Maine Voters Reject Non-Profit Power Utility Backed by Climate Groups

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ICARO Media Group
Politics
08/11/2023 20h51

In a significant decision, Maine voters have rejected a proposal to replace the state's corporate-owned electric utilities with a non-profit utility supported by climate advocacy groups. The referendum vote took place on Tuesday, overriding the attempt to dismantle Central Maine Power and Versant Power and create a non-profit utility called Pine Tree Power.

The proposal aimed to mark a historic moment as Maine would have become the first state to discard all existing private utilities simultaneously. However, voters chose to maintain the status quo, expressing concerns over the uncertainty and potential costs associated with the proposed change. Critics argued that there was no guarantee that the non-profit utility would outperform the existing ones, while the process of buying out the utilities could cost as much as $13.5 billion.

Willy Ritch, executive director of the Maine Affordable Energy Coalition, praised the voter's decision, stating that they rejected the potential debt, risk, and uncertainty that would have accompanied the implementation of the non-profit utility.

The outcome of the referendum deals a blow to the growing movement for publicly owned power across the United States. While states like California, Michigan, and New York have campaigns advocating for moving utilities out of private hands, Nebraska currently stands as the only state entirely supplied by consumer-owned power.

Despite the setback in Maine, some climate advocates remain optimistic, viewing this as the beginning of a grassroots movement both in the state and nationwide. Ania Wright, a legislative and political strategist with Sierra Club Maine, believes that the result in Maine could inspire other states and municipalities to pursue similar electoral action.

The vote in Maine was influenced by criticism directed at Central Maine Power over various issues, including their slow response to storm-related power outages, a flawed billing system rollout, and alleged barriers to connecting renewable power projects to the grid. These factors stirred discontent among voters and added weight to the decision to maintain the current arrangement.

In addition to rejecting the proposed non-profit utility, Maine voters also approved a separate ballot question that imposes a requirement for voter approval on borrowing exceeding $1 billion. This restriction may limit future access to bonds necessary for the potential purchase of existing utilities.

Mainers also voted in favor of stopping foreign government spending in local referendums, closing a loophole in federal election law that a Canadian utility giant had exploited to protect its interests in the state. Furthermore, a separate referendum result restored language regarding Maine's obligations to Native American tribes in the printed versions of the state's constitution.

The rejected proposal and the multiple outcomes of the Maine referendums unfolded a year ahead of another crucial event, as the state prepares to be a battleground for a congressional seat and a presidential electoral vote in its conservative second congressional district.

Overall, while Maine voters rejected the plan for a non-profit utility backed by climate groups, the outcome of the referendum is likely to have reverberations for the broader movement advocating for publicly owned power in the United States.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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