Financial pressure on Central Maine Power could force it to delay construction projects aimed at improving reliable electric service and upgrading aging infrastructure, according to the company.
The utility’s warning comes ahead of a Maine Public Utilities Commission decision on whether to grant CMP’s request to temporarily increase customer prices to raise about $70 million.
CMP CEO Linda Ball said rising inflation, construction prices and borrowing costs make it increasingly difficult to continue investing in the electric grid. The company said most of the rate increase it wants will pay off projects already started and completed.
“For more than a year, we have continued investing in reliability and system improvements while managing rising costs and awaiting the necessary regulatory approval to align rates with the cost of providing service,” Ball said in a statement.
Projects in South Portland, Biddeford and Saco, Lewiston and Auburn, and Bridgton that benefit thousands of customers could be delayed, according to CMP.
The utility also has suspended hiring for 70 open positions and pulled out of a University of Southern Maine job fair.
The austerity moves started shortly after the commission’s staff recommended that commissioners reject CMP’s temporary rate hike. The company wants to impose higher costs now while it negotiates long-term prices for electric transmission and distribution.
But commission staff said that there was no “undisputed” amount of near-term rates that could be imposed amid widespread public concern about rising energy prices and vigorous opposition from organizations that include the Maine Office of Public Advocate.
Some opposing groups, including the Natural Resources Council of Maine and Acadia Center, have criticized CMP’s hiring and investment pause and urged the company to meet its obligations to customers.
Noah Berman, a utility advocate with Acadia Center, said in an interview that he doubted the company’s claim of financial strain.
“I do not believe CMP is accurately portraying its capability in ensuring that Mainers have safe and reliable and adequate service which is its obligation under the law,” Berman said.
The utilities commission will deliberate whether to permit temporary rates at its meeting Tuesday.
This story appears through a media partnership with Maine Public.