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Maine Public Utilities Commission


Maine Public Utilities Commission
242 State Street
Augusta, Maine 04333-0018

Website:, Email:
CONTACT: Nicole Clegg, 207-287-8519,


January 11, 2007


New Electric Standard Offer Rates to begin in March for
CMP and BHE Residential Customers 

AUGUSTA, Maine – Tuesday, the Maine Public Utilities Commission (PUC) accepted bids on new standard offer energy rates for residential and small business customers of Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE).  The rates, effective March 1, 2007, are for CMP customers about 8.8 cents/kWh, and for BHE customers about 9.0 cents/kWh.  When combined with the CMP and BHE delivery charges, the rates will increase overall by about 1.7% and 2.7% for BHE and CMP customers, respectively. Rates would have decreased were it not for the new payments that the Federal Energy Regulatory Commission (FERC) is requiring to make to power companies as part of the region’s new Forward Capacity Market, formerly known as LICAP.

“The fact that the new standard offer rate is higher despite declines in energy prices illustrates the impact of recently implemented New England capacity payment rules.  These capacity payments present an unfair burden for Maine rate payers,” stated Kurt Adams, chairman of the Maine PUC. “The PUC has and will continue to oppose the federal government’s decision to impose these charges, which will amount to $300 million over the next four years, upon Maine consumers. Forward Market Capacity is a scheme to promote more power generation in areas of New England that do not have enough power plants, like southwest Connecticut.” The PUC has strongly opposed these payments and appealed the FERC decision at US Court of Appeals in Washington DC on December 12, 2006.

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 99% of the electric load for residential customers within CMP and BHE territory receive standard offer. 


Standard Offer and Delivery Rates:

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 or Commissioner Reishus, please contact Nicole Clegg at 207.287.8519 or by e-mail at  The Commission’s website, may be accessed through the Maine School and Library Network at all public libraries in Maine.