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The Maine Public Utilities Commission has announced that Standard Offer electricity supply rates will increase by approximately $11-$12 per month for the average Central Maine Power customer starting on Jan. 1.
Maine's Standard Offer supply price is managed on a yearly basis by the commission. CMP is legally required to collect these charges on behalf of other unregulated energy companies. These supply charges do not support grid improvements, reliability upgrades, or other programs like tree care. The increase is mainly because of higher natural gas prices in Maine's deregulated wholesale electricity market.
Twenty-five years ago, Maine changed the way electricity was supplied. The state deregulated electricity generation and required utilities, like CMP, to sell their generating facilities. The goal was to encourage market competition by shifting electricity supply from regulated utilities to unregulated corporations. While this opened the market up for more competition, it also created price volatility for customers due to factors like changing fuel prices, energy demand and power availability, and removed regulatory oversight of the generating companies.
If anyone has questions about Maine's Standard Offer procurement process, one option you have is to contact the Consumer Assistance & Safety Division (CASD) of the Maine Public Utilities Commission. They are available to help customers with utility-related issues or questions and can be contacted at 800.452.4699.
Likewise, you may also contact the Office of the Public Advocate (OPA). The OPA is legally responsible for representing the interests of Maine consumers in utility and rate matters. You can contact the OPA by emailing OPA.Admin@maine.gov.
It should be noted that the increase was not a CMP decision and does not generate income or profit for the power utility.
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