the pre-dissemination submission requirement of section 6(B) of the Commission Rule is an unconstitutional prior restraint on core speech and accordingly, we vacate that section of the Commission Rule.
I. RESTRUCTURING AND RETAIL ACCESS
[¶2] As have many other states, the Maine Legislature enacted legislation restructuring the state’s electricity industry. See P.L.1997, c. 316; see also 35-A M.R.S.A. §§ 3201-3217 (Supp.1998). Beginning on March 1, 2000, Maine citizens will have the right to purchase electricity generation services from the competitive electricity generation provider of their choice. See § 3202(1). Under the current system, Maine residents purchase electricity from integrated, noncompetitive, regulated public utilities. Pursuant to the recent legislation, these investor-owned electric utilities are required to divest all assets relating to the generation of electricity. See § 3204(1). They will maintain their transmission and distribution assets, however, and will remain regulated as T & D facilities. The independent electricity generation providers will be licensed by the Commission, but otherwise will not be subject to regulаtion as public utilities. See §§ 3202(2), 3203(1), (2), (5). After March 1, 2000, T & D facilities “may not own, have a financial interest in or otherwise control generation or generation-related assetsf,]” except “to the extent that the [Commission finds that ownership, interest or control is necessary for the utility to perform its obligations as a transmission and distribution utility in an efficient manner.” See § 3204(5), (6).
[¶ 3] The deregulated system does contemplate affiliations between competitive electricity generation providers and T & D facilities
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The statute, however, does not
[¶ 4] The Legislature gave the Commission the express statutory authority to oversee the transition to the new deregulated system. The statute requires the Commission to establish rules regarding “consumer protection standards and standards to protect and promote market competition in order to protect retail consumers of electricity from fraud and other unfair and deceptive business praсtices.” See § 3203(6). Particularly, the statute requires the Commission to adopt rules implementing an education program to inform consumers about the deregulation process. See § 3213(2).
[¶ 5] On November 3, 1997, the Commission issued a Notice of Rulemaking that set out the proposed Rule establishing a consumer education program, explained each section of the Rule, established a time and place for a public hearing, and identified the procedure for public comment. The notice stated that “the consumer education program is designed to facilitate informed decision making by cоnsumers and to provide an objective and credible source of information to consumers.” The costs of education programs undertaken by T & D facilities pursuant to the Commission guidelines may be recoverable through increases in current electricity rates, see proposed Commission Rule § 6(A). In December, CMP submitted comments to the proposed Commission Rule. CMP wrote, “Although CMP is willing to work with the Commission to educate the public on retail access issues, CMP is concerned by the substantial restraints that the proposed rule would impose on an electric utility’s First Amendment rights to free speech.”
[¶ 6] The Commission conducted a public hearing on the proposed Rule on January 30, 1998. The Commission responded to some stated concerns, provisionally adopted the Rule, and then submitted the Rule to the Legislature for review and approval pursuant to 35-A M.R.S.A. § 3213(2)(C) and 5 M.R.S.A. §§ 8071-8074 (Pamph.1998). The Legislature authorized the final adoption of the Rule with only two minor changes. See Resolves 1997, c. 99. CMP filed this appeal pursuant to 35-A M.R.S.A. § 1320(1988).
[¶ 7] The following sections of the Commission Rule are the subject of this appeal:
§ 6 UTILITY-SPONSORED EDUCATIONAL ACTIVITIES
A. Ratemaking Treatment. The costs of utility-sponsored educational activities shall not be included in electric or transmission and distribution utility rates unless the utility demonstrates in a rate-making proceeding that expenditures for utility-sponsored educational activities are reasonable in amount, reasonably effective, necessary and in the public interest.
B. Informational Filings. Electric and transmission and distribution utilities shall file with the Commission, for informational purposes only, any materials that are part of or related to utility-sponsored educational activities. The materials shall be filed, whenever possible, at least three weeks before the commencement of the activity of which the materials are a рart or to which the materials relate.
C. Investigation. The Commission may investigate any utility-sponsored educational activity if it finds after a summary investigation that there are sufficient grounds to investigate whether the activity is misleading, deceptive or inaccurate. If after a public hearing, the Commission finds that the utility-sponsored activity is misleading, deceptive or inaccurate, it may by order require the utility to cease the activity and provide corrections of that activity.
§ 7 DISSEMINATION OF INFORMATION
The Commission may require that electric and transmission and distribution utilities disseminate information produced as part of the Commission’s consumer education program. Information required to be disseminated by the utility may include correction of any utility-sponsored education activity to the extent such correction is required by the Commission as a result of an investigation, undertaken pursuant to section 6(C).
II. THE FIRST AMENDMENT RIGHT TO FREE SPEECH
[¶ 8] The First Amendment to the United States Constitution, applicable to the states through the Due Process Clause of the Fourteenth Amendment, provides that “Congress shall make no law ... abridging the freedom of speech, or of the press ... ,”
2
U.S. Const. amends. I, XIV;
see Cantwell v. Connecticut,
A. COMMERCIAL SPEECH v. CORE SPEECH
[¶ 9] Commercial speech is “expression related solely to the economic interests of the speaker and its audience,”
Central Hudson Gas & Elec.,
[¶ 10] Speech will not be characterized as commercial speech solely because the speaker is a corporation.
See First Nat’l Bank v. Bellotti,
[¶ 11] Because the Commission Rule at issue is directed at “utility-sponsored educational activities,” which by definition are designed to educate consumers about retail access in a deregulated system,
see
Commission Rule § 2(D), noncommercial core speech is what is being regulated. The statute forbids T & D facilities from promoting an affiliated competitive provider in any manner.
See
35 M.R.S.A. § 3205(3)(J). To be in compliance with the law, a T
&
D facility will merely educate the public about the deregulated system and their future right to purchase electricity generation services from competitive providers, and will not disseminate educational materials directly implicating the facility’s economic interests or proposing a commercial transaction to the consumers who receive the materials. Education about deregulation is a matter of state public concern. That the subject matter of the educational materials is commercial does not reduce its constitutional protection.
See Virginia State Bd. of Pharmacy,
[¶ 12] The Supreme Court has explained that “[t]he freedom of speech and of the press guaranteed by the Constitution embraces at the least the liberty to discuss publicly and truthfully all matters of public concern without previous restraint or fear of subsequent punishment.”
Thornhill,
[¶ 13] Because prior restraints have an immediate and irreversible sanction of suppressing speech before it occurs, there is a heavy presumption against their constitutional validity.
See Nebraska Press Ass’n v. Stuart,
[¶ 14] The Commission Rule’s requirement that educational materials be submitted to the Commission three weeks prior to dissemination constitutes a prior restraint on core speech.
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See Organization for a Better Austin,
[If 15] Sеction 6(B) of the Commission Rule applies when a public hearing is concluded within the three week period and
[¶ 16] The Commission contends that the phrase “whenever possible” precludes the Rule from being characterized as a prior restraint. Prior restraints are prohibited because they have the effect of suppressing speech before it occurs.
See Nebraska Press Ass’n,
[¶ 17] The Commission further contends that section 6(B) does not constitute a prior restraint because.the Rule and the applicable statute do not impose any sanctions for noncompliance and the Rule explicitly provides that the submission is “for informational purposes only.” That phrase does not save the Commission Rule from being characterized as a prior restraint. The Commission’s comments to section 6(B) of the Rule, as the comments appear in the Commission’s order provisionally adopting the Rule, state:
The purpose of subsection 6(B) is to inform the Commission prior to implementation of utility-sponsored educational activities so that the Commission can work with the utility to avoid inconsistent or contrary educational messages. We note that although the provision does not require apprоval by the Commission, we would expect the utility to cooperate with the Commission in redrafting messages to avoid confusion to consumers.
As CMP contends, because of the ongoing nature of the regulatory relationship between T & D facilities and the Commission, the language of section 6(B) of the Commission Rule, when combined with the language of sections 6(C) and 7, is essentially the same as a requirement of Commission approval. Although there is nothing to suggest that the Commission has or will misuse its power in this area, coercion, persuasion and intimidation could effectively suppress speech even though formal legal sanctions are not available or are not utilized.
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See Bantam Books, Inc. v. Sulli
C. CONTENT-BASED RESTRICTIONS ON CORE SPEECH
[¶ 18] Section 7 of the Commission Rule provides:
The Commission may require that electric and transmission and distribution utilities disseminate information produced as part of the Commission’s consumer education program. Information required to be disseminated by the utility may include correction of any utility-sponsorеd education activity to the extent such correction is required by the Commission as a result of an investigation, undertaken pursuant to section 6(C). 11
Requiring a T & D facility to include the Commission’s consumer education materials with its own education materials is a content-based restriction on speech. Requiring a T & D facility to correct the content of its speech likewise is a content-based restriction on speech. As the Supreme Court has explained, mandating speech that a speaker otherwise would not make necessarily alters the content of the speaker’s spеech.
See Riley v. National Fed’n of the Blind of N.C., Inc.,
1. THE INCLUSION REQUIREMENT
[¶ 19] Relying on the United States Supreme Court decision in Pacific Gas and Electric Co. v. PUC, CMP contends that requiring T & D facilities to include Commission educational materials with the materials they disseminate to their customers is an unconstitutional content-based restriction on non-commercial core speech. We disagree.
[¶ 20] In
Pacific Gas,
the Supreme Court struck down a California Utility Commission requirement that a privately owned utility include in its billing envelopes leaflets designed by a third party, outlining positions with which the utility disagreed.
See
[¶ 21] Several significant differences between
Pacific Gas
and the facts of this case, however, lead us to conclude that the requirements of the Commission Rule are narrowly tailored to serve the Commission’s compelling interest. Like the California Commission in
Pacific Gas,
the Commission has a compelling interest in ensuring that consumers get information about dеregulation of the electricity generation industry and retail access that is objective, accurate, and comprehensive given the potential for a high degree of customer confusion that can result from retail competition. Unlike the materials at issue in
Pacific Gas,
however, the subject
2. THE CORRECTION REQUIREMENTS
[¶ 22] We have concluded that section 6(B)’s requirement that T & D facilities submit their educational materials to the Commission prior to dissemination is invalid. Section 6(C) of the Commission Rule, however, permits the Commission to hold a public hearing after dissemination and to order the T & D facility to correct materials the Commission finds to be misleading, dеceptive, or inaccurate. Section 7 reaffirms that a T & D facility must disseminate the corrected materials to their consumers. CMP contends that these correction requirements unconstitutionally restrict the free speech rights of T & D facilities. We are unpersuaded by that contention.
[¶23] The correction requirements of section 6(C) remedy harm, rather than suppress speech, and thus avoid the constitutional infirmities of the prior restraint set out in section 6(B). Furthermore, the Commission has a compelling interest in “workfing] with [T
&
D facilities] to ensure consumers get information that is objective, accurate, and consistent with [the Commission’s consumer еducation] program messages!,]” given “the potential for a high degree of customer confusion that can result from retail competition!.]”
See Pacific Gas,
III. EQUAL PROTECTION GUARANTEES
[¶ 24] The Fourteenth Amendment to the United States Constitution provides that “[n]o State shall make or enforce any law which shall ... deny to any person within its jurisdiction the equal рrotection of the laws.”
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U.S. Const.
[¶ 25] The Supreme Court has interpreted the Federal Equal Protection Clause to mean that “all persons similarly circumstanced shall be treated alike,” reasoning that “[t]he Constitution does not require things which are different in fact or opinion to be treated in law as though they were the same.”
See Plyler v. Doe,
The entry is:
Section 6(B) of the Public Utilities Commission Rule is vacated. Remanded to the Public Utilities Commission.
Notes
. Section 3205(1)(A) defines an “affiliated competitive provider” as "a competitive electricity provider whose relationship with a large investor-owned transmission and distribution utility qualifies it as an affiliated interest.” An "affiliated interest” is defined as:
(1)Any person who owns directly, indirectly or through a chain of successive ownership, 10% or more of the voting securities of a public utility;
(2) Any persоn, 10% or more of whose voting securities are owned, directly or indirectly, by an affiliated interest as defined in subparagraph (1);
(3) Any person, 10% or more of whose voting securities are owned directly or indirectly, by a public utility;
(4) Any person, or group of persons acting in concert, which the [C]ommission may determine, after investigation and hearing, exercises substantial influence over the policies and actions of a public utility provided that the person or group of persons beneficially owns more than 3% of the public utility’s voting securities;
(5) Any public utility of which any person defined in subparagraphs (1) to (4) is an affiliated interest.
35-A M.R.S.A. § 707(1)(A)(1), (4) (1988).
. The Maine Constitution likewise reads, “Every citizen may freely speak, write and publish sentiments on any subject, being responsible for the abuse of this liberty; no laws shall be passed regulating or restraining the freedom of the press ...." Me. Const, art. 1, § 4. With respect to free speech rights, "[t]he Maine Constitution is no less restrictive than the Federal Constitution.” State v. Janisczak, 579 A.2d 736, 740 (Me.1990).
. The Supreme Court has upheld reasonable time, place, or manner restrictions, but only if those restrictions "are justified without reference to the content of the regulated speech ....”
See Ward v. Rock Against Racism,
.In recent Supreme Court cases, several justices, writing in concurrence, have suggested that the lower constitutional standard for commercial speech is inappropriate in circumstances when the state imposes a complete ban on information for paternalistic reasons.
See, e.g., 44 Liquormart, Inc. v. Rhode Island,
. The speech of heavily regulated monopolies likewise is protected by the First Amendment.
See Consolidated Edison Co. v. Public Serv. Comm'n,
. Prior to the enactment of the Commission Rule, CMP designed a brochure to answer consumer questions about deregulation. The materials educate the public about deregulation. They do reference CMP’s affiliates generally, but not by name. In response to the question, “Can I decide to continue purchasing power from CMP?,” the brochure states, "Customer[s] may be able to purchase eleсtricity from an affiliate of CMP but Maine’s law prohibits a CMP marketing affiliate from selling more than 33% of the kilowatt hours sold in its current service territory. If 33% is reached, you will have to find another supplier.” In response to the question. "Who will be selling electricity?,” the brochure states, “New, unregulated energy companies associated with CMP and Bangor Hydro can offer electricity to you, as long as they don’t provide more than 33% of the electricity sold in their current territories.” Those are the only two references to affiliates of CMP. Given the overall educational value of these matеrials, it would be difficult to characterize them as commercial speech.
See Pacific Gas & Elec. Co. v. PUC,
. The Commission contends that the prior restraint doctrine is inapplicable to regulated utilities. The Supreme Court has not directly applied the prior restraint doctrine in a rеgulated utility context. In
Central Hudson Gas and Electric,
the Supreme Court invalidated the Public Service Commission order banning advertising that promotes the use of electricity.
See
. After the three week period, a T & D facility is free to disseminate its materials, even if a public hearing is pending. In circumstances when a public hearing cannot be concluded within the three week period, the T & D will have disseminated the materials prior to any determination by the Commission that the content of the materials must be changed. Requiring the T & D facility to change the contents of its material after dissemination is technically subsequent punishment, not a pri- or restraint. Still, the T & D facility will have been forced to postpone its рublication during that three week period. The ultimate ability to disseminate the desired communication does not change the fact that there is a period of time during which the T & D facility would be denied the ability to exercise its free speech rights.
. CMP suggests that civil penalties totaling up to $1,000 may be available for failure to comply with Commission requirements. See 35-A M.R.S.A. § 1508 (1988). The Commission notes, however, that the general penalty provisions of Title 35-A are not applicable to violations of this Rule and were not even mentioned during the promulgation of the Rule.
. CMP also contends that the language оf section 6(B) of the Commission Rule is unconstitutionally vague. Because we strike the language as an unconstitutional prior restraint on core speech, we do not address this issue.
. Section 6(C) of the Commission Rule provides, "If after a public hearing, the Commission finds that the utility-sponsored activity is misleading, deceptive or inaccurate, it may by order require the utility to cease the activity and provide corrections of that activity.”
. Similarly, article I, section 6-A of the Maine Constitution states that "[n]o person shall be ... denied the equal protection of the laws....” The equal protection guarantees of these provisions are coextensive.
See
