CMP says ‘financial pressure’ may force construction delays

Financial pressure on Central Maine Power could force it to delay construction projects aimed at improving reliable electric service and upgrading aging infrastructure, according to the company.

The utility’s warnings come ahead of a Maine Public Utilities Commission decision on whether to grant CMP’s request to temporarily increase customer prices to raise about $70 million dollars.

CMP CEO Linda Ball said rising inflation, construction prices and borrowing costs made it increasingly difficult to continue investing in the electric grid. The company said most of the rate increase it wants will pay off projects that already started and completed.

“For more than a year, we have continued investing in reliability and system improvements while managing rising costs and awaiting the necessary regulatory approval to align rates with the cost of providing service,” Ball said in a press release.

Projects in South Portland, Biddeford and Saco, Lewiston and Auburn and Bridgton that benefit thousands of customers could be delayed, according to CMP.

The utility has also suspended hiring for 70 open positions and pulled out of a job fair scheduled at University of Southern Maine this week.

The austerity moves started shortly after PUC staff recommended that commissioners reject CMP’s temporary rate hike. The company wants to impose higher costs now while it negotiates long-term prices for electric transmission and distribution.

But PUC staff said that there was no “undisputed” amount of near-term rates that could be imposed amid widespread public concern about rising energy prices and vigorous opposition from organizations including Maine Office of Public Advocate.

Some opposing groups, including the Natural Resources Council of Maine and Acadia Center have criticized CMP’s hiring and investment pause and urged the company to meet its obligations to customers.

Noah Berman, a utility advocate with Acadia Center in an interview said he doubted the company’s claim of financial straits.

“I do not believe CMP is accurately portraying its capability in ensuring that Mainers have safe and reliable and adequate service which is its obligation under the law,” Berman said.

The PUC will deliberate whether to permit temporary rates at its meeting Tuesday.