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May 11, 2018
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Emera's request to raise rates sparks opposition at hearings
by Mary-Alice Look

 

     Eighty‑two Emera Maine customers voiced their opposition to the utility's latest request for a rate hike at public hearings held simultaneously at the University of Maine at Machias, Orono and Presque Isle by the Maine Public Utilities Commission. Emera Maine is requesting its third rate increase in five years. Since 2013 there has been a rate increase of over 12%. It was noted during the testimony that initially the increase request this time was for 12%, decreased to 4.5% and then put back two weeks ago to 12%.
     Amy Gallant, AARP Maine advocacy director, testified in Machias and said, "Raising electric rates yet again is unaffordable for many Mainers, especially for those living on a fixed income." Gallant also read statements from several individuals who were unable to attend the hearing. One resident stated there should be "an increase in reliability," adding that he had been "days before power was restored after a storm." He asked that the PUC "do what's right," citing the difficulty of older Mainers who face "financial challenges" when rates increase but their income does not.
     Marie Keene of Brewer was another Emera customer quoted by Gallant. Keene said, "We have appliances, one heat pump and two pellet stoves, all run by electricity. We have virtually no savings and live from check to check. As costs go up, we must choose between repairing the car this month, or do we get needed dental work? Emera's rates go up, but our income does not."
     A Prospect Harbor resident was mentioned by Gallant as stating that it is "unconscionable for an additional rate increase, as customers are already paying one‑third for usage and two‑thirds for delivery,  combining to make Maine's rates among the highest in the country" but not providing "consistent service."
     A Machias resident agreed, saying that figures show the electric rates here are the 11th highest in the United States, while Washington County is the "poorest and oldest" county in Maine, with 17% of the population over the age of 65. A resident of Northfield said that their usual monthly electric bill in the past ran about $68, except for the bill covering the Christmas season, which was about $98. This year, however, the bill for the latter period was $200. It was added that most of their neighbors' bills also nearly doubled. A son, speaking for his mother, said that she had to close her house, set the temperature at 60 degrees on a hot-air furnace, but still had a monthly bill of $39, which he said is a "high amount for little use."
     In Machias the hearing was facilitated by PUC staff attorney Lee Ewing and Maine Public Utilities Commissioner R. Bruce Williamson. Public Advocate Barry Hobbins from Maine's Office of the Public Advocate attended also. There were several in the Machias audience from Emera Maine, while the president and CEO of Emera Maine since 2015, Alan Richardson, was present at the Orono site.
     In Presque Isle, a resident testified that, from an economic perspective, the high utility rates are a "barrier to growth" and need to have "price stability." Both that resident and Don Tardy of Ashland cited fixed income rates, a median age of 47, outmigration and an economic downturn while increasing the burden of costs without justification as reasons the rate increase request should be denied. Along with this, another resident asked about salary amounts and bonuses for Emera executives. It was suggested that Emera Maine should change its business model if it cannot be profitable as it is.
     A retired electrical engineer said that "Halifax‑based Emera had the benefit of a 15% tax reduction, which should be put into the equation along with a $300 million net income" and that the PUC should "look into the company's financials."
      In Orono, the comments also questioned Emera Maine's policies. Another opponent of the rate increase request stated that "the request looks backward, not forward" and that there should be "an alternative energy base, not a dependency on fossil fuel," adding that the current "energy planners are irresponsible."
     The issue of transparency was pointed out. One speaker said, "Emera Maine needs to explain their reasoning for the need for increases." The speakers at the Orono site echoed Machias and Presque Isle in stating that many households are "one emergency away from financial bankruptcy." Residents commented on being financially unable to fully use needed oxygen and finding it difficult to meet basic health needs. Another resident said they were now using candles for light, which creates a safety issue. The word "lifestyle" was noted by one person as somehow having the connotation of "luxury" but for him was beginning to mean "survival."
     Japhet Els, director of community outreach for AARP Maine, said that the organization is "not opposed to rate increases across the board" but is opposed to this one, as it's the third in five years." Under AARP's slogan "Raise your voices before they raise your rates," they have embarked on a comprehensive campaign to fight against the proposed new rate hike. More information is available, and an online petition may be signed urging the PUC to deny Emera Maine's rate increase at <www.aarp.org/me>.

 

 

 

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