Over the years, Central Maine Power and Versant Power have applied for many rate increases for “capital improvements to the grid.” The Public Utilities Commission generates a detailed record on each proposal.

The Pine Tree Power proposal urges Mainers to support the purchase and consolidation of these two distribution companies into a single consumer-owned nonprofit entity governed by a fiduciary board of members with relevant business and technical expertise. Management would be no less disciplined if consumer demand for better service replaced shareholder demand for dividends.

Pine Tree provoked an explosive reaction from the for-profit incumbents, forecasting financial chaos and operational Armageddon. It also provoked me to think about all those rate increases that CMP and Versant justified as “capital improvements to the grid,” and ask if ratepayers/consumers don’t already have an ownership interest in the easily identifiable improvements these rate increases have funded. Shouldn’t this reduce the acquisition price paid by Pine Tree Power? Accountants could use data in the PUC hearing records to calculate the present value of assets we already paid for.

Where “natural monopolies” such as utilities make competition impractical, a well-regulated monopoly is a second-best solution as an operational model. Ownership, however, is a different issue. Public and consumer-owned entities successfully own and operate water, sewer and electricity systems here and elsewhere. Given widespread dissatisfaction with the for-profit incumbents’ operational performance, there is no logical reason why consumers can’t or shouldn’t own and operate electricity delivery infrastructure in Maine. In fact, we may have already paid for part of it.

Richard Parisen
Kennebunkport

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