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Maine Oks Jump in Price Cap
The Maine Pubic Utilities Commission (PUC) has allowed Central Maine Power Co. to boost rates by 1.26 percent under an alternative rate plan approved in late 1994. The increase is based in part on an indicated inflation rate of 2.55 percent for the last quarter of 1996.
The PUC found considerable disagreement on whether the rates proposed by the utility would capture the full benefits from restructuring a number of the utility's purchased-power contracts with qualifying cogeneration facilities (QFs). To ensure that ratepayers receive the proper amount of the QF savings, the PUC directed the utility to reduce ratepayer liability by $1.011 million for long-term employee benefit costs included in the original price-cap agreement. Re Central Maine Power Co., Dkt. No. 96-599, June 28, 1996 (Me.P.U.C.).
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