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Voters last week soundly rejected Question 3, which sought a takeover of the state’s two large private utilities to create the consumer-owned Pine Tree Power.
However, the failure of the referendum question, which was plagued by uncertainty and sometimes conflicting promises, does not mean the status quo is acceptable.
As we’ve said before, Central Maine Power and Versant Power, the two targets of the takeover, have plenty of room for improvement. For example, they have been slow to make investments needed to allow more renewable energy into the state’s grid, which is an essential part of the state’s climate plan. CMP for far too long denied problems with a new billing system and was slow to fix them.
Both companies have become more responsive recently, thanks to pushes by regulators, lawmakers and customers. Despite what CMP’s president told the Portland Press Herald this week, last Tuesday’s vote is not a validation of their current state of affairs
The Pine Tree Power proposal focused on three main frustrations: rising electricity bills, poor reliability as measured by frequent power outages in some areas and the private utilities’ slow accommodation of the renewable energy sources needed to make the state’s electricity grid greener and more resilient.
In all of these areas, Maine’s Public Utilities Commission can and should play a stronger role. A new utility accountability law, which went into effect last year, may be a good start. Because the law, which requires the commission to set new metrics for utility operations and performance and requires quarterly report cards, is so new, it is hard to know if it will be strong enough. Lawmakers should be prepared to act if it is found to be inadequate.
Even before the new law, CMP faced increased scrutiny. In 2020, the company was fined nearly $10 million and required to file an improvement plan after major problems with its new billing system.
As for rising electricity bills, the utilities, by law, only control a portion of those charges. Under Maine’s 2000 utility deregulation law, they had to sell their electricity generating assets. They are now responsible only for the transportation and delivery of electricity. They buy the electricity that they deliver to our homes and businesses and other locations from numerous suppliers in and out of Maine. Natural gas is a major source of fuel for electricity generation in Maine. When natural gas prices spiked last year, at the time when the utilities were due for new annual contracts, those big price increases were passed on to consumers.
Generating more electricity locally, from hydroelectric dams, solar, wind and biomass, can help alleviate natural gas prices spikes while also reducing greenhouse gas emissions. But tying new renewable energy projects into the state’s power grid can be slow and uneven. Not all of the blame for the slow pace rests with the utility companies as adding in new sources is complex and there has been a sharp increase in demand for these connections. However, the companies, especially CMP, have been slow to make investments needed to allow more renewable energy into the state’s grid, which is an essential part of the state’s climate plan.
Changes in Maine’s utility landscape are likely to accelerate, especially as the state moves toward its climate goals. In newspaper columns published soon after last week’s election, Versant and CMP said that they are up to the ongoing challenges and that they will redouble their efforts to improve their services. It is now also up to the utilities commission and Legislature to ensure that the companies follow through on those pledges.