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Excerpts from Order:

By this Order, the Commission rejects the February 14, 2024, Stipulation put forth by Advocacy Staff and Electricity Maine, LLC (EME or Electricity Maine and, collectively with Advocacy Staff, the Stipulating Parties).  

For the reasons set forth below, the Commission finds and concludes that the Stipulation met the first three prongs of the Commission’s test for approval of stipulations: that the Stipulation represented a broad spectrum of interests, that the process that led to the Stipulation was fair to all parties, and that the Stipulation was reasonable and is not contrary to legislative mandate. The Commission, however, concludes that the Stipulation fails the fourth prong of the test because the Commission finds that the overall stipulated result is not in the public interest. Accordingly, the Commission declines to approve the Stipulation and directs the Hearing Examiners to establish a procedural schedule for further process in this matter.

The Commission finds that the Stipulation, when viewed as a whole, is not consistent with the public interest. The public interest determination is not “[w]hether the Commission disagrees with a particular provision or would have come up with a different resolution” at the end of a fully litigated matter, but “whether the stipulation is fair and consistent with the public interest” when the stipulation is viewed as a whole. Maine Public Utilities Commission, Investigation into Bangor Hydro-Electric Company’s Stranded Cost Revenue Requirements and Rates, Docket No. 2004-00112, Order Approving Stipulation at 5. The OPA argued that the Stipulation is not in the public interest because the Stipulation did not: 1) address the severity of EME’s misconduct; 2) require EME to refund its customers in full; 3) impose any administrative penalty; or 4) recognize EME’s status as a repeat offender of Maine law.

The Commission agrees with the OPA that this investigation has revealed many alleged troubling aspects of EME’s business practices, some of which may not fully comply with Maine law. EME has faced sanctions in the past and the Commission has made it clear that EME must comply with all applicable laws and regulations. Yet, the Commission is again faced with serious and credible allegations of wrongdoing on the part of EME. In the Commission’s view, the Stipulation did not sufficiently address these alleged concerns and could leave both current and future customers vulnerable going forward. The public interest demands that any stipulated outcome address these concerns.

The OPA argued that the Stipulation offered “no provision for any penalty or sanction” and that without “actual penalty for serious misconduct . . . Electricity Maine and other CEPs . . . will be emboldened to commit other violations when it is in their financial interest to do so.” OPA Br. at 12-13. The OPA also expressed concern about EME’s ability to continue charging non-indexed variable rates to customers. Id. at 13- 14. In its brief, Advocacy Staff stated that they “placed less weight on securing an administrative penalty” because an administrative penalty “would not result in funds being returned to customers.” Advocacy Staff Br. at 4. The Commission shares the OPA’s concern that the Stipulation did not go far enough in deterring not only EME but other CEPs from violating Maine law and Commission rules. As stated above, the public interest demands that any CEP that violates statues and rules be held sufficiently accountable. While the Commission is not making any findings at this stage of the proceeding regarding whether EME committed such violations, the public interest requires that a stipulation settling credible allegations such as the ones presented in this case contain serious consequences for the credibly accused. This Stipulation did not clear that bar.

From Procedural Order:

The Commission has established the following procedural schedule for the next phase of this proceeding. Any requests for extension of deadlines or other deviations from the schedule must be filed in the Docket and all such requests will be deliberated by the Commission. 

• Electricity Maine Testimony Friday, June 28, 2024 
• Data Requests on Electricity Maine Friday, July 19, 2024 
• Data Responses Friday, August 2, 2024 
• Technical Conference 9:30 a.m., Thursday, August 8, 2024, 9:30 a.m., Friday, August 9, 2024 (if necessary). 
• Responses to Oral Data Requests Friday, August 16, 2024.

Procedural Order  (06/13/2024) 
Order (06/10/2024)
(Order rejecting stipulation)
OPA Exceptions to Advisory Staff Recommendations  (05/21/2024)
Stipulation  (02/14/2024)
2023-00024  (Opened 02/07/2023)
(Commission Initiated Investigation Pertaining To Electricity Maine)