Homeowners served by Central Maine Power will pay pennies less for electric supply under a new standard offer approved by the Public Utilities Commission.
The company provides nearly 80% of residential electric load in the state.
But monthly bills for Versant customers will go up slightly compared to this year, according to the new rates. The changes are considerably less dramatic than price swings in recent years influenced by fluctuating natural gas costs.
Commissioners approved standard offer electricity prices for CMP and Versant Power this week. The agency selects electric suppliers for Maine customers in a competitive bidding process.
The standard offer is the default price utility customers pay. Households and businesses may instead choose their own competitive electricity provider
For CMP residential customers, the price per barely dropped, to 10.61 cents per kilowatt hour.
But in Versant's territory, customer prices inched up. Ratepayers in the company's Bangor-area unit using an average of 500 kWh per month can expect to pay about $1.50 more. In Versant's northern Maine service area, average monthly bills will go up $1.84.
In a statement, commission chairman Phil Bartlett said the prices reflect a stabilization in the natural gas markets, which strongly influence the price of electricity.
"We know the economy and especially especially electricity prices have been top-of-mind for consumers,” Bartlett said.
"This was a robust bidding process, and we are confident that we have secured the best rate possible," he added.
The cost of electric supply accounts for half of customers' monthly bill. Delivery costs charged by Versant and CMP make up the remainder. Those rates are usually determined in the middle of the year.
In a statement, Versant noted that it doesn't generate electricity or profit from it.
But "we are required to bill for it as a direct pass-through to our customers," the company said.
While the new standard offer prices are similar to last years', they remain above historic averages, said Dan Burgess, director of the Governor's Energy Office, in a statement.
Expensive electricity supply is linked to volatile fossil fuel markets and New England's reliance on natural gas to generate power, Burgess added.
Diversifying the state's electricity supply with locally produced, clean, reliable energy "will help mitigate this volatility and provide stability of prices and supply, which is a priority as we work to build an affordable and secure energy future for all Maine people,” he said.
Maine Public’s Climate Desk is made possible by Androscoggin bank, with additional support from Evergreen Home Performance, Bigelow Laboratory, & Lee Auto Malls.
