Maine Leaders Propose Grid Enhancements as Electricity Prices Soar

Natural gas price spikes drive up electricity costs, prompting calls for grid modernization and renewable energy expansion.

Published on Feb. 17, 2026

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In the wake of a recent cold snap that caused natural gas prices to spike to record highs across New England, Maine policymakers met to discuss solutions to the resulting rise in electricity costs. Officials cited the state's heavy reliance on natural gas for power generation, aging grid infrastructure, and lengthy permitting processes for renewable energy projects as key factors driving up prices. They proposed enhancing the grid's flexibility, accelerating renewable energy development, and finding the right balance between affordability and stability for ratepayers.

Why it matters

The sharp increase in electricity prices is straining Maine households and businesses, highlighting the state's vulnerability to natural gas price volatility and the need to diversify its energy mix and modernize the grid. Addressing these challenges is crucial for ensuring long-term affordability and reliability of the state's electricity supply.

The details

Natural gas accounted for 55% of total electricity generation on the New England grid in 2025, and prices spiked to record highs during the recent cold snap, driving up wholesale electricity prices. Maine saw a 55% increase in average retail electricity prices between 2014 and 2024, with costs climbing even higher at the end of last year and into 2026. Officials cited aging grid infrastructure, the need for grid modernization to accommodate renewable energy and electric vehicles, and lengthy permitting processes for new energy projects as contributors to the rising costs.

  • On January 27, Massachusetts saw the highest natural gas price ever recorded since grid operator ISO-New England updated its pricing database in 2003.
  • Maine ratepayers are still paying $20 per month on average to repair electric infrastructure damaged by winter storms in 2024.

The players

Philip Bartlett II

Chairman of the Maine Public Utilities Commission.

Dean Murphy

Brattle Group economist.

Jeremy Payne

Cornerstone energy policy consultant and former long-time director of the Maine Renewable Energy Association.

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What they’re saying

“The biggest challenge we're facing right now is affordability. We're seeing upward pressure on every component of the bill.”

— Philip Bartlett II, Chairman, Maine Public Utilities Commission (newscentermaine.com)

“When those pipelines get full, and there's a limited amount of capacity, prices tend to spike. We've seen that very dramatically in the last couple of weeks, when natural gas prices in New England got to, I believe, the highest level ever.”

— Dean Murphy, Economist, Brattle Group (newscentermaine.com)

“There are 49 other states competing for this investment capital, and, if we make it too hard, they're just not going to look here anymore. Ultimately, applicants need to be able to get ideally a yes. … But they'll even take a no; they just want to get to an answer.”

— Jeremy Payne, Energy Policy Consultant, Cornerstone (newscentermaine.com)

What’s next

The Public Utilities Commission has a proposal request out for renewable energy projects in northern Maine and an accompanying transmission line, which could help diversify the state's energy mix and reduce reliance on natural gas.

The takeaway

Maine's heavy dependence on natural gas for power generation, aging grid infrastructure, and lengthy permitting processes for renewable energy projects have contributed to a sharp rise in electricity prices, straining households and businesses. Addressing these challenges through grid modernization, renewable energy expansion, and streamlined permitting will be crucial for ensuring long-term affordability and reliability of the state's electricity supply.