November 24, 2020

MPUC Sets Standard Offer Electricity Rates for 2021

Hallowell, Maine - Residential and business customers of Versant Power-Maine Public District (MPD) will pay lower rates for electricity supply in 2021. The Maine Public Utilities Commission entered into a three-year contract with New Brunswick Energy Marketing Corporation as the Standard Offer provider for MPD residential and small non-residential, and medium non-residential classes beginning January 1, 2020.

The prices for the residential and small non-residential class and the medium non-residential class are indexed to standard offer prices in the comparable standard offer classes for Central Maine Power Company and Versant Power's Bangor Hydro District through 2022.

The decrease, which goes into effect January 1, 2021, amounts to a 10 percent reduction in the supply portion for residential and small business customers. This equates to a 4.4% percent reduction in the total residential customer bill, which averages 500 kWh monthly. This amounts to a monthly savings of $3.51, or $42.16 annually. A monthly bill of $79.78 would decrease to $76.27 a month.

Medium Class customers will see an average decrease of 11.5 percent in the supply portion of their bill, meaning a medium-sized business using 20,000 kWh a month will see savings of $1,750 annually.

"We are pleased that the process has resulted in a decrease for Versants Maine Public District again this year, as it did for Versants Bangor Hydro District and CMP," Chairman Philip L. Bartlett II said. This is an especially tough year for many, and news of a lower bill is welcome news.

These decreases reflect electricity supply and demand conditions in New England and their impact on wholesale energy markets. They 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.

The prices for 2022 for these classes will be set in the future after the final prices for CMP and Versants BHD for 2022 have been established.

About Electric Bills An electric bill includes two components: electricity supply and delivery. 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 and distribution lines that connect to your home or business.

Since 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. This change was expected to stimulate competition in the market in an effort to keep electricity supply prices low. Maines electric utilities do not set the rates for electricity supply, they simply bill on behalf of the suppliers as a courtesy so that customers do not receive two separate bills.

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