Bangor Hydro Electric and Maine Public Service intend to file by Nov. 1 a proposed total increase in annual distribution revenue of about $6.7m.
The companies, which are planning to merge into a single entity (MergerCo) in December, on Sept. 6 provided notification of their intent to file with the state Public Utilities Commission (PUC).
“[T]he two utilities are jointly filing for an increase for both utilities with the expectation that the utilities will substitute MergerCo as the petitioning utility once the merger is completed,” the companies said.
The proposed rate of return on rate base will be about 11.2% and the proposed rate of return on equity will be about 10.2%.
The PUC conditionally approved the merger in a June 13 order as well as a stipulation in which it was agreed that the two utilities’ rates would not be consolidated until after the merger is completed. Accordingly, the companies added, they have proposed separate increases for Maine Public/Northern Division and Bangor Hydro/Southern Division.
“In recognition that the rates will be consolidated in the near future, the utilities propose that the combined revenue deficiency of the two utilities be recovered by an equal percentage, across the board, increase in all core rates for both utilities,” the companies said.
No major issues are anticipated in the rate case, the companies said, adding that other than the issue of future rate consolidation of the Maine Public/Northern Division and Bangor Hydro/Southern Division, no significant rate design issues are anticipated.
Bangor Hydro Electric is wholly owned by Emera.