The Maine Public Utilities Commission is asking the public how it wants to split up the cost for an audit of Central Maine Power Co.’s metering and billing and rate cases.
That means the $579,582 cost of the Liberty Consulting audit that examined complaints of high bills will be divided between CMP’s shareholders and ratepayers.
Comments are due to the commission by March 26. Reply comments are due by April 2.
Under Maine law, ratepayers typically pay the full cost of a management audit. One exception is if an audit of an investor-owned public utility like CMP results in a commission finding of “impudence,” or a lack of care, that in turn causes a financial penalty.
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That happened on Jan. 30, when the commission ruled CMP must compensate customers for past failings. The commission also slapped CMP with a financial penalty of at least $10 million in lost profits for 18 months.
Liberty Consulting estimated costs for different parts of the audit. Checking for meter accuracy cost a total of $218,076. Metering and billing systems examinations cost $200,953. Checking CMP’s SmartCare system cost $102,546 and reviewing customer service cost $58,008.
The audit was ordered by the commission following complaints about high bills after CMP installed a new customer care and billing system in the fall of 2017. The start of the new system coincided with a major windstorm that knocked out power for some customers for up to a week.
The audit, released in December 2018, found that the high bills were not the result of a systemic problem at CMP, but due to bad weather and energy rate changes.
However, Liberty Consulting also found that CMP’s management generated a high level of customer concern and handled customer service poorly.
The commission on Jan. 30 not only ordered payments to customers and a financial penalty, but also told CMP it had to get an independent audit of the company’s management.