Maine Public Utilities Commission

NEWS RELEASE

Maine Public Utilities Commission
242 State Street
Augusta, Maine 04333-0018
Website: http://www.maine.gov/mpuc/, Email: maine.puc@maine.gov
CONTACT: Nicole Clegg, 207-287-8519, Nicole.Clegg@maine.gov

FOR IMMEDIATE RELEASE
October 23, 2006

PUC Issues Request for Proposals for Standard Offer Service and Energy Efficiency

AUGUSTA, MAINE – The Maine Public Utilities Commission (PUC) issued a Request for Proposals (RFP) today for retail standard offer service for residential and small commercial customers of Central Maine Power (CMP) and Bangor Hydro-Electric Company (BHE) beginning March 1, 2007. The RFP seeks proposals that bundle together demand and supply resources to serve these standard offer customers. Initial proposals are due to the PUC by November 16, 2006.

“Combining electricity supply with energy efficiency is a promising new approach for Maine as it could both offset growing energy consumption and help curb increasing electricity prices,” stated Kurt Adams, Chairman of the PUC. For bundled demand/supply proposals, the Commission expects electricity suppliers and Energy Service Companies (ESCOs) to collaborate, allowing standard offer service to include energy efficiency measures as well as supply in their bid proposal. ESCOs are businesses that develop, install and finance cost effective measures to achieve energy savings such as promoting high efficiency lighting, heating and air conditioning. Traditional supply-only proposals may also be submitted.

The RFP encourages Maine-based ESCOs to participate in the bid process. “This approach provides an excellent opportunity for ESCOs in Maine to partner with electricity suppliers,” remarked Adams. “The RFP creates a local business opportunity and as a result, may trigger a new market of small businesses that’s task is to promote energy efficiency.” To help meet this goal, the PUC has developed a list of Maine-based ESCOs to assist bidders with the RFP available at www.maine.gov/mpuc .

CMP and BHE are regulated transmission and distribution utilities serving more than 580,000 customers in southern Maine and 114,000 customers in central Maine, respectively. CMP’s service territory covers 11,000 square miles and its total retail sales in 2005 were approximately 4.1 million megawatt hours with 99% of its customers receiving standard offer service. BHE’s service territory covers 5,275 square miles and its total retail sales in 2005 were approximately 782,000 megawatts of which 99% receive standard offer service. Current standard offer rates for CMP are 8.384 cents per kWh and BHE are 8.712 cents per kWh for residential and small non-residential customers.

The RFP and related materials including detailed load data for these classes are available at the PUC’s website at www.maine.gov/mpuc . For more information, please contact Faith Huntington at faith.huntington@maine.gov.

Standard offer service is the only type of default service in Maine and is provided directly by standard offer providers to customers at retail. The PUC is responsible for insuring that the Commission solicits suppliers to provide standard offer service through a competitive bid process.

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The Public Utilities Commission is committed to ensuring that consumers have access to safe and reliable service for public utilities and that the rates for these utilities are just and reasonable. PUC programs include Maine Enhanced 911 Service, Dig Safe, and Efficiency Maine.

To arrange an interview with Chairman Adams or Commissioner Reishus, please contact Nicole Clegg at 207.287.8519 or by e-mail at nicole.clegg@maine.gov. The Commission’s website, http://www.state.me.us/mpuc/index.html, may be accessed through the Maine School and Library Network at all public libraries in Maine.