Maine Public Utilities Commission

NEWS RELEASE 

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

Website: http://www.maine.gov/mpuc/, Email: maine.puc@maine.gov
CONTACT: Nicole Clegg, 207-287-8519, Nicole.Clegg@maine.gov

 


FOR IMMEDIATE RELEASE
January 31, 2007

 

New Standard Offer Prices to begin in March for
CMP and BHE Medium and Large Commercial and Industrial Customers

Prices to Decrease for Most Customers

 

AUGUSTA, MaineTuesday, the Maine Public Utilities Commission (PUC) accepted bids for new standard offer electricity prices for medium and large commercial and industrial customers of Central Maine Power Company (CMP) and Bangor Hydro-Electric Company (BHE).  The prices, effective March 1, 2007, are for CMP Medium class customers 8.72 cents/kWh, a 13.1% decrease, and for CMP Large class customers 9.255 cents/kWh, an 8.8% decrease. For BHE, Medium class customers prices will decrease 13.4% to 8.827 cents/kWh, and Large class customers prices will increase 5.3% to 10.32 cents/kWh.  

“These lower prices should be good news for businesses facing large electricity demands,” stated Kurt Adams, Chairman of the PUC. “We are pleased that prices are competitive and in line with market conditions.  For the one group facing a price increase – the BHE Large class – prices appear to reflect a significant volume risk that suppliers take on when they serve the class.  The PUC intends to explore ways to reduce this risk prior to the next bid process.” 

CMP and BHE are regulated transmission and distribution utilities serving more than 580,000 customers in southern Maine and 114,000 customers in central Maine, respectively. Currently, about 60% of the load of medium customers and 10% of large customers in CMP’s and BHE’s territory receive standard offer service.   CMP’s total retail sales to medium and large C&I customers in 2005 were approximately 5.2 million megawatt hours.           BHE’s total retail sales to medium and large C&I customers in 2005 were approximately 835,000 megawatt hours.

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 only type of default service in Maine and is provided directly by standard offer providers to customers at retail. The PUC is responsible for insuring that the Commission solicits suppliers to provide standard offer service through a competitive bid process. For information on standard offer rates, visit the PUC’s website at: http://www.maine.gov/mpuc/industries/electricity/standard_offer/standard_offer_rates.html

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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, Commissioner Reishus, or Commissioner Vendean Vafiades please contact Nicole Clegg at 207.287.8519 or by e-mail at nicole.clegg@maine.gov.