Commission Backs Water Infrastructure Surcharge Increase for Maine Water Customers
On April 22, the Commission recommended approval of a water infrastructure surcharge (WISC) proposed by the Maine Water Company that would generate additional annual revenues of $948,460 (Docket No. 2026-00051). The purpose of the surcharge is for Maine Water to begin recovering $16,700,474 of spending on capital projects completed between May 2023 and November 2025 in Saco, Old Orchard Beach, Biddeford, Owl’s Head, Rockland, Camden, Greenville, Millinocket, Skowhegan, Bucksport, and Hartland. All customers in Maine Water’s 10 Divisions would pay a WISC Consumption Surcharge of $0.4104 per hundred cubic feet. This would be an increase to the $0.2037 per hundred cubic feet over the WISC that customers are currently paying. During this proceeding, Maine Water confirmed to the OPA that it does not intend to seek another increase to its WISC while its general rate case in (Docket 2026-00028, discussed below) is underway.
Maine Water Files Request for Rate Increase Across 10 Divisions
On April 13, Maine Water Company filed a request to increase its rates for its ten operating divisions in accordance with Chapter 120 of the Commission’s rules (Docket No. 2026-00028). This is Maine Water’s first general rate case since the PUC approved unified rates for the Maine Water’s 10 operating divisions last year (Docket No. 2024-00378).
The rate filing proposes an annual increase of $9,525,537 in revenue and an overall rate of return on rate base of 7.231%. If approved as filed, the increase will result in a 29.3% increase over Maine Water’s 2025 test year revenues. Maine Water states the proposed schedules are consistent with the cost-of-service study presented in Docket No. 2024-00378. The proposed schedules also move its 10 operating divisions closer to having unified rates. Maine Water seeks a rate-effective date of May 12. Based on the proposed rates, the projected residential bill impacts are expected to be as follows:
Docket No. 2026-00028 Exhibit MWC-TSL-9 (Customer Bill Impacts)
Interventions in this case were due by April 27, but the PUC does consider late-filed petitions to intervene. The OPA will be a full participant, advocating on behalf of customers, in this rate proceeding.
Briefs Filed in Pine Springs Rate Case
On July 24, 2025, Pine Springs Roads and Water, LLC (Pine Springs) requested a 55% increase to the utility’s current minimum rate (Docket No. 2025-00229). Pine Springs supplemented its rate filing three times while this case was pending, the most recent supplement having been filed on February 25. This latest supplement seeks recovery of credit card payments which were not included in Pine Springs’ original rate filing. Pine Springs has proposed to recover these credit card payments through a $19 quarterly surcharge on customers.
Briefs and reply briefs were recently filed in this matter by Pine Springs and the OPA. The OPA has urged the PUC to deny Pine Springs’ requested rate increase in its entirety because Pine Springs has not shown that its revenue request is tied to the actual costs of furnishing customers with safe, reasonable and adequate facilities and service. A recommended decision on this matter is expected soon.
Pine Springs is a small water company, serving 84 residential customers. Usage is not metered, and all customers are charged the same rate.
PUC Issues Recommended Decision Regarding Loring Development Authority Rates
On April 3, PUC Staff issued a Recommended Decision regarding the PUC’s investigation into the rates of the Loring Development Authority (Docket No. 2024-00300). This proceeding arises out of a 10-person complaint filed in the fall of 2024. The PUC had previously set temporary rates in this proceeding and is now considering the proper annual revenue requirement for LDA.
PUC Staff proposes an annual revenue requirement of $548,776. LDA had originally proposed a revenue requirement of $990,200, which was lowered to $850,971 in its rebuttal testimony, then lowered again to $720,989. Using LDA’s rate model, the $548,776 revenue requirement would result in rates that are roughly commensurate with the temporary rates previously set by the PUC. The Complainants in this case have generally supported rates of this magnitude as being affordable. The OPA likewise supports the proposed rates, with minor adjustments. These rates should alleviate the major concern with LDA’s original proposed revenue requirement, which would have resulted in rate shock—when the rates increase suddenly and dramatically to recover a significant increase in a utility’s revenue requirement.
Another Rate Increase for Casco Bay Ferry Lines
The Casco Bay Island Transit District’s (CBITD’s) board of directors approved another rate increase for ferry services at its April 23 meeting. Round-trip, peak season adult tickets will increase from $14 to $16, while 30-day passes will rise from $48 to $51. Annual passes will rise from $432 to $435. While alternatives were discussed, the Board ultimately determined the increases were needed to reduce an operating deficit and an over-reliance on government grants.
The OPA remains concerned that the fee structure unfairly burdens Peaks Island’s year-round residents. Many residents, particularly lower income consumers, ride the ferry infrequently enough that a discounted pass does not offer meaningful savings for their usage pattern, yet need semi-regular ferry service for medical appointments and other necessities.
As part of its review of CBITD’s revised vehicle rates from last year, the Public Utilities Commission directed CBTID to analyze the extent to which Peaks Island residents are adversely impacted by the new passenger vehicle rates. To do this, CBITD is implementing a survey. The link is posted on their website and here below. CBITD set a fast response deadline of May 7.
Casco Bay Lines – Vehicle Rate Impact Survey
Hard copies are available at the Casco Bay Lines ticket office. According to the website, verbal responses may be made to the General Manager by call or email to arrange a time: 207.774.7871. (ext. 103) or moc.senilyabocsac@dneb.