Baldacci protests increase in northern Maine electricity rates

   AUGUSTA, Maine – Gov. John E. Baldacci sent a letter last Friday to the Federal Energy Regulatory Commission protesting a proposed rule change that could increase electricity rates in northern Maine by almost 8 percent.
    “I hope this action gets the attention of the federal government and lets FERC know that we will fight arbitrary rate increases placed upon Maine people and businesses,” Baldacci said. “The people of Aroostook Country are already hurting from a 45 percent increase in electricity rates. Enough is enough.”
Also last week, the Maine Public Utility Commission filed a protest of the rule change, calling on FERC to stop the rate increase.
On April 13, the Northern Maine Independent System Administrator (NMISA) filed a proposed rule change with FERC that would result in a 7.6 percent rate increase for electricity prices of Maine Public Service Co. customers. Over the 26-month term of the standard offer, the increase could exceed $3.5 million. In the rule change request, NMISA claims that the changes will not impact rates, but offers no explanation to support this claim.
In November 2006, the PUC rejected all standard offer bids for northern Maine. Citing that only one retail bidder participated, the PUC found the bids inadequate.
In December 2006, the PUC accepted a standard offer bid for northern Maine. The rejection of the original standard offer bid forced the supplier to resubmit an offer at a lower price than had originally been submitted, yet a price still higher than the expired standard offer price. In fact, standard offer rates increased 45 percent effective Jan. 1, with a smaller rate increase effective July 1. The current standard offer rate for residential use is 7.89 cents/kWh and will increase to 8.25 cents/kWh in July.
“I’m not going to get into the technicalities of a federal rule,” said Rep. Jeremy Fischer (D-Presque Isle), who attended a press conference with the governor about the rule change. “But I know this, we can’t afford another rate increase of nearly 8 percent that won’t improve customer service or benefit the people who are already having a tough time paying their electric bill.”
Baldacci echoed that point.
“I am committed to pursuing viable alternatives like a greater partnership with our neighbors to the North, and I will also fight attempts to increase electricity rates without merit,” Baldacci said. “Maine can’t afford it.”