Notice of Proposed Rate Increase
KLPD is providing notice of a public hearing for a proposed rate increase to be held at KLPD’s office, located at 4 Factory Pasture Lane, Kennebunk, Maine on Monday, October 28, 2024 at 5:00 PM.
Your electric bills are comprised of 4 components: power, transmission, distribution, taxes and other surcharges. Each of the components has its own rate methodology. Power and transmission rates cover the cost to generate and deliver power to KLPD’s service territory border. Delivery rates generally cover the cost of the system from KLPD’s substations to the meter. The delivery rates for distribution service are the subject of this notice.
KLPD’s annual revenue requirement for distribution service is approximately $5.29 million dollars. In 2023, delivery rates resulted in $3.21 million in annual revenue. To address this revenue deficiency, KLPD proposes to increase its delivery rates by an amount not to exceed $2,076,188 annually, an increase of 64.68% to delivery revenues, or 14.94% to operating revenues.
KLPD’s most recent authorized delivery rate increase was implemented over six years ago, in 2018. This rate increase is necessary to fund the costs of operating and maintaining the system as well as investments to keep pace with growth and improve reliability.
The proposed delivery rate increase, if approved, will be effective January 1, 2025. For the delivery rate component only, the estimated amount and percentage rate change for each customer class (based on average usage) is:
Delivery Only - Effective 01/2025
| Residential | Commercial | Industrial |
| $15.19 | $50.39 | $1,577.26 |
| 73.65% | 69.79% | 63.59% |
However, current purchase power and transmission rates are estimated to decrease by 38% and 36% on October 1st, respectively. Therefore, upon implementation of the new delivery rates on January 1, 2025, total bills are estimated to be less than current bills, by the following amount:
Total Bill - Effective 01/2025
| Residential | Commercial | Industrial |
| ($19.56) | ($90.19) | ($4,010.77) |
| -16.71% | -19.08% | -22.29% |
A public hearing will be held at the District’s office, located at 4 Factory Pasture Lane, Kennebunk, Maine on Monday, October 28, 2024 at 5:00 PM.
KLPD customers have the right to an open and fair hearing, to further hearings before the Public Utilities Commission, and to seek assistance from the Office of the Public Advocate.
As a customer, you have the right to request information relating to the present and proposed rates. Please direct such requests to info@klpd.org. KLPD will publish all relevant material supporting the rate filing on its website no later than September 27, 2024.
KLPD values the relationship that it has with its customers and the community and is proud to provide excellent customer service and reliable delivery of energy at reasonable costs.