June 6, 2023

Hallowell, Maine- The Maine Public Utilities Commission (Commission) approved a settlement in Central Maine Power Company's (CMP) Distribution Rate Case today. CMP submitted the signed stipulation, which formalizes the settlement proposal, to the Commission last week. The stipulation was signed by the Office of the Public Advocate, AARP Maine, Competitive Energy Services, Efficiency Maine Trust, Walmart Inc., IBEW Local #1837, The Industrial Energy Consumers Group (IECG), and others. The settlement was not opposed by any party involved in the case.

The new rates will be implemented in four phases over a two-year period to mitigate the impact on customers. Total bill increases amount to about 1%, or $1.25/month, with the first increase effective July 1, 2023, and subsequent increases on January 2, 2024, July 1, 2024, and January 1, 2025, for a total of about $5 monthly over the two-year period for an average residential customer. These increases are estimates based on current rates and will be impacted by additional rate changes occurring over the course of the two-year implementation period.

"This settlement is significantly lower than the initial $98 million that CMP requested and really balances the impact on CMP customers with the need to invest in the electric grid to meet reliability needs and Maines clean-energy goals," said Commission Chair Philip L. Bartlett II. It also incorporates the strictest service quality standards we have ever seen in a rate case, with built-in penalties. Both the Commission and CMP customers have been demanding better reliability and we believe this is the best way to achieve that.

The new rates include funding for grid reliability improvements, clean energy investments, and hardening the system against storm damage. They also include system reliability improvements with stringent penalties holding utilities accountable for missing Service Quality Indices (SQIs) related to frequency and duration of outages, call answering metrics, billing accuracy and the effectiveness of a new automation program.

For any SQI where CMP does not meet the metric for a particular year, the company could pay a penalty of up to $8.8 million annually.

Customers need to see tangible benefits for the reliability investments that they are paying for, Bartlett said. As we continue to increase reliance on electricity, including for heating and transportation, and significant investments are needed to make the clean-energy transition, it is imperative that customers see they are getting value for the rates they pay. Performance metrics and accountability for meeting them will become a regular feature of rate cases so that customers can be confident their utilities are investing wisely to ensure safe, adequate, and reliable service.

While supply rates are separate from distribution rates and are not charged by the transmission and distribution utility, an anticipated decrease in Standard Offer supply rates related to market conditions in January 2024 justifies delaying some of the rate increase until January. The Commission is separately reviewing CMPs proposed increase to the stranded cost component of charges and anticipates a decision in June.

All public documents in the case are available on the Commissions Online Case Management System. Please reference Case 2022-00152.

About the Commission

The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers, while also helping to achieve reductions in greenhouse gas emissions. Commission programs include Maine Enhanced 911 Service, gas safety and Dig Safe. Philip L. Bartlett, II serves as Chair, Patrick Scully and Carolyn Gilbert serve as Commissioners.

Learn more about the Commission at www.maine.gov/mpuc/

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CONTACT: Susan Faloon, Media Liaison CELL: 207-557-3704 EMAIL: susan.faloon@maine.gov