Maine’s biggest electric utility is suing in federal court to block a new state law that requires participation in the regional electric grid, and strips away a longstanding financial bonus for joining ISO-New England.
Maine’s Office of Public Advocate has stated that removing that incentive, or “adder,” would save electric customers $2 million a year.
In a complaint filed in U.S. District Court for the District of Maine, Central Maine Power said the law, LD 2038, was preempted by the authority of the Federal Energy Regulatory Commission, which is responsible for setting prices of electric transmission and oversight of regional transmission organizations, or RTOs, such as ISO-New England.
The incentive was granted in recognition that it gave up significant control over its transmission assets, such as construction planning, power dispatch, outage scheduling and approval of new interconnections by power generators, according to CMP.
Requiring CMP to participate in the grid operator “undermines the federal policy regime of voluntary membership in RTOs and forces utilities like plaintiffs to concede property interests and contracted-for rights without compensation,” the utility said in its complaint.
A utility spokesperson declined to comment on the complaint. CMP is joined in the lawsuit by the Maine Electric Power Co., a transmission utility owned jointly by CMP and Versant Power that owns the wires connecting the New England grid to New Brunswick.
An Act to Require Maine Transmission and Distribution Utility Participation in a Regional Transmission Organization was enacted this spring. In September, the Office of Public Advocate petitioned FERC to remove the bonus that gives CMP an added profit margin for their transmission infrastructure.
But the office noted that federal appeals courts and the energy commission have found that utilities no longer qualify for the bonus once state law compels them to join a regional transmission organization.
“Maine electricity customers are paying for something they no longer need to pay for,” Public Advocate Heather Sanborn said in a statement at the time. “Eliminating this outdated adder would mean real savings on their electric bills,” Sanborn added. Sanborn declined to comment on the lawsuit.
The complaint also names Maine Public Utilities Commission Chair Phil Bartlett and acting Commissioner Celina Cunningham of the Maine Department of Energy Resources.
The lawsuit comes as CMP is requesting an increase in the amount its customers pay for service at the same time many Mainers are concerned with the rising cost of energy and other household necessities. The utility serves more than 646,000 customers.
The utilities commission recently rejected the utility’s request for short-term temporary rates until long-term prices are set next year. The company has said its financial situation is precarious and has cut back on infrastructure spending and hiring.
This story appears through a media partnership with Maine Public.