November 18, 2020

MPUC Sets Standard Offer Electricity Rates for 2021; Rates Decrease for Second Year

Hallowell, Maine - Residential and business customers of CMP will pay lower rates for electricity supply in 2021, as a result of the Maine Public Utilities Commission's competitive bid process for setting Standard Offer Supply prices.

The decrease amounts to nearly a 12 percent reduction in the supply portion for residential and small business customers. This equates to a 5.1 percent reduction in the total residential customer bill, which averages 550 kWh monthly. This amounts to a monthly savings of $4.70, or $56.38 annually. A monthly bill of $91.38 would decrease to $86.68 per month.

Medium Class customers will also see an average decrease of about 12 percent in the supply portion of their bill, meaning a medium-sized business using 20,000 kWh a month will see savings of approximately $2,000 annually.

"We are pleased that prices have decreased again this year for CMP customers as well as Versant customers, as we announced yesterday. Many Maine residents are finding it hard to make ends meet and businesses are struggling to keep their doors open due to impacts of the pandemic," Chairman Philip L. Bartlett II said. These decreases reflect electricity supply and demand conditions in New England and their impact on wholesale energy markets.

These decreases do not apply to customers who purchase their own electricity supply in the market. Those who do not purchase electricity from a supplier of their choosing will receive Standard Offer Supply by default.

Multiple bidders submitted sealed proposals in the Commissions annual competitive process for setting Standard Offer Electricity Supply Prices. The Standard Offer accounts for approximately 50 percent of sales in CMPs service area and about 40 percent of the customer bill.

The pricing for CMP customers is summarized in the chart below and affects only those customers who receive Standard Offer Supply Service.

For CMP Medium Business Customers, the new prices vary by month, averaging 6.16 cents per kWh. CMP medium-class businesses will see an average 12% decrease annually in the supply portion of their bill.

Prices for CMP large business customers will be indexed to market prices and set in advance of each month. The names of the suppliers selected for CMP will be released in two weeks, allowing time for power supply arrangements to be finalized.

For more information on standard offer service prices: http://www.maine.gov/mpuc/electricity/standardofferrates/index.html

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. Commission programs include Maine Enhanced 911 Service and Dig Safe. Philip L. Bartlett, II serves as Chairman, Bruce Williamson and Randall Davis serve as Commissioners.

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

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