If you've been waiting on a utility upgrade, a new service or a substation project in southern Maine, you may be waiting a little longer. Central Maine Power says money troubles could force it to delay construction projects meant to improve reliability and replace aging equipment, and state regulators have now turned down the short-term rate increase CMP said it needed to keep that work moving.
According to Maine Public, CMP said on Oct. 5 that projects in South Portland, Biddeford and Saco, Lewiston and Auburn, and Bridgton that benefit thousands of customers could be delayed. CMP CEO Linda Ball blamed rising inflation, construction prices and borrowing costs for making it harder to keep investing in the grid.
"For more than a year, we have continued investing in reliability and system improvements while managing rising costs and awaiting the necessary regulatory approval to align rates with the cost of providing service," Ball said in a press release.
The utility also suspended hiring for 70 open positions and pulled out of a job fair at the University of Southern Maine.
Which projects
The Maine Morning Star reported that CMP's list includes substation upgrades in Lewiston, Auburn, South Portland, Biddeford and Saco, plus upgrades to one of CMP's poorest-performing distribution lines, which runs through Limington, Baldwin, Sebago and Standish. In its statement, Ball said the company's approach "is becoming increasingly difficult to sustain due to inflation, rising costs and other factors."
CMP had said in a statement after PUC staff recommended against the temporary rate that it had "already been forced to defer planned capital work, including projects intended to make power available, strengthen reliability, improve resilience and modernize the system, and will continue to do so." The company said it would also be "forced to evaluate workforce levels and hiring plans."
The PUC says no, for now
The day after CMP's warning, on Tuesday, Oct. 6, the Maine Public Utilities Commission voted unanimously to deny the temporary increase. CMP had asked to raise about $69.3 million while its larger rate case plays out, which the utility said would add about $7 a month to a typical residential bill. The full case seeks about $189 million in new revenue.
Commission Chair Philip Bartlett said the law requires an amount that isn't in dispute. "To grant a request for temporary rates, there needs to be a clear amount that is not in dispute. In my view, that is not the case here," he said.
Bartlett also said CMP shares the blame. "The capital spend between 2022 and 2025 significantly exceeded the forecast, by over 50%. So, to some extent, this is a problem of CMP's own making," he said, according to Maine Public.
Commissioner Patrick Scully said temporary rates should be the exception, and that a few more months to reach a decision wouldn't cause significant harm. He also said it's "likely" the final decision will include a rate increase, given the investments CMP has already made and rising costs. Commissioner Carolyn Gilbert noted a final ruling is scheduled for the spring.
Bartlett made the same point to Spectrum News. "This is a delay, but it's not a 'no,'" he said, and suggested the final increase would likely be something, but probably less than CMP wants. "It's always somewhere in the middle."
The Office of the Public Advocate and the Natural Resources Council of Maine were among the groups objecting to the rate request, and NRCM and Acadia Center both criticized CMP's hiring and investment pause. Rebecca Schultz of NRCM called CMP's warning about delayed projects "unacceptable." Noah Berman of Acadia Center told Maine Public he doubted CMP's claim of financial trouble.
So for now, CMP's customers won't see a temporary bump, and the projects on CMP's list are in limbo until the company and regulators settle the bigger case, with a decision expected around April 2027.
Why it matters for Contractors
Grid work drives a lot of residential work. When substation and distribution upgrades slip, new service connections, upgrades for heat pumps and EV chargers, and power for new subdivisions and apartment buildings can slip with them. If you're building in South Portland, Biddeford, Saco, Lewiston, Auburn or the Sebago Lakes towns, ask CMP early about service timelines and build some cushion into your schedules and contracts. Electrical contractors and line-clearance and utility subs should also watch CMP's hiring freeze and capital spending closely until the PUC rules next spring.