Electricity FAQs

As competition increases in the residential electric supply industry in Maine, the Maine Public Utilities Commission (MPUC) wants to educate consumers about how competition works.

How did Maine come to have competition in electric supply?

The law that required the restructuring of the electric utility industry in Maine was passed in March 2000. This change provided Maine consumers with the ability to choose their electricity supplier - the company that supplies their electric energy. Until 2000, a single utility company, regulated by the Commission, supplied and delivered electricity. With electric restructuring, Maine began to develop a competitive market for electricity supply. This market developed quickly for larger commercial and industrial consumers, who have a number of choices for their electricity supplier. Many small consumers, like residential and small businesses, are also now able to choose their electricity supplier.

Customers without a choice, or those who do not wish to choose, are automatically provided with Standard Offer Service.

Delivery service is still provided by the local utility (now called a distribution company), such as Versant Power, Central Maine Power, or one of Maine's consumer owned utilities.

What is a competitive electric provider (CEP)?

A CEP is a company that supplies electricity to Maines residences, businesses and other entities that use electricity. Each CEP is licensed by the MPUC and CEPs compete for business by offering lower prices, renewable energy options, or other incentives.

What are the benefits of competition in electricity supply?

Shifting to a CEP could lower a customers rate on the supply portion of their bill, or could support other policies (such as developing renewable energy).

Why is this information important now?

CEPs have recently begun to actively market their service to small commercial and residential customers in Maine. This contact has been in the form of television, radio and newspaper ads, as well as marketing telephone calls.

How do customers choose an Electricity supplier?

All customers may choose their electricity supplier either by selecting a CEP or remaining on the Standard Offer default service. For a list of suppliers, go to the MPUC's on-line supplier list at http://www.maine.gov/mpuc/. Customers can compare an offer from a CEP with the Standard Offer rate by reviewing their bills (if they are on the Standard Offer), or by visiting the MPUCs website to see the current standard offer. Once a residential or small commercial customer has enrolled with a CEP, the CEP is required to provide a "Terms of Service" document to the customer within 30 days. This document is required to contain information relating to price, contract terms, resource mix, and emissions. CEPs are also required to provide customers with the right to rescind the contractual agreement within 5 days of the customers receipt of the terms of service document.

How can customers make sure they have the electric supplier they want?

Consumers should make sure only the provider they have chosen or the standard offer provider appear on their bill.

Customers can take the following steps to avoid unauthorized changes, and, if your service is somehow switched without approval, to catch the problem quickly:

Read your bill. An important step to catch an unintended or unauthorized electric supplier change quickly is to read your bill thoroughly each month. If you see you are receiving services from a company you have not selected, call that company and tell them you dispute the change of your electric supply service to their company. You should then contact your electric utility or your CEP to ask to be switched back to them. Finally, you can call the MPUC to file a complaint against the CEP that enrolled you without your authorization.

Ask questions if you are contacted by a CEP or are considering changing to a CEP:

What will I pay per "kilowatt hour" (kWh) of electricity?

Are there any additional customer charges or other recurring fees?

Contact the MPUC. If you have questions about CEPs or think you have been switched to a CEP without your authorization, please contact the MPUC toll-free at 1-800-452-4699.

• Is this offer a fixed rate offer? If not, how can it change, and how do I find out when, and by how much, the rate will change?
• Is there a contract? If so, how long is it for?
• Is a deposit required? If so, how much?
• What are my payment options?
• What happens when my contract period expires?
• What if I miss a payment?
• Is there a penalty if I break the contract?

Maine Green Power allows you to choose clean, local renewable energy for your home or business. Mainers can now match their electric use with green power produced in Maine. It's an easy affordable step that lets you support electricity which matches your values. To learn more about the program, please check out the frequently asked questions page.

Maine’s electric prices track those of the New England region and, particularly for businesses, tend to track lower than those of the rest of New England (see figures below):

New England as a region has higher electricity costs than other regions in the nation because it does not have its own indigenous power supply like the coal of the south or the oil of Texas or big hydro of the northwest.

Maine’s electricity supply costs are determined by the New England wholesale market prices, which generally track the cost of natural gas fueled generation. Natural gas costs have declined in recent years due to over-supply from depressed demand as a result of the national and global recession and recent discoveries of natural gas supply in shale. Wholesale electricity prices in New England have declined similarly, and have resulted in reductions – in turn – to retail supply prices in Maine as new supply (such as for standard offer service) is acquired at these reduced price levels.

The price of electricity for Maine customers includes several separate elements. Supply (includes energy generation, capacity, and ancillary costs) is determined by competitive markets and not regulated by the Commission. Distribution is provided by the utilities and regulated by the Commission. Transmission costs are regulated by Federal Energy Regulatory Commission (FERC – a federal regulatory body). Stranded costs are a small and declining component of delivery (for example, less than ½ cent per kilowatt hour for Central Maine Power).

The link below provides a comparison of the average price of electricity to ultimate customers for residential, commercial, industrial and transportation sectors.

https://www.eia.gov/electricity/monthly/epmtablegrapher.php?t=epmt56_a

Standard Offer Service is the electricity supply provided to all consumers who do not have a choice, or do not choose, a competitive electric supplier.

Standard Offer Rates

Standard Offer Disclosure Labels

The law that required the restructuring of the electric utility industry in Maine beginning in March 2000 provides Maine consumers with the ability to choose their electricity supplier – the company that produces or supplies their electricity. Until 2000, a single utility company, regulated by the Commission, supplied and delivered electricity. With electric restructuring, Maine began to develop a competitive market for electricity supply. This market is developing quickly for larger commercial and industrial consumers, who now have a number of choices for their electricity supplier. Many small consumers, like residential and small businesses, may also choose their electricity supplier. Because it may take time, however, for a robust competitive market to develop for these customers, the small customer options are limited to “clean” or renewable electric energy products.

Customers without a choice, or those who do not wish to choose, are automatically provided with Standard Offer Service.

Delivery service is still provided by the local utility (now called a distribution company), such as Bangor Hydro Electric, Central Maine Power, Maine Public Service, or one of Maine’s consumer owned utilities.

Shifting to a competitive market should lower overall electric rates over time. For many consumers, it already has lowered rates. A major benefit of competition is that electricity suppliers, not consumers, bear the financial risk of investing in new generation plants.

Rates may also be lowered as the industry develops more efficient ways of producing energy. Competition also provides consumers with the option to choose more environmentally-friendly energy sources as noted above.

To choose an electricity supplier, compare product features and rates, as well as any special supplier services, with those for Standard Offer Service. For a list of suppliers serving your area, contact the Commission, or check out the Commission's on-line supplier list. For information about Standard Offer rates, check your bill if you are currently on standard offer service, or visit our Standard Offer webpage.

You should compare the uniform disclosure labels for any competitive supply options you are considering with the disclosure labels for standard offer service.