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May 27, 2022

Central Maine Power will seek rate hike — but Mills vows to oppose it

Two CMP meters File photo State officials are objecting to an apparent reversal by the Internal Revenue Service on the Federal Taxability of Maine’s $450 Winter Energy Relief Payments.

Central Maine Power Co. is asking state utility regulators to approve a power grid upgrade along with a rate increase to pay for it. If the plan goes ahead, electricity prices could rise by as much as $10 a month for the average Maine household over the next three years.

Under CMP's Powering Maine plan, the company proposes a three-year commitment to continue to deliver reliable power, support more efficient storm restoration response, reduce the impacts of outages on customers, offer more tools to customers to monitor and manage their energy usage and enable greater adoption of renewable energy onto the grid.

“CMP must continue to make the smart system updates that improve reliability now and enable the company to successfully perform our role in helping Maine meet its climate change goals,” said Joseph Purington, CMP's president and CEO.

“We know household budgets are being hit hard by higher prices across the board right now, and the Powering Maine plan strives to ensure that progress continues on improving the electric grid and meeting clean energy goals — some of which will minimize annual energy costs over time — while being mindful that this is a tough time for many Mainers.”

The plan, which CMP expects to put forth later this summer, drew instant opposition from Gov. Janet Mills and William Harwood, Maine's public advocate.

“Maine people are already struggling with sky-high costs from record inflation, including high electricity rates that are the result of New England’s dependance on expensive, harmful fossil fuels," Mills said. "For CMP to say they want to heap added costs onto Maine people adds insult to injury. It’s outrageous."

Urging CMP not to file its request, she warned that if it goes ahead with the plan, she will take countermeasures.

"I will direct my Energy Office to intervene in the case to oppose it, and I will call on the Maine Public Utilities Commission to reject it so that Maine sends the clear message to our utilities that their focus needs to be on improving performance, reducing cost burdens, and restoring trust," she said. "There is simply no way that increasing folks’ electricity bills right now can be considered just and reasonable. I will fight this.”

Echoing that sentiment, Harwood said that any increase in electricity rates right now "poses an unwanted additional financial burden on Maine ratepayers, for whom the cost of nearly every other necessity is rising,"

He also said that his office will scrutinize CMP’s request to identify any underlying costs that are out of line, "and will offer the Public Utilities Commission an alternative recommendation that is consistent with the statutory requirement that CMP’s rates be 'just and reasonable' and prioritizes the welfare of Maine ratepayers.”

Central Maine Power is the state's largest electricity provider, serving 646,000 customers in central and southern Maine. The company is headquartered in Augusta and is a subsidiary of Connecticut-based Avangrid Inc. (NYSE: AGR).  Avangrid's parent company is Iberdrola S.A., of Spain. 

CMP has come under fire in recent years over complaints of poor customer service and billing errors, and has faced lawsuits over the company's plan to construct a $1 billion transmission corridor through western Maine. In February the Public Utilities Commission opened an investigation into CMP's management practices.

Earlier this month, Mills signed legislation to reform the state’s approach to utility oversight. The legislation, LD 1959,  "An Act Regarding Utility Accountability and Grid Planning for Maine's Clean Energy Future," was introduced by state Sen. Stacy Brenner, D-Cumberland, and sets minimum service standards for service, increases penalties for substandard service and strengthens the accountability of utilities to protect Maine people.

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