3 min read

Rising electricity rates continue to be a burden on Mainers and AARP Maine is fighting for the interests of all who are feeling this pain.

As the Legislature considers LD 186, “An Act to Clarify the Public Utilities Commission’s Authority to Establish Time of Use Pricing for Standard Offer Service,” it is crucial to examine the potential impact of this bill on our community, particularly on older adults. AARP Maine strongly opposes the measure, and we urge legislators to vote against this bill to ensure that older residents can continue to afford their electric bills.

If passed, LD 186 would allow the Public Utilities Commission (PUC) to implement time of use (TOU) pricing, which involves charging different rates for electricity usage during peak and off-peak hours. While this may seem like a fair approach to managing energy consumption, it disproportionately affects retirees, family caregivers and those who work from home. Individuals who are home during peak hours could find it challenging to shift their energy usage to off-peak times. In addition, many Mainers have already switched to heat pumps or are thinking about making the switch. TOU pricing would make home heating even more expensive since these devices are 100% electric.

It is also important to consider those who rely on medical equipment that must run continuously or someone who needs to maintain a comfortable temperature in their home due to health conditions. These individuals cannot simply adjust their energy usage to off-peak hours without compromising their health and safety. As a result, they would face higher costs, exacerbating financial stress and potentially forcing them to choose between essential needs like medication and paying their utility bills. LD 186 fails to consider these critical needs, putting our most vulnerable residents at risk.

The PUC has indicated that it prefers a mandatory or opt-out TOU program, which would be detrimental to vulnerable Mainers. AARP supports TOU rates as a voluntary option.

Other states, such as Minnesota and Missouri, have attempted to mandate TOU pricing, but subsequently abandoned their efforts due to customer and political opposition. As part of a 2022 rate case, the PUC ordered Central Maine Power to evaluate various rate design offerings and submit recommendations by December 2025. We question why the Maine PUC is pushing a move toward TOU before this analysis and its subsequent recommendations have been completed.

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In addition, this measure would effectively repeal longstanding policy and allow the PUC to potentially avoid a public rulemaking process, thereby dismissing proper evaluation by all affected stakeholders.

Furthermore, and perhaps most importantly, because Maine allows you to pick your electricity supplier, it is unclear how the PUC could mandate TOU pricing for those choosing an alternative supplier. No other state does this because it is not feasible.

AARP Maine opposes LD 186 largely because we believe that a policy change of this magnitude should not be implemented in this manner. Prior to being granted the authority to implement TOU rates, the PUC should engage in a rulemaking process that would ensure a proper evaluation and allow residential customers’ voices to be heard.

Given these significant concerns, it is clear that LD 186 is not in the best interest of Maine consumers at this time. The bill’s potential to increase financial burdens, create confusion and overlook essential needs makes it a step in the wrong direction. All lawmakers should work together to identify and implement ways to better manage Maine’s electricity and keep costs down for customers. Electricity rate design decisions are extremely important and deserve to be considered in a transparent and inclusive manner.

AARP Maine urges readers to contact their legislators and encourage them to vote against LD 186. Together, we can advocate for fair and reasonable energy policies that consider the needs of all Maine residents.

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