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May 14, 2015

Summit seeks customers to pay for ad campaign

Summit Natural Gas of Maine is proposing to have customers cover the cost of a multi-million-dollar advertising campaign that has consumed a large part of its budget.

The Portland Press Herald reported that Summit’s proposal with the Maine Public Utilities Commission would have the natural gas company recover the money through a rate hike for customers. But it wouldn’t go into effect for several years because a 10-year plan has already been negotiated with the PUC. The extra costs would last until Summit provides connections to half of eligible customers in its service areas.

Summit said the campaign is meant to educate Mainers about the benefits of natural gas and that it has consumed 24% of its operating expenses. The company argues that the proposal would be beneficial for customers because if it can add more natural gas connections, it would reduce its customers’ per capita share of capital expenses.

The Maine Public Advocate’s Office is questioning why Summit is looking to recoup the costs of its advertising campaign through customers and not through itself and its shareholders.

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