November 23, 2021

Hallowell, Maine - The Maine Public Utilities Commission (Commission) set rates for residential and business customers of Versant Power-Maine Public District (MPD) for Standard Offer electricity supply. Residential customers who receive Standard Offer service can expect an increase of about 84 percent in their supply rates effective January 1, 2022. The new residential Standard Offer price amounts to an increase of about $25 per month on the total bill for an average customer using 500 kWh/month, or an increase from about $79 to about $105.

The 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.

Medium Class customers will see an average increase of 86 percent in the supply portion of their bill. Prices in this class vary by month, with an annual average of about 10.47 cents per kWh. These increases apply to customers who do not purchase electricity from a competitive supplier of their choosing and instead receive Standard Offer Supply by default.

"These prices are competitive and provide the best value for Versants Standard Offer customers," Chairman Philip L. Bartlett II said. "Unfortunately, sharp increases in natural gas prices are resulting in higher electricity supply costs for the upcoming year. This increase is primarily driven by New Englands wholesale electricity market prices which have increased dramatically."

The new Standard Offer electricity supply rates reflect a similar trend experienced in other energy sectors as well. The table below shows how the Standard Offer price increase compares with increases in natural gas, oil, and wholesale electric markets during the same month the previous year.

Natural Gas 94.80% Increase Oct. 2020-Oct. 2021 Heating Oil 121.70% Increase Oct. 2020-Oct. 2021 Wholesale Electricity 126.3% Increase Nov 2020-Nov 2021 Standard Offer 85% Increase Nov 2020-Nov 2021

These costs are separate from Versants delivery costs and are not controlled by the utility. Customers can explore other options for electricity supply as well as options for financial assistance with utility and heating costs. More information is available at https://www.maine.gov/mpuc/

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, 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 Chairman, Randall Davis and Patrick Scully 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