Maine's Electricity Rates Set to Rise: Residents Demand Solutions

Photo byKelly SikkemaonUnsplash

Rate Increases Spark Concern

PRESQUE ISLE, Maine—As another electricity rate hike looms on July 1, residents of Aroostook County gathered to voice their concerns to Versant Power leaders. During the annual open customer meeting and rate update in Presque Isle, attendees questioned when the seemingly endless increases will stop.

Residents Voice Their Struggles

Approximately 23 people attended the meeting, highlighting their frustrations with the escalating costs. Allan Wiener, a radio station operator from Monticello, shared his experience with the group. “Last year, my bills were running $17,000 to $18,000 a month, and in one month, they went up to $32,000,” Wiener said. “The rates are killing small business.”

Understanding the Rate Structure

Utility bills contain two main components: electricity supply and transmission and delivery. Versant Power provides the transmission and delivery, while most residences use the standard offer rate for electricity supply. Current rates for Aroostook customers are 11.3 cents per kilowatt hour for supply and 13.6 cents for transmission and delivery, totaling 24.9 cents per kilowatt hour.

Factors Driving the Increases

According to Versant officials, the primary drivers of the coming rate hikes are increasing stranded costs from solar project subsidies and support for Efficiency Maine programs. Judy Long, Versant’s senior manager of communication and brand, explained, “The intended goals of this policy are to create more local energy support, local jobs, and help municipalities that want to supply their own power. But we are seeing that the costs are bringing into question if this policy is working best for us and may require further adjustments.”

Impact on Residents and Businesses

Sue Bernard of Caribou emphasized the financial strain on residents who must prioritize what they can afford. “I think everybody in this room is on the same page for taking a really close look at how we’re going to spread out energy costs and what are the best ways. And is solar the best way?” Bernard asked.

Versant's Response

Stephen Johnston, Versant's director of rates and revenues, noted that transmission costs are decreasing slightly, but other charges are rising. A typical bill for a residence using 500 kilowatt hours a month will be approximately $132. Johnston also mentioned Versant's plan to blend some of its rate classes to stabilize rates and offer options for businesses using electric vehicles and energy storage.

Looking Forward

Several speakers at the meeting called for more transparency and solutions to manage the rising costs. One attendee questioned what the Governor’s Energy Office is doing to help Mainers afford electricity, a query that went unanswered during the session. “We have got to be competitive, and the one common thread that hits everybody’s pockets is energy costs,” he said.

Attribution source: Thecounty.me