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STANDARD OFFER ELECTRIC RATES STABLE FOR NEXT 6 MONTHS

New Electric Standard Offer Rates to begin in September for mid-size and large businesses

July 25, 2007

Maine Public Utilities Commission NEWS RELEASE

FOR IMMEDIATE RELEASE July 25, 2007

New Electric Standard Offer Rates to begin in September for Commercial and Industrial Customers Prices Generally Stable

AUGUSTA, Maine – Today the Maine PUC accepted bids on new standard offer energy rates for medium and large commercial and industrial (C&I) customers of Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE). In most cases the new offers will keep electricity prices rates near the status quo for this class of customers. The rates are effective September 1, 2007 and extend for six months. For CMP, the new prices will be on average about $.091/kWh for the medium class, up from $.087/kWh. CMP large-class customer rates will be $.092kWh, relatively unchanged from the previous rate. BHE new standard offer prices will be about $.086/kWh for the medium class, down from $.088 /kWh. For BHE large-class customers, rates will be close to $.103/kWh, substantially the same as before. “The commission is pleased with the number of bids it received, and prices are in line with current wholesale market conditions,” said Kurt Adams, chairman of the Maine PUC. “But natural gas and oil prices, coupled with Federally-approved capacity costs, continue to drive high electricity prices in the New England market. The PUC is working diligently to ensure that rates remain as stable as possible for Maine businesses that are trying to plan for the future.” Chairman Adams noted that the PUC administers a number of programs that help businesses reduce their electricity consumption, which can offset some of these high market prices. Efficiency Maine provides direct technical assistance and cash incentives to Maine businesses that want to install new, energy efficient equipment. The incentives reduce capital costs, typically making the return on investment highly favorable.

Participation in the Efficiency Maine business program is not competitive, and funds are available now. For more information call 866-367-2463. Residential and small commercial customers of CMP and BHE are unaffected by today’s decision and will continue to receive standard offer service at prices determined earlier this year – 8.7 cents/kWh for CMP customers and 9.01 cents/kWh for BHE customers. The residential/small commercial rates remain in effect through February, 2008.
Under Maine’s retail electric access rules, the PUC must ensure that standard offer service is available to all customers in Maine. The selected rates were chosen following a competitive bid process administered by the PUC, and the names of the suppliers selected will be withheld for two weeks, allowing time for supply arrangements.
Standard offer service is the default supply for electricity customers, meaning customers receive it if they have not purchased supply from another retail supplier or through an aggregator. Currently, about 25% of the electric load for CMP and BHE medium and large C&I customers is standard offer; the remaining customers receive their energy supply from other retail suppliers.
Maine Public Utilities Commission 242 State Street Augusta, Maine 04333-0018 Website: http://www.maine.gov/mpuc/, Email: maine.puc@maine.gov CONTACT: Fred Bever, 207-287-8519, Fred.Bever@maine.gov

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Standard Offer and Delivery Rates: http://www.maine.gov/mpuc/industries/electricity/standardoffer/standardoffer_rates.html

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, Commissioner Sharon Reishus, or Commissioner Vendean Vafiades, please contact Fred Bever at 207.287.8519 or by e-mail at fred.bever@maine.gov. The Commission’s website, www.maine.gov/mpuc may be accessed through the Maine School and Library Network at all public libraries in Maine.

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AUGUSTA, Maine – Today the Maine PUC accepted bids on new standard offer energy rates for medium and large commercial and industrial (C&I) customers of Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE). In most cases the new offers will keep electricity prices rates near the status quo for this class of customers.