Earlier this summer, the Maine Public Utilities Commission (PUC) announced electric bills have increased again. Maine’s Public Advocate and legislative Republicans have been warning that this would happen because of the excessive profits paid to solar companies. This past session, I joined with my fellow Republicans, and a handful of Democrats, to try and stop this transfer of dollars out of Mainers pockets so that we can lower electric rates. Several bills addressing this problem failed when lobbyists got involved. We will all continue to pay extra even if we are not connected to wind farms.
Residential ratepayers and Maine’s small businesses are paying even higher amounts for the “stranded cost” portion of your electric bill. This is the part of the bill that subsidizes the solar projects that now cover our landscape. It is called Net Energy Billing.
Simply put, wind and solar companies are paid .20 cents per kilowatt to deliver a product that can cost as little as .05 cents to generate. This is allegedly done to move us away from cheaper fossil fuels. What most people do not know is that solar farms in Maine cannot function without oil and natural gas.
Rather than blame failed government energy policies, consumers often place the blame for high bills on Versant or CMP. The Net Energy Billing portion of the bill is the fault of the legislature. Companies are required by law to pass that increase and other hidden subsidy costs along to consumers on their bills.
Consider:
- Standard offer rates increased 132.06% between 2014 and 2023 because of more expensive solar required under the Renewable Portfolio Standard.
- For CMP, stranded costs will go up 93% to $183 million.
- Some businesses are now subject to a “job-killing solar tax.” One small business in Milo just announced that it is likely to go out of business because their $5,000 an month bill will increase another $6,000 an month even though it is not tied to increased energy use.
- Maine’s nonpartisan Public Advocate Bill Harwood says solar subsidies will cost $4 billion over 20 years. In a May 12 interview with WGME, he said: “It requires CMP and Versant power to pay approximately 20 cents per kilowatt hour for solar energy that costs less than 10 cents a kilowatt hour to generate,” Harwood said. “They then make up this difference by adding it to the rates charged to rate payers.”
I am not against rooftop solar for those who can afford it. I am against having low income Mainers subsidize something they themselves cannot afford to buy. State energy policy should be focused on lowering energy prices because the cost of food and all other essential items is directly tied to energy costs.
Even though the Legislature has adjourned, I am still busy doing constituent work. Please do not hesitate to contact me if I can be of assistance with state matters. I can be reached at Jim.Thorne@legislature.maine.gov or call 207 287-1440.
Thank you for the opportunity to represent you in the Maine House. I love hearing your thoughts and concerns, and appreciate your input!
Sincerely, Rep. Jim Thorne