Maine Passes Law to Tackle High Electricity Rates

Maine has enacted a new law aimed at making electricity more affordable for residents. The law, which went into effect earlier this year, requires the Public Utilities Commission (PUC) to prioritize affordability in its decision-making process.

The legislation, known as An Act Regarding Energy Fairness, was signed by Governor Janet Mills and is expected to promote transparency and data-driven policymaking. According to Phil Bartlett, Chairman of the PUC, the law will require the commission to publish data on transmission and distribution rates, conduct a comprehensive review of electric delivery rates, and develop an 'affordability metric' to help lower costs.

Maine has some of the highest residential electricity rates in the country, with an average cost of $0.28 per kilowatt-hour compared to the national average of $0.20 per kilowatt-hour. The main driver of this high cost is the price of natural gas, which sets the price for wholesale electricity in most hours of the year.

While the law does not directly lower electricity costs, it shines a light on the issues surrounding affordability and requires stakeholders to work together to find solutions. In addition, $7.5 million has been allocated from the general fund to support low-income families and help them pay for electricity.