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Maine committee hears bill to require investor-owned utilities to join ISO New England, public advocate says bill could save Maine ratepayers about $5.2 million
Summary
Lawmakers heard testimony on LD 2038 to make participation in ISO New England mandatory for investor‑owned transmission utilities so FERC can remove an RTO participation adder. The Public Advocate said Maine’s share of the regional adder is about $5.2 million and urged an emergency preamble to allow petitioning FERC before 2027 formula rates take effect.
Representative Chris Kessler introduced LD 2038, a bill that would require Maine’s investor‑owned transmission and distribution utilities to be members of ISO New England so the Office of the Public Advocate can petition the Federal Energy Regulatory Commission to remove the RTO participation return‑on‑equity adder.
The bill’s sponsor said the statutory change is straightforward and intended to produce immediate electric bill savings for Maine ratepayers. "This legislation offers a straightforward statutory change that would begin delivering electric bill savings to Maine ratepayers as early as January 2027," Kessler said in opening remarks.
Heather Sanborn, the state public advocate, presented OPA’s analysis and urged passage with an emergency preamble so the OPA would have time to petition FERC before the next formula rate cycle. "This bonus return on equity amount in 2026 for transmission owners in ISO New England amounts to $57,000,000," Sanborn said. "Maine's share of that because Maine only pays about 9% of the transmission costs in the region is about $5,200,000." She added that if Maine and Connecticut both eliminate the adder the modeled savings for Maine would be roughly $2.1 million and that the savings would be larger if additional New England states adopt similar laws.
State energy staff and the Public Utilities Commission also testified in favor, citing recent court rulings upholding state mandates in other jurisdictions. Caroline Collin of the Department of Energy Resources pointed to multistate advocacy through the New England States Committee on Electricity and urged coordinated action. Deirdre Schneider of the PUC summarized federal and appellate decisions finding that RTO incentives are intended to induce voluntary membership and are not required where state law already mandates participation.
Representatives of consumer groups and nonprofit advocates — including AARP Maine and Our Power — supported the change as a modest, direct way to reduce transmission‑related costs that flow through bills to captive customers. Seth Berry, Executive Director of Our Power, urged the committee to consider broader downward pressure on return‑on‑equity settings for utilities.
Utility witnesses raised legal and practical concerns. Kathleen Bowman (CenturyLink/CMP) said the adder and related arrangements were negotiated when transmission owners joined the RTO and warned that the change could have contractual and operational implications. She also flagged potential impacts for transmission‑only companies that might be caught by the language, and asked for additional detail in the work session about how out‑of‑state court decisions apply to Maine’s particular regulatory and market structure.
The committee did not take a final vote at the hearing. Chair Melanie Sachs closed the public hearing after opponents and proponents completed testimony and said the bill will return for further consideration in work session.
