CMP, Versant customers to see lower bills
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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.
Customers of Central Maine Power Co. and Versant Power, the state’s two largest electric utilities, will see lower monthly bills starting July 1, due in part to the sale of renewable energy.
The average monthly bill for a CMP residential customer will drop by $3.40, or 2.7%, the Maine Public Utilities Commission said Tuesday. The average Versant Power customers will see a slightly smaller rate decrease than CMP customers will get, although the exact details were not immediately available.
“This is welcome news for many Mainers as they face increasing costs across the board,” said Joe Purington, president and CEO of CMP.
The rate decreases are part of the annual reconciliation of costs, power contracts and other financial considerations by the utilities. The Maine Public Utilities Commission approved three stipulations that, when combined, will result is lower electric delivery rates for customers.
The PUC said the sale of renewable energy has helped reduce generation costs, which gets passed on to customers in the form of lower monthly bills.
“It’s not always easy to quantify the impact of the renewable energy procurements facilitated by the commission, as it can take some time to see the results,” said the commission's chair, Philip L. Bartlett II. “This is an example of the payoff of those procurements, and we are pleased to be able to offer this positive news during a time when energy prices have been trending upward at an unpresented rate.”
The rate decrease comes as consumers have seen inflation rates surge to the highest levels in 40 years while gasoline prices have been climbing to over $5 a gallon.
“The PUC’s action shows the clear connection between renewable energy and lower electricity costs,” said Dan Burgess, director of the Governor’s Energy Office.
“These savings from renewable energy couldn’t come at a better time for Maine people, who are experiencing a significant increase in utility bills stemming from volatile global energy markets and our region’s over-reliance on natural gas to generate electricity."
The Maine PUC, which regulates electric, telephone, water and gas utilities, applauded the sale of renewable energy as one of the few bright spots in the electricity market.
“In spite of the many moving parts involved in these stipulations, the end result means just and reasonable rates for customers of both utilities,” said Commissioner Randall Davis. “Although these are very complicated matters, the bottom line is the lower cost to customers, which is what we, as a commission, are always considering.”
Center Maine Power Co. is owned by Connecticut-based Avangrid Inc. (NYSE: AGR). Spain’s Iberdrola is the majority owner of Avangrid. CMP has 646,000 customers in central and southern Maine.
Versant is the state's second-largest electric utility, serving 149,000 customers in northern and eastern Maine.
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