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Maine Public Utilities Commission
Public Utilities Commission
242 State Street
Augusta, Maine 04333-0018
Website: http://www.maine.gov/mpuc/, Email: firstname.lastname@example.org
CONTACT: Phillip Lindley, 207.287.1598, email@example.com
FOR IMMEDIATE RELEASE
July 8, 2003
Electric Standard Offer
Prices Decrease For
Commercial and Industrial Customers
Reflects Recent Energy Market Price Conditions
AUGUSTA, MAINE – Today, July 8, 2003, the Maine PUC accepted bids for new standard offer energy prices for medium and large commercial and industrial customers in the service territories of Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE), for the period September 1, 2003, through February 28, 2004. On average, the new prices are 4% to 6% below standard offer prices for the current six-month term ending August 31, 2003. The new standard offer prices for CMP commercial and industrial customers are, on average over the 6-month period, about 5.6 cents/kWh for the medium class and about 5.7 cents/kWh for large class. For BHE customers the prices are, on average, 5.6 cents/kWh for the medium class and 5.4 cents/kWh for the large class. The names of the supplier(s) chosen to provide the standard offer service will be released after a two-week period to allow supply arrangements to be completed.
Under Maine’s retail electric access rules, the Commission must ensure that standard offer service is available to all customers in the State. Maine’s rules require that the Commission solicit suppliers to provide standard offer service through a competitive bid process.
The RFPs that resulted in the bids accepted today were issued in June, seeking prices for six-month or one year terms. The Commission selected six-month terms for both CMP and BHE territories and both customer classes to allow standard offer prices to track market changes. The shorter term was also chosen so as not to compete with competitive electric providers that can offer longer terms with price stability. The bids accepted were the lowest offered.
Standard offer service is the default supply for electricity customers, which means that customers receive it only if they have not purchased supply from a competitive provider on their own or through an aggregator. Currently, approximately 45% of the load required by customers in the medium and large classes is provided by standard offer service; the remaining customers receive their energy supply from competitive providers. Residential and small commercial customers in CMP and BHE territory are unaffected by today's decision: those customers will continue to receive standard offer generation service at the current rate of 4.95 cents/kWh through February of 2005.
“We are pleased with the competitiveness of the bid prices, which appear to be in line with the current market conditions,” said Tom Welch, chairman of the Commission. "Customers should, however, bear in mind that they may be able to obtain longer-term stability in the competitive market than the six months provided by the standard offer."
For more information:
Standard Offer Rates:
All PUC News Releases may be found on our website at: http://www.maine.gov/mpuc/newsreleases2003.htm
To arrange an interview with Chairman Welch or Commissioners Nugent or Diamond, please contact Phillip Lindley at 207.287.1598 or by e-mail at firstname.lastname@example.org. The Commission’s website may be accessed through the Maine School and Library Network at all public libraries in Maine.