HOULTON, Maine — Houlton Water Company customers should see an average refund of just under $100 reflected in their electric bills in the coming months.
“It is with great pleasure that I announce that the Houlton Water Company will be refunding $672,809 to its customers starting in December of 2017,” HWC General Manager Greg Sherman announced Friday in a press release. “This refund is the result of a negotiated settlement of transmission overcharges billed to HWC by Emera Maine for three years beginning June 1, 2014, to May 31, 2017.”
According to Sherman, the refund will be returned to HWC customers through a reduction in the transmission rate charged to its customers on a monthly basis.
HWC has roughly 5,500 customers for its electricity in the communities of Houlton, Hodgdon, Linneus, New Limerick, Ludlow and Littleton.
For an average residential annual bill of 7,800 kilowatt hours the savings will be about $96.
“On a per person basis this may not seem like a lot, but in the aggregate this is a large number,” Sherman said. “In 2016, the total transmission cost to our customers was $790,000 and the estimated amount through November 2017 is over $850,000. The refund equates to 85 percent of 2016 total transmission costs and almost 80 percent of the 2017 costs year to date.”
Beginning in May 2014, the Houlton Water Company along with Van Buren Power and Light, Eastern Maine Electric Cooperative, Office of the Maine Public Advocate, Re-Energy Biomass Operations LLC and the Maine Public Utilities Commission intervened in proceedings before the Federal Energy Regulatory Commission challenging the Open Access Transmission Tariff (OATT) filed by Emera Maine for the periods June 1, 2014, to May 31, 2017.
A settlement with Emera Maine was reached in June of 2017 and approved by FERC on Nov. 20.
“Emera Maine’s rate establishment process offers opportunities for our customers to work with us to find common ground,” Judy Long, corporate and media communications specialist for Emera Maine, said on Tuesday. “We’re pleased we were able to reach an agreement that is fair for customers.”
Long added, “Refunds such as these are not uncommon in transmission and stranded cost rates. The process to finalize rates may occur months and often years after the original rates are put in place.”
Van Buren Power and Light received $92,458 as part of its refund.
“I am extremely pleased that the HWC and others participating in the case were able to settle the case at the Federal Energy Regulatory Commission (FERC) which has resulted in refunds to our customers,” Sherman said. “We would have preferred to have the settlement approved by FERC in June instead of November so refunds could have gotten to the customers sooner. I believe the timing of the refund now as we head into the winter months will be greatly appreciated by our customers as this refund will result in lower rates when both electric and heating bills are normally much higher.”
Sherman also noted that a great deal of the credit for this settlement needed to go to former General Manager John Clark, who served in that capacity from 1984 to 2017. Clark retired in early 2017.
“This settlement is another parting gift thanks to John Clark’s efforts as general manager,” Sherman said. “During his tenure he was always working for the best interest of the customers and without his determination and the support and commitment of the HWC Board of Directors this refund would have been unlikely.”
