Frustrated ratepayers and climate activists gathered in Freeport, Maine, to protest a proposed rate hike by Central Maine Power (CMP).
CMP’s proposal, submitted to the Maine Public Utilities Commission, would raise electricity rates over five years, generating approximately $1.4 billion for grid reliability and efficiency upgrades. This could increase the average customer’s bill by about $35 monthly by the end of the period.
CMP, a subsidiary of Avangrid, serves over 646,000 customers in Maine. While CMP delivers power, ISO New England manages the regional wholesale market supplying Maine’s electricity, with about 67 percent from renewables.
The proposed revenue increase would support five key initiatives: stronger utility poles, covered wires, smart technology, modern substations, and an expanded “Danger Tree” removal program.
“Our electric grid faces challenges from extreme heat and storms,” said Linda Ball, CMP’s president and CEO. “We plan to invest in a more resilient grid.”
Storms have cost Maine millions, with expenses passed to ratepayers. In July, CMP customers saw a monthly increase covering storm damages from 2022-2024.
Outages have increased, often due to fallen trees. CMP plans to hire 400 new workers to respond quickly and reinforce vulnerable grid areas.
CMP’s request for a 9.8 percent return on equity has drawn criticism for potentially burdening ratepayers. Seth Berry, from utility advocacy group Our Power, noted that investor-owned utilities averaged a 9.6 percent return in early 2023.
Governor Janet Mills opposed the proposal, stating CMP has not submitted a required resilience and modernization plan under LD 1959, a law mandating transparent upgrades.
Electricity rates in Maine have risen between 10 and 20 percent since 2024. Critics blame renewable policies, while advocates say fossil fuels cause price spikes. The region’s reliance on natural gas makes it vulnerable during high demand periods.
Rising demand from data centers is driving up prices, said Jonathan Rubin, economics and energy policy professor at the University of Maine. “This may be just the start of cost increases as we spend more on infrastructure,” Rubin added.
Advocates agree upgrades are essential but must be transparent and compliant with planning, without excessive shareholder returns as Mainers face high energy burdens. A 2024 report found low-income residents spend 14 percent of their income on energy, exceeding the high energy burden threshold.
“CMP’s profits shouldn’t come at the expense of residents or climate goals,” said Berry. High prices could hinder clean technology investments crucial for Maine’s climate targets. If the utilities commission doesn’t rule against the proposal under LD 1959, a long battle is expected.
Original Story at insideclimatenews.org