Maine households, businesses to pay more for electricity by January

Photo / Pixabay.com Maine households and businesses will have to pay more for electricity supply starting in January under new rates approved by regulators last week.

Write a Comment

By Renee Cordes

Maine households and businesses will see their monthly electricity bills increase in January under new supply rates approved by the state’s utilities regulator.

The Maine Public Utilities Commission last week accepted bids for the standard offer, which makes up about 40% of a CMP residential customer’s bill and roughly half of a residential customer in Versant Power's Maine Public District.

As of January, the average CMP residential customer using 550 kilowatt-hours per month will have to pay $11 more per month for the supply portion of the bill, bringing the total to $12.72 per kWh. The same rate will apply to small businesses.

For the average residential and small-business customer of Versant, the monthly supply charge will increase by about $16 a month to $14.87 per kWh.

Rates were adjusted following a competitive bid process conducted by the Maine Public Utilities Commission, as required by state law. The changes apply to customers who do not buy electricity from a competitive supplier of their choosing but instead receive the standard offer by default.

"We recognize that rising energy costs create real challenges for Maine households and businesses," said Philip L. Bartlett II, chair of the Hallowell-based regulator.

“The standard offer reflects current market realities and the Commission remains committed to securing the lowest reasonable prices for Maine electric utility customers in a challenging energy environment,” he added.

CMP, Versant reactions

In an emailed statement, CMP said the new rates stem from a decision by state policymakers 25 years ago to deregulate Maine’s wholesale electricity market, a move that has exposed consumers to price swings and left utilities with fewer tools to help customers manage costs.

”To be clear, these charges do not generate profit for CMP,” the company said. “Unlike other parts of the electric bill, this is simply a cost increase for something Mainers are already paying for, and it would have faced far greater scrutiny if Maine had not deregulated its wholesale electricity market.”

In a separate statement, Versant noted that while it doesn’t generate electricity, it’s required to bill customers for it as a direct pass-through.

It added that the Versant team" is committed to ensuring we connect customers with the proper resources if they have trouble affording their bills," including payment plans and other assistance.