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MPUC Approves Standard Offer Price Decrease for CMP and BHE Commercial and Industrial Customers

January 25, 2012

Augusta, Maine—The Maine Public Utilities Commission accepted bids and set new prices today for standard offer electricity supply service for medium commercial and industrial (C&I) customers of Central Maine Power (CMP) and Bangor Hydro Electric (BHE) Companies. The new prices are effective for a six-month term beginning March 1, 2012. The Commission expects to receive standard offer service bids for the large C&I classes within the next few weeks.

The medium C&I customer bids accepted today reflect average prices over the term of 5.5 cents/kWh for CMP customers and 5.3 cents/kWh for BHE customers, which are 23% and 27% lower than current standard offer prices, respectively. These prices apply only to customers that are not purchasing their own electricity supply in the market.

“The bids accepted today reflect underlying market conditions and the results of a competitive auction process”, according to Commission Chairman Thomas Welch. “Maine’s market structure permits customers to benefit quickly from falling market prices.” Welch noted further that, based on last year’s usage, the reductions represent savings for Maine businesses of about $9.3 million over the six-month service term.
The names of the suppliers selected will be released in two weeks, allowing time for power supply arrangements to be finalized.
Background: Electricity customers in Maine receive standard offer service if they have not purchased supply from another retail supplier or through an aggregator. Currently, standard offer service represents about half of the supply used by CMP and BHE medium C&I customers. Maine law requires the Commission to ensure that standard offer service for electricity supply is available to all customers in Maine. The Commission arranges for standard offer service through periodic competitive bid processes.

For more information on standard offer service prices: http://www.maine.gov/mpuc/electricity/standardofferrates/index.html

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The Maine Public Utilities Commission regulates electric, telephone, water and gas utilities to ensure that Maine citizens have access to safe and reliable utility service at rates that are just and reasonable for all ratepayers. Commission programs include Maine Enhanced 911 Service, and Dig Safe.

Contact: Karen Geraghty (207)287-3831