AUGUSTA - In response to the decision by the Maine Public Utilities Commission to approve a two-year 25% rate hike for Central Maine Power customers, starting with 10% on Aug. 1, 2021, Rep. Seth Berry, D-Bowdoinham, House chair of the Legislature's Energy, Utilities and Technology Committee, issued the following statement:
"By changing to a consumer-owned utility, or COU, Mainers will save billions of dollars over the next 30 years, savings that will far more than offset storm costs and transmission rate increases like these.
"Unlike CMP and Versant, whose customers pay almost all storm recovery costs, consumer-owned utilities are eligible for Federal Emergency Management Agency assistance after declared emergencies. For example, the consumer-owned Long Island Power Authority received $1.5 billion after Superstorm Sandy. With increasingly severe storms expected in coming years and decades, this difference will make a profound impact.
"With respect to transmission cost increases, the Pine Tree Power Company will also save us billions.
"Based on recent Federal Energy Regulatory Commission decisions, the Pine Tree Power Company will be able to charge regional rates to customers in New England that are the same as those investor-owned utilities charge. However, since the Pine Tree Power Company does not require a profit and since it can borrow at lower interest rates, these regional tariff rates far exceed a COU's actual cost. As a result, what would have been a profit to CMP and Versant will instead be used to reduce rates for Maine customers. This additional factor is discussed in Dr. Richard Silkman's 2020 analysis of LD 1646, and results in estimated savings of over $4 billion over the next three decades for customers of CMP and Versant."
Berry represents House District 55: Bowdoin, Bowdoinham, Swan Island and most of Richmond. He previously served from 2006-2014, the final two years as House majority leader, and returned to the House in 2016.
Contact:
Jackie Merrill [Berry], c. 812-1111