Maine residents are gearing up for a historic vote that could result in the removal of the state’s two largest electric utilities. The proposed takeover of Central Maine Power and Versant Power, which distribute 97% of electricity in the state, would be the first time a U.S. state’s utilities were forcibly replaced simultaneously. The referendum, set to be voted on November 7, calls for the creation of a nonprofit utility called Pine Tree Power to operate the state’s 28,000 miles of transmission lines.
The main selling point of the proposed utility takeover is that it would prioritize the interests of ratepayers over corporate shareholders, leading to lower costs, increased investments in the grid, and improved performance. Supporters argue that both investor-owned utilities have low customer satisfaction ratings, with longer response times to power outages and higher-than-average electricity rates. However, critics, including Democratic Governor Janet Mills, express concerns about the politicization of the power grid and question the savings projections due to the high costs of buying out the utilities.
The stakes are high for the existing utilities, as the owners of Central Maine Power and Versant have donated nearly $40 million to fight against the takeover attempt. On the other hand, supporters of Pine Tree Power have raised $1.2 million. The referendum campaign has gained significant attention, with experts suggesting that the outcome in Maine could have implications for other communities considering similar actions against their investor-owned utilities.
While there are no guarantees that changing ownership will solve the problems faced by ratepayers, supporters of the referendum argue that it is a necessary step towards addressing the issues of slow response times, high electricity costs, and limited connections to renewable energy projects. However, some ratepayers remain cautious and are awaiting concrete plans from Pine Tree Power before making a decision.
If the referendum is approved, the proposed utility would establish a 13-member board and contract with a private grid operator through a competitive bidding process. CMP and Versant workers would have the opportunity to join the new contractor and receive bonuses. The new utility would also have the ability to reinvest in a more resilient system to combat extreme weather events resulting from climate change.
However, Pine Tree Power would face similar challenges to the existing utilities, such as the high costs of maintaining power lines and equipment across a vast rural state. Additionally, the utility would have no control over the actual cost of electricity, which comprises a significant portion of consumers’ monthly bills.
Although the proposed takeover still needs to overcome a potential hurdle requiring voter approval for borrowing over $1 billion, supporters of Pine Tree Power remain optimistic that the change is necessary to improve the quality of service. Critics, however, argue that the proposed solution could result in increased debt and years of bureaucratic and legal battles without guaranteed improvements.
The outcome of the vote in Maine will set a precedent for other communities considering similar actions against their investor-owned utilities. The debate over the future of electric utilities in the state reflects the growing dissatisfaction among ratepayers and the desire for more affordable and reliable electricity services.
