The extreme cold weather Maine has been experiencing underscores the need for a diverse set of resources to ensure reliable, affordable energy, particularly during periods of high demand. The Maine Department of Energy Resources (DOER) continues to engage with state, regional, and federal partners on issues related to electricity and fuel delivery into Maine. DOER's Winter Heating Guide along with other resources to help you stay safe and warm are included at the end of this newsletter.

To help inform Maine's next energy plan, which DOER will be developing in 2026, the Department has published a new independent report that analyzes the primary drivers of electricity price increases in Maine in recent years and proposes solutions to mitigate energy cost volatility. The report was prepared by the Brattle Group and includes the following key takeaways: 

• Electricity price increases in Maine are primarily driven by natural gas prices, increasing storm costs, aging infrastructure, and inflation. In addition, recovery associated with recent severe storms has added significant costs to electricity bills in Maine. Transmission and distribution costs also increased, but more gradually. More than half of New England’s electricity is generated from natural gas, a global commodity that has experienced high price volatility in recent years. While they have moderated in recent years, Maine electricity supply prices tripled from 2021 to 2023 as a result of natural gas price increases. 
• Maine can mitigate price swings by diversifying available energy resources and investing in energy efficiency. As the U.S. expands domestic natural gas exports and energy demand accelerates nationwide, the cost of natural gas is expected to continue rising, according to federal sources. Accelerating local clean energy development, investing in cost-effective energy efficiency and load flexibility, and electrifying end uses reduces Maine’s exposure to fossil fuel market volatility.