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

November 8, 2017

Electricity Supply Prices Set for Standard Offer Service in Central Maine Power Territory Hallowell, 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 twelve-month term beginning January 1, 2018. For CMP residential and small business customers who receive standard offer supply service, the accepted bids result in a new standard offer price of 7.921 cents/kWh, which is an 18% increase compared to the supply price in 2017. Looking at the total residential bill combining supply and delivery service, an average residential customer could expect to see an increase of about 8% in their monthly bill. For CMP medium business customers, the new prices differ by month, equating to about 8.298 cents/kWh on average over the year, varying from 6.6 cents/kWh in May to 11.6 cents/kWh in February. These medium class prices are about 21% higher than prices 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 supply service, which reflects about 50% 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 from a competitive auction process,” according to Commission Chairman Mark Vannoy. “As with the Emera auction yesterday, the price increases for this CMP auction are primarily driven by the increase in capacity market clearing prices in New England. The capacity cost increases in the New England regional wholesale market were set in an auction conducted by ISO-NE three years ago. The higher prices result from the need for new generating plants to replace plants that were retiring.” 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 50% of the supply used by CMP 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: # 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