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Electricity Supply Prices Set for Standard Offer Service in Emera Maine – Bangor Hydro District

November 18, 2015

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, 2016.

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 6.624 cents/kWh on an annual average basis, which is a 0.9% decrease compared to the annual average price during 2015. For Emera Maine medium business customers, the new prices differ by month, equating to 6.744 cents/kWh on an annual average basis, varying from 5.27 cents/kWh in September 2016 to 9.41 cents/kWh in February 2016. These medium class prices are about 17% lower than prices during the same twelve month period last year. The Commission did not accept any bids for large business customers, and directed Emera Maine to file a proposal for providing standard offer service to this class.

These new prices apply only to standard offer service, which reflects about 55%-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 in a strongly competitive auction process,” according to Commission Chairman Mark Vannoy. “We are encouraged that prices remain stable or slightly decreasing for retail and small business customers. We are especially pleased to see medium business prices reduced significantly; a benefit from recent downward trends in energy markets that have been reflected in New England wholesale prices.” 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 seasonal constraints on pipeline capacity to transport natural gas to New England.

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 55%-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.

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

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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: Harry Lanphear, 207-287-3831