Maine Considers Giving the Boot To Corporate Electric Utilities

The state of Maine is 'poised to vote on an unprecedented plan to rid themselves of the state's two largest electric utilities and start with a clean slate,' reports the Associated Press:

The proposed takeover of two investor-owned utilities that distribute 97% of electricity in the state would mark the first time a U.S. state's utilities were forcibly removed at the same time. The referendum calls for dismantling Central Maine Power and Versant Power and replacing them with a nonprofit utility called Pine Tree Power to operate 28,000 miles (45,000 kilometers) of transmission lines...

The referendum calls for creation of a nonprofit utility with a board made up of mostly elected members and a few appointed ones. A primary selling point is that the new utility would be beholden only to ratepayers, not corporate shareholders, allowing lower costs, greater investments in the grid and improved performance, supporters said. Interest rates for long-term borrowing for capital improvements also would be less costly for Pine Tree Power. Supporters say there's little to lose: Both investor-owned utilities rank near the bottom in customer satisfaction, with longer-than-average response to power outages and higher-than-average electricity rates.
But critics, including Democratic Gov. Janet Mills, worry about the power grid becoming politicized. They also question savings projections because of the billions of dollars needed to buy out the utilities, and worry about the prospect of lengthy litigation. Maine Public Advocate William Harwood contends legal disputes could postpone the new utility's implementation by five to 10 years.
The American Public Power Association estimates that investor-owned utilities serve 66% of America's electricity consumers, according to the article. So the Associated Press notes that 'Across the country, ratepayers who are unhappy with their utilities are watching what happens,' citing this quote from energy-related research firm Clear View Energy Partners.

'What we say about state policy and trends is that it could become contagious.'

Thanks to Slashdot reader jenningsthecat for sharing the article.

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