Versant Power notifies customers of 2025 distribution rate request
Friday, March 1, 2024
Bangor and Presque Isle, Maine — As Versant Power works to fulfill its commitments to continually improve the standard of service we provide our customers, we are seeking a change in distribution rates. Any approved change would take effect in 2025.
We plan to use these funds for:
- Installation of covered wire in heavily forested areas in northern Penobscot, Piscataquis and Hancock counties to reduce outages caused by falling trees and branches.
- Substation work and transformer replacements to ensure reliability in Brewer, Washington County and southern Aroostook County.
- Rebuilds to improve reliability in Mount Desert, Southwest Harbor, Blue Hill and Trenton.
- Replacement of an underwater cable from Swan’s Island to Frenchboro.
- Recovery of major storm restoration costs.
- Investment in technology to modernize customers’ interactions, including a new web portal as well as email and text notification capabilities, and to keep sensitive data secure.
- Continued work to maintain the reliability and resiliency of the grid in the face of rising costs of materials and labor.
For the average residential customer using 500 kilowatt-hours per month, this change would mean an increase of about $12 per month. For a customer using 750 kwh, it would result in an $18 increase, and for 1,000 kwh, an increase of about $25.
If this rate change is approved, Versant Power will still offer distribution rates and total average residential bills that are lower than most comparable New England utilities.
Versant Power is committed to meeting new service metrics, established and approved by state regulators, and helping customers save money. We’re also committed to meeting our state’s climate and energy objectives in an efficient, cost-effective way. Versant Power is deliberately not seeking an opportunity to earn greater rate of return on investments as part of this request.
All Versant Power customers will receive a letter that includes information about how they can stay informed and involved in the Maine Public Utilities Commission’s evaluation of our request. The process for a distribution rate change is subject to approximately a year of review and allows customers and stakeholders to weigh in on the potential change. Versant Power expects a rigorous review of our request.
This request involves a change to the distribution rate, one of five rates that make up customer bills. Versant Power seeks permission from the Maine Public Utilities Commission or the Federal Regulatory Commission for any change to transmission or distribution rates, which represent the cost to bring electricity from where it is made to your home or business.
Versant Power also is aware that the Maine Public Utilities Commission is exploring an audit of the company’s management to review our operations and provide third-party insight into reasonable costs for the services we deliver. Transparency with our regulators is an essential and expected part of our business, and we anticipate any review will show the level of professionalism and discipline we exercise every day in delivering safe, reliable service to our customers.
For more information about the request, visit the Distribution Rate Request page on our website. You can also follow us on Twitter (@versantpower), Instagram (versantpower) or LinkedIn.
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Versant Power is committed to delivering safe, reliable electric service. As the state's second-largest electric utility, the company delivers electricity to more than 160,000 residential, commercial and industrial customers across 10,400 square miles in northern and eastern Maine.