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MPUC: Standard Offer Prices Set for CMP and BHE Commercial and Industrial Customers

January 29, 2013

Augusta, Maine—The Maine Public Utilities Commission accepted bids and set new prices today for standard offer electricity supply service for medium and large 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, 2013.

The bids accepted today for medium C&I customers reflect average prices over the term of 6.1 cents/kWh for CMP customers and 6.0 cents/kWh for BHE customers. The new prices are 5% and 4% lower than current standard offer prices for CMP and BHE medium C&I customers, respectively. Compared to the same period last year, the new prices are 10% higher for CMP customers and 13% higher for BHE customers.

The bids accepted for large C&I customers are indexed to the market, and prices will be set by the PUC in advance of each month based on current market prices.

The bids accepted today do not apply to customers that are purchasing their own electricity supply in the market. Currently, less than 40% of the load of medium C&I customers and less than 5% of the load of large C&I customers receives standard offer service.

“The prices set today reflect the best bids received in a vigorous competitive auction”, according to Commission Chairman Thomas Welch. Welch noted that the new standard offer prices track increases in near term natural gas and power markets, which are higher compared to a year ago.

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