Electricity Prices

Electricity Prices 

Electricity bills include several components, and the rates for these components can change throughout the year based on the cost of energy supply or other regulatory changes. This page explains each part of a residential electricity bill, provides the latest electricity prices for Maine consumers, outlines how and when rates are set, and answers common questions about recent electricity price trends. 

A residential electricity bill has two main components:  

• Supply, which is the cost to generate the electricity you use; and  
• Delivery, which is the cost of wires, poles, equipment, and operations for delivering the electricity to you. Delivery charges are included in the fixed charge, distribution, transmission, and other costs shown in the table below.  

Typically, supply and delivery represent about half of a bill each month. A third, smaller component of the bill is stranded costs, which include the costs and benefits associated with certain renewable energy programs, as well as some costs associated with storm recovery and energy assistance programs. For information how to understand your electricity bill, visit Central Maine Power or Versant Power.  

Electricity Prices by Bill Component as of October 1, 2025 (Residential)

This table provides an example of the cost components in a typical residential energy bill for customers of Central Maine Power and Versant Power, effective October 1, 2025. The typical Maine household uses about 550 kilowatt-hours each month. The fixed charge portion of the bill remains constant for all utility customers, regardless of energy consumption. This fixed charge includes a small amount of "base level" kWh usage (i.e. the first 50 kWh used by CMP customers and the first 100 kWh for Versant customers). For CMP customers, the fixed charge covers the first 50 kWh of distribution, transmission, and stranded costs. For Versant Power customers, the fixed charge covers the first 100 kWh of distribution costs. Other bill components are variable costs, calculated based on energy consumption. Calculated totals may vary slightly due to rounding.

As of October 1, 2025:  

• Central Maine Power residential customers will see a total decrease of approximately $0.80.  

• Versant Power  residential customers in the Bangor Hydro District will see their bills increase by approximately $0.01 and Maine Public District will see bills decrease by approximately $2.87. 

The October 1 rate changes are due to changes in the methodology for allocating and collecting certain stranded costs as well as updated forecasting for expenses in the coming years.    

Electricity Prices in Maine Over Time 

The charts below show how residential electricity prices have changed in Maine over the past 10 years broken down by bill component.  

Frequently Asked Questions

How are electricity supply rates set?

In Maine, the default residential supply price, or “standard offer” for electricity, is set annually through a competitive bid process administered by the Maine Public Utilities Commission (PUC). Electricity supply rates for residential customers taking the standard offer service change annually on January 1, and in some years have been adjusted in the middle of the year as well. Through this process, the PUC solicits bids to supply electricity to customers receiving standard offer service, and the selected bids establish the price of electricity for the following year. Energy suppliers bidding to provide standard offer service largely base their proposals to the PUC on their expectations for wholesale electricity prices in the coming year, as well as other market factors. The PUC routinely considers how to most cost-effectively provide energy supply, including reviewing the contract lengths and other mechanisms to bring the lowest cost to ratepayers.   

For residential and small business customers, the standard offer is a fixed price per kilowatt-hour. For larger commercial, institutional, and industrial customers, standard offer prices can vary month-to-month.  In November 2024, the PUC approved standard offer supply rates for 2025 that are largely consistent with 2024 rates. In 2025, CMP customers saw a minor downward adjustment, while Versant Power Bangor Hydro District and Maine Public District customers experienced a modest uptick. Current and previous residential standard offer electricity prices are summarized below.   

 

Residential Standard Offer Supply Rates per kWh	2023  (Jan 1 – July 14)	2023  (July 15 – Dec 31)	2024  (Jan 1 – Jun 30)	2024 (Jul 1 – Dec 31)	2025 (Jan 1 – Dec 31)
Central Maine Power	$0.176	$0.166	$0.108	$0.106	$.106
Versant Power - Bangor Hydro District	$0.164	$0.154	$0.108	$0.103	$0.106
Versant Power - Maine Public District	$0.149	$0.148	$0.113	$0.113	$0.117

 

What is a competitive electricity supplier?

A competitive electricity supplier is a company that offers an alternative to Maine’s standard offer electricity supply rate. About 90 percent of residential and small business customers in Maine receive the standard offer, however all customers have the option to choose a competitive supplier. Competitive suppliers offer varying contract terms and lengths, and customers may see supply rates change at different times of the year depending on their agreement. Customers shopping for competitive electricity supply are encouraged to review resources available from the Office of the Public Advocate.   

How are electricity delivery costs set?

Delivery costs include the cost of transmission (i.e. large electricity lines and substations that transfer bulk power across long distances) as well as distribution (i.e. smaller electricity lines, substations, transformers, and other equipment that delivers electricity to customers). Transmission rates are regulated by the Federal Energy Regulatory Commission and typically change each year around January 1. Distribution rates are regulated by the Maine Public Utilities Commission and may change throughout the year depending on the utility and other conditions. 

Delivery costs also include components for various programs, including energy efficiency programs, renewable energy contracts, and energy assistance programs. Residential delivery rates include both a fixed monthly charge and a volumetric rate.

Why are energy prices volatile?

Much of the volatility in electricity prices in recent years has been due to the fluctuating price of natural gas. Maine shares an electricity grid with New England, and about half of all electricity in the region is generated using natural gas. Volatile natural gas prices create uncertainty and risk for electricity suppliers, who incorporate that risk as higher supply bids to provide standard offer service.   

New England does not produce any natural gas, so the entire supply must be imported either through pipelines from elsewhere in the U.S. or Canada, or from liquid natural gas terminals primarily in the Boston area and in New Brunswick, Canada. These import channels can become constrained during times of high demand, such as in winter months. Global events, including supply chain shocks from the COVID-19 pandemic as well as geopolitical disruptions such as conflicts in Ukraine and the Middle East have increased pressure on global fossil fuel prices, including natural gas.   

The closely linked relationship between natural gas prices and wholesale electricity prices is demonstrated by the chart below published by ISO-New England, the independent entity responsible for operating the region’s bulk power system. Standard offer costs have stabilized since experiencing significant volatility in 2022 and 2023.

(source: ISO New England) 

How do storm costs impact electricity prices?

In recent years, Maine has experienced several major storms that have led to an increase in the cost of storm recovery on electricity ratepayers.  While utilities plan for routine storm repair in current rates, severe storms require extensive measures both in preparation and repair work.  These costs are shared between utility shareholders and customers in an annual reconciliation process facilitated by the PUC. Costs associated with 2024 winter storm recovery currently amount to about $20 per month on the average residential CMP customer’s bill. Storm costs are recovered through various components of an electricity bill depending on the utility.

In response to the severe storms in 2024, Governor Mills established the Infrastructure Rebuilding and Resilience Commission, which is charged with reviewing and evaluating Maine’s response to the recent storms, crucial areas for near-term investment and policy needs, and developing the state’s first long-term infrastructure plan to ensure that Maine is ready for the harsh storms ahead. The Commission engaged with communities, industries, and organizations to understand challenges following storms, identify and bridge gaps in resources like funding, financing, and insurance, ways to improve the resilience of energy systems, and propose new approaches to improve disaster recovery and response and strengthen resilience supports at the state, regional, and local levels.  In Maine, the default residential supply price, or “standard offer” for electricity, is set annually through a competitive bid process administered by the PUC. Through this process, the PUC solicits bids to supply electricity to customers receiving standard offer service, and the selected bids establish the price of electricity for the following year. For residential and small business customers, the standard offer is a fixed price per kilowatt-hour. For larger commercial, institutional, and industrial customers, standard offer prices can vary month-to-month. 

How do electricity prices in Maine compare to other states?

Maine continues to have among the lowest electricity rates in New England, according to the Energy Information Administration. All of the New England states have historically experienced higher electricity costs than the national average, driven by a range of factors including infrastructure costs and limited energy supplies and production. Other energy costs in New England have historically been significantly higher than the national average for similar reasons. 

(Source: Energy Information Agency)

How does renewable energy affect electricity prices?

In recent years, Maine’s investments in renewable energy have counteracted the cost increases driven by our region’s over-reliance on fossil fuels, by providing stable, low-cost, homegrown energy at affordable prices not dictated by global energy markets. Since 2011 Maine’s Renewable Portfolio Standard, or the portion of electricity sold in the state that must come from renewable sources, is estimated to have saved ratepayers more than $21 million annually in electricity costs. Fossil fuels often experience price volatility, as seen in recent years with significant electricity price swings. Renewable energy generation provides an opportunity for price stability. 

To date, renewable energy makes up a small but growing percentage of the overall electricity mix in the region. Maine’s Renewable Portfolio Standard (RPS), in place since 1999, establishes the minimum portion of electricity sold in Maine that must come from renewable sources such as wind, solar, hydro, and biomass, among others. In 2019, Governor Mills signed legislation that increased Maine’s RPS to 80 percent by 2030. In 2025, Governor Mills signed legislation increasing the RPS to 90 percent and establishing a new Clean Energy Standard (CES) to achieve 100 percent clean energy by 2040. For more information on Maine’s renewable and clean portfolio standards, visit this page. 

How can I get involved with the Maine Public Utilities Commission?

There are several ways to engage with electricity rate cases at the Maine PUC. The Maine Office of the Public Advocate has resources to help individuals participate in proceedings.