Versant Power will seek distribution rate change in summer ’23
Thursday, August 4, 2022
August 4, 2022 - Bangor and Presque Isle, Maine — After Versant Power’s careful evaluation of what we must do to continue maintaining and improving customers’ access to electricity in northern and eastern Maine, we are seeking a change in distribution rates beginning in the summer of 2023.
We plan to use these funds to:
• Replace our metering system, which has reached the end of its useful life
• Replace deteriorating cables that provide electricity to customers on islands off the coast of Maine
• Build a new substation in Machias, improving reliability and replacing equipment near Bad Little Falls with a more environmentally friendly solution
• Continue our work to improve reliability in the Old Town/Orono area
• Install additional equipment in northern Maine to prevent tree-related outages and reduce the impact and duration of outages that do occur.
• Make continued improvements to our tree trimming program to reduce the number of power outages and harden the system against storms
• Invest in our technology, keeping customer and other sensitive data secure
• Retain quality employees in a competitive labor market
For the average residential customer using 500 kilowatt-hours per month, this change would mean an increase of about $10.50 per month. For a customer using 750 kwh, it would result in a $15 to $16 increase, and for 1,000 kwh, an increase of about $21.
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.
Like all businesses, Versant Power has been affected by price increases and labor market pressures. However, we’ve continued to implement more sophisticated technology to inspect our equipment, ensuring we keep the costs of repairs, replacements and improvements as low as possible. Those technologies include drones as well as ultrasonic and acoustic assessments.
Versant Power is deliberately not seeking an opportunity to earn greater 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 nearly 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 recognizes the importance of continued investment in the reliability and resiliency of the system as Maine moves toward greater electrification of its economy and integration of more renewable resources. For more information about the request, visit the Distribution Rate Request page on our website or connect with us on Twitter, Instagram, or LinkedIn.
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.