There’s no disagreement that CMP’s customer service and reliability are deplorable. CMP has created such enmity among its customers that some are even willing to believe the specious claims of those promoting a “consumer owned utility.” Few people realize CMP is a self-inflicted wound. Maine’s PUC and its legislature are the creators of this monster. And the easiest solution to fix this problem is in their hands: performance-based rates (PBR). LD 1959 is a great step in that direction.

Currently 16 states have some form of advanced PBR. Performance incentive mechanisms can be designed to assess safety and reliability, customer satisfaction, facilitate customer owned generation and adoption of energy efficiency programs.

Hawaii is the latest and most advanced version of PBR in the US. Hawaii has implemented its version of PBR last June. Hawaiian Electric Company is required to submit a 5-year plan that begins with fixed rates the first year and limits annual rate increases to three factors: inflation; unforeseen events; and a “productivity factor.” The productivity factor is based on how Hawaiian Electric does in terms of customer experience, utility performance and desired societal outcomes. If Hawaiian Electric reduces its costs beneath the annual limits, it can keep the difference; if its costs exceed the limits it takes a loss.

Maine has no performance standards, none. Maine’s regulatory structure is an anachronism and follows last century’s cost of service model. Is it any wonder that CMP’s performance is as poor as it is?

A long time ago while working for a utility, a friend quipped “The number one core competency of investor-owned utilities is to make sure no one changes the rules.” CMP behaves the way it does because that’s what the rules allow it to be, and it has been very successful making sure they do not change.

Change the rules and the behavior will change. LD 1959 is a start.

Gerry Runte,
York