The Maine Public Utilities Commission has rejected a proposal from Central Maine Power (CMP) that aimed to increase electricity rates over the next five years. The decision, made on Tuesday, comes in response to concerns regarding the potential financial burden on customers and the lack of a comprehensive long-term grid plan.
Under the proposed plan, a typical residential customer using 550 kilowatt hours per month would have seen their monthly bill rise by a total of $35 over the five-year period. CMP estimated that the rate hike would generate an additional $427 million in revenue for the utility.
The proposed increases were set to be steep, starting with an immediate jump of $17 in the first year, followed by subsequent increases of $5, $4, and another $4 in the following years, and concluding with $5 in the final year.
Concerns from the commission centered on the absence of a long-term integrated grid plan and the implications for affordability for customers. Commission Chair Philip L. Bartlett II emphasized the need for accountability and pacing of investments, stating, “At a time when the Legislature has prioritized grid planning and performance standards, and affordability is a top concern, CMP’s proposal misses the mark, particularly regarding accountability, pacing of investments, and ratepayer protections.”
The commission has indicated its intention to open a proceeding that will provide guidance on multi-year rate plans. This effort aims to inform future rate case filings, ensuring that customer concerns are adequately addressed.
This rejection follows a recent rate increase that took effect on July 1, 2023, which was expected to add $4.91 to the average residential customer’s monthly bill. CMP will now be required to submit a new rate request to the Maine PUC for any adjustments moving forward.
As of now, there is no specified timeline for when the guidance proceedings will take place or when new rates will be considered, according to Maine PUC spokesperson Susan Faloon. The commission’s decision highlights the ongoing dialogue about utility rates and the importance of balancing revenue needs with customer affordability.
