Committee unanimously supports Sen. Vitelli bill to decrease volatility of electricity rates

AUGUSTA — On Thursday, April 28, the Energy, Utilities and Technology Committee voted in favor of a bill from Sen. Vitelli introduced that would help reduce the volatility and uncertainty of electricity rates. An amended version of LD 987, “Resolve, Directing the Public Utilities Commission To Initiate a Proceeding To Explore Strategies To Procure Standard Offer Service in a Manner that Promotes the Stability of Residential Standard Offer Rates,” received unanimous, bipartisan support.

“Even as we head out of the cold winter weather and into spring, Mainers are still facing painfully high energy bills. These price hikes are fueled, at least in part, by our state’s continued reliance on the volatile global market. As we continue to invest in Maine’s energy independence, we need to be doing all we can to stabilize energy rates. This bill is one piece of that effort,” said Sen. Vitelli. “LD 987 is a longer term solution that would reduce price volatility and provide some regulation to the market. I’m grateful to the committee for their strong support for this bill — and for Maine consumers.”

As amended, LD 987 would require the Public Utilities Commission to take a holistic look at how to stabilize energy rates, including considering staggered or longer terms for rate terms. This will help lead to less uncertainty and volatility in the standard offer rate and rates that many Maine consumers pay.

For two years in a row, standard offer prices increased – first by 80 percent on Jan. 1, 2022 and then by 40 percent on Jan. 1, 2023. The standard offer price is a significant portion of the total monthly electricity bill: For a typical customer using 550 kWh, their bill increased $31.98 a month, from $122.59 to $154.58. 

The Maine Public Advocate, William S. Harwood, who testified in favor of the bill, said that after the most recent rate hike, his office received 400 calls from consumers in February. That call volume is nearly four times the amount the office normally received in a month. 

The bill now faces votes in the Senate and House.