WPBN: To help pay for $3.3 billion in renovations to transmission lines, poles, and other infrastructure in New England, Central Maine Power Co. customers started paying 7% extra in their monthly bills on January 1.
Later this year, Versant Power ratepayers can anticipate lesser hikes as well.
The two main utilities in Maine are receiving roughly $280 million of the region’s expenses, while utilities in Connecticut, Massachusetts, New Hampshire, Rhode Island, and Vermont are receiving the remaining half, according to federal regulators.
The load, or the amount of electricity used by each service region, determines how the expenditures are allocated.
The practice of charging ratepayers for transmission costs has drawn criticism from consumer activists in the area, who claim that utility upgrades are sometimes pointless, poorly regulated, and increase the value of assets for shareholders at the expense of consumers.
Poles, wires, and other transmission components are overbuilt, according to Donald M. Kreis, New Hampshire’s consumer advocate. “The ratepayers are the only wallets in the room,” he added.
For instance, according to consumer activists, one energy company in New Hampshire suggested spending $384 million to reconstruct a 49-mile transmission line, even though less than 8% of it needed to be replaced.
According to Versant, the Federal Energy Regulatory Commission determines transmission tariffs “using a preset formula and cover needed investments” in regional and local transmission.
CMP spokesperson Jon Breed stated the FERC-authorized ratepayer-funded spending “will help reduce outages and protect our system from the threats of extreme weather in Maine.” The transmission system in New England is around 9,000 miles long.
It’s unclear how all of the money will ultimately be used. The parent business of utilities in Connecticut, Massachusetts, and New Hampshire, Eversource Energy, has plans for a number of projects, including a $7.4 million substation reconstruction in Massachusetts and a nearly $80 million partial line rebuild and other work in Connecticut.
According to a spokesperson of New England Power Co.’s parent business, National Grid, the company needs $485.4 million in income this year.
The Maine Office of the Public Advocate reports that CMP customers who consume an average of 550 kilowatt-hours of power per month are paying $149.83, which is an increase from $139.62 in 2024.
According to the utility, Versant customers in the Bangor Hydro District now pay $155.80 for the same amount of power, up 5.2% from $148.09. In the northern part of the state, Versant’s Maine Public District customers pay $146.37, up from $144.35.
According to the New England Power Pool, or NEPOOL, an advisory committee of utilities, consumer advocates, customers, and others, utilities in New England estimate that $3.3 billion in “revenue requirements” are required for 2025, an increase of more than 16% from the previous year.
According to the utilities, CMP and Versant together provide 8.4% of the revenue required in the area for the transmission upgrades. On the other hand, Eversource Energy subsidiaries make up approximately 59%, or $1.9 billion.
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Transmission expenses are not the only factor contributing to higher prices for customers. In order to make up for past revenue undercollections resulting from the discrepancy between cost projections and actual expenses from the previous year, utilities are additionally collecting about $254 million, including interest.
According to Ratiliff, utilities’ reduced recovery of their 2023 transmission expenses is “largely the result” of the rate decrease.
However, Landry stated that major utility projects and the replacement of outdated transmission infrastructure are the main causes of the rate increases that went into effect on Wednesday.
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A modest drop in electricity bills that Maine regulators approved in November would be outweighed by the transmission costs. Stable natural gas costs, which are the primary source of power generation in New England, are reflected in a lower 2025 standard offer rate, which is the default supply price for the majority of residential and small business customers who do not purchase electricity from competitive energy suppliers.
According to him, utilities are unable to resist the allure of profitability, which leads to “a race to a very expensive and overbuilt transmission network.”
According to him, utilities should instead concentrate on fixing and modernizing “very creaky” distribution networks. Roadside power line networks are particularly susceptible to storms and possible damage that could cause power outages.
Reference: Maine electricity bills increased again this month
