Maine Public Utilities Commission rejects Central Maine Power's rate hike request
The Maine Public Utilities Commission (PUC) has rejected a rate hike request from Central Maine Power (CMP) that was part of a proposed five-year workforce and grid investment plan.Under the proposal, CMP would raise electricity rates by about $35 per month for the average customer over the next five years. This would increase the company’s revenue by about $400 million.On Tuesday morning, the PUC voted unanimously to dismiss CMP’s proposal, saying the proposal is unreasonable.”Part of it was the overall size, but also was the fact that a lot of risk seemed to be shifting again from the company’s shareholders to ratepayers, to customers,” said Phil Bartlett, chairman of the PUC. “We felt like that allocation of risk was not appropriate, but we also didn’t see that there were sufficient mechanisms to improve performance or to provide a set of some lower costs over the course of the rate plan.”“The dismissal does not mean a rate increase will not be considered in the future, nor that CMP’s proposed system investments are unnecessary. Instead, commissioners cited concerns with the pace of the proposed investments, the absence of a submitted long-term integrated grid plan, the impact on ratepayers and, ultimately, whether CMP’s proposal could meet the just and reasonable standard applied in rate cases,” the PUC said in a statement.Maine Public Advocate Heather Sanborn and Gov. Janet Mills both applauded the PUC’s decision.“The Public Utilities Commission made the right call today in dismissing CMP’s five-year rate proposal. At a time when thousands of Maine people are already struggling to afford their electric bills, CMP’s plan simply asked for far too much,” Sanborn said in a statement.”While strengthening the grid is important and much needed, CMP’s request – the largest ever in Maine history – was excessive and completely out of touch with the economic reality facing Maine people,” Mills said in a statement.In a statement, CMP said the PUC’s decision represents a step backward as Maine faces the impacts of extreme weather and rapidly growing energy demands.”Affordability remains a key concern, and we are committed to finding a path forward that balances cost with system reliability. However, delaying action on essential priorities, such as grid investment, vegetation management and staffing will ultimately cost Mainers more in the short and long run,” CMP said in its statement.CMP also stated it should be allowed to fairly recover costs it has already invested to improve the grid, and that it will carefully review the PUC’s final order when it is issued.
The Maine Public Utilities Commission (PUC) has rejected a rate hike request from Central Maine Power (CMP) that was part of a proposed five-year workforce and grid investment plan.
Under the proposal, CMP would raise electricity rates by about $35 per month for the average customer over the next five years. This would increase the company’s revenue by about $400 million.
On Tuesday morning, the PUC voted unanimously to dismiss CMP’s proposal, saying the proposal is unreasonable.
“Part of it was the overall size, but also was the fact that a lot of risk seemed to be shifting again from the company’s shareholders to ratepayers, to customers,” said Phil Bartlett, chairman of the PUC. “We felt like that allocation of risk was not appropriate, but we also didn’t see that there were sufficient mechanisms to improve performance or to provide a set of some lower costs over the course of the rate plan.”
“The dismissal does not mean a rate increase will not be considered in the future, nor that CMP’s proposed system investments are unnecessary. Instead, commissioners cited concerns with the pace of the proposed investments, the absence of a submitted long-term integrated grid plan, the impact on ratepayers and, ultimately, whether CMP’s proposal could meet the just and reasonable standard applied in rate cases,” the PUC said in a statement.
Maine Public Advocate Heather Sanborn and Gov. Janet Mills both applauded the PUC’s decision.
“The Public Utilities Commission made the right call today in dismissing CMP’s five-year rate proposal. At a time when thousands of Maine people are already struggling to afford their electric bills, CMP’s plan simply asked for far too much,” Sanborn said in a statement.
“While strengthening the grid is important and much needed, CMP’s request – the largest ever in Maine history – was excessive and completely out of touch with the economic reality facing Maine people,” Mills said in a statement.
In a statement, CMP said the PUC’s decision represents a step backward as Maine faces the impacts of extreme weather and rapidly growing energy demands.
“Affordability remains a key concern, and we are committed to finding a path forward that balances cost with system reliability. However, delaying action on essential priorities, such as grid investment, vegetation management and staffing will ultimately cost Mainers more in the short and long run,” CMP said in its statement.
CMP also stated it should be allowed to fairly recover costs it has already invested to improve the grid, and that it will carefully review the PUC’s final order when it is issued.