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

November 29, 2016

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, 2017.

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 6.322 cents/kWh on an annual average basis, which is a 4.6% decrease compared to the annual average supply price during 2016. For Emera Maine medium business customers, the new prices differ by month, equating to 6.701 cents/kWh on an annual average basis, varying from 4.724 cents/kWh in May 2017 to 8.763 cents/kWh in February 2017. These medium class prices are about 0.6% lower than prices during the same twelve-month period last year. Prices for large business customers will be indexed to market prices and set in advance of each month, as was done last year for large business standard offer service.

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 power supply prices are decreasing for both residential and small business customers." Vannoy noted that standard offer prices for Central Maine Power customers will be set tomorrow.

The names of the suppliers selected for Emera Maine 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 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, 287-3831