The Maine Public Utilities Commission (PUC) has announced the new standard offer price for Central Maine Power (CMP) customers in 2026, who will see a nearly 20 percent rate increase.
Next year, the per kilowatt-hour rate will increase from 10.61 cents to 12.72 cents, resulting in an average $11 monthly increase for households using 550 kilowatt-hours each month.
Impacting the supply portion of the bill, the standard offer rate affects the amount of money going to the company generating power, not distributing it.
Consequently, the increased revenue will not be going to CMP, as their responsibility is only to transport the electricity once it is created to homes and businesses throughout the state.
Standard offer rates are selected by the PUC through a competitive bidding process.
As reported by WGME, rates have decreased or remained the same over the past several years, the PUC has indicated that this year’s increase is reflective of the current energy climate.
“We recognize that rising energy costs create real challenges for Maine households and businesses,” PUC Chair Philip L. Bartlett II said. “The Standard Offer reflects current market realities and the Commission remains committed to securing the lowest reasonable prices for Maine electric utility customers in a challenging energy environment.”
Although most CMP customers accept the Standard Offer, Mainers also have the option of choosing one of the competitive energy providers, whose rates may be higher or lower and often require signing a contract.
In a statement, CMP highlighted a change made to state law twenty-five years ago requiring utilities to sell their electricity generating assets, preventing them from directly supplying electricity to their customers.
“Unlike other parts of the electric bill, this is simply a cost increase for something Mainers are already paying for, and it would have faced far greater scrutiny if Maine had not deregulated its wholesale electricity market,” a company spokesperson wrote, according to WGME.
“Twenty-five years ago, the deregulation of electricity generation was an idea sold by state leaders as a way to foster competition and lower prices,” the spokesperson continued. “In reality, it has fragmented responsibility and introduced volatility, leaving consumers exposed to price swings and utilities with fewer tools help customers manage costs.”
The Office of the Public Advocate has suggested that next year’s price increase is tied both to the rising cost of natural gas, as well as increased risk in the wholesale market.
“We believe that the standard offer bids were higher this year because of increased prices for natural gas, as well as certain changes in the wholesale market that have introduced new pricing risks for the suppliers,” Public Advocate Heather Sanborn wrote in a statement.
“The Public Advocate’s office remains focused on long-term strategies that will make Maine’s energy bills more stable and predictable,” Sanborn added.
[RELATED: Public Outcry Pays Off — CMP’s Rate Hike Shot Down by Maine Regulators]
This announcement comes just days after the PUC rejected CMP’s proposed five-year plan to hike rates, a move that the utility had framed as necessary in order to fund more than $1 billion in infrastructure upgrades and new staffing.
CMP’s rate case represented the largest proposed increase in Maine history. If approved, residential bills would have risen approximately $35 per month once fully phased in over five years.
Mainers quickly responded to the proposition with overwhelming opposition.
Since the utility filed its case in September, more than 800 residents submitted written comments, many arguing that CMP was attempting to offload its financial risks onto already overburdened ratepayers. Hundreds attended public hearings, pushing for regulators to shut the filing down.
PUC Chair Bartlett said that the utilities proposal “misse[d] the mark,” noting that Mainers are facing mounting affordability challenges.
Sanborn said the commission’s rejection reflects the strong public sentiment that the rate hike was unaffordable, adding that Mainers “deserve a voice” in decisions that directly impact household budgets.
Governor Janet Mills (D) also praised the outcome, calling CMP’s request “excessive” and “out of touch with the economic reality” facing residents.
