Court upholds order for CMP to share deposit funds
The Maine Supreme Judicial Court has upheld a regulatory order directing Central Maine Power Co. to share up-front deposits it gets from standard-offer customers with its electricity suppliers.
The Bangor Daily News reported the ruling upheld the Maine Public Commission’s argument that CMP’s retention of $2.6 million in deposits from customers with low credit ratings inflated the amount of cash on hand that its power suppliers had to carry to cover bad debt.
The PUC argued the bad debt carried by power suppliers could have an effect on customer bills because it is a factor in certain fees CMP puts on energy supply costs.
The PUC argued, and the court agreed, that CMP should share its deposits in the same way the transmission company and power suppliers share monthly bills.
John Carroll, a spokesman for CMP, told the newspaper the dispute resulted from different interpretations of rules he said were “ambiguous.” Going forward, he said the company will have to carry more of its own reserves to cover unpaid customer debt moving forward.
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