Maine PUC approves rate case settlement for Central Maine Power
The Maine Public Utilities Commission approved a settlement in Central Maine Power Company’s (CMP) distribution rate case this week.
To mitigate the impact on customers, the new rates will be implemented in four phases over a two-year period. The bill increases amount to about 1 percent, or $1.25/month, with the first increase effective July 1, 2023, and subsequent increases on January 2, 2024, July 1, 2024, and January 1, 2025. All totaled, it will result in about a $5 monthly increase over the two-year period for an average residential customer.
“This settlement is significantly lower than the initial $98 million that CMP requested and really balances the impact on CMP customers with the need to invest in the electric grid to meet reliability needs and Maines clean-energy goals,” Commission Chair Philip Bartlett II said. “It also incorporates the strictest service quality standards we have ever seen in a rate case, with built-in penalties. Both the Commission and CMP customers have been demanding better reliability and we believe this is the best way to achieve that.”
These increases are estimates based on current rates and will be impacted by additional rate changes that occur during the two-year implementation period.
The new rates include funding for grid reliability improvements, clean energy investments, and hardening the system against storm damage. They also account for system reliability improvements with stringent penalties holding utilities accountable for missing Service Quality Indices (SQIs) related to frequency and duration of outages, call answering metrics, billing accuracy, and the effectiveness of a new automation program.
If CMP does not meet the metric for a particular year, the company could pay a penalty of up to $8.8 million annually.
Bartlett added that customers need to see tangible benefits for the reliability investments that they are paying for. The performance metrics and accountability for meeting them will become a regular feature of rate cases so that customers can be confident their utilities are investing wisely to ensure reliable service, he said.
The commission is separately reviewing CMPs proposed increase to the stranded cost component of charges and anticipates a decision in June.
CMP submitted the signed stipulation, which formalized the settlement proposal, to the commission last week. The stipulation was signed by the Office of the Public Advocate, AARP Maine, Competitive Energy Services, Efficiency Maine Trust, Walmart Inc., IBEW Local #1837, The Industrial Energy Consumers Group (IECG), and others. The settlement was not opposed by any party involved in the case.
