Regulators dismissed Central Maine Power Co.’s proposal to increase rates over a 5-year period Tuesday and are calling on the utility to file a new plan early next year.

Rates will still likely go up, but the structure and timeline of CMP’s controversial plan to fund millions worth of infrastructure improvements and new hires could change significantly. The utility had requested permission to incrementally increase its distribution rates over a 5-year period, starting in October 2026. The average household’s bill would rise about $35 a month under that proposal.

At the Public Utilities Commission’s regular meeting Tuesday morning, Chair Philip L. Bartlett II said Mainers are already facing rising costs and an uncertain economic future. The three-person commission unanimously voted to dismiss the case.

“This proposal just misses the mark in terms of meeting the moment that we’re at,” Bartlett said.

He stressed that “we’re dismissing this particular filing,” but that the utility will make another filing, and “there may well be temporary rates that get put into place next fall” even without the long-term plan.

In a written statement Tuesday afternoon, CMP called the dismissal “a step backward” and vowed to “carefully review” the commission’s final, written order when it comes out.

“Affordability remains a key concern, and we are committed to finding a path forward that balances cost with system reliability. However, delaying action on essential priorities, such as grid investment, vegetation management, and staffing will ultimately cost Mainers more in the short and long run,” the utility said.

Commissioner Patrick Scully said the dismissal is not intended to punish CMP. Scully said he appreciates the need for investment in the state’s electrical grid, but he questioned the rapid implementation of the utility’s plan.

He added that the proposal does not appear to reflect any “serious consideration” of Mainers’ ability to absorb cost increases.

“We are in a low-income state, where so many of our citizens struggle mightily to pay their electricity bills at today’s rates,” Scully said. “As much as we would all like to rebuild the system promptly to greatly increase reliability and resilience, our people simply cannot afford to do so at the pace proposed here.”

CRITICISMS OF PLAN

CMP’s plan has drawn significant pushback from ratepayers, state officials and Gov. Janet Mills, who on Tuesday said the commission “was right to dismiss this outrageous request.”

Last month, the Maine Office of the Public Advocate and the Department of Energy Resources each filed motions to dismiss the case, though they took different approaches.

The public advocate, who represents ratepayers, asked regulators to partially dismiss the proposal, arguing its scope was greater than permitted and “would not encourage CMP to control costs or become more efficient.”

Meanwhile, the department asked regulators to dismiss or suspend the case until CMP files its 10-year integrated grid plan — a longer-term roadmap focused on improving resiliency and reliability while keeping energy affordable. That plan, due in January and required by state law, is necessary to determine whether CMP’s proposed grid improvements justify its proposed price increases, the department argued. Other electric utilities, including Versant Power, must also submit 10-year plans.

During Tuesday’s deliberations, the commissioners largely agreed that it would be extremely difficult to evaluate the rate increase without the broader grid plan.

Heather Sanborn, the public advocate, called the dismissal “a big victory for Maine consumers.” She pointed to the outpouring criticism from ratepayers, who have voiced concerns and frustrations in sworn testimonies and hundreds of public comments.

“When folks do speak up and say ‘no,’ sometimes you can change the plan and get a better plan,” she said in an interview Monday.

WHAT NOW?

Sanborn emphasized that there will probably still be some rate increase next year, but said it was too early to speculate on its size.

In an interview after the hearing, Bartlett said the commission is likely to ask that CMP refile its rate plan 60 days after submitting its integrated grid plan, allowing time for public comments on the latter. Guidelines for a new filing and next steps will be determined in the coming weeks.

During the deliberations, Bartlett said well-developed, multi-year rate plans could be a key part of keeping energy costs down in the long term.