MAINE PUBLIC UTILITIES COMMISSION APPROVES STIPULATION FOR ANNUAL STRANDED COST RECONCILIATION FOR VERSANT POWER

June 24, 2025

Hallowell, Maine - The Maine Public Utilities Commission (PUC) has approved a stipulation submitted by the parties in Docket No. 2025-00115, resolving Versant Power's annual stranded cost reconciliation filing. The approved stipulation reconciles stranded cost revenues collected over the past year and sets new stranded cost rates for the upcoming 12-month period, effective July 1, 2025.

Stranded costs are expenses incurred by utilities that are not necessarily recoverable in the competitive electricity market. These costs are largely the result of state legislation enacted to support Maines climate and clean energy goals. They include expenses associated with renewable energy contracts, net energy billing programs, and other policy-driven initiatives aimed at reducing greenhouse gas emissions and promoting clean energy development.

Included in the stranded cost calculation is a $3 million service quality indices (SQI) penalty imposed on Versant Power for failing to meet Commission-established reliability and performance benchmarks. Under the terms of the approved stipulation, this penalty will be credited back to ratepayers through stranded cost reconciliation, further reducing customer bills.

"This annual reconciliation process not only ensures that stranded cost rates remain accurate, transparent, and fair to Maine consumers, but the SQI penalty reinforces our commitment to holding utilities accountable for service quality," said Commission Chair Philip L. Bartlett II.

Each year, utilities are required to reconcile the actual stranded cost revenues collected with the amounts authorized for recovery and to propose new rates based on updated forecasts. This annual process ensures transparency and accuracy in cost recovery and helps protect Maine consumers from being over- or undercharged.

In addition to the stranded cost reconciliation, rate changes that will go into effect July 1, 2025 will include increases to efficiency charges, increases to distribution revenue decoupling mechanism (RDM) charges, and an increase to transmission charges for customers in Versant Powers Maine Public District. An RDM provides for formulaic adjustments to a utilitys rates between rate cases to reflect changes in sales levels.

The total bill impacts for all these rate changes are as follows:

-Bangor Hydro District: an estimated monthly bill increase of approximately 31 cents for a typical residential customer using 500 kWh of electricity.

-Maine Public District: an estimated monthly bill increase of approximately $2.80 for a residential customer using the same amount of electricity.

The final order and the approved stipulation are available on the Commissions website at: https://www.maine.gov/mpuc, under Dockets No. 2025-00114, 2025-00115, and 2025-00167.

About the Commission

The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers, while also helping to achieve reductions in greenhouse gas emissions. Commission programs include Maine Enhanced 911 Service, and gas safety programs. Philip L. Bartlett, II serves as Chair, Patrick Scully and Carolyn Gilbert serve as Commissioners.

Learn more about the Commission at www.maine.gov/mpuc/

CONTACT: Susan Faloon, Media Liaison CELL: 207-557-3704 EMAIL: susan.faloon@maine.gov