Another rate increase, this time for electricity, really stings.
It follows higher gasoline prices, higher heating oil prices and higher propane and natural gas prices. All of them add up to a bigger chunk of money just for the essentials of keeping a house warm and the lights on.
But the reality is, Mainers have been getting a break on electric rates. The price was negotiated when Maine’s utility market was deregulated. While costs to produce the juice – which is mostly generated by natural gas – have gone up, the tug on consumers’ wallets hasn’t.
Now, we all have to pay the piper. For the average home, the piper is demanding about $10 more a month, or an increase of around 17 percent. The rate increase will go into effect in March.
Don’t blame Central Maine Power. The company doesn’t supply the electricity; it just delivers it. And CMP’s charges have been steadily declining, down 28 percent in the last four years.
The price hike shouldn’t come as a shock. Predictions had been all over the place for one, with some experts expecting a hike of 50 percent.
The Public Utilities Commission members approved the increase Tuesday, knowing they’d be hammered for it. But the PUC’s goal was to maintain stable prices for the next three years, while also reacting to the demands of the market.
It hurts, but it’s reasonable.
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