Skip First Level Navigation | Skip All Navigation

Electricity Supply Prices Set for Standard Offer Service in Central Maine Power Territory

January 13, 2015

Augusta, Maine — In competitive solicitations concluded today, the Maine Public Utilities Commission (“Commission”) accepted bids and set new prices for standard offer electricity supply for customers of Central Maine Power (CMP) who receive standard offer supply service. The new prices are effective for a ten-month term beginning March 1, 2015.

For CMP residential and small business customers who receive standard offer supply service, the accepted bids result in a new standard offer price of 6.54 cents/kWh, which is a 13.4% decrease compared to the current price of 7.56 cents/kWh. For CMP medium business customers, the new prices differ by month, equating to about 6.44 cents/kWh on average over the term, varying from 5.21 cents/kWh in May 2015 to 9.50 cents/kWh in December. These medium class prices are about 17.3% lower than prices during the same ten-month period last year. The bids accepted for large business customers are indexed to the market, and prices will be set by the Commission in advance of each month based on then-current market prices.

These new prices apply only to standard offer service, which reflects about 40% of the sales in CMP’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 in a strongly competitive auction process,” according to Commission Chairman Mark Vannoy. “We are pleased that retail customers will benefit from recent trends in energy markets that have driven wholesale prices in New England down over the past few months” said Vannoy. Vannoy noted that it is difficult to say whether these recent trends will continue, given continued strong demand for natural gas in the region and the region’s limited capacity to transport natural gas.

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

Solicitations for standard offer electricity supply service for Emera Maine are expected to be concluded on Wednesday January 14, 2015.

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