PORTLAND, Maine (AP) - The Maine Public Utilities Commission on Thursday imposed what amounts to a penalty of nearly $10 million on Central Maine Power for billing problems and poor customer service. “Maine people deserve much better,” the chairman declared.
The panel agreed with a staff conclusion that there were no systemic problems with CMP meters that led to consumer complaints of high electric bills in late 2017 and early 2018. But customer service problems were compounded by the rollout of its billing system that caused tens of thousands of billing errors, the PUC said.
The penalty imposed on CMP shareholders - an earnings reduction of $9.9 million - was the largest ever approved by the Public Utilities Commission, said Chairman Phil Bartlett. It was double what the PUC staff recommended, and will be lifted only when CMP meets benchmarks for 18 consecutive months.
The Public Utilities Commission granted a rate increase of nearly 7% for CMP in a separate decision, said Harry Lanphear, a PUC spokesman. That increase was smaller than what the company requested, and will amount to an increase of about 2% on average electricity bills, Lanphear said.
CMP had not requested a revenue increase in six years, and the increase is below the rate of inflation, Bartlett said from the PUC’s Hallowell offices.
But the size of the increase that was awarded at a time of customer service problems raised concern from a state lawmaker.
“I applaud aspects of this decision. But if this were a free market, CMP would have gone bankrupt long ago. Instead, they are kept afloat” thanks to the rate increase, said Rep. Seth Berry, a Democrat from Bowdoinham.
The Public Utilities Commission staff concluded high electric bills in late 2017 and early 2018 were “due to a record-breaking cold snap” and “a double-digit increase” in the standard-offer electricity-supply price.
A previous independent audit by the Liberty Group faulted CMP leadership for errors introduced by a new billing system but found those errors to be “minimal” and concluded that the meters themselves were accurate.
CMP issued a statement expressing appreciation for to the PUC staff for the time devoted to investigating and reviewing the company’s practices.
“CMP will continue the process begun several months ago to take meaningful steps to recommit to Maine customers, improve our service and communications, always seek to better understand customer expectations and continuously improve,” said spokeswoman Catharine Hartnett. “We have heard loud and clear that our business as usual is not enough and we must do better. ”
The Public Utilities Commission’s decisions on Thursday marked the end of investigations that spanned two years on a pair of complicated cases.
But the PUC is also investigating Central Maine Power for the wording of disconnect notices sent to customers during the winter period when disconnections are prohibited by law without PUC approval. Officials with the company is complying with the investigation.
CMP is also facing a class-action lawsuit over the billing problems and possible litigation over the collection notices.
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This story has been corrected to show the Public Utilities Commission revised its rate increase for Central Maine Power to nearly 7%, not 8%.
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