Mainers can expect more rate hikes for electricity through the end of next year until the solar subsidies that have driven up rates for consumers wind down.
The Legislature is reining in its costly net energy billing program, which was set up to encourage the transition to renewable power. The program, made up mostly of solar projects selling electricity at above-market costs, were the main driver behind the recent increases in electric bills. Projects now will have to be in commercial operation by the end of December 2024.
“The Legislature has put significant restrictions on the program so we are not going to see the large 2- to 5-megawatt facilities that were driving a lot of the cost,” Philip Bartlett, chairman of the Maine Public Utilities Commission, said in a briefing Thursday aimed at explaining high electricity bills.
Central Maine Power and Versant Power, Maine’s two largest electric utilities, both increased their rates significantly starting July 1 and will implement those rises in stages. The round of increases driven by solar funding alone raised CMP rates $8.90 per month and the total bill about 5.8 percent, according to the PUC.
Stranded costs raised Versant Bangor Hydro District bills $12.97 per month or a total bill rise of about 9.3 percent. Versant Maine Public District customer’s bills rose $7.91 per month or about 6.5 percent for the total bill.
Bartlett did not specify what rate rises will look like in 2024, but he expected things to ease.
“I would not expect next year’s increase to be as high as this year’s,” Bartlett said.
