Maine regulators announced Wednesday they will draft rules that prohibit utilities from billing ratepayers for spending on advertising, lobbying and political expenses and require spending disclosures to the state.

The Public Utilities Commission voted 3-0 to launch a rule-making process seeking public comment on regulations called for in state legislation enacted last year.

Workers for Northern Clearing pound stakes to mark land on an existing Central Maine Power power line corridor, that has been recently widened to make way for new utility poles, in 2021, near Bingham. Robert F. Bukaty/Associated Press, file

The legislation bars utilities from passing on to ratepayers expenses for contributions or gifts to political candidates, political parties, and political or legislative committees; to a trade association, chamber of commerce or public charity; for lobbying or grassroots lobbying; or for educational expenses, unless approved by the PUC as serving a public interest.

Sen. Mike Tipping, D-Penobscot, introduced the legislation, telling fellow lawmakers he objected to YouTube advertising by Central Maine Power and “glossy” fliers mailed by Versant Power. “Ultimately, we’re the ones paying for these ads through our power bills,” he said.

Rebecca Schultz, senior advocate for climate and clean energy at the Natural Resources Council of Maine, cited spending to support a 2021 ballot measure that ultimately rejected the New England Clean Energy Connect hydropower transmission line. Supporters spent about $24 million and NextEra, owner of a New Hampshire nuclear plant that stood to lose millions of dollars from the competing transmission line, spent $20 million. It wasn’t clear how large of a donation NextEra had made until two years after the election.

Opponents of the ballot measure – political action committees associated with Avangrid, the parent company of Central Maine Power, and Hydro-Quebec – spent about $63 million. The companies stand to earn billions of dollars when the line is built. Information was reported about those lobbying costs in 2023, a year after the Maine Supreme Judicial Court ruled that CMP had a valid lease for the public land. And some of the costs were estimates at the time.

Schultz told lawmakers last year that companies with a “monopoly franchise with guaranteed returns in exchange for providing an essential service to Maine people should not be spending that kind of money to influence the outcome of our elections.”

Tipping said First Amendment protections for speech make it difficult to ban advertising by utilities.

And he cautioned about “some hurdles preventing a dollar-for-dollar reduction in rate increases based on money spent on advertising.”

“What we can do – far more quickly and easily – is increase transparency of how these utilities are spending money to influence Mainers and provide more information to the PUC, to (the Legislature) … and to the public about their advertising practices,” Tipping said.

Maine’s current rules governing political and advertising by utilities were last updated substantively in 1987, Schultz said. Political action committees have since proliferated and Maine’s two investor-owned utilities have gone through “various acquisitions and reorganizations” establishing “complex structures of multinational corporate ownership,” she said.

CMP, which did not support or oppose the legislation, told lawmakers last year that information about contributions by Avangrid to political action committees is publicly available. CMP also said it reports regularly to the state Ethics Commission. And it said the utility’s political and charitable contributions and goodwill advertising spending are paid for by shareholders, not ratepayers.

Versant told lawmakers that it spends less than $1 a ratepayer to support videos, audio, exhibits, bill inserts, brochures and other printed material to communicate information such as energy conservation and public safety messages.

Advertising that “may be considered promotional, political or institutional” and community spending or charitable giving is paid for by Versant’s shareholders, it said.

Versant suggested to the PUC that it approve in advance educational work that includes bill inserts, mailers and other communications. It said utilities increasingly need to inform customers about energy services, rates and other details.

CMP urged regulators to not preclude utility activities that are prudent – those that allow a utility to be reimbursed by ratepayers for various costs – and that align with state policy goals.

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