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How Maine manufacturers can take control of energy costs

By John Lewis, guest columnist

Energy volatility has become a defining challenge for manufacturers in Maine. In a region where electricity prices are among the highest in the country, the cost of procrastination in electricity procurement is real.

John Lewis
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John Lewis

Waiting too long to make a buying decision can lead to budget overruns, reduced margins and fewer dollars available for investment in people, equipment and growth.

Recently, I attended two conferences focused on energy. One theme stood out across both: strategy matters more than ever. Markets will always move, but manufacturers cannot control the policy decisions behind much of today’s volatility. The only meaningful lever businesses have is the strategy they put in place to navigate that uncertainty.

Electricity is no longer a background line item that can be revisited every few years. For many manufacturers, it is a top-three expense and a strategic input that shapes competitiveness.

Delaying a supply decision exposes companies to sudden price swings driven by natural gas markets, weather, grid constraints and regulatory shifts. A favorable rate one month can jump the next, erasing opportunities for savings and stability.

Strategic planning 

Too often, energy decisions are triggered by a renewal notice, an expiring contract or a sudden price spike. By that point, options narrow and leverage weakens. A more effective approach is to treat electricity procurement as strategic planning.

One option is a layered purchasing strategy, where a company buys portions of its electricity load over time instead of all at once. This smooths volatility and avoids the pressure of choosing a single day to buy power.

Another is a trigger-based strategy, which sets target prices in advance and executes purchases automatically once those targets are met. These methods help shift decision-making away from urgency.

Equally important is defining risk tolerance. Manufacturers must determine how much exposure they can accept and select products and contract terms that align with that level of risk. This may include a blend of fixed and index pricing, various contract lengths or a mix tied to operational needs.

Rising costs 

Since taking over as executive director of the Manufacturers Association of Maine on June 1, I have heard a steady message from members: energy costs continue to rise, remain unpredictable and are increasingly difficult to manage.

Many manufacturers feel they are rolling the dice every time a contract comes up for renewal. Others are unsure whether their purchasing structure fits their operations.

Fortunately, MAME has long supported members on this issue. The association established its energy program in 2007 to help manufacturers understand the market, evaluate purchasing options and make informed decisions.

The program offers tools that allow companies to compare products, assess risk and avoid deadline-driven choices. It also encourages members to engage early, well before contracts expire, to ensure they have time to evaluate options and secure competitive pricing.

As part of this effort, MAME partners with Constellation Energy as the association’s premier electricity supplier. Through this partnership, members have access to market intelligence and procurement strategies that support long-term financial stability. The focus is not chasing the lowest rate on a single day, but building a disciplined approach that can withstand market volatility.

Planning ahead and understanding risk

Electricity has become a strategic lever, not just a bill to be paid. Companies that succeed in this environment are not necessarily those with perfect timing, but those with a sound plan, trusted advisers and the discipline to act early.

For Maine manufacturers, this means treating energy as a core part of operational strategy and using available resources, including MAME’s longstanding energy program, to gain insight before making decisions. It means planning ahead, understanding risk and engaging the market with intention rather than urgency.

The cost of procrastination is more than the difference between this month’s price and last month’s. It is lost opportunity: the chance to protect margins, reinvest in the workforce and strengthen competitiveness.

MAME’s goal is to ensure that its members do not face that challenge alone and can turn energy management into an advantage.

About the author

John Lewis is the executive director of the Manufacturers Association of Maine. 

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