Maine Public Utilities Commission
NEWS
RELEASE
Maine Public Utilities Commission
242 State Street
Augusta, Maine 04333-0018
Website: http://www.maine.gov/mpuc/,
Email: maine.puc@maine.gov
CONTACT: Nicole Clegg, 207-287-8519, Nicole.Clegg@maine.gov
FOR
IMMEDIATE RELEASE
November 3, 2006
CMP to Pay Back $2.75 Million to Customers
PUC orders CMP to return overcharges for
line extensions
AUGUSTA, MAINE – This week, the Maine Public
Utilities Commission (PUC) ordered Central Maine Power (CMP) to refund approximately
$2.75 million to more than 13,400 customers that had purchased a line extension
for their homes or businesses after July 1, 2000. The refund results from a
“profit adder” erroneously charged by CMP on new line construction and billed
to the customer since 1999. The profit adder charge was 5% of the total costs
for the line from 1999 to February 2004 and later increased to 10%. Residential
electricity customers are responsible to pay for line extension costs and an
additional 16% of the total direct costs to cover indirect expenditures, such
as employee benefit costs and administrative and support costs associated with
the new line. Businesses are charged 21%
for these administrative costs. The PUC determined that the extra “profit
adder” charge was not approved by the Commission and the funds collected for
the past six years should be refunded.
“The PUC’s Consumer Assistance
Division did an excellent job addressing this issue and their careful review of
one complaint from a CMP customer led to a refund for more than 13,400 people
in Maine,”
stated Kurt Adams, Chairman of the PUC. “This case serves as an excellent reminder
that the PUC has resources available to utility customers to help them when
they are dealing with a problem.”
Peter Marion of Baldwin
contacted the PUC’s Consumer Assistance Division (CAD) on December 1, 2004 with
concerns about the amount CMP had charged him for construction of a line
extension to provide power to his new home. CMP had included in its charge for Marion’s line extension both
the 16% surcharge for indirect administrative costs associated with the line
and the 10% “profit adder.” The PUC determined that CMP’s explanation for the
profit adder did not qualify as a cost under its extension line tariff. The
PUC’s order will entitle 13,000 residential customers and 400 businesses to a
refund of the profit adder for line extensions.
Refunds for most affected customers
should be received December 1, 2006. Line extensions involving multiple
customers such as housing developments have an extended deadline of March 1,
2007. If customers that believe they should receive a refund have not received one
by the set deadlines, they are encouraged to contact CMP.
Customers not satisfied after their
contact with CMP can contact the CAD for assistance. The CAD investigates complaints involving
quality of utility service, billing disputes, rates or charges, disconnection
or refusal of a utility service and utility repairs. For more information on
CAD, visit www.maine.gov/mpuc or call
1-800-452-4699.
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The
Public Utilities Commission is committed to ensuring that consumers have access
to safe and reliable service for public utilities and that the rates for these
utilities are just and reasonable. PUC programs include Maine Enhanced 911
Service, Dig Safe, and Efficiency Maine.
To arrange an
interview with Chairman Adams or Commissioner Reishus, please contact Nicole
Clegg at 207.287.8519 or by e-mail at nicole.clegg@maine.gov. The Commission’s website, www.maine.gov/mpuc
be accessed through the Maine School and Library Network at all public libraries in
Maine.