CMP, Hydro refund for line extension

AUGUSTA – The Maine Public Utilities Commission announced this week that Central Maine Power Co. and Bangor Hydro-Electric Co. have refunded more than $525,000 to customers who paid to construct a line extension after Sept. 10, 2001.

The refund is the result of a reduction in the Contribution in Aid Construction, or CIAC, Tax. This is a tax charged to customers who pay to construct electric line extensions and then convey ownership of the line to the electric company.

CMP has refunded more than $475,000 to more than 2,300 customers who paid to build either a single phase or polyphase line extension from Sept. 10, 2001, to June 1, 2002. Customers who paid a CIAC tax on line extensions are receiving refunds this month. The refunds vary based on the cost of the line extension. The commission is continuing to investigate CMP’s assessment of CIAC tax charges to ensure that customers who were overcharged receive the appropriate refund and that customers in the future are charged the correct amount.

Bangor Hydro has refunded more than $58,000 to 270 customers. Unlike CMP, which requires its customers to pay the total cost of a line extension including tax before construction, Bangor Hydro allows its customers to pay the cost of the line extension over a 10-year period. For this reason, Bangor Hydro reviewed each individual contract and calculated a refund or credit that each customer is owed.

Customers have received or will receive a refund for any tax already collected and a credit toward any unpaid tax on their line extension. The credits and checks for Bangor Hydro customers were provided to customers in July, and those for CMP customers will be provided in August.

The CIAC tax was reduced as a result of the enactment of the Job Creation and Worker Assistance Act of 2002, which created a special depreciation allowance for certain property acquired after Sept. 10, 2001, and before Sept. 11, 2004.

For more information on the CIAC refunds, customers can contact their utility company or the Maine PUC at 287-3831 or (800) 452-4699.