COMMISSION ACCEPTS BIDS FOR STANDARD OFFER ELECTRICITY SUPPLY FOR 2025 FOR CMP AND VERSANT POWER MAINE PUBLIC SERVICE DISTRICT STANDARD OFFER CUSTOMERS

COMMISSION ACCEPTS BIDS FOR STANDARD OFFER ELECTRICITY SUPPLY FOR 2025 FOR CMP AND VERSANT POWER MAINE PUBLIC SERVICE DISTRICT STANDARD OFFER CUSTOMERS

November 19, 2024

Hallowell, Maine -The Maine Public Utilities Commission (Commission) accepted bids and set new Standard Offer electricity supply rates today for residential and business customers of Central Maine Power Company (CMP) and Versant Power's Maine Public Service District (MPD). The bidding process this year for CMPs residential and small non-residential class customers was conducted on two separate days, two weeks apart, to help mitigate potential market risks associated with single day pricing for a large load. Half the CMP Standard Offer supply load for this class was bid on November 5 and the second half on November 19.

For an average residential customer of CMP, a monthly bill will decrease very slightly.

For an average residential customer of Versant, MPD using 500 kWh of electricity per month, a monthly bill will increase about $1.84 a month.

"We know the economy and especially electricity prices have been top-of-mind for consumers," said Chairman Philip L. Bartlett II. This was a robust bidding process, and we are confident that we have secured the best rate possible.

The impact for residential, small non-residential, and medium class customers as of January 1, 2025, for both utilities is reflected below.

CMP

-Residential Class: current 2024 rate: 10.64 cents per kWh; 2025 rate: 10.61 cents per kWh

-Small Business: current 2024 rate: 10.64 cents per kWh; 2025 rate: 10.61 cents per kWh

-Med. Business: 2024 weighted average rate: 9.86 cents per kWh; 2025 weighted average rate: 10.47 cents per kWh

VERSANT MPD

-Residential: 2024 rate: 11.29 cents per kWh; 2025 rate: 11.65 cents per kWh

-Small Business:2024 rate: 11.29 cents per kWh; 2025 rate: 11.65 cents per kWh

-Med. Business: 2024 weighted average rate: 12.99 cents per kWh; 2025 weighted average rate: 15.02 cents per kWh

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 17.76 cents per kWh.

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, as well as costs to ensure regional electricity supply reliability.

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

Standard Offer electricity supply accounts for about half 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.

The names of the suppliers selected today for CMP and Versant-MPD 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

The Commission will convene Wednesday, November 20, 2024 to determine the results of the Standard Offer procurement for Versants Bangor Hydro District.

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: [email protected]

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