Maine voters reject Pine Tree Power plan. Here's what that means.

MAINE, USA — Maine voters rejected the option to dissolve the state's two largest power companies, Versant and Central Maine Power, and instead create Pine Tree Power. 

Question 3 asked: "Do you want to create a new power company, governed by an elected board, to acquire and operate existing for-profit electricity transmission and distribution facilities in Maine?"

This measure was created as a way to balance the high rates and customer issues from Central Maine Power and Versant Power.

The proposed takeover of two investor-owned utilities that distribute 97 percent of electricity in the state is unprecedented.

If approved, the referendum would have marked the first time a state with existing private utilities decided to scrap them all at the same time in favor of a nonprofit model. The proposal would have dismantled Central Maine Power and Versant Power and create the nonprofit utility Pine Tree Power to govern the grid instead.

Supporters said there was little to lose because of the utilities' poor performance. But critics said there's no guarantee the nonprofit utility would perform any better while the move could spark lawsuits and cost billions — as much as $13.5 billion — to buy out the existing utilities.

A separate ballot question could have also posed a hurdle for Pine Tree Power: If approved, the referendum would require voter approval for borrowing topping $1 billion, potentially crimping access to bonds needed for the buyout.

The vote came amid intense criticism of Central Maine Power over its slow response to storm-related power outages, a botched billing system rollout, and perceived roadblocks to connecting renewable power projects to the grid, among other things.

Central Maine Power released a statement after Mainers voted to reject the Pine Tree Power initiative. 

"Fifty years ago, in 1973, voters in Maine soundly rejected a proposal to seize Maine’s electric grid and replace it with a political board (61 NO – 39 YES). Maine voters have once again overwhelmingly rejected this idea.

Next year our company will mark 125 years since our founding, and our commitment to delivering safe and reliable service remains unchanged. From our response to the 2022 Christmas storm, to exceeding our customer service metrics for more than three years running, to being voted one of Maine’s best places to work, our company remains completely committed to our customers, our employees, and to Maine. 

With this referendum behind us, we are turning the page. As we look forward, we must continue to modernize our grid to support Maine’s climate change goals, connect new renewable resources, and electrify our communities.

Thank you to our 660,000 customers for putting their continued trust in Central Maine Power. We will have more to say in the coming days."

Associated Press contributed to this report. 

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