Maine Public Utilities Commission approves Versant Power’s rate proposal
Versant Power Company had its rate case approved this week by the Maine Public Utilities Commission (MPUC).
The new rates will be implemented in two phases over six months to reduce the impact on customers. Half of the rate increase will go into effect on July 1, 2023, while the other half will be implemented on Jan. 1, 2024. In July, the rate will increase 14 percent and in January it will jump by 12.5 percent.
For the average residential customer using 500 kilowatt-hours per month, the new rates would result in increases of about $5.25 per month, or about 4% of the total bill, in July and January. For a customer using 750 kwh, it would result in two $8.00 increases, and for 1,000 kwh, increases of about $10.50.
“A rate increase is not something the Commission takes lightly,” MPUC Chair Philip Bartlett II said. “In this case, the parties came together to put forward a reasonable compromise that balances the need for investment with customer impact, while also ensuring accountability for improved reliability.”
The new rate includes funding for infrastructure investments, smart meter upgrades, inflation, technology upgrades, a new substation in Machias, new cables to transmit electricity to coastal islands, and various system reliability improvements, among other projects.
Further, there will be penalties holding utilities accountable for missing Service Quality Indices (SQIs) related to frequency and duration of outages, call answering metrics, billing accuracy and timeliness of fulfilling field service requests. In instances where the SQI is not met for a particular year, Versant will pay a penalty based on the percentage by which the performance deviates from the benchmark. Penalties of up to $3 million would be paid back to customers through stranded costs.
“Ultimately, we wanted to ensure that these reliability investments lead to tangible benefits for customers,” Bartlett said. “As customers increase reliance on electricity, including for heating and transportation, and significant investments are needed to make the clean-energy transition, it is imperative that customers see they are getting value for the rates they pay. We can expect performance metrics and accountability for meeting them to become a regular feature of rate cases so that customers can be confident their utilities are investing wisely to ensure safe, adequate, and reliable service.”
Versant Power worked with the Office of the Public Advocate, AARP Maine and the Aroostook Energy Association to reach the settlement. The commission is separately reviewing Versant’s proposed increase to the stranded cost component of charges and anticipates a decision in June.
Versant Power has several programs to help those experiencing financial hardship and having trouble paying their electricity bills. For more information, go to versantpower.com, call 1-855-363-7211 or 207-973-2000, or email info@versantpower.com.
Versant Power, Maine’s state’s second-largest electric utility, delivers electricity to more than 164,000 residential, commercial and industrial customers in eastern and northern Maine.
