On June 8th and 23rd, members of the Fight The Hike team protested the proposed CMP rate hike. Three Third Act Maine members testified in person, and others submitted written testimony. Fight The Hike consists of 14 Maine environmental groups brought together by Seth Berry, founder of Our Power. Protesters enacted a tug of war between corporate greed and Maine ratepayers wearing colorful costumes backed up by lots of signs and banners.
At first glance, CMP’s rate hike request is bad because it seeks to increase their profits thereby raising consumer rates to pay for it. Greater Portland Hub member Marcia Taylor testified about how increasing electric rates will impact her neighbors struggling to get by in this economy.
Allowing CMP to rip off ratepayers will also set back our fight against fossil fuels by decreasing the incentives to purchase heat pumps and EV’s as Tom Mikulka and Dick Thomas testified in South Portland and Lewiston, respectively.
This work is part of the Power Up Communities campaign of Third Act which encourages members to lobby their state Public Utility Commissions (PUC’s) to adopt policies that strengthen clean energy. On his recent visit to Maine, Third Act founder Bill McKibben stood with Kathy Mikulka beside one of the protest signs.
The events got great coverage by local press:
Delger Erdenesanaa, The Maine Monitor – “Electricity customers voice concerns over CMP’s latest rate proposal“
Ethan Horton, Portland Press Herald – “CMP rate hike hearing draws protestors, fierce testimony to Lewiston”
Julia Simone, WGME – “PUC holds public hearing on Central Maine Power’s proposed rate changes”
Kaitlyn Budion, Maine Morning Star – “CMP customers say energy prices already too high, urge commission to reject rate hike“
WMTW video – “‘No money in the pocket:’ CMP customers speak out on proposed temporary rate hikes“
Greetings PUC members. I am Tom Mikulka, co-founder of Third Act Maine. We are part of a national organization of elders. Third Act’s Power Up Communities campaign is designed to hold Public Utility Commissions, legislators, electric and gas utilities accountable. Over 1600 Mainers receive our monthly newsletter. In response to this filing, Heather Sanborn, Maine’s Public Advocate, issued the following statement: “CMP’s filing makes clear that the company is not only seeking to recover higher operating costs and capital investments, but also to increase its profits. This comes at a time when Maine families are already facing the rising costs of everything from gas to groceries and housing.
I stand in solidarity with Heather Sanborn. The Energy and Policy Institute recently looked at the net profits of 20 utilities in the Northeast for the 4 year period ending in 2024. Profits ranged from 23.5% to 3.5%, with CMP ranking fourth highest at 14.2 %. At the same time Maine ranks 30th in median household income. CMP’s current unfair rate request will definitely hurt Mainers. Wall Street long-term return forecasts offer a separate benchmark: in 2024, the average authorized return on investment for regulated U.S. utilities was 9.7%, while the average for 34 major investment firms was 6.7%. That gap is particularly striking because utilities are lower-risk investments than the market as a whole. Meanwhile, the majority of PUC’s across the nation have not resisted utility requests for increased profits.
Former California utility executive, Mark Ellis agrees and states that an ROE of 6% is slightly less than average but would be fair. Finally, because I am retired I need the best return on my savings. I am looking at Fidelity and Vanguard money market returns of 3.6%. My Certificate of Deposit at Town and Country Federal Credit Union is 3.75 %. Why should utilities make so much more? May I also note that I am looking at the future for my 2 grandchildren. Higher electricity rates will definitely slow the transition from fossil fuels to heat pumps. I know that each of you understands the urgent need to transform our energy system and slow climate change. I therefore urge you to take a stand against CMP’s attempt to gouge Maine ratepayers. Please reduce their ROE to 6%.
