Bangor Hydro seeking distribution rate increases
Bangor Hydro Electric Co., which will merge later this year with Maine Public Service Co., is requesting state approval of two rate changes to account for higher long-term power purchasing costs and to help pay for distribution network upgrades and a new system to manage customer information.
The Bangor Daily News reported the company is seeking to raise its “stranded cost” rates, which are based on the cost of the company’s long-term power contracts, and to raise its distribution rates. Together, the rate changes stand to add around $4 to the average residential customer’s bill — an overall increase of around 5%.
Tom Welch, chairman of the Maine Public Utilities Commission, told the paper the distribution rate upgrade is likely to be more contentious and require deeper review from regulators. That’s because requests for stranded cost rate increases come from simpler calculations based on the price Bangor Hydro pays for its power and its sale price.
The rate changes would increase the company’s revenue by around $11.7 million, made up of $4.7 million from the stranded cost request and $7 million from the distribution rate request.
The PUC has scheduled an initial hearing on the stranded rate case Nov. 19 and is awaiting the company’s formal request for a distribution rate increase to schedule hearings on the matter.
Most Recent
Most Recent
Comments