According to media reports last year, costs are increasing in many different areas of Mainers’ lives, including from their electric bills. In fact, between 2014 and 2024, the average electricity price in Maine increased at the third-highest rate in the country.
We are a group of Maine environmental and energy advocacy organizations: Maine Conservation Voters, Maine Community Power Cooperative, Maine Climate Action Now, Our Power, and A Climate to Thrive. This year, we have been educating community members across the state about these increases. We are hoping to help the public better understand why costs are rising, how utilities and the electric grid currently function in Maine, and what we hope to see change in the future.
So where are these increases coming from?
Rising supply costs
On your utility bill, there are two major categories of costs: supply and delivery. Supply is the cost of generating electricity, while delivery is the cost of getting electricity from a power source to customers’ homes. Delivery also includes repairing and maintaining the grid, along with other administrative and program expenses.
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Natural gas
Maine gets its electricity from the New England grid, where gas-fired power plants account for more than half of the electricity produced. This means that when gas prices rise due to increased local demand, such as cold weather or global disruptions, the higher prices directly affect our monthly electricity bills.
Reliance on gas also makes our state vulnerable to the unpredictability of global conflicts. For example, from 2021 to 2023, Maine energy supply prices nearly tripled due to the increased cost of natural gas following Russia’s invasion of Ukraine. In recent months, we have seen how the U.S. and Israel-led war against Iran caused gas prices to go up again. Maine also relies on liquified natural gas (LNG) imports, which are extremely expensive. Imported LNG costs Maine $4 billion per year.
Rising delivery costs
Storm recovery and grid repair
Between the snow, ice, and winds of Maine’s winter conditions, storms create grid vulnerabilities.
When a major weather event hits Maine, utility companies like Central Maine Power (CMP) and Versant need to send people out to remove fallen trees and branches and repair broken poles and wires. This results in utilities proactively maintaining and strengthening the grid and investing money into tree clearance, pole strengthening, and line upgrades.
Customers feel these costs regardless of how many storms actually happen. Until recently, CMP ratepayers were paying close to $20 per average bill to recover costs from the 2023-2024 winter storms that impacted the state. As a result, a combination of storm recovery, grid repair, and upgrades is responsible for a portion of the cost increases over the past decade. For a breakdown of these delivery costs, check out this post by Maine Conservation Voters.
Solar subsidies and other programs
Costs that are not directly related to transmission or distribution are referred to as “stranded costs.” These include administrative charges (utilities’ billing and operational expenses) and programs like the Efficiency Maine Trust. They previously included subsidies for large-scale solar development, but these subsidies were largely scaled back in 2025. The remaining increases are caused by administrative and low-income assistance program expenses.
The future we’re hoping for
Of all the factors raising our electricity rates, natural gas stands out as a top contributor. It is responsible for the largest portion of these increases. It does not benefit grid reliability like storm repair and maintenance do. It actively harms the environment, unlike solar programs. It also does not help customers better afford electricity costs like Efficiency Maine programs.
This is a major reason why we, as environmental organizations, see these cost increases as an environmental justice issue. We know the future involves a transition away from fossil fuel-powered energy. We also know that when implemented thoughtfully and at a large enough scale, renewable energy will have a positive impact on the environment and grid reliability while lowering energy costs for everyone.
