A Versant Power technician energizes a line at the Tremont, Maine substation. (Photo courtesy of Versant Power)
While there has been debate on how President Donald Trump’s proposed tariffs would affect the state’s manufacturing economy, there are concerns of another possible outcome: increased energy costs for Mainers, particularly those in the eastern part of the state.
During his inaugural address on Monday, Trump said he wanted to lower the cost of power.
“We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world,” he said, speaking specifically about oil and gas.
In a bid to increase American manufacturing, Trump has also said he would impose a 25% tariff on all products entering the U.S. from Canada and Mexico. Though it wasn’t part of his flurry of Day 1 orders, Trump said late Monday he is planning to impose the tariff on Feb. 1.
Several of Maine’s iconic industries suffered under the heavy tariffs Trump implemented in 2018, and there are concerns that another round could raise costs for Mainers, especially given the amount of trading with the state’s northern neighbor.
“I am very worried about the Trump tariffs,” outgoing Public Advocate William Harwood told lawmakers during a meeting with the Legislature’s Energy, Utilities and Technology Committee last week.
Harwood followed up with a memo this week outlining how the tariff could impact utility ratepayers in the state. Though he said it is difficult to provide a precise estimate, his office is confident that about 58,000 ratepayers in Aroostook and Washington counties who rely on electricity imported from New Brunswick would be most affected.
That includes customers of Versant Power, Houlton Water Company, Van Buren Light & Power District and Eastern Maine Electric Cooperative. Those four utilities import about 600,000 megawatt hours of electricity from New Brunswick each year, according to Harwood’s memo.
Harwood said it is within reason to expect every dollar of the tariff to get passed on to Maine ratepayers.The analysis from his office estimates that a 25% tariff would cost ratepayers about $8 million to $10 million annually. On average, that would mean an increase of about $6 to $7 in monthly utility bills.
Harwood told Maine Morning Star that many of those who would be most affected are low-income ratepayers already struggling with some of the highest electricity prices in the country. A recent report from a citizens advisory council found that on average low-income ratepayers in Maine spend approximately 8% of their household income on electricity — double what is recommended by experts.
I hope these Mainers do not become pawns in a power struggle between Washington and Ottawa.
– Maine Public Advocate William Harwood
“I hope these Mainers do not become pawns in a power struggle between Washington and Ottawa,” Harwood wrote in an email.
While those 58,000 businesses and households may be most affected, additional data from the Public Utilities Commission shows that New Brunswick provided about 1.5 million megawatt hours to customers throughout the state in 2024. The cost varies by year, but last year totaled about $165 million.
Those numbers only represent customers who used the standard offer service, explained the commission’s media liaison, Susan Faloon. New Brunswick may also serve customers who choose to use them as a competitive energy provider and pay a price set by the company, rather than the commission.
Harwood said that New England often imports electricity from Canada when it offers the best price, but those 58,000 customers who live along the border have little choice but to rely on Canadian energy to keep their lights on.
Because there is limited generation capacity in Aroostook County, those areas share the generators and transmission facilities tied to the New Brunswick grid, so while they are in the United States, they are “electrically part of Canada,” he explained.
The Office of Public Advocate analysis used data available from the utility companies and Northern Maine Independent System Administrator, which is responsible for the northern Maine transmission system and electric power markets in Aroostook and Washington counties.
New report finds roughly 100,000 Maine households struggle to pay energy bills
Last week, in advance of Trump’s inauguration, U.S. Rep. Jared Golden, whose district covers those 58,000 ratepayers, reintroduced legislation to impose a 10% tariff on all imports. The Democrat first released this legislation last year and argued throughout his reelection campaign that the tariffs would encourage more homegrown manufacturing and innovation.
However, some economists are skeptical of the merits of tariffs, arguing they could result in retaliation from other countries that could raise costs for Americans.
Golden’s office further told Maine Morning Star that the congressman views tariffs as “one piece of a holistic agenda to reorient America’s economy from one of consumption to one of production.” Energy policy is another piece of that agenda, spokesperson Mario Moretto said.
Golden’s support for increased domestic energy production was one of the primary reasons that he supported the Inflation Reduction Act and the Bipartisan Infrastructure Law, as well as championing an all-of-the-above energy strategy to boost production and lower costs.
While Harwood didn’t want to comment on the policy debate of tariffs protecting jobs, he said “these 58,000 ratepayers are caught in this trade war, this power struggle between Washington and Ottawa, and they don’t really have any choice.”
Philip Bartlett, chairman of the Public Utilities Commission, said he doesn’t know yet how tariffs will affect the cost of energy the state brings in from Canada.
“We will certainly be paying close attention to it,” he told the Legislature’s energy committee.
Canada’s energy minister was in Washington, D.C. last week warning U.S. lawmakers that the tariff threat would mean higher costs for Americans, specifically mentioning natural gas and electricity prices.
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