March 11, 2025

Hallowell, Maine - The Maine Public Utilities Commission (Commission) approved a distribution revenue increase for Versant Power this morning, following a thorough review of the company's request for increased rates. While the Commission rejected Versant Powers original proposed distribution revenue requirement, it has approved an increase of approximately 23.2%.

For a typical residential customer using 500 kilowatt-hours (kWh) of electricity per month, this decision will result in an estimated $11.15 increase in their monthly bill. The approved distribution rate increase will be applied evenly across all rate classes and rate elements in both Versants Maine Public District and Bangor Hydro District.

Throughout the case, intervenors and Versant customers voiced concerns about affordability, highlighting the financial strain many Maine residents already face. The Commission carefully considered these concerns while also recognizing the necessity of continued investment in the electric grid to ensure reliability, safety, and modernization.

"The Commission understands that rate increases place a burden on customers, and we take those concerns very seriously," said Commission Chair Philip L. Bartlett II. Versant Power needs to make critical improvements to its infrastructure and operations, but it must also manage the pace of growth given concerns about affordability. Customers should expect to see significant, measurable benefits when rates go up and we will hold the utility accountable for delivering those benefits. As part of our approval, we are requiring Versant to demonstrate improved reliability with financial penalties for failure to do so.

Bartlett noted Versants resistance to the adoption of meaningful improvements to its performance metrics and stated that rather than resisting this effort, the Commission encourages the utilities to bring forward thoughtful proposals at the outset of rate cases as to how the positive impacts of their investments can be measured to demonstrate the value customers can expect from them.

Versant Power cited several key drivers behind its request for a rate increase, including approximately $6.6 million in costs previously approved for recovery in other proceedings that had been deferred. Additional factors include incremental investments in system improvements, increased payroll expenses, expanded vegetation management efforts, and inflationary impacts on the companys operating costs.

All three Commissioners acknowledged the challenge of balancing the need for investment in Maines electric distribution system with the financial pressures on ratepayers. The approved increase reflects the Commissions commitment to ensuring that utility improvements are necessary, cost-effective, and provide clear value to customers.

For more information on this case, visit the Commission Website: https://mpuc-cms.maine.gov/CQM.Public.WebUI/Common/CaseMaster.aspx?CaseNumber=2023-00336

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/

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