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MPUC Approves Standard Offer Price Reductions for CMP and BHE Residential and Small Commercial Customers Effective March 1, 2013

November 7, 2012

Augusta, Maine — Today the Maine Public Utilities Commission accepted bids from electricity suppliers and announced new standard offer service prices for residential and small commercial customers of Central Maine Power and Bangor Hydro Electric Companies. The new prices, which are effective March 1, 2013, are 6.8 and 6.7 cents/kWh for CMP and BHE customers, respectively. The new prices will represent reductions in the cost of standard offer service of 8.2% for CMP customers and 6.2% for BHE customers. For the average customer in these classes, the total price (standard offer plus delivery) will fall about 4% for CMP customers and 3% for BHE customers.

The Commission also accepted bids and set prices for a new optional time-differentiated service for CMP customers that offers additional savings through reduced prices at off-peak times. These prices vary from a low in June of 2013 (4.5 cents/kWh off peak, 7.6 cents on peak) to a high in February of 2014 (7.1 cents off peak, 10 cents on peak).

According to Commission Chairman Tom Welch, “The standard offer service bids accepted today reflect the results of a robust auction process, and are consistent with prevailing wholesale market prices for electricity.” Welch noted that the price reductions would lower electricity costs in Maine by about $20 million next year. Chairman Welch further indicated that the new optional time-differentiated service will enable customers to realize additional savings by shifting electricity use to off-peak periods.

The new standard offer service prices will be in effect for one year beginning March 1, 2013. The names of the winning suppliers will be released in two weeks, allowing time for supply arrangements to be finalized.

Further information regarding the prices set today, including the optional monthly and time-differentiated prices for CMP customers, is available at: http://www.maine.gov/mpuc/industries/electricity/standardoffer/standardoffer_rates.html

Background: Under Maine’s retail electricity access rules, the Commission must ensure that standard offer service is available to all customers in Maine. Customers receive standard offer service if they have not purchased supply from another retail supplier or through an aggregator. Currently, standard offer service supplies about 75% of the electricity used by residential and small commercial customers in the BHE and CMP service areas.

Contact: Karen Geraghty (207) 287-3831