Maine utilities regulator rejects CMP's proposed rate hike

CMP worker at work on a site in protective gear.

File Photo / Courtesy of Central Maine Power Co. A CMP worker in arc flash protection performs work in Westbrook

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Maine’s utilities regulator voted to dismiss a proposal by Central Maine Power Co. to raise electricity rates over the next five years by an average of $35 a month.

CMP called the Maine Public Utilities Commission's decision a "step backward" for the state.

The controversial plan called for raising distribution rates by $17 per month in 2025, followed by smaller increases in the four years after that. CMP sought the rate hike to finance $427 million in upgrades to the power grid and hire hundreds of line workers.

Citing several concerns — including the pace of proposed investments, the absence of a submitted long-term integrated rate plan and the impact on taxpayers and ultimately whether CMP’s proposal could meet the “just and reasonable standard” applied in rate cases — regulators denied the request.

But the Hallowell-based agency said the dismissal does not mean a rate increase would not be considered in the future, nor that CMP's proposed investments are unnecessary, leaving the door open for CMP to submit another proposal.

'Misses the mark'

In Tuesday's announcement, Maine Public Utilities Commission Chair Philip L. Bartlett II said the proposal did not align with the agency’s work to strengthen performance measures and accountability requirements for utilities.

"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," he said.

He also said the agency will open a proceeding to provide guidance on multi-year rate plans for future rate case filings.

Gov. Janet Mills, a Democratic candidate for the U.S. Senate in 2026, applauded the regulator for dismissing what she called an "outrageous request" by CMP.

"While strengthening the grid is important and much needed, CMP's request — the largest ever in Maine history — was excessive and completely out of touch with the economic reality facing Maine people," she said.

CMP response

Central Maine Power, a subsidiary of Orange, Conn.-based Avangrid Inc. (NYSE: AVR), called the decision “a step backward” as the state faces the impact 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,” it said. “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,” it continued.

The company, led by President Linda Ball since September, serves around 660,000 customers across 346 communities in central and southern Maine.