Versant Power customers are in for even more expensive electric bills after Maine regulators on Tuesday approved a rate hike to help the company with system upgrades.
It's the latest in years of price increases for consumers in northern and eastern Maine. Versant serves about 159,000 customers.
The Maine Public Utilities Commission approved a 23% increase in Versant's distribution revenue. The company said it needs extra funding to modernize its system and to cover storm recovery, higher payroll and the effects of inflation.
The increase translates to an added $11.15 to the average residential customer's monthly bill, according to the agency.
Commission chair Phil Bartlett said consumers have voiced concerns about the price of electricity after years of increases in distribution, supply and transmission costs. The commission said Versant's next distribution rate proposal should cover multiple years, as a way to to ease price increases.
"While Versant clearly needs to make responsible investments in its system to improve reliability, it will be important to manage the pace of investments recognizing there are limits on the ability to pay," Bartlett said.
Commissioners also raised concerns about Versant's resistance to performance metrics and its approach to past due bills. The company had fallen behind in collecting unpaid bills, which reduced the money it had to invest in the system and passed costs onto other customers, the agency said in an examiners report.
In a statement, Versant said it was reviewing the commission's decision and improving its credit and collection practices.
New rates take effect April 1.
