PUC sets standard electricity rates, for most customers it's good news

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By Staff

The standard offer price of electricity for small commercial customers in Emera Maine’s Bangor Hydro district will go down slightly in 2017, while small commercial customers in Central Maine Power’s coverage area in southern, central and western Maine will see a slight rise.

The standard offer rates are set by the Maine Public Utilities Commission, which approved them this week.

Breakdown for Emera Maine customers

Most residential customers in Emera Maine’s Bangor Hydro district will see a drop as well, while CMP’s residential customers will pay more.

Maine’s PUC announced the new rates for Emera Maine’s Bangor Hydro district in a Nov. 29 press release, which reported that the new prices for Emera Maine residential and small business standard offer customers will equate to 6.322 cents per kilowatt hour 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 12-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,” PUC stated in its release.

Breakdown for CMP customers

PUC announced its approval of news standard rates for CMP customers in a Nov. 30 press release.

“For CMP residential and small business customers who receive standard offer supply service, the accepted bids result in a new standard offer price of 6.69 cents/kWh, which is a 3.5% increase compared to prices last year,” the PUC stated.

For CMP medium business customers, the new prices differ by month, equating to about 6.83 cents/kWh on average over the year, varying from 4.78 cents/kWh in May to 8.94 cents/kWh in February. These medium class prices are about 1.3% lower than prices last year, PUC stated.

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, PUC stated.

The new prices apply only to standard offer supply service, which reflects about 45% of the sales in CMP’s service area, the PUC stated in its release, explaining that the prices do not apply to customers that purchase their own electricity supply in the market.

“The standard offer prices set today reflect the best bids received in a very competitive auction process,” Commission Chairman Mark Vannoy said regarding CMP’s standard offer services. “We are pleased that some business customers will see a small decrease in their supply prices. On the other hand, the bids received for residential and small business customers result in a slight increase.”

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

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 and 45% of the supply used by CMP customers.

Maine law requires the PUC 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.