Skip First Level Navigation | Skip All Navigation

Standard Offer Prices Set for CMP and Emera Maine (BHE) Customers

January 22, 2014

Augusta, Maine — In competitive solicitations concluded yesterday and today, the Maine Public Utilities Commission accepted bids and set new prices for standard offer electricity supply service for customers of Central Maine Power (CMP) and Emera Maine - Bangor Hydro Electric (BHE) Division. The new prices are effective for a one-year term beginning March 1, 2014.

For CMP residential and small business customers, the accepted bid results in a new standard offer price of 7.56 cents/kWh, which is a 10.8% increase over the current price. The Commission also accepted a time-of-use (TOU) priced option for residential and small business customers. Information about the TOU prices and sign-up process can be viewed at: http://www.maine.gov/mpuc/electricity/standardofferrates/index.html For CMP medium business customers, the new prices differ by month, equating to about 8.84 cents/kWh on average over the term, varying from 6.1 cents/kWh in September to 15 cents/kWh next January. These medium class prices are about 30% higher than prices during the prior year.

For customers of Emera Maine – BHE Division, the accepted bid results in a new standard offer price of 7.58 cents/kWh for residential and small business customers, which is a 13.2% increase over the current price. For medium business customers, the new prices equate to about 9.29 cents/kWh on average over the term, varying from 6.2 cents/kWh in September to 16 cents/kWh next January. These medium class prices are about 31% higher than prices during the prior year.

The bids accepted for large business customers are indexed to the market, and prices will be set by the PUC in advance of each month based on then-current market prices.

These new prices apply only to standard offer service, which reflects about 45% of the sales in these utility service areas. 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 lowest bids received in a strongly competitive auction process,” according to Commission Chairman Thomas Welch. Welch noted that the bids and resulting price increases are tracking market conditions in New England that have driven wholesale prices to increase significantly over the past year due to strong demand for natural gas and inadequate pipeline capacity in the region.

The names of the suppliers selected 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 45% of the supply used by CMP and Emera Maine – BHE Division 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.

For more information on standard offer service prices: http://www.maine.gov/mpuc/electricity/standardofferrates/index.html

#

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