🔌 The utility takeover campaigns push the boundaries in new ads.
â—‰ With a little over a month to go until Election Day, the political groups battling over the utility takeover contained in Question 3 are advertising heavily. Some of those ads are just at the edge of being true and being misleading.
â—‰ For example, take this online ad from Our Power, the group pushing for the referendum that would buy out the utilities and replace them with an elected board. It says Mainers deserve better than "constant rate hikes" from Central Maine Power Co. and Versant Power.
â—‰ While the utilities have sought delivery rate hikes in recent months, they have been relatively small. The biggest rises have been on the supply side of your bill. The utilities do not control that rate, which is based on energy prices and is set by state regulators.
â—‰ CMP's political group, Maine Affordable Energy, is also a culprit here. One of its ads says there will be $13.5 billion in "new costs and higher taxes."Â That is the utilities' estimate of what it will cost to buy them out. It is quite possible that the actual figure will be lower, and it will likely be settled in court.
â—‰ Here's the real problem with the claim: The new utility would fund the buyout by borrowing against future revenue and be set aside from state government, which keeps it separate from the tax system. CMP's political arm is usually careful to say that the new utility "could" raise taxes. There would be massive interest to pay, but tax increases would only come if policymakers enact them. |
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