Central Maine Power's controversial power distribution rate plan met an early end Tuesday as Maine utility regulators dismissed the case.
It's the first time on record the Maine Public Utilizes Commission has rejected such a proposal entirely.
Their decision reflected public opinion, which has been against the $1.5 billion dollar plan since it was released this summer.
"I think we all recognize that we really are at sort of an inflection point in the state of Maine and this rate case is sort of hitting at that time," said commission chair Phil Bartlett.
Bartlett said regulators are grappling with affordability concerns, planning for future power demands, and creating better performance incentives for power companies.
"I think we all seem to think this proposal misses the mark in terms of meeting the moment we're at," Bartlett said.
This summer, CMP filed a plan that called for yearly rate hikes over five years, adding about $35 a month to customer bills by the last year. The company said some of that increase would be offset by declining payments for storm recovery.
The company argued it needed a significant increase to improve storm preparedness, bring down recovery costs and improve its grid.
But the plan faced swift opposition from political figures and customers.
Last month the Maine Department of Energy Resources filed a motion to dismiss the case. It argued CMP's proposed system upgrade has to wait until it files a long-term electric grid plan under a state law passed last year.
At the same time, the Office of Public Advocate claimed the multi-year rate plan would not encourage CMP to control costs, and should be thrown out.
On Tuesday, commissioners agreed with both agencies. The commission has only ever partially dismissed a distribution rate case, a CMP proposal back in 2013, according to the agency.
"What we're saying in substance is, essentially, this isn't something we can live with," said Commissioner Patrick Scully.
He argued commissioners should start again and provide better guidance to CMP. Scully highlighted that affordability was a major issue for Mainers, some of whom struggle to pay their electric bill now.
"As much as we would all like to rebuild the system promptly, to greatly increase grid reliability and resilience our people simply can't afford to do so at the pace proposed here," Scully said.
Opponents of CMP's plan cheered the decision.
Public Advocate Heather Sanborn said an unprecedented outpouring of public hostility to the plan may have affected the outcome.
"There were more than 800 public comments filed into the docket which is unheard of and dozens of folks turned out in Freeport and Hallowell for the public rate hearings. And I do think that made a difference," Sanborn said.
In a statement, Governor Janet Mills said the commission's decision aligned with the grid planning law that requires companies to file regular five-year proposals to improve reliability and affordability.
"The PUC was right to dismiss this outrageous request from CMP," Mills said.
But Seth Berry, spokesperson for Fight the Hike, a coalition of environmental and public interest groups, said while the ruling is a victory, another rate proposal is likely after CMP files its grid plan early next year.
"All of us need to be ready for that and be prepared to raise our voice again to help our regulators make a decision that does keep customers firmly in mind," Berry said.
In the meantime, commissioners will open a proceeding to provide guidance on multi-year rate plans. And CMP is free to file a new rate case or a temporary rate increase.
In a statement, CMP said the decision represents "a step backward" as the state faces the impacts of extreme weather and growing energy demands.
The company said it was committed to finding a path forward that balanced cost and system reliability.
"However, delaying action on essential priorities, such as grid investment, vegetation management, and staffing will ultimately cost Mainers more in the short and long run," said spokesperson Dustin Wlodkowski.
