HALLOWELL, Maine — The Maine Public Utilities Commission approved delivery rate decreases for Central Maine Power and Versant Power companies on Tuesday.
Utilities that operate in Maine must request permission of the commission to make rate changes, up or down, with evidence to back it up.
The new rates take effect July 1, with CMP dropping transmission prices by 5.5 percent (averaging $3.40 per month). Versant Power-Bangor Hydro district residential customers will see a 3.8 percent drop and 3.5 percent for Versant Power-Maine Public District residential customers.
"This is not the complete answer, but we are certainly pleased that we can provide some relief as we head into the second half of the year," PUC Chair Phil Bartlett said.
Bartlett; Dan Burgess, who runs Gov. Janet Mills' energy office; and the public advocate’s office all attributed the rate decrease directly to Maine’s investment in renewable energy, including large-scale solar and wind projects.
Bill Harwood is Maine's public advocate. He serves a four-year term and his duty is to sit in on PUC meetings and speak on behalf of the rate payer.
Even if state leaders did not care about the fight against climate change, Harwood said, increased, "smart" investment in renewables will be good for Mainers' utility bills long term.
The legislature and the PUC choose the sources of power for the state, then the utility companies sign contracts to deliver that power. With the state legislature and governor committing to 80 percent renewable energy by 2030, they’ve chosen more and more renewable projects, which are getting cheaper to run as technology advances.
But Maine still uses a lot of fossil fuels, including the highest rate of heating oil in the U.S. Harwood, warned utility users that a rate decrease today comes with likely increases later.
"With the war in Ukraine and the need for natural gas in Europe, our natural gas prices are gonna stay very high for the next year or two, and that’s not good news for rate payers," he explained.
Indeed, it appears this summer's price dip will rebound significantly.
On May 26, CMP notified the public utilities commission it intends to request a rate increase, beginning July 2023, that could gradually raise the average price by $10 per month over the next three years.
"This decrease is welcome news and God knows the rate payers need it now," Harwood said. "We’re all struggling with high inflation and high energy prices, but we shouldn’t get to comfortable or too complacent."
"The storm clouds are on the horizon."