Energy Costs Skyrocket for Maine Manufacturers in July

MMTA

An issue has arisen that, while not directly trucking-related, its impact will be felt by MMTA members throughout Maine. Below you will find a Bangor Daily News article that does a good job explaining it, but in a nutshell, energy costs for many industrial users saw a big jump starting in July. The main reason for this increase is due to the subsidies Maine has given to solar developers to encourage renewable energy. The purpose of this article is not to comment about renewable energy policy or the benefits of solar, it is to ring the bell with MMTA members that this issue is hitting some of our members (especially those in manufacturing) excessively hard as you will read about in the BDN article.

BDN: Some Maine businesses are facing high electricity bills due to solar fees, and it’s causing alarm. One Milo company saw its bills double, ending with a $6,000 bill that may force the company to close.

A small group of members came to Augusta on August 20th and we met with high level officials in Governor Mills’ office. They were gracious to set the meeting up so quickly and they were sympathetic to the data that was produced showing the extreme and unsustainable energy cost increases on each member’s monthly electric bill – some were $6k/month and some were as high as $9k/month, depending upon their rate class. We made the point that our concerns were the product of unintended consequences with public policy passed in previous legislatures and we asked what can be done. Long term, we can advocate for a change in policy at the legislature, which is not guaranteed and would take more than a year (at the earliest) for any potential resolution to be in effect. In the meantime, there are a couple of things we are asking members to do to help:

  1. Look at your Versant or CMP bill and see how much your costs have increased. Versant is separating out this new charge and you will see it as a “Public Policy Charge” (formerly known as “Stranded Costs”) and we understand CMP is not separating it out. This information is good to know for the next two “asks”…
  2. Consider submitting comments to the PUC through an open docket that they have set up to investigate this issue. Attached are the comments MMTA has submitted, you can find all comments by clicking HERE and going to the Public Comments tab, and then if you are inclined to submit comments, you can click HERE. Even if your company is not an industrial electricity user, it is important for the trucking industry to support the manufacturers who will be producing freight that will need to be moved by truck.
  3. Socialize this issue during this election season with your friends, family and with any political candidate who you talk to looking for your vote. Depending upon the resolution to the PUC proceeding, we might also ask members to host key policymakers this fall at your facilities so they can see the operations being impacted by these unintended consequences.

Again, we realize this is not a typical trucking issue, but we would appreciate your consideration to at least be mindful of it and submit comments supporting an equitable resolution. And, as always, please do not hesitate to reach out if you have any questions.