$90 utility credit could aid low-income Maine electricity customers

COURTESY / VERSANT POWER About 90,000 low-income households could receive a one-time credit on their electric bills.

Write a Comment

By Staff

Low-income households across Maine could each soon receive a one-time $90 credit to help with increased electricity charges.

The Governor’s Energy Office and the Office of the Public Advocate submitted an $8 million proposal Wednesday to the Maine Public Utilities Commission, designed to help Maine people with electricity bills, according to a news release.

The proposal was developed in consultation with the Department of Health and Human Services, Central Maine Power Co., Versant Power and MaineHousing.

If approved by the PUC, the bill credit would be applied to approximately 90,000 Maine households served by Central Maine Power and Versant Power.

“Maine’s overreliance on fossil fuels, especially natural gas, is pushing up electric rates for Maine people, with a disproportionate impact on those who are low-income,” Gov. Janet Mills said in the release.

“This program can deliver meaningful relief to those who need it most as we examine other ways we can tackle this growing burden.”

Bill Harwood, the state’s newly installed public advocate, said the program would not add significant administrative costs to the utility or ratepayers.

“As we prioritize further, lasting solutions to rising energy costs on Maine people, this effort will help those who need it most, right now,” Harwood said.

Dan Burgess, director of the Governor’s Energy Office, attributed increasing electric rates to global markets causing fossil fuel prices to rise.

“This initiative helps provide immediate relief for Maine people, as the work to reduce our dependence on fossil fuels moves ahead,” Burgess said.

The $90 bill credit would offset three months of the average household’s monthly utility bill increase this year, stemming from the increased standard-offer electricity price approved by the PUC that took effect in January.

To be eligible for the credit, a household’s income must be at or below 150% of federal poverty guidelines. Utilities will identify households that should receive the credit with the assistance of the Maine Department of Health and Human Services.

Funds for the bill credit are contingent upon the use of federal funds delivered to Maine for the Heating Assistance Program, or HEAP, which is administered by MaineHousing. Use of the funds would ensure no additional costs to ratepayers to support the credit.

MaineHousing Director Daniel Brennan said the proposal would be presented to the agency’s board of directors early next week.

Joseph Purington, president of Central Maine Power, noted that the supply rate of electricity rose over 80% this year.

Purington added that CMP doesn’t control or benefit from the supply rate.

“We urge customers to work with us to help identify ways they may be able to manage their electricity bills,” said John Flynn, president of Versant Power.

The timing of the bill credit is dependent on the PUC’s approval.