On September 18, the supporters replaced the public power agency with a power company owned by Maine investors and made a request to the Office of the Secretary of State.
Proponents have bought out the power companies owned by two investors in Maine and replaced them with state-owned entities, and have begun to work hard to bring the issue to voters next year.
Supporters of consumer-owned power management agencies made a request to the Secretary of State’s Office on September 18. The content is:
“Do you want to create a non-profit, consumer-owned utility called the Maine Power Delivery Authority to replace two investor-owned utilities called Central Maine Power and Versant (Power), and Supervised by a board of directors? Is elected by Maine voters and must focus on lowering interest rates, improving reliability and Maine’s climate goals?”
The Secretary of State must decide to use this language before October 9. If approved in its current form, advocates can start distributing petitions and collecting signatures.
Due to CMP’s various errors (including poor billing management and delays in power restoration after storms), taxpayers’ turmoil has injected new vitality into the effort to establish a state-owned power company.
Last winter, the legislature introduced a bill designed to lay the foundation for the transition to the authorities. However, this measure was postponed by its main sponsor, Rep. Seth Berry (D. Bowdoinham), to conduct a study in July to win the approval of the Legislative Council. Unless lawmakers meet again before the end of the year, the bill will die and will need to be passed in 2021.
One of the signatories of the referendum request was John Brautigam, a former congressman and assistant attorney general. He is now the head of the Maine Electricity Department for the People of Maine, an advocacy organization for the People of Maine to promote consumer ownership.
“We are entering an era of beneficial electrification, which will bring huge benefits to the climate, employment and our economy,” Brautigam said in a statement on Tuesday. “Now, we need to have a conversation on how to finance and manage the upcoming grid expansion. A consumer-owned utility company provides low-cost financing, saving billions of dollars and making Mainers a major force.”
Consumer power is not a new concept in the United States. There are approximately 900 non-profit cooperatives serving half of the country. In Maine, small consumer-owned power companies include Kennebunks Lighting and Power District, Madison Power Company, and Horton Water Company.
Consumer-owned authority is not operated by government entities. These companies have appointed or elected boards of directors and are managed by professionals. Berry and consumer power advocates envisioned an agency called the Maine Power Transmission Board that would use low-yield bonds to purchase CMP and Versant infrastructure, including utility poles, wires, and substations. The total value of the two utility companies is approximately US$4.5 billion.
CMP executive chairman David Flanagan said that customer surveys show that many people are extremely skeptical of state-owned utility companies. He said that he hopes that the measure will be defeated by voters “even if there are enough signatures” to vote.
Flanagan said: “We may not be perfect, but people doubt the government can do better.”