Mainers, take notice. Central Maine Power has asked state regulators for a rate hike that, if approved, would double the fixed monthly portion of your bill, along with other increases ”“ all coming out of your pocket.
AARP believes the energy giant’s proposal is not only unfair, but unreasonable for the more than 500,000 Maine households that count on CMP.
The total cost of CMP’s rate hike request to the Maine Public Utilities Commission is nearly $29 million, down from an initial $41 million following litigation.
To get this extra money, CMP has proposed changes to different line items on customers’ bills including the fixed monthly charge. The CMP proposal also includes:
Ӣ An alternate rate plan that would permit periodic rate increases not subject to full review by the Maine Public Utilities Commission or any performance metrics.
Ӣ A rise in base rates for storm cost recovery while retaining the ability to go back to the PUC for even more in storm cost funding.
”¢ An excessive increase in the company’s allowed profits, plus accounting gimmicks to raise profits even higher.
Ӣ A move to take millions of dollars from a depreciation account that is due to be returned to CMP customers, then use that money to make it seem like bills remain stable, at least at first.
Here in Maine, we continue to battle a tough economy, feeling the effects of the great recession. Many older residents, a third of whom rely solely on Social Security for their income, already have to make tough choices between heating their homes, putting food on the table, and purchasing needed medications. They should not be asked to fund, especially, the excessive profits or rate increases that CMP has requested through its proposal.
Yes, $29 million is too much. And, CMP customers would pay the price.
Specifically, as part of its five-year rate hike plan, CMP would like to charge more for the fixed portion of customers’ bills ”“ and cover less. Currently, residential customers pay a fixed amount of $9.36 on their monthly bill ”“ and that price includes the first 100 kilowatt hours of usage. Regardless of how much power customers consume, they must pay this price. Then, any usage exceeding 100 kWh is billed through a per kWh rate. On average, CMP customers use 525 kWh a month.
But, CMP would increase the fixed cost from $9.36 to $12 a month in the first year; it would then increase yearly to reach $20 a month in 2019. Further, no kWh usage would be included in that fixed cost, meaning, Mainers would be forced to pay a per kWh rate for all their power needs ”“ on top of the hike in the monthly fixed cost.
AARP calls on Mainers to raise your voice before they raise your rates. We encourage CMP customers to contact the PUC to make their concerns heard, as we believe that is the best way to fight these rate increases.
Share feedback online at http://1.usa.gov/1hOILsq or by writing to the Public Utilities Commission, attention Administrative Director, MPUC, 18 State House Station, Augusta, ME 04333.
CMP’s $29 million rate hike proposal is too much. And, AARP is fighting so Mainers only pay what is fair and reasonable for their utilities ”“ not a dime more.
For more information, visit www.aarp.org/me.
— Dr. Lori K. Parham is the state director for AARP Maine.
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