Are you confused about the various rate hikes that will be in your electric bill on July 1? You are not alone.
Even regulators, electric companies and the public advocate’s office released different numbers on the rate increases on Tuesday, adding to the already confusing number of rate changes taking effect in July.
The difference in numbers came because the companies and public advocate accounted for a current credit for “stranded costs” that will go away on July 1. Rates are significantly higher without the credits.
Stranded costs are subsidies for the effects of generous state solar subsidies and long-term renewable power contracts on Central Maine Power and Versant Power that will be passed on to consumers next month.
The Maine Public Utilities Commission updated its numbers on Wednesday. We have sifted through and broken down the increases Mainers will see on their monthly bills.
$10.25 starting July 1 for the average CMP customer
$8.85 for stranded costs: CMP customers have been getting a $2.91 credit for stranded costs on their bill, but that will end on July 1 and a new charge of $5.94 will be added.
$1.67 for distribution rates: The PUC approved a four-part distribution rate increase, with the remaining rate increases in the same amount becoming effective on Jan. 1 and July 1, 2024 and Jan. 1, 2025. Each step will give CMP $16.75 million in revenue. CMP’s last distribution rate increase was in July 2021.
76 cents: Credit due to a lower Efficiency Maine budget.
49 cents for a state compliance filing.
The total is $123 more per year for the average residential CMP customer using 550 kilowatt hours of electricity. All figures are from CMP.
$16.86 starting July 1 for the average customer in the Versant Bangor Hydro District
$12.97 for stranded costs: Customers are getting a $4.20 monthly credit now that will end in July. Those who now pay $8.77 per month will see that rate rise to $12.97 per month.
$4.63 in the distribution rate: Like CMP, Versant has agreed to raise its distribution rate in two equal stages, first on July 1 and the next on Jan. 1, 2024. Its last distribution rate increase was in November 2021.
74 cents: Credit for Efficiency Maine.
The total comes to $202 more per year for the average residential Bangor Hydro customer using 500 kilowatt hours of electricity. The Bangor Hydro District includes most of Penobscot County and all of Hancock, Piscataquis and Washington counties. All figures are from Versant.
$13.59 starting July 1 for the average customer in Versant’s Maine Public District
$7.91 for stranded costs: Customers are getting a $2.44 monthly credit now that will end in July. Those who now pay $5.47 per month will see that rate rise to $7.91 per month.
$4.54 for the distribution rate: Like CMP, Versant has agreed to raise its distribution rate in two equal stages, the first on July 1 and the next on Jan. 1, 2024. Its last distribution rate increase was in November 2021.
$1.88 for the transmission rate: Versant does not supply electricity but bills on behalf of those that do.
74 cents: Credit for Efficiency Maine.
The total comes to $163 more per year for the average residential Maine Public District customer using 500 kilowatt hours of electricity. The district serves Aroostook County and a small part of Penobscot County. All figures are from Versant.
