Governor Janet Mills' administration claims that a nearly $1.5 billion spending plan proposed by Central Maine Power is "premature and contrary to law" and has urged state regulators to reject the company's rate case.
Under a 2022 law, electric utilities are required to submit 10-year plans for cost-effective ways to transition to a clean, affordable and reliable electric grid, according to the Maine Department of Energy Resources motion to dismiss the distribution rate case filed with the Public Utilities Commission.
CMP seems to be "jumping the gun" by filing an expensive five-year proposal to hire employees and harden its systems for more extreme storms and increased electric demand before completing that integrated gird planning, the department said.
"Despite the clear requirement in the law that utility grid plans be completed, in this rate case, CMP is proposing that rates be set in a manner that aligns with its integrated grid plan before CMP has actually submitted its plan, and before the plan has become final," it said in the motion.
The integrated grid plans are due to be filed by early 2026 and are subject to a 60-day public comment period, according to the department.
Although the department understands investments in the grid may be needed and a multi-year plan could be an effective way to make improvements, it needs the overall plan to serve as a roadmap, the department said.
Without the plan "CMP cannot meets its burden demonstrating that its proposed 5-year rate increases that address improvements in reliability and resiliency are just and reasonable," the department said in its motion.
CMP's five-year proposal would raise its yearly revenue by about $450 million over five years. The company has said it is a necessary investment to reduce future storm costs and modernize its systems.
But the plan's price tag has provoked opposition from the Mills administration and the Office of Public Advocate. It would raise bills by about $35 a month by the fifth year, even though some of that increase would be offset by decreasing storm recovery costs, according to the utility.
The utility's customers have also come out against the plan, flooding the commission with comments opposed to further electric increases and profits for the company and offering formal testimony in two recent public hearings.
CMP spokesperson Jon Breed said in a statement that the company is reviewing the motions and would file a response by a deadline later in October.
"Faced with extreme weather and growing capacity demands, the company looks forward to presenting its multi-year plan in order to support critical grid investment needs," Breed said.
