Here’s Why Maine Residents Will Likely Pay More For Electricity This Winter

Over the last few years, we have seen the price of nearly everything, from food to utilities, increase.

These increases, of course, include the cost of electricity.

It looks like global happenings will soon cause another spike in the price of electricity in Maine.

According to an article on the WCSH 6 website, the fact that more natural gas is being sold oversees could lead to an increase in the cost of electricity here in Maine.

The article explains that 90% of homes in Maine get their electricity supply through the state’s standard offer program.  According to an analysis by Competitive Energy Services in Portland, rates could go up by around 15 percent.

That means the average home might pay about eight dollars more a month in 2026.  It does not seem like much, but that equates to nearly $100 extra per year.

What's causing the increase?  It’s mostly tied to wholesale natural gas prices, which are expected to keep climbing next year.

Prices are rising in part because the U.S. is projected to double its liquefied natural gas exports by 2030, based on federal estimates. Those exports are part of former President Donald Trump’s plan to usher in what he called a “Golden Era of American Energy Dominance,” aimed at boosting the economy and creating jobs.

But for energy consumers in New England, higher gas prices are bad news. That’s because half of the region’s electricity comes from natural gas plants. The cost of gas ends up setting the marginal price for all other types of generation that feed power into New England’s grid around the clock.

This potential increase has nothing to do with CMP's request for a an increase over the next few years.  You can read about that HERE.