Opinion ID: 2679887
Heading Depth: 2
Heading Rank: 3

Heading: Ratemaking

Text: [¶37] Finally, CMP argues that the change in application of the statutes and agency rules constitutes impermissible retroactive ratemaking. [¶38] In regulating electricity utilities, “the Maine system of utility rate regulation is so designed that the Commission’s authority to protect ratepayers from unjust or unreasonable rates is prospective and preventive in nature.” First Hartford Corp. v. Cent. Me. Power Co., 425 A.2d 174, 177 (Me. 1981). “Once rates have been set, the Commission may not adjust those rates retrospectively to make up for subsequently discovered mistakes in those rates.” Pub. Advocate v. Pub. Utils. Comm’n, 1998 ME 218, ¶ 8, 718 A.2d 201. The Commission lacks the authority to grant retrospective rate relief to customers. Id. ¶ 15. [¶39] Here, the rates already paid by ratepayers are in no way affected by the Commission’s adjudication. CMP has not been directed to reimburse 21 ratepayers; rather it has been asked to remedy its misapplication of certain deposit sums to the T&D receivables account when they should have been applied to the standard-offer receivables account. Although the Commission’s decision will affect future ratemaking through the next calculation of the adder, it does not retroactively affect rates. CMP may have relied on its anticipated use of the four-bucket allocation method during prior ratemaking proceedings, but the correction of its misunderstanding in this regard cannot transform the current decision into ratemaking; the rates were set and paid, and they have not been remade. Accordingly, the decision does not run afoul of the prohibition against retroactive ratemaking, and we affirm the decision of the Public Utilities Commission. The entry is: Decision of the Public Utilities Commission affirmed. On the briefs: Catherine R. Connors, Esq., Jared S. des Rosiers, Esq., and Nolan L. Reichl, Esq., Pierce Atwood LLP, Portland, for appellant Central Maine Power Company Charles Cohen, Esq., and Amy Mills, Esq., Public Utilities Commission, Augusta, for appellee Public Utilities Commission 22 At oral argument: Catherine R. Connors, Esq., for appellant Central Maine Power Company Charles Cohen, Esq., for appellee Public Utilities Commission Public Utilities Commission docket number 2010-00327 FOR CLERK REFERENCE ONLY