Maine regulators approved another big hike to electricity bills Tuesday for the state’s major utilities, driven by solar subsidies that have been criticized by the state’s ratepayer advocate in recent weeks.
The nearly $135.7 million in new increases approved by the Maine Public Utilities Commission through mid-2024 cover so-called stranded costs, which are the impacts of long-term contracts for renewable power and net energy billing programs on Central Maine Power and Versant Power.
The increases come on the heels of both companies getting approval to raise distribution rates in stages starting on July 1. The new stranded rates result from residential and community solar projects with above-market costs. Public Advocate William Harwood said in April that those policies will cost $220 million by 2025, prompting criticism from the solar industry.
The new rates including the stranded costs will also be effective July 1. CMP customers will see an increase of about 5.8 percent, or $5.95 on average, to their monthly electric bill. Versant Bangor Hydro District will see a rise of 9.3 percent, or $8.77 monthly, and Versant Maine Public District will increase rates about 5.6 percent, or $5.47 per month.
That amounts to a total of $95 million that CMP can collect from customers from July 1, 2023 through June 30, 2024.
Versant will have a two-step increase on July 1 and Jan. 1. Bangor Hydro District will be able to collect about $26.3 million in July and increase that to $32.6 million in January. The Maine Public District will collect $5.9 million July 1 and increase that to $8.1 million in January.
“As with the recent distribution rate increase, we understand that any increase is not ideal and comes at a time when people are already impacted by inflation,” Maine Public Utilities Commission Chair Philip Bartlett said.
He said it is important to realize that a short-term increase will reduce the state’s dependence on fossil fuels. Community solar projects can help drive down costs over the long term, he said.
Correction: An earlier version of this story misstated the annual total of the rate increases approved by regulators on Tuesday. It is $135.7 million.
