The Maine Public Utilities Commission on Tuesday declined to implement Central Maine Power’s proposed plan that would increase rates over the next five years.
Under the proposal, the bill of a typical residential customer using 550 kilowatt hours per month would go up by a total of $35 per month over the five-year term, generating a total of $427 million in revenue for the utility, according to CMP and filing documents.
The increase would be steepest at the start, jumping $17 per month in the first year, then $5 per month the following year, $4 per month in each of the next two years, and $5 per month in the final year.
Commissioners were concerned that CMP’s proposed plan did not include a long-term integrated grid plan, as well as the potential negative impact on customers.
“At a time when the Legislature has prioritized grid planning and performance standards, and affordability is a top concern, CMP’s proposal misses the mark, particularly regarding accountability, pacing of investments, and ratepayer protections,” Commission Chair Philip L. Bartlett II said. “The Commission will open a proceeding to provide guidance on multi-year rate plans to inform future rate case filings.”
CMP called the decision “a step backward” at a time when Maine “faces the impacts of extreme weather and rapidly growing energy demands.”
“Affordability remains a key concern, and we are committed to finding a path forward that balances cost with system reliability,” the utility said in a statement Tuesday. “However, delaying action on essential priorities, such as grid investment, vegetation management, and staffing will ultimately cost Mainers more in the short and long run. CMP should be allowed to fairly recover costs already invested to improve the grid, and we will carefully review the Commission’s final order when it is issued.”
The rate hike request also comes on the heels of a rate increase that took effect July 1 and was expected to add $4.91 per month to the bill of the average residential customer.
CMP will need to file a new rate request with the Maine PUC for any future changes. A timeline for the guidance proceedings, or when new rates will be considered, has not been determined according to Maine PUC spokesperson Susan Faloon.