AUGUSTA, Maine — Versant Power customers will start to see a rate increase next month after the company's proposal was approved by the Maine Public Utilities Commission (PUC) Wednesday.
The total rate hike will be roughly 8 percent of customers' monthly bills. The increase is split into two phases: the first 4-percent increase will happen on July 1, and customers will see the second increase beginning on January 1, 2024.
According to a company release after the proposal was approved, Versant will use some extra funds for capital investment projects.
"[Versant is] installing a new metering system that’s very expensive," Maine's Deputy Public Advocate Andrew Landry said Thursday.
Landry was a key negotiator with both Versant and Central Maine Power (CMP) before a settlement was agreed on and the final proposal was sent to the PUC.
"In both cases, I think we got the best deal that was reasonably anticipated," he added.
Versant plans to replace deteriorated electric cables that provide power to customers on islands off the coast of Maine, build a new substation in Machias, and work to improve reliability in the Old Town and Orono area, among other investments, according to the release.
Landry, the Office of the Public Advocate, and other stakeholders came to a settlement agreement with Central Maine Power's proposed rate hikes on Wednesday.
During the negotiations, Landry said he had issues with CMP's proposed increase in capital cost and costs from CMP's parent company that it would pass on to customers.
"I won't say we got everything we wanted, but [CMP] made very significant concessions on those issues," he added.
CMP will also use the rate increase to upgrade its own projects and the electric grid.
"With the changing climate, there’s a need for continued investment, particularly in reliability and updated the aging infrastructure in our state," CMP Spokesperson Jonathan Breed said Thursday. "One of the big investments we’re making is in grid automation."
Breed said last winter, automation restoration was used to restore power to thousands of customers in around five minutes by flipping switches and buttons from the office, rather than sending out a crew to restore power, which could take hours.
"I think customers will see the benefits of this in the long run," Breed added.
The company's proposal is now in the hands of the Public Utilities Commission for final approval.
In response to CMP's plan, Pine Tree Power officials released a statement and called it a "bad deal for Mainers." Voters will have the chance to vote on the Pine Tree Power initiative, which would eliminate Versant and CMP, on November 7.