MPUC Announces CMP Price Changes
June 24, 2010
Augusta, Maine—Today the Maine Public Utilities Commission released new rates for Central Maine Power (CMP) customers’ electric delivery service. The new delivery rates –which include distribution and transmission costs in all CMP customer classes—are effective as of July 1, 2010. The supply service cost will be unchanged as it is determined by the competitive electricity supply market and is not directly regulated by the Commission.
The rate change for the delivery portion of the residential electric rate class is an overall increase of approximately 2 ½ %--from an average of 6.39 cents/kilowatt hour (kwh) to the new rate of 6.54 cents/kwh. Other categories (small, medium and large business) will see moderate increases or decreases depending on their rate classes. Notably for residential customers, the Commission previously approved a modest price decrease in distribution prices during its June 8th deliberations on the annual review of CMP’s Alternative Rate Plan (the vehicle through which CMP’s rates and operations are regulated). That residential distribution price decrease was offset by an increase in the transmission prices which are regulated by the Federal Energy Regulatory Commission (FERC). These prices show the continuing trend upward in transmission rates-- a result of significant transmission infrastructure investments in the New England region both over the last few years and extending into the future.
“Our approval of a distribution price decrease for residential ratepayers combined with an increase in the transmission prices for the same sector underscores the multi-layered complexity of electricity pricing,” said Commission Chair Sharon Reishus. “Transmission rates will likely increase as we upgrade and build new transmission infrastructure to meet the region’s demand for reliable electricity.”
Background: Electricity in Maine is comprised of power delivery (transmission, distribution, metering and billing) which is fully regulated, and power supply (production and provision of electric energy and capacity) which is controlled by market competition. Maine electricity consumers receive delivery service from a transmission and distribution utility (like CMP), and supply service from a Maine-licensed competitive electricity provider. The Commission fully regulates the operations and rates of the transmission and delivery utilities, except for transmission rates which are regulated by the FERC. CMP is one of Maine’s three investor-owned transmission and distribution utilities. The Commission regulates CMP through a five-year Alternative Rate Plan (ARP). Under the terms of the ARP, CMP’s annual filing with the Commission can include a price change proposal based on the application of a price index formula.
For more information, go to www.maine.gov/mpuc to the online virtual case file and search for documents in Docket Number 2010-51.
Contact: Evelyn deFrees, 207-287-6141 evelyn.defrees@maine.gov
