November 29, 2023

Hallowell, Maine-The Maine Public Utilities Commission (Commission) accepted bids today for the remaining half of the electricity supply requirement for 2024 Standard Offer service for residential and small non-residential customers of Central Maine Power Company (CMP), as well as the medium and large commercial CMP classes. The bidding process this year for CMP's residential and small non-residential class customers was conducted on two separate days, three weeks apart, to mitigate potential market risks associated with single day pricing. Half the CMP Standard Offer supply load for this class was finalized November 9 and the remainder was completed today. The bidding process for all classes in Versants Maine Public District (MPD) was also completed today.

"This is great news for electric utility customers of Maine and provides some much-needed relief from increasing costs due to inflation," Chair Philip L. Bartlett II said. This is a much different scenario than we saw last year at this time, with natural gas prices coming down significantly since then.

For an average residential customer of CMP using 550 kWh of electricity per month, a monthly bill will decrease from about $159 a month to about $127 a month.

For an average residential customer of Versant, MPD using 500 kWh of electricity per month, a monthly bill will decrease from about $136 a month to about $118 a month. The average decreases for residential, small non-residential, and medium class customers as of January 1, 2024, for both utilities are reflected below.

CMP

-Residential Class (Average 550 kWh per month); 2023 rate: 16.63 cents per kWh;2024 rate:10.84 cents per kWh; Average annual decrease $382

-Small Business (Average 1,000 kWh per month); 2023 rate: 16.63 cents per kWh; 2024 rate: 10.84 cents per kWh; Annual decrease $696

-Med. Business (Average 20,000 kWh per month); 2023 rate: 15.97 cents per kWh; 2024 rate: 10.19 cents per kWh; Annual decrease $13,864

VERSANT-MPD

-Residential (Average 500 kWh per month); 2023 rate: 14.88 cents per kWh; 2024 rate: 11.29 cents per kWh; Annual decrease $216

-Small Business (Average 1,000 kWh per month); 2023 rate: 14.88 cents per kWh; 2024 rate: 11.29 cents per kWh; Annual decrease $431

-Med. Business (Average 20,000 kWh per month); 2023 rate: 14.78 cents per kWh; 2024 rate: 12.99 cents per kWh; Annual decrease $4,300

The Standard Offer prices for large non-residential class for CMP will be indexed to wholesale market prices and will be set in advance of each month. The weighted average rate for the MPD is $0.16256 /kWh. This represents an approximately 6% decrease from the current year rates.

Standard Offer electricity supply accounts for about 50 percent of the total residential customer bill in CMP and MPD territories. For Medium Business Customers of both utilities, the new prices vary by month. Electricity usage varies widely within this class, so its important to note the numbers above are for illustrative purposes only.

These decreases apply to customers who do not purchase electricity from a competitive supplier of their choosing and instead receive Standard Offer Supply by default.

The new Standard Offer supply rates were set though a competitive bid process conducted by the Commission, as required by Maine law. Multiple bidders submitted sealed proposals in the Commissions annual competitive process for setting Standard Offer electricity supply prices. The increases reflect current regional electric power market conditions which are strongly influenced by natural gas prices, as well as costs to ensure regional electricity supply reliability.

The names of the suppliers selected today will be released in about two weeks, allowing time for power supply arrangements to be finalized. For more information on standard offer service prices visit: https://www.maine.gov/mpuc/regulated-utilities/electricity/electric-supply

Background

An electric bill includes two components: electricity supply and delivery. The Standard Offer Supply Rate is just one component of the total electric bill.

When the electric industry restructured in 2000, utilities were required to sell their electricity generating assets and therefore no longer supplied the electricity. They do, however, maintain the infrastructure that delivers the power to your home or business. That includes substations, large transmission lines, distribution lines, utility poles and meters that connect to homes and business.

Since the law was changed in 2000, electric customers have had the option of choosing their own electricity supplier or using the default supplier, which is the supplier or suppliers chosen in the competitive bidding process for Standard Offer Electricity Supply conducted by the MPUC. Maines electric utilities do not set the rates for electricity supply, they simply bill on behalf of the suppliers so that customers do not receive two bills.

About the Commission

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, while also helping achieve reductions in state greenhouse gas emissions. Commission programs include Maine Enhanced 911 Service, gas safety and Dig Safe. Philip L. Bartlett, II serves as Chair, Patrick Scully and Carolyn Gilbert serve as Commissioners.

Learn more about the Commission at www.maine.gov/mpuc

CONTACT: Susan Faloon, Media Liaison CELL: 207-557-3704 EMAIL: susan.faloon@maine.gov