MAINE PUBLIC • February 6, 2024
A new measure would direct the PUC to create a framework to enhance the state's standards for utilities, which could be connected to goals such as cost-effectiveness and meeting the state's climate policies. The commission could then look at ways to tie utilities' performance in those standards in the rate-setting process. The approach, called "performance-based" ratemaking, received support from several of Maine's environmental advocacy groups. Advocates say 17 states have adopted some form of performance-based regulation. But Central Maine Power said that the company was already working on issues such as climate change. James Cote, speaking for Versant Power, said that if metrics aren't applied correctly, it could lead to utilities underinvesting in certain areas, and overinvesting in others.