Electric rates spark discussion in region

Individuals, businesses, city offices and many more got quite a shock after the first of the year upon receiving their latest electric bills, with recent rate increase causing increases to range from a few dollars for private residences to even greater amounts for businesses that rely on electricity to keep operations running smoothly – in some cases, 24 hours a day.
     City Manager Tom Stevens said when it was announced last fall that rates would increase, the city’s budget had to be adjusted to accommodate for the rising cost of electricity.
“When the PUC announced electric rates would be going up, we were near the end of our budget discussions. City Council had to make about a $50,000 adjustment in the budget to compensate for the rate increase. That meant cutting money from other areas in a budget that was already tight,” said Stevens.
Businesses like McCain Foods and the growers that supply them have been hit hard by higher rates. From storage to production, electricity plays a major role, including keeping refrigeration units running and keeping work areas well-lit.
The rate hike could impact future business prospects for Maine and, more specifically, Aroostook County, as companies add the cost of electricity to a list of other concerns, including transportation costs, when making decisions on setting up business in the state.
“Utility rates are important to the bottom line. That’s why Aroostook Partnership for Progress works with businesses, looking for areas with the lowest rates and other advantages that would make for a more appealing package, when trying to attract companies to the area,” said Walt Elish, APP’s president and CEO.
The recent rate increase was brought about to offset problems in other states. But Maine, being part of the New England grid, is left burdened with electric rates that are, in some cases, up 20 percent or more.
One Washburn resident, who did not want to be identified, indicated her bill for December had been around $89. Her January bill was approximately $109. In a month’s time, her bill went up $20, despite the fact her husband wasn’t working in December and was home every day, but returned to work in January – thus reducing the amount of electricity used daily.
Presque Isle business owner Mike Cyr, who operates Bradley’s Citgo and several carwash facilities, said the hike will definitely affect his businesses. Cyr acknowledge that Maine Public Service Company merely serves as the delivery vehicle for power produced by the Wisconsin Power Company and that the decision to increase rates came from a source outside Maine.
“The increase will have a serious impact on my businesses. My convenience store went from .0581 to .0891 which averages about 16,000 kilowatt hours per month; this equals a 54 percent increase. That translates to an average of $6,500 per year increase for my store,” said Cyr.
Cyr indicated for small commercial operations like his carwashes, which went from .0545 to .0789, equals a 45 percent increase, on average.
“Residential, including electric heat apartments, went from .05459 to .0789, which equals just over a 44 percent increase,” said Cyr.
Cyr suggested anyone concerned over the rate increases should contact elected officials to express their displeasure.
“We all need to write to our local senators and U.S. congressman and congresswomen and tell them what deregulation has done to us and that it will cause some small businesses to go under or move to other parts of Maine,” said Cyr. “Don’t forget, folks, that the bulk of this money is leaving the state.”
Gov. John E. Baldacci, who visited Presque Isle recently to discuss the rate increase and other matters, said he was looking into what could be done to address the issue.
“I’ve been discussing the rate increase with some of your local elected officials – Reps. Patricia Sutherland, Jeremy Fischer and others who’ve asked me about the rate increase,” said Baldacci. “It (the increase) is affecting the ability for independent growth in our state.”
Baldacci said he was in the process of looking into other ways to provide the state’s electricity.
“I’m looking at different arrangements. I have the support of business and industry leaders who’ve told me they can’t afford the increase,” said the governor.
Baldacci was hoping to have positive news by as early as May and was hoping to return to Aroostook with officials from the PUC to “address the immediate issue and discuss plans for the future.”
In an effort to find less expensive electricity, Baldacci visited New Brunswick recently, meeting with Shawn Graham, premier of the province of New Brunswick, signing a Memorandum of Understanding designed to lay out a timeline to explore and set forth actions enhancing cross-border cooperation on electrical interconnections.
“Both Premier Graham and I have the privilege of living in communities rich in natural resources, like wind and tidal energy, that can generate emission-free electricity,” said Baldacci at the meeting. “We also both produce an electricity surplus and want to ensure that we pay competitive prices for electricity.”
Baldacci indicated that Maine consumers are “shouldering the burden of transmission and capacity costs for other states in New England.” That’s why the governor has joined the Legislature in requesting Maine Public Utilities (PUC) study alternatives that would benefit Maine.
The governor said it was his responsibility to the state to look beyond New England to resolve the issue, including looking to the north for answers. Baldacci said looking at alternatives could have a long-term impact.
“This partnership to develop and pursue an expanded clean energy market could help curb global warming by reducing carbon pollution and grow our respective economies,” said Baldacci. “This MOU is the beginning of a relationship that holds a lot of promise for Maine and New Brunswick. Together, we can expand the clean energy market, reduce carbon pollution, all while creating new jobs and increasing the production of a clean environmentally-responsible product we can export to both countries.”
Baldacci also discussed opportunities now available between community colleges in Maine and Canada.
Graham agreed having the province and Maine work together was a good idea.
“These new agreements demonstrate the spirit of partnership and co-operation between the state of Maine and the Province of New Brunswick,” said Graham. “Improving efficiencies of our electric systems should benefit consumers and the environment, for both New Brunswickers and Mainers.”