HOULTON, Maine – Houlton Water Co. electric customers may see an increase in their bills this spring if a requested 15 percent distribution rate increase is approved by the Maine Public Utility Commission.
In a recent letter to customers, the Houlton Water Company said that, if approved, the increase would take effect on March 2, 2024. Houlton Water Company is a municipally owned utility providing electricity, water, and wastewater services to Houlton and portions of surrounding towns. It serves around 5,200 electricity customers.
The increase will bring an additional $503,827 in revenue to the utility to cover inflationary cost of materials, supplies and labor. In April 2013, Houlton Water Co. had a standard-offer supply rate increase and in April 2020 a distribution rate increase.
“While we reluctantly ask for increases, we do so to maintain the integrity of the infrastructure and financial viability of the utility,” said General Manager Greg Sherman in the letter to customers.
Over the past few years costs have more than doubled, Sherman said on Wednesday.
For example, a residential transformer cost $703 in 2019, in 2022 it was $2,000.
“There have been extraordinary increases in items we are buying,” he said.
The cost increase for customers based on average monthly usage will be $4.57 for residential, $9.57 for commercial, $45.48 for street lights, and $1.15 for outdoor lights, according to Sherman.
This rate increase comes at a time when Maine’s other power companies – Versant and CMP– announced supply rate reductions slated to take effect this month. Electric bills are composed of two main elements, distribution – the infrastructure that carries electricity to customers, and supply – the cost of producing electricity.
The average residential CMP customer’s bill will decrease 35 percent or an average of $32 for residential customers, according to the utility.
Versant residential customers in the Bangor Hydro District will see decreases ranging from $15 to $30 a month, depending on usage.
An average residential customer in the Maine Public District, serving Aroostook County and a small portion of Penobscot County, could see reductions in their utility bill as high as $30 a month, according to Versant.
These changes are driven by the Maine Public Utility Commission, according to Sherman.
Versant has also requested a distribution rate increase for 2025 that would offset some of the lowered electric bills by about $10 a month. According to the utility, the distribution rate increase will cover costs related to major storm restoration and grid maintenance tied to rising material and labor costs.
Sherman said customers frustrated with the increases have called and he understands it is difficult, especially for people on fixed incomes.
The Houlton Water Co. will hold a public meeting on the increase at 6 p.m. Jan. 23 at the Houlton Water Co. offices, 21 Bangor Street. Information regarding the increase is available for review at the water company.
This story was updated to include comments from Greg Sherman.
