Gov. Janet Mills unveiled a bill today that would stiffen penalties for poor customer service by Maine's electric utilities, and even force their sale to new owners if they don't improve.
Mills has been a strong supporter of Central Maine Power's controversial powerline project in western Maine, and last year she vetoed a bill that would ask voters whether CMP and Versant should be sold to a third-party "consumer-owned utility" administered by state government.
But when she rejected that effort, she also signaled her discontent with the status quo, and consumers' utter lack of confidence in CMP in particular. At a press conference, she mused that the state might look at ways to force the utilities to sell themselves to better-performing companies.
"Which ultimately would force a company to divest itself of its assets in Maine, get rid of CMP for instance, theoretically," Mills said. "How does that happen, has it ever happened, could it happen? I am just throwing that out there because I think it is a really interesting idea."
Now she is proposing that the Maine Public Utilities Commission issue quarterly report cards on the transmission and distribution utilities' performance on customer service metrics such as accurate billing, timely hookups, storm recovery and more: Two failing quarters in a row, and the utility could be fined up to a million dollars per quarter.
And if a utility quote "consistently" fails to meet standards, then regulators could require its sale to a qualified buyer — whether a for-profit, shareholder-owned utility or a non-profit, quasi-governmental operation — whichever presents the most benefits for consumers.
The legislation is drawing some bipartisan support.
"What got me there was just... a little more of the stick approach," said Nathan Wadsworth, a Hiram Republican and ranking member of the Legislature's utilities committee, which will review the bill. He's no fan of recent efforts to create a quasi-governmental, consumer-owned utility. But he says the threat of divestiture should be an effective way to get the utilities to make real and lasting improvements.
Wadsworth added that his confidence in the measure stems in part from his regard for William Harwood, a long-time Maine utility lawyer who Mills appointed to be the state's new Public Advocate, and who the Legislature confirmed last month.
"The report card, the administrative penalties, the auditing and then strengthening the divestiture. To me so much of this the PUC could already do," Wadsworth said. "But it sounds like Bill has a little more tactful way of tweaking it and allowing it to be more impactful."
A spokeswoman for Versant said the company is reviewing the proposal, and is confident in its ability to meet service quality standards. CMP did not provide immediate comment. Advocates for creating a consumer-owned utility also had no immediate comment.
In a statement late this afternoon, CMP said the legislation is not necessary and that the PUC already has the tools it needs. The statement also asserts that the company's business approach has "fundamentally improved."