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October 7, 2011

New electricity offer to help businesses

By The Mainebiz News Staff

Commercial customers in Bangor Hydro Electric Co.'s service area are now able to take part in a new standard-offer pricing model expected to help improve their bottom line.

In a move it's calling groundbreaking, the Maine Public Utilities Commission has approved a month-to-month standard offer for Bangor Hydro's large commercial and industrial customers, according to a press release. The previous standard-offer service set prices for a six-month term, with those prices set months in advance of the start of the term. With the new offer, Bangor Hydro will provide the PUC the standard-offer price one week before the beginning of each month. The new offer is expected to benefit commercial and industrial customers by better reflecting actual electricity prices and allowing them to more accurately plan future expenses. "The further out you predict prices, the less likely they are to reflect the actual price when the moment arrives," said August Fromuth, founder and managing director of Freedom Energy Logistics of New Hampshire, which Bangor Hydro has tapped to structure the offer.

The standard class offering for September will be at the rate of $.07 per kilowatt hour. All Bangor Hydro customers have been notified of this change and are eligible to take part in it regardless of whether they are currently using the standard offer or using competitive suppliers. According to the press release, 25%-30% of Bangor Hydro's medium and large commercial and industry customers do not buy their electricity on the open market and so rely on standard offer rates.

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