New electric supply contracts selected by Maine utility regulators could increase household bills by $13 to $17 a month according to the Maine Office of Public Advocate.
The Maine Public Utilities Commission annually selects companies to provide electricity to homes and businesses in the state, a regulated rate called the standard offer.
The price of electricity in New England is tied to natural gas markets because gas is used to generate about half of the region's power.
Increasing natural gas prices are coming as Mainers are already dealing with rising power bills, said Public Advocate Heather Sanborn.
"When every dollar matters, this is a significant increase for families and small businesses that are already stretched thin," Sanborn said in a statement.
"The Public Advocate’s office remains focused on long-term strategies that will make Maine’s energy bills more stable and predictable," Sanborn added.
In an interview, Sanborn said that new power generation coming online this year from the Vineyard Wind offshore wind farm near Martha's Vineyard and Quebec hydropower through the controversial New England Clean Energy Connect transmission line in Western Maine could help offset electric prices in coming years.
The Office of Public Advocate is also examining ways to make sure Mainers get the best value from the bidding process to select electric providers, Sanborn said.
More expensive electric supply comes right after the PUC dismissed a separate rate case from Central Maine Power to raise its revenue by at least $1.5 billion over five years to make its system more resilient and reduce future storm recovery costs. Concerns over affordability partially drove commissioners' historic decision to reject the proposal.
Customer bills are split roughly evenly between the cost of electricity itself and the cost to transmit and distribute that power.
Maine Chamber of Commerce President Patrick Woodcock said state policymakers need to prioritize affordability after years of increasing power bills.
"There are so many components but ultimately we have to have a refocus on affordability and on the customer because these costs cannot be absorbed by all of our employers," Woodcock said.
