Jared S. des Rosiers
Merrill’s Wharf
254 Commercial Street
Portland, ME 04101

June 17, 2015

207.791.1390 voice
207.791.1350 fax
jdesrosiers@pierceatwood.com
www.pierceatwood.com

VIA MPUC CASE FILE

Admitted in: Maine

Harry Lanphear
Administrative Director
Maine Public Utilities Commission
State House Station 18
Augusta, ME 04333-0018
Re: CENTRAL MAINE POWER COMPANY, MAINE NATURAL GAS CORPORATION, 10-Person
Complaint on the Unreasonable Practices and Acts of Iberdrola, Central Maine Power
and Maine Natural Gas;
Docket No. 2014-00069
Dear Harry:
On behalf of Complainants Patrick Paradis, the City of Augusta, Christina St. Pierre,
Leif Dahlin, Cecil E. Munson, Dale McCormick, Michael G. Byron, Paul G. Douin, Sharon Ann
Paradis, Ann M. Thomas, Sheila C. Stratton, and Donald Stratton (collectively,
“Complainants”), Respondents Central Maine Power Company (“CMP”) and Maine Natural
Gas (“MNG”) (together, “Respondents”), and the Maine Office of the Public Advocate
(“OPA”), please find enclosed an executed Stipulation in the above-referenced docket.
The Stipulation is a comprehensive settlement of all issues in this proceeding, and the
signatory parties comprise all active parties in this docket. The parties agreed to the
Stipulation following over 14 months of proceedings and two recent settlement conferences,
in which all parties, as well as Commission Staff, substantially participated. The Stipulation
is the product of a process that was fair to all parties, is joined by parties representing a
broad spectrum of interests, and provides for a resolution of these proceedings that is
reasonable, consistent with the Commission’s legislative mandate, and consistent with the
public interest.
In support of this request, and pursuant to 65-407 C.M.R. ch. 110, § 8(D), the parties state
as follows:
A. Names of Parties Joining, Opposing, or Taking No Position on the Stipulation
As set forth above, each active party in this docket joins in the Stipulation. The Commission
previously dismissed Respondents Iberdrola, S.A. and Iberdrola USA from these
proceedings.

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June 17, 2015
B. Settlement Process
Following over one year of proceedings, which included numerous data requests and a
technical conference, Complainants, Respondents, the OPA, and Staff all participated in
settlement conferences held on April 29, 2015, and June 2, 2015. As a result of these
settlement discussions, Complainants, Respondents, the OPA, and Staff have resolved all of
the issues presented by Complainants’ 10-Person Complaint not previously dismissed by the
Commission.
C. Parties’ Agreement to Commission Staff Recommendations
The parties have entered into the Stipulation based on the understanding that Staff, which
participated in and facilitated the settlement conferences, supports the terms of the
Stipulation and will recommend that the Commission approve it. As set forth in the
Stipulation, the parties waive any rights they have under 5 M.R.S. § 9062(4) and Chapter
110, § 8(F)(4) of the Commission’s Rules, to the extent necessary to permit Staff to discuss
the Stipulation with the Commissioners, either before or at the Commission’s deliberations,
without providing to the parties an Examiner’s Report or the opportunity to file Exceptions.
D. Major Provisions Agreed Upon
The Stipulation reflects a settlement reached by Complainants, Respondents, the OPA, and
Staff concerning all issues set for investigation in the Commission’s August 11, 2014 Order
and September 10, 2014 Notice of Proceeding, including all remaining issues presented by
Complainants’ 10-Person Complaint. The provisions agreed upon in the Stipulation are
summarized as follows:


Shareholders will make a one-time payment to CMP’s distribution customers of
$95,000. This payment will be made through a reduction in CMP distribution rates
as part of an annual distribution price change.



CMP will make the aforementioned price adjustment as part of its 2015 annual price
change, if possible. If not possible, CMP will make the adjustment in its 2016 annual
distribution price change and will include appropriate carrying costs calculated at its
pretax weighted cost of capital of 10.32%.



Unless modified by subsequent Commission order or changes to applicable
Commission rules, (a) no CMP officer shall accompany any MNG employee to any
customer solicitation, or communicate with any existing or potential MNG customer
directly regarding any MNG interest and (b) all services provided by CMP to MNG
under its existing service contracts will be limited to services with no retail MNG
customer interface.

E. Why the Stipulation Provisions are in the Public Interest
The provisions of the Stipulation are in the public interest and the Commission should
approve the Stipulation without modification for the following reasons:


Pursuant to the terms of the Stipulation, the on-going investigation will be resolved
without need for a hearing and further proceedings requiring further time and
attention of the Commission, its Staff and the parties.

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June 17, 2015


The Stipulation will result in a one-year reduction in CMP’s distribution rates of
$95,000 on account of the one-time payment by shareholders, and will clarify the
services that CMP employees and officers may provide to MNG going forward in order
to avoid the perception of unfair treatment of MNG by CMP and to avoid similar
disputes in the future.



The Stipulation will bring to an end an unfortunate public dispute between CMP and
the City of Augusta, permitting both to focus their resources on serving customers
and the public in general. Indeed, the City of Augusta assented to the Stipulation
upon a vote of the Augusta City Council, affirming the City’s view that the Stipulation
is in the best interests of the people of Augusta.



Finally, the OPA played a critical role in bringing about the Stipulation and agrees
that it is in the best interests of the customers of both CMP and MNG.

F. Statutory Authority
The Commission has authority to approve the Stipulation under the following statutes:





35-A M.R.S. § 301 (determination of just and reasonable rates)
35-A M.R.S. § 307 (approval of changes to rate schedules)
35-A M.R.S. § 707 (approval of affiliate transactions)
35-A M.R.S. § 1302(2) (permitting the parties to a 10-person complaint to resolve
the complaint “to their mutual satisfaction”)

Complainants, Respondents, the OPA, and Staff do not believe that the terms of the
Stipulation depart from Commission precedent.
We understand that the Commission will consider the Stipulation during deliberations on
July 16, 2015. We accordingly ask that you bring this filing and the enclosed Stipulation to
the prompt attention of the Commissioners.
Thank you for your attention to this request.
Sincerely,

Jared S. des Rosiers
JSD/ao
cc:

Andrew Hagler
Eric Bryant
Stephen Langsdorf
Andrew Landry

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