Versant Power Proposes Rate Adjustment under its Revenue Decoupling Mechanism
On March 31, Versant Power submitted a proposed Revenue Decoupling Mechanism (RDM) adjustment for the period of January 1 to December 31, 2025, for incorporation into customer rates effective July 1 (Docket No. 2026-00082).
Versant proposes to return to customers through lower rates approximately $4.2 million.
Versant proposes to return to customers through lower rates approximately $4.2 million. Versant estimates that for an average residential customer using 500 kWh per month, rates will decrease by 1.2% ($1.94 per month in its Bangor Hydro District and $1.88 per month its Maine Public District). The OPA supports Versant’s requested rate decrease in this proceeding and has agreed to pursue settlement for a swift resolution.
Versant’s RDM was established by the PUC in Docket No. 2020-00316. The RDM provides for formulaic adjustments to Versant’s rates between rate cases to reflect changes in sales levels, ensuring that Versant’s customers, rather than its corporate shareholders, benefit from increases in electricity demand.
Commission Hosts a Workshop to Discuss the Big Changes to LIAP
On April 22, the Commission held a workshop to discuss the multiple, significant, recent changes in Maine’s Statewide Low-Income Assistance Program in preparation for the upcoming LIAP Program Year (PY 2026-27) beginning October 1 (Docket No. 2025-00241).
PY 2026-27 funding for LIAP was increased from $33 million to $40.5 million thanks to a $7.5 million addition from the supplemental budget.
First, PY 2026-27 funding for LIAP was increased from $33 million to $40.5 million thanks to a $7.5 million addition from the supplemental budget. The OPA and others have worked for several years to find ways to increase the LIAP budget from sources other than customer-funding. This additional money is well-timed now that electric customers who participate in Department of Health and Human Services (DHHS) means-tested programs can be automatically enrolled in LIAP through a new data-matching program called SupportLink.
Second, the Commission answered questions about the updated models it has created for the utilities to calculate LIAP benefits for their customers. Qualifying low-income customers of consumer-owned electric utilities will continue to receive LIAP benefits as lump-sum credits applied to their bills up to twice in a year. However, starting on October 1, qualifying low-income customers of CMP and Versant will see a monthly discount on their total bill.
PUC Rejects Special Rate Contract Between Central Maine Power Company and Texas Instruments
By Order dated April 17, the PUC denied CMP’s request for approval of a proposed special rate contract with Texas Instruments (Docket No. 2025-00013). The proposed special rate contract would have continued special pricing offered to Texas Instruments and its predecessor, National Semiconductor, specifically to exempt them from stranded cost obligations related to the service requirements for the 8-inch wafer facility located in South Portland.
This special pricing began with a rate contract for National Semiconductor in 1996 and was later updated through new or revised contracts in 1997, 2000, 2001, 2002, 2003, 2008, 2013, 2015, and 2019. The last approved contract between CMP and Texas Instruments expired in December 2024.
Special rate contracts are allowed under Section 703 of Title 35-A, subject to approval by the PUC. Because special rate contracts require that lost revenues be made up by all other utility customers, the PUC has adopted a strict test to ensure that any special rate is necessary and that it maximizes revenues from the customer. The OPA opposed the special rate contract because CMP and Texas Instruments failed to demonstrate that it was necessary. Texas Instruments instead maintained throughout the case that the strict test the PUC usually applies should not be applied in this case.
In its Order rejecting approval of the contract, the PUC agreed with the OPA, finding that CMP and Texas Instruments have not provided substantial evidence to support why the special rate contract is necessary.
In its Order rejecting approval of the contract, the PUC agreed with the OPA, finding that CMP and Texas Instruments have not provided substantial evidence to support why the special rate contract is necessary. The PUC denied the request without prejudice, which would allow CMP to seek approval of this contract or a renegotiated contract in the future.
Electric Ratepayer Advisory Council
The Electric Ratepayer Advisory Council (ERAC) held an online meeting on April 13.
The full council heard from their two working groups that they are making steady progress on affordability-related policy development. One group is synthesizing prior studies and aligning around the ALICE framework to better define target populations. This framework is relevant to new statutory directives under LD 1949 requiring the Public Utilities Commission to incorporate affordability into its decision-making and develop a formal affordability metric.
The second group is analyzing rising arrearages and identifying opportunities to enhance utility reporting under Chapter 815 to support data-driven policy recommendations. Both groups appear to be converging on common metrics and approaches, with an emphasis on improving transparency and understanding particular customer circumstances.
Notes from the meeting are available on the OPA website. The next ERAC meeting will be held on Monday, May 11 hosted by the Department of Energy Resources with a Teams option. To receive a meeting link, please email opa@maine.gov.