Consumer Information
What is Electric Restructuring?
The law that required the restructuring of the electric utility industry in Maine beginning in March 2000 provides Maine consumers with the ability to choose their electricity supplier – the company that produces or supplies their electricity. Until 2000, a single utility company, regulated by the Commission, supplied and delivered electricity. With electric restructuring, Maine began to develop a competitive market for electricity supply. This market is developing quickly for larger commercial and industrial consumers, who now have a number of choices for their electricity supplier. Many small consumers, like residential and small businesses, may also choose their electricity supplier. Because it may take time, however, for a robust competitive market to develop for these customers, the small customer options are limited to “clean” or renewable electric energy products.
Customers without a choice, or those who do not wish to choose, are automatically provided with Standard Offer Service.
Delivery service is still provided by the local utility (now called a distribution company), such as Bangor Hydro Electric, Central Maine Power, Maine Public Service, or one of Maine’s consumer owned utilities.
What Are the Benefits of Competition in Electricity Supply?
Shifting to a competitive market should lower overall electric rates over time. For many consumers, it already has lowered rates. A major benefit of competition is that electricity suppliers, not consumers, bear the financial risk of investing in new generation plants.
Rates may also be lowered as the industry develops more efficient ways of producing energy. Competition also provides consumers with the option to choose more environmentally-friendly energy sources as noted above.