FERC Ruling Puts CMP, Versant in Line for Share of $1 Billion in Refunds
Maine's public advocate says the rate cut could send back roughly 15 years of overcharges, though utilities may contest the refunds.
Federal energy regulators have ruled that New England's transmission utilities, including Central Maine Power and Versant Power, collected excessive profits for years, a decision that could lead to more than $1 billion in refunds for electric customers across the region, the Bangor Daily News reported.
Regulators determined that neither the prior 11% return on equity nor the interim 10.5% figure was justified, and they lowered the allowed rate to 9.57% while ordering repayment to customers.
The decision closes out a complaint the Maine Office of Public Advocate and its New England counterparts first filed in 2011. Public Advocate Heather Sanborn said she hopes transmission rates will drop and that roughly 15 years of overcharges will eventually flow back to customers through their rates.
Transmission charges cover moving electricity from sources like power plants to the local lines that reach homes and businesses. The same companies own both kinds of lines and earn a return on those investments, Sanborn said.
She expects lower costs and refunds to show up on bills but cautioned that the utilities could challenge the ruling in court. Versant spokesperson Judy Long said the company will ask FERC for more time to issue refunds, citing "questions about how those refunds would be structured."
This story was first reported by Bangor Daily News.
