New England electric customers including Maine ratepayers could get more than $1 billion in refunds after federal energy regulators ruled this month that transmission utilities were paid inflated profits for years.
The Federal Energy Regulatory Commission draws to a close a case against the utilities that was first filed in 2011, Maine Public Advocate Heather Sanborn said.
“We’re hopeful that transmission rates will come down as a result of this ruling and also that 15 years of overpayments will eventually be refunded to customers through their rates,” Sanborn said.
Electric customers pay for transmission of power from generators such as power plants to local distribution lines. Transmission is owned by the same companies that distribute power, and earn profit from their infrastructure investments, including Central Maine Power and Versant Power, Sanborn said.
The complaint was brought by the Maine Office of Public Advocate and counterparts across New England.
The federal regulators found that both a 11% return on equity rate and an interim 10.5% rate were unjust and unreasonable. It set a new rate of 9.57% and ordered the utilities to repay customers.
Sanborn said lower transmission costs and refunds should show up on customers’ bills. But she cautioned the utilities may launch a legal challenge to the FERC decision.
Versant spokesperson Judy Long in an email said the company plans to ask FERC for more time to issue customer refunds “in light of questions about how those refunds would be structured.”
Central Maine Power declined to comment.
This story appears through a media partnership with Maine Public.
