Standard Offer Rates for Versant Power - Bangor Hydro District - Small

Docket No. Dates Price ($/kWh)

2021-00073

Suppliers: ​​​100% New Brunswick Energy Marketing Corporation

Press Release

COMMISSION SETS NEW STANDARD OFFER ELECTRICITY SUPPLY RATES FOR 2022 FOR VERSANT POWER STANDARD OFFER CUSTOMERS

November 16, 2021

Hallowell, Maine -The Maine Public Utilities Commission (Commission) accepted bids and set new Standard Offer electricity supply rates today for residential and business customers of Versant Power, Bangor Hydro District, as well as for large business customers in Versant's Maine Public District. Residential customers who receive standard offer service can expect an increase of about 88.6 percent in their supply rates effective January 1, 2022. The new residential standard offer price amounts to an increase of about $30 per month on the total bill for an average customer using 550 kWh/month, or an increase from about $101 to about $131.

The new Standard Offer supply rates were set though a competitive bid process conducted by the Commission, as required by Maine law. The increases reflect prevailing energy market conditions, including those in the regional electric power market in which prices are strongly influenced by natural gas.

These increases apply to customers who do not purchase electricity from a competitive supplier of their choosing and instead receive Standard Offer Supply by default. Standard Offer Suppliers for Versant Power-Maine Public District Residential/Small Business Class and Medium Business Class were awarded multi-year contracts in 2019. Those prices will be calculated and released next week.

"These prices are competitive and provide the best value for Versants Standard Offer customers," Chairman Philip L. Bartlett II said. Unfortunately, sharp increases in natural gas prices are resulting in higher electricity supply costs for the upcoming year. This increase is primarily driven by New Englands wholesale electricity market prices which have increased dramatically.

The new Standard Offer electricity supply rates reflect a similar trend experienced in other energy sectors as well. The table below shows how the Standard Offer price increase compares with increases in natural gas, oil, and wholesale electric markets during the same month the previous year.
year.

Natural Gas 94.80% Increase Oct. 2020-Oct. 2021

Heating Oil 121.70% Increase Oct. 2020-Oct. 2021

Wholesale Electricity 126.3% Increase Nov 2020-Nov 2021

Standard Offer 77% Increase Nov 2020-Nov 2021

Those having difficulty paying their electricity bills are encouraged to explore options for financial assistance. A full list of programs is available on the Commission website.

Multiple bidders submitted sealed proposals in the Commissions annual competitive process for setting Standard Offer electricity supply prices. The Standard Offer supply amount accounts for about 50 percent of the total customer bill. For Versant Medium Business Customers, the new prices vary by month, averaging 11 cents per kWh. Versant medium-class businesses will see an average 77.7% increase annually in the supply portion of their bill.

Prices for Versant large business customers will be indexed to market prices and set in advance of each month.
The names of the suppliers selected for Versant will be released in two weeks, allowing time for power supply arrangements to be finalized.

For more information on standard offer service prices visit: https://www.maine.gov/mpuc/regulated-utilities/electricity/electric-supply

Background An electric bill includes two components: electricity supply and delivery. The Standard Offer Supply Rate is just one component of the total electric bill.

When the electric industry restructured in 2000, utilities were required to sell their electricity generating assets and therefore no longer supplied the electricity. They do, however, maintain the infrastructure that delivers the power to your home or business. That includes substations, large transmission lines, distribution lines, utility poles and meters that connect to homes and business.

Since the law was changed in 2000, electric customers have had the option of choosing their own electricity supplier or using the default supplier, which is the supplier or suppliers chosen in the competitive bidding process for Standard Offer Electricity Supply conducted by the MPUC. Maines electric utilities do not set the rates for electricity supply, they simply bill on behalf of the suppliers so that customers do not receive two bills.

About the Commission 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, while also helping achieve reductions in state greenhouse gas emissions. Commission programs include Maine Enhanced 911 Service, gas safety and Dig Safe. Philip L. Bartlett, II serves as Chairman, Randall Davis and Patrick Scully serve as Commissioners.

Learn more about the Commission at www.maine.gov/mpuc


CONTACT: Susan Faloon, Media Liaison CELL: 207-557-3704 EMAIL: susan.faloon@maine.gov

 

(1/1/2022 - 12/31/2022) $0.116840

2020-00200

Suppliers: Constellation Energy Commodities Group Maine, LLC (33%) and NextEra Energy Marketing, LLC (67%)

Press Release

November 17, 2020

MPUC Sets Standard Offer Electricity Rates for 2021; Rates Decrease for Second Year

Hallowell, Maine - Residential and business customers of Versant Power will pay lower rates for electricity supply in 2021, as a result of the Maine Public Utilities Commission's competitive bid process for setting Standard Offer Supply prices.

The decrease amounts to a 10 percent reduction in the supply portion for residential and small business customers. This equates to a 3.6 percent reduction in the total residential customer bill, which averages 500 kWh monthly. This amounts to a monthly savings of $3.41, or $40.95 annually. A monthly bill of $94.08 month would decrease to $90.67 a month.

Medium Class customers will see an average decrease of 12 percent in the supply portion of their bill, meaning a medium-sized business using 20,000 kWh a month will see savings of $2,000 annually.

"We are pleased that prices have decreased again this year, as many Maine residents are finding it hard to make ends meet and businesses struggle to keep their doors open due to impacts of the pandemic," Chairman Philip L. Bartlett II said. These decreases reflect electricity supply and demand conditions in New England and their impact on wholesale energy markets.

These decreases do not apply to customers who purchase their own electricity supply in the market. Those who do not purchase electricity from a supplier of their choosing will receive Standard Offer Supply by default.

Multiple bidders submitted sealed proposals in the Commissions annual competitive process for setting Standard Offer Electricity Supply Prices. The Standard Offer accounts for approximately 60 percent of sales in Versant Powers service area and about 34 percent of the customer bill.

The pricing for Versant Power customers affects only those customers who receive Standard Offer Supply Service. Standard Offer Suppliers for Versant Power-Maine Public District Residential/Small Business Class and Medium Business Class were awarded multi-year contracts last year. Those prices will be calculated and released on November 19, 2020.

For Versant Power-Bangor Hydro District Medium Business Customers, the new prices vary by month, averaging 6.24 cents kWh. Versant Power medium-class businesses in the Bangor Hydro District will see an average 12% decrease annually in the supply portion of their bill.

Prices for Versant Power large business customers-Bangor Hydro District will be indexed to market prices and set in advance of each month, as was done last year for large business standard offer service. Versant Power large business customers in the Maine Public District will see a decrease from 8.5 cents per kWh to 7.9 cents per kWh, a decrease of 6.1 percent in the supply portion of their bill.

The names of the suppliers selected for Versant Power will be released in two weeks, allowing time for power supply arrangements to be finalized.

Standard offer service prices

About the Commission

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. Philip L. Bartlett, II serves as Chairman, Bruce Williamson and Randall Davis serve as Commissioners.

(1/1/2021 - 12/31/2021) $0.061960

2019-00163

Suppliers: NextEra Energy Marketing (33%) and Constellation Energy Commodities Group Maine, LLC (67%)

Press Release

November 12, 2019

MPUC Sets New Standard Offer Electricity Price with an 18% Decrease for Residential and Small Businesses; 21% Decrease for Medium Businesses

Hallowell, Maine - November 12, 2019 Residential and business customers of Emera Maine (Bangor Hydro District) will pay lower rates for electricity supply throughout 2020, as a result of the Maine Public Utilities Commission's competitive bid process for setting Standard Offer Supply prices. For typical residential bills based on 500 kWh monthly usage, the anticipated monthly savings will be $7.45, or just under $90 annually. Monthly bills are expected to drop from about $89.05 a month to $81.60 a month, an 8.4% percent decrease. "Locking in a lower price of a basic necessity for 2020 helps both residents and business owners better manage tight budgets," Chairman Philip L. Bartlett II said. Lower prices are especially welcome news as we enter winter and a period of typically higher electrical usage. Multiple bidders submitted sealed proposals in the Commissions annual competitive process for setting Standard Offer Electricity Supply Prices. The Standard Offer accounts for approximately 60 percent of sales in Emera Maines service area. The pricing is summarized in the chart below and affects only those customers who opt for Standard Offer Supply Service. Emera - Bangor Hydro District 2019 2020 % Decrease Residential/Small Business Standard Offer Supply Price 8.37 /kWh 6.88 /kWh 18% Typical Residential Total Bill (assumes 500 kWh monthly usage) $89.05/month $81.60/month 8.4% Medium Business Customers Annual Average Supply Price 9.03 /kWh 7.09 /kWh 21%

For Emera Maine Medium Business Customers, the new prices differ by month, ranging from 5.3 /kWh in June to 10.8 /kWh in January. On an annual average basis medium businesses will see a 21% decrease. Prices for large business customers will be indexed to market prices and set in advance of each month, as was done last year for large business standard offer service. The prices above do not apply to customers who purchase their own electricity supply in the market. The names of the suppliers selected for Emera Maine 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 60% of the supply used by Emera Maine 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. More information on standard offer service prices.

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About the Commission 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. Philip L. Bartlett serves as Chairman, Bruce Williamson and Randall Davis serve as Commissioners.

Press Contact Name: Harry Lanphear, Administrative Director Phone: (207) 287-3831 Email: Harry.Lanphear@Maine.gov

(1/1/20 - 12/31/20) $0.068785

2018-00192
Supplier: Constellation Energy Commodities Group Maine, LLC 67%, New Brunswick Energy Marketing Corporation 33%

Press Release

December 4, 2018

Hallowell, Maine. In a competitive solicitation concluded today, the Maine Public Utilities Commission ("Commission") accepted bids and set new prices for standard offer electricity supply for customers of Emera Maine -- Bangor Hydro District (Emera Maine) who receive standard offer supply service. The new prices are effective for a twelve-month term beginning January 1, 2019.

For Emera Maine residential and small business customers who receive standard offer supply service, the accepted bids result in new standard offer prices equating to 8.37 cents/kWh, which is a 15.8% increase compared to the supply price during 2018. Looking at the total residential bill combining supply and delivery service, an average residential customer who receives standard offer supply service could expect to see an increase of about 6.5% in their total monthly bill.

For Emera Maine medium business customers, the new prices differ by month, equating to about 9.03 cents/kWh on an annual average basis, varying from 6.7 cents/kWh in June 2019 to 14.5 cents/kWh in February 2019. These medium class prices are about 11.4% higher than prices during the same twelve month period last year. Prices for large business customers will be indexed to market prices and set in advance of each month, as was done last year for large business standard offer service.

These new prices apply only to Emera customers that select standard offer supply service, which reflects about 60% of the sales in Emera Maine's service area. The prices do not apply to customers that purchase their own electricity supply in the market.

"The standard offer prices set this week reflect the best bids received from a competitive auction process," according to Commission Chairman Mark Vannoy. "The price increases are driven by increases in wholesale energy market prices in New England which, in turn, are driven by constraints on the availability of natural gas. As noted in a press release from the ISO-New England last week, the region's natural gas delivery infrastructure has expanded only incrementally, while reliance on natural gas as the predominant fuel for both power generation and heating continues to grow. The region needs to address New England's natural gas infrastructure needs." Vannoy noted that standard offer prices for Central Maine Power customers will be set next week.

The names of the suppliers selected for Emera Maine 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 60% of the supply used by Emera Maine 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.

More information on standard offer service prices.

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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: Mitch Tannenbaum, 287-3831

(1/1/19 - 12/31/19) $0.083695

2017-00184
Supplier: NextEra Energy Power Marketing, LLC

Press Release

November 7, 2017

Hallowell, Maine - In a competitive solicitation concluded today, the Maine Public Utilities Commission ("Commission") accepted bids and set new prices for standard offer electricity supply for customers of Emera Maine - Bangor Hydro District (Emera Maine) who receive standard offer supply service. The new prices are effective for a twelve-month term beginning January 1, 2018.

For Emera Maine residential and small business customers who receive standard offer supply service, the accepted bids result in new standard offer prices equating to 7.2 cents/kWh, which is a 14% increase compared to the supply price during 2017. Looking at the total residential bill combining supply and delivery service, an average residential customer could expect to see an increase of about 5% in their monthly bill.

For Emera Maine medium business customers, the new prices differ by month, equating to 8.1 cents/kWh on an annual average basis, varying from 6.4 cents/kWh in May 2018 to 11.2 cents/kWh in February 2018. These medium class prices are about 21% higher than prices during the same twelve month period last year. Prices for large business customers will be indexed to market prices and set in advance of each month, as was done last year for large business standard offer service.

These new prices apply only to standard offer service, which reflects about 60% of the sales in Emera Maine's service area. The prices do not apply to customers that purchase their own electricity supply in the market.
The standard offer prices set this week reflect the best bids received from a competitive auction process, according to Commission Chairman Mark Vannoy. The price increases are primarily driven by the increase in capacity market clearing prices in New England." Vannoy noted that standard offer prices for Central Maine Power customers will be set tomorrow.

The names of the suppliers selected for Emera Maine 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 60% of the supply used by Emera Maine 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.

More information on standard offer service prices.

#

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: Harry Lanphear, 207-287-3831

(1/1/18 - 12/31/18) $0.07225