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MPUC New Electric Standard Offer Prices for Commercial and Industrial Customers

July 26, 2011

Augusta, Maine—The Maine Public Utilities Commission accepted bids today for standard offer supply service for medium and large commercial and industrial (C&I) customers of Central Maine Power (CMP) and for medium C&I customers of Bangor Hydro Electric (BHE). The new prices are effective for a six-month term beginning September 1, 2011. The Commission rejected bids for the BHE large C&I class because prices were too high, and directed BHE to develop a plan to provide standard offer service for the class. Current prices for residential and small commercial customers remain in effect until March 2012.

The bids accepted today reflect average prices over the term of 7.2 to 7.3 cents/kWh, which are from 2% to 9% higher than current prices. These prices apply only to customers that do not obtain their own electricity supply in the market.

“The prices accepted today are in line with market conditions, and have been established by a competitive auction process”, according to Commission Chairman Thomas Welch. Welch noted further that, “Customers in these C&I classes have electricity supply options, and most purchase directly in the retail market rather than through standard offer service, or have the option to do so.”

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

Background: Electricity customers receive standard offer service if they have not purchased supply from another retail supplier or through an aggregator. Currently, standard offer service represents 20%-25% of the supply used by CMP and BHE medium and large C&I customers. Maine’s retail electricity access rules require the Commission to ensure that standard offer service for electricity supply is available to all customers in Maine. The Commission is responsible for soliciting standard offer service from licensed competitive electricity providers through a competitive bid process.

For more information on standard offer rates:

Contact: Chairman Thomas Welch, (207) 287-3831