CMP’s latest proposed rate increase tempered by mild storm season

Central Maine Power, Maine’s largest utility, has submitted its latest rate increase proposal to the Public Utilities Commission. 

CMP is seeking to increase its revenue by $189 million, with $69.3 million coming from a temporary rate increase starting in July. 

But what that means for ratepayers bills is complicated by a decrease from prior storm-related costs. The average household will see their electric costs drop by $11 a month starting in July, according to the Office of the Public Advocate, because of the roll-off of those storm costs.

“Today, we submitted a proposal that would reduce electricity bills starting this summer, striking a careful balance between affordability and reliable service,” said Linda Ball, president and CEO of CMP, in a statement. “As customers face rising costs across many parts of their lives, this proposal would help ease electric bills.”

This CMP proposal would increase a household’s monthly electric costs by $7 starting in July, but combined with the storm decrease, ratepayers would still see a $4 a month drop in their bill. 

If the full proposed increase is approved to begin next May, it would mean an $18 a month increase in costs. But again factoring the $11 decrease, households would see a $7 increase compared to their bill today. 

The Public Utilities Commission rejected CMP’s last attempt to raise rates, telling the utility in November that it needed to resubmit a plan that takes into greater consideration long term resilience planning and the impact on ratepayers.

Utility regulators reject CMP’s proposed rate hike, for now

Rebecca Schultz, senior advocate with the Natural Resources Council of Maine, said in a Thursday blog post that the latest proposal is a “canny maneuver” meant to mask the impact of rate increases. 

“So when CMP is spinning its rate hike as a proposal that ‘would lower bills by $4 per month,’ the truth is that it’s jacking up bills by $7 this July and another $11 next May — when customers are actually owed $11 per month in relief due to a thankfully mild 2025 storm season,” Schultz said.

Heather Sanborn, who represents ratepayers as Maine Public Advocate, criticized the proposal. 

“CMP’s filing makes clear that the company is not only seeking to recover higher operating costs and capital investments, but also to increase its profits,” Sanborn said in a statement. “This comes at a time when Maine families are already facing the rising costs of everything from gas to groceries and housing.”

Fight the Hike, a Maine consumer defense coalition, said the rate increase would deepen the financial strain on Maine households already facing high costs. 

“Maine ratepayers should not bear the burden of storm costs nor bear the weight of profits for foreign investors,” said Amy Eshoo, director of Maine Climate Action Now. “It is time for us to stand up together and demand affordable and equitable service from CMP.” 

The Public Utilities Commission will consider the proposal, and must approve any rate increase before it goes into effect.