Maine’s electricity costs have risen faster than those of any other state in the nation, and the trend has become impossible to ignore. Should you question whether this is really the case, consult with your most recent CMP bill.
During Tuesday’s Common Sense Maine gubernatorial debate, all four Republican candidates, Jim Libby, David Jones, Owen McCarthy and Robert Wessels, highlighted the issue, emphasizing that the state’s surge in energy costs is harming families, small businesses and long-term economic growth.
Their shared concern reflects what many Mainers already know: the state’s 36 percent year-over-year residential electricity price spikes did not happen by chance. The rapid increase aligns closely with policy choices made during Gov. Janet Mills’ (D) administration, particularly the expansion of costly renewable subsidy programs and the approval of significant utility rate hikes.
Net Energy Billing: A Program Mills Expanded That Drove Rates Up
One of the most consequential policies shaping Maine’s electric bills has been Net Energy Billing, the above-market reimbursement system for small solar developers. Under Mills, NEB expanded dramatically, creating long-term financial obligations that shifted billions in costs onto households and businesses statewide.
Multiple independent analyses, even from nonpartisan sources, have pointed out that Maine’s version of NEB became unusually costly, with reimbursement rates far exceeding wholesale power prices. These added costs are now embedded in ratepayer bills for years to come.
Although Mills eventually signed reforms aimed at reducing the program’s future spending only after harsh criticism, the expansion that occurred during her tenure produced obligations that cannot be unwound quickly.
Utility Delivery Charges Soared Under Mills’ Watch
The Mills administration also oversaw a period of sharp increases in the wires portion of electric bills — the fixed and distribution charges assessed by CMP and Versant.
During this period:
- CMP’s monthly service charges rose toward $30
- Distribution rates increased into the mid-teens per kilowatt-hour for many customers
- Versant implemented multiple rate increases
- Utilities received approval for expensive multi-year grid projects
These costs, often overlooked in political debate, now make up a substantial portion of every Maine electric bill. Regulators appointed during Mills’ tenure approved rate hikes and utility spending plans that will continue driving costs upward for years.
Regional Gas Prices Don’t Explain Maine’s Outlier Status
Mills and her allies have frequently blamed rising wholesale power prices driven by the ISO-New England grid, which relies heavily on natural gas. But every New England state faces that same regional dynamic. Maine alone posted the largest electricity increase in the United States over the past year.
When neighboring states with similar grid constraints did not see spikes of the same magnitude, it became clear that regional pressures are not the primary factor separating Maine from the pack. State policy choices play the larger role.
Transmission Battles and Delays Added Further Costs
Under Mills, Maine also remained locked in costly political fights over major transmission projects. While other states pursued expanded access to lower-cost imported power, Maine’s progress stalled. Delays and uncertainty increased reliance on expensive regional markets and limited opportunities to reduce congestion costs.
This contributed further to the upward trajectory of electricity prices.
Businesses Warn That High Energy Prices Are Stifling Growth
For employers across Maine, the consequences are immediate and severe. Manufacturers, processors, farms, small businesses and large commercial operations all report that electric bills are among their fastest-growing expenses.
Particularly significant is the impact on data-center development, a national growth sector bypassing Maine in favor of states offering cheaper, more reliable electricity. High costs and long-term uncertainty have become a major deterrent for private investment.
These concerns were echoed by all four Republican candidates during Tuesday’s debate, where each underscored that Maine’s energy costs are undermining economic competitiveness and household budgets alike.
A Crisis Built Over Time — and Closely Tied to Mills’ Decisions
Maine’s current electricity crisis is the product of multiple overlapping factors, but the through line is clear. During Janet Mills’ tenure:
- NEB expanded into an extremely costly subsidy program
- Delivery charges increased sharply
- Utilities secured approval for long-term spending plans
- Transmission bottlenecks went unresolved
- Regulatory oversight failed to restrain rising costs
The result is the highest electricity price increase in the country.
Maine’s energy crisis did not arrive suddenly. It was created policy by policy, mandate by mandate, approval by approval — and the financial burden now falls on ratepayers for years to come.
