Maine families and businesses face some of the steepest electricity price increases in the country. Against this backdrop, the American Economic Liberties Project in partnership with Acadia Center, Conservation Law Foundation (CLF), the Natural Resources Council of Maine (NRCM), and Our Power, released a policy primer laying out a menu of concrete actions Maine’s next Governor can take to lower energy costs and strengthen oversight of the state’s investor-owned utilities, including Central Maine Power (CMP) and Versant Power.
The state’s electric bills have risen 52% since 2021 and 12-14% of every ratepayer’s monthly bill now flows directly to shareholder profits. A Governor’s Agenda for Energy Affordability and Utility Accountability in Maine highlights that many of the tools to address these pressures are already on the books. Some, the Governor’s office can put to work immediately, while others will require sustained follow-through with the Legislature.
The primer is organized around six areas of action: a Day One agenda for the Governor’s office; holding the Commission accountable for delivering progress; equipping the Commission and the Office of the Public Advocate with the resources and tools they need; supporting legislative oversight; empowering the public and intervenors to participate in Commission proceedings; and realigning utility profits and executive pay with ratepayer interests.
A new administration’s first months carry leverage that rarely returns once the ordinary friction of governing sets in. Among its recommendations, the report calls for:
- Reforming standard offer service, storm cost recovery, and local transmission cost reviews, to address the acute drivers of rising rates;
- Codifying a market-based mechanism for setting the authorized return on equity, so it tracks the real cost of equity capital rather than a utility-selected estimate;
- Scrutinizing CMP’s multi-state and affiliate transactions to ensure that Mainers are not footing the bill for other companies’ costs;
- Promoting information symmetry in rate cases, so intervenors don’t have to fight protracted discovery battles just to get the financial data needed to challenge a utility’s rate hike;
- Holding CMP and Versant accountable for providing reliable and affordable service by exercising the full extent of Maine’s authority over utilities’ monopoly franchises.
American Economic Liberties Project is a Washington D.C.-based think tank that conducts research on the impacts of corporate power and monopolies on everyday life.
Acadia Center is a nonprofit organization with over 25 years of experience dedicated to advancing transformative clean energy solutions that promote a livable climate and a more equitable economy in the Northeast United States and neighboring areas. Through rigorous data analysis and strategic partnerships, Acadia Center advocates for policies that significantly reduce carbon emissions and address systemic energy challenges. By collaborating with governments, industries, and communities, Acadia Center’s pragmatic strategies help to ensure an inclusive and sustainable energy future for all.
For 60 years, Conservation Law Foundation (CLF) has taken on powerful opponents who would pollute our air and water and squander our resources. Our deep local knowledge, legal acumen, and policy expertise make us a prime mover in building our clean energy future, countering climate change, and safeguarding our communities.
The Natural Resources Council of Maine (NRCM) is the state’s leading nonprofit, nonpartisan organization dedicated to protecting, restoring, and conserving Maine’s environment, now and for future generations.
Our Power is a Maine-based nonprofit advocating for lower electricity rates, improved reliability, and greater local control of Maine’s energy future.
Media Contact:
Noah Berman
Senior Policy Advocate and Utility Innovation Program Manager
nberman@acadiacenter.org; 207-236-6470 ext 107