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As previously reported, the Commission opened this proceeding in a Notice of Investigation and Opportunity to Intervene (Notice) issued on September 10, 2024. 

“The basis for this investigation was the Commission’s concern with Versant’s request, filed on August 8, 2024 in Docket No. 2024-00102 to make significant increases to its uncollectible adders for use in setting the standard offer electricity supply rates that would go into effect on January 1, 2025.1 At the time of its request, Versant projected that by December 31, 2024 the residential/small nonresidential class retainage account balance for the Bangor Hydro District (BHD) would be in a deficit of $1,657,260 and that the BHD medium non-residential class retainage account balance would be in a deficit of $158,858. For the Maine Public District (MPD) Versant projected that by December 31, 2024, the residential/small non-residential class retainage account balance would be in a deficit of $744,310 and that the medium non-residential class retainage account balance would be in a deficit of $116,460. Additionally, Versant expected that the MPD large nonresidential class retainage account balance would be in a deficit of $236,106 by December 31, 2024. The Company asserted that approving the requested increases to its uncollectible adders would draw down these retainage account balances to be closer to the target amount consisting of three months of average net monthly charge-offs by December 31, 2025.” Notice at 2-3. 

“Finding that there was not enough time for the Commission to evaluate Versant’s request in Docket No. 2024-00102, the Commission initiated this proceeding to determine whether Versant’s uncollectible adders should be increased at all from those approved and used to set the 2025 standard offer rates for use in setting the standard offer rates that will go into effect January 1, 2026. Id. at 3-4. The Commission also noted that Versant had made its request at the same time that questions had been raised about the Company’s credit and collection practices in Docket No. 2023-00336, where Versant had requested an increase to its distribution rates. Because Versant’s credit and collection practices have an impact on the balances of its standard offer retainage accounts, and thus the amount of the uncollectible adders, the Commission included those practices as an issue to be reviewed in this investigation.” Id. at 1, 3. 2 

“Commission Staff convened an initial case conference in this proceeding on October 2, 2024, at which the unopposed motion of the OPA to intervene was granted. Litigation regarding Versant’s credit and collection practices as relevant to standard offer rates followed, with Staff conducting discovery and issuing several bench memoranda to introduce relevant evidence from other dockets. Staff issued a Bench Analysis on December 20, 2024, which described potential adjustments to Versant’s standard offer retainage accounts and Versant filed responsive testimony on April 24, 2025.” 

“On June 2, 2025, Staff, at the request of the parties, issued a Procedural Order noticing a settlement conference on June 4, 2025. No party objected to Staff’s participation in settlement discussions, which continued via email after the settlement conference. Through a Procedural Order issued on August 11, 2025, Staff reconvened the settlement conference on August 14, 2025, and on August 29, 2025, Versant filed a proposed stipulation entered into by the Company and the OPA (Stipulation) to resolve the issues being examined in this investigation.”3

Versant’s proposed increases were as follows: 

BHD                                                          Existing 2024 Adder                Proposed 2025 

Adder Residential/small non-residential:     1.45%                                       5.82% 

Medium non-residential:                              0.70%                                       2.60% 

MPD Residential/small non-residential:      1.65%                                        5.77% 

Medium non-residential:                              1.25%                                       4.70% 

Large non-residential:                                  0.00%                                      5.00%

“By this Order, the Commission approves a Stipulation between Versant Power (Versant or the Company) and the Office of the Public Advocate (OPA) to resolve all issues related to the Commission’s investigation of Versant’s standard offer uncollectible adders and standard offer retainage accounts, including Versant’s credit and collection practices as specifically related to those items, through June 30, 2025.”

III. DESCRIPTION OF THE STIPULATION 

“Under the terms of the Stipulation, Versant will make a one-time credit of $1,750,226 to be divided amongst the retainage accounts for its standard offer rate classes in both the BHD and MPD. Stipulation at 5.” 

“In addition, the Stipulation sets the uncollectible adders for the BHD and MPD to be included in setting the standard offer rates that will be in effect during 2026, which are currently being developed in Docket No. 2025-00157” Id. 

“For the BHD and MPD residential and small non-residential standard offer rate classes, these uncollectible adders will also be used in setting the standard offer rates that will be in effect during 2027 and 2028, unless the “historical methodology” of setting the uncollectible adder as equal to three months of average net standard offer write offs for these classes would produce a lower rate.4 In that event, the lower uncollectible adder rate will be used for that standard offer year. For the BHD and MPD medium standard offer rate classes the uncollectible adders used to set the standard offer rates in effect during 2027, and later years will be calculated using Versant’s historical methodology.” Id. at 5-6. 

“Versant will calculate the uncollectible adders to be used in setting the standard offer rates that will be in effect during 2029 for the BHD and MPD residential and small non-residential standard offer rate classes using the historical methodology. If, however, this produces uncollectible adders that are higher than the 2026 uncollectible adders set in the Stipulation, the Company shall make an additional credit to the BHD and MPD residential and small non-residential retainage accounts, up to a total maximum amount of $200,000, in order to reduce the uncollectible adder for 2029 to match the 2026 uncollectible adder.” Id. at 6. 

“Versant and the OPA agree that the Stipulation would resolve all issues related to the prudency of Versant’s standard offer credit and collection practices with respect to the Company’s uncollectible adders and retainage accounts through June 30, 2025. Id. at 4. The parties also agree that: (1) the Company, by entering the Stipulation, makes no admission regarding imprudence related to its credit and collection practices in this proceeding; (2) in any other proceeding there shall be no further consideration of imprudence, cost disallowances, or Company-funded credits specifically related to Versant’s standard offer retainage accounts associated with Versant’s standard offer credit and collection practices or standard offer accounts receivable accumulation prior to July 1, 2025; (3) the Company, the OPA, and the Commission are not limited with respect to the consideration of Versant’s standard offer credit and collection practices beginning on July 1, 2025 and the Stipulation does not otherwise limit the parties or the Commission with respect to the consideration of Versant’s credit and collection activities in any other proceeding.”

Order Approving Stipulation (09/12/2025)
2024-00248
(Commission Initiated Investigation Of Versant Power’s Standard Offer Uncollectable ADDER)
See also: 2025-00157
(Commission Initiated Standard Offer Bidding Process Pertaining To Central Maine Power Company And Versant Power.)