Central Maine Power attempted $70M rate increase, but regulators said overruns were 'its own making'

Central Maine Power had sought nearly $70 million in temporary rate increases, but Maine regulators blocked the request. All three commissioners agreed and criticized the utility.

In discussing the request, regulators suggested the company's rising costs were not just the unavoidable result of grid investment. They said CMP's own decisions had contributed to the situation.

Here's what to know

On Oct. 6, the Maine Public Utilities Commission unanimously rejected CMP's request for $69.3 million in temporary rate hikes, according to the Sun Journal.

Barring a change before then, current distribution rates are expected to stay in place until spring 2027. Regulators are set to decide the merits of the utility's $189 million rate case then.

CMP had presented the temporary-rate request as the first part of a two-step increase tied to infrastructure it has built. Under Maine law, though, utilities can recover temporary rates during a longer case only when the amount being raised is agreed upon.

That agreement never materialized.

The Office of the Public Advocate, the Department of Energy Resources, and consumer advocates disputed the full size of CMP's request, and the commission therefore declined to approve any part of the increase.

During deliberations, Maine PUC Chair Philip Bartlett said the lack of consensus was at the center of the ruling.

"I simply could not pinpoint a number that I would feel comfortable saying was not in dispute in this matter," Bartlett said, as the Sun Journal relayed.

More background

A key issue in the case is return on equity. The profit CMP's shareholders can make on money the company invests in the grid, under Maine's regulatory rules.

CMP said about two-thirds of its temporary-rate request was meant to raise that return, which it said was necessary to draw investors and protect its credit rating.

Bartlett pointed to capital spending that ran roughly 50% higher than projected between 2022 and 2025. The Sun Journal reported that he said, "To some extent, this is a problem of CMP's own making."

The utility has said the denial could intensify pressure tied to a $100 million cash flow deficit and S&P Global Ratings' downgrade this summer to a negative outlook.

For Maine households, however, the immediate outcome is more straightforward: no additional monthly distribution charge while the larger case moves forward.

That proceeding follows the commission's dismissal of CMP's earlier five-year plan, which would have increased the typical household's bill by roughly $35.

What's being done?

PUC staff had already recommended rejecting the temporary increase, and commissioners ultimately followed that recommendation while leaving the larger rate case to be decided on its full merits in spring 2027.

Consumer and environmental advocates quickly described the ruling as a major victory.

Heather Sanborn, the state's public advocate, said any increase should wait until the yearlong proceeding is complete and should reflect affordability concerns.

Fight the Hike, a coalition opposing the request, said it plans to keep challenging CMP's next moves. 

"It's time for CMP shareholders to start funding grid maintenance from their $160 million in annual profits — not squeezing still more from struggling families," said Seth Berry, executive director of coalition member Our Power.

The utility, meanwhile, has already started making internal adjustments.

The company pulled 70 job listings, paused plans to upgrade 19 transformers serving customers from York to Rangeley, and halted other projects. It also warned that workforce reductions may need to be considered.

Where can I learn more?

The clash over CMP's rates is part of a bigger debate over who should pay for electric grid costs.

• In northern Maine, three towns united to cut power bills with a regional utility proposal.

• In Augusta, a Maine senator warned one company too much power could follow the NextEra-Dominion deal.

• In Connecticut, utilities sued to charge ratepayers incentive fees, and Blumenthal called it greed.

• Eversource sought a $503 million rate hike as Connecticut officials promised scrutiny.

• In West Virginia, customers challenged an experimental rate hike as Appalachian Power warned of instability.

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