In 1899, Central Maine Power began when engineer William Wyman and a partner hooked up a tiny hydro generator to serve 100 Oakland customers. Today, CMP reports it distributes power to about 636,000 customers which is over 80% of the state. In 1927, Versant Power started out as Bangor Hydro serving the Queen City and neighboring towns. Versant reports it has about 159,000 customers covering 13% of Maine. Both operate under a special monopoly granted by the Maine State Legislature.

But that long history may come to an end this November. Pine Tree Power initiated a citizen’s petition to repeal that special authority replacing it with a consumer-owned non-profit public utility. PTP says both for-profit utilities are too costly and provide poor customer service. The citizen’s initiative is the third of eight referendum questions on the Nov. 7 statewide ballot.

Supporters say PTP creates a consumer-owned utility which will provide affordable, reliable power and better meet the state’s climate goals. Al Cleveland is Yes on 3’s campaign manager. Yes on 3 supports the Pine Tree Power initiative. She believes ratepayers are better served by local ownership.  

“It’s like having an absentee landlord and paying high rent. A consumer-owned utility will be like purchasing a home with a low monthly mortgage,” she said. Pine Tree Power believes the current power grid needs significant upgrades in coming years. Yes on 3 reports the Spanish-owned CMP and Canadian firm Versant, owned by the City of Calgary, Alberta, made a combined $187 million in profits last year. 

As a nonprofit, a consumer-owned utility qualifies for low-interest rates loans, which save ratepayers significant money, PTP supporters say.  With lower interest rates, Maine economist Richard Silkman projects a $9 billion savings over the next 30 years. “Profits will stay here in Maine for improving the grid and customer service. Maine will have a voice in their power future and control will be from an elected board of directors.”

Willy Ritch is executive director of the Maine Affordable Energy Coalition, one of two organization actively opposing Question 3. He doubts whether PTP will save ratepayers money. Ritch says the cost to purchase the two utilities is around $13.5 billion. “It’s simple math. This is the single most expensive initiative ever voted on in the state’s history. There is an incredible amount at stake with this being about a commodity that we all use on a daily basis.”

In her Sept. 20 weekly radio address, Gov. Janet Mills opposed the referendum question. The Democrat supports renewable energy, but she came out against Question 3. She is concerned about the potential $13.5 billion price tag and electing a board of directors with no particular experience delivering energy. “So, what we are really talking about here is adding a layer of bureaucracy, politics and partisanship over the existing structure of CMP and Versant. And I don’t see how this improves anything,” she said.

As a utility, CMP and Versant are heavily regulated by the Maine Public Utilities Commission. In Augusta, the governor, legislature and public advocate also monitor the two companies' operation. PTP supporters believe politics gets in the way of how CMP and Versant are regulated. Cleveland points to CMP’s paid board of directors, which includes a former Maine governor, as being responsible only to investors, not ratepayers. “John Baldacci sits on the board and makes $200,000 per year. These meetings are closed to the public so Mainers have no say in how their power companies operate,” she said. 

PTP supporters believe there is a better way. Their proposal creates a 13-member elected board of directors. Seven would be elected and six other appointed non-voting “experts” would advise them. Five of the seven elected directors  are south of Augusta. Directors would be paid a nominal fee. The board would hire a management team to provide daily supervision. “The directors would have access to the Clean Elections Fund. They would have a passion for public service which would eliminate political influence,” Cleveland said.

Ritch agrees with Mills that the proposed board of directors is not the right approach. “The board is a terrible idea for a number of reasons,” he said. “Special interest groups will pour millions of dollars into elections every two years. There will be no consistency in the company’s direction which is essential in every business, but even  more for power companies.”

But for groups opposed to Question 3, one factor stands out as their main objection. “Imagine the interest payments alone. At a 5% rate, payments would be $500 million per year. That’s before even one penny is spent on upgrades and costs for a lengthy legal battle,” he said.

PTP supporters counter, Maine’s five other consumer-owned power utilities are nonprofits which operate at a lower cost and provide overall better customer service.