I
write to you today because you will likely notice an increase in your
electricity bill at the end of this month. That is because as of March
1, a
new standard offer rate of 7.6 cents per kilowatt-hour went into
effect. This is a 10.8 percent increase from last year's standard offer
price.
This
increase is a result of the lack of natural gas pipeline capacity
coming into New England. Natural gas is the dominant fuel source used
to generate electricity in New England and becomes increasingly
expensive as we simultaneously increase our use of natural gas for
heating fuel. It is important to understand that the cost of natural
gas is still low as it comes out of Pennsylvania and New York. Because
of legislation that originated in the Maine Legislature's Energy
Committee last year, the New England governors are now working together
to solve this problem in the coming years.
Given that, I wanted
to share some information that will help you understand electricity
service in Maine and the industry structure. Hopefully, this will put
you on the path to being more in control of your electricity costs.
You will notice that your electric service is made up of two parts: supply and delivery.
In
2000, Maine became a national leader in Electricity Restructuring.
Today, electric utility companies own and operate the distribution
(wire) infrastructure bringing electricity to customers (DELIVERY).
The
electricity itself is supplied by something called the standard offer,
or by other competitive electricity providers (CEP) that a customer may
choose (SUPPLY).
In Maine, the Public Utilities Commission (PUC), regulates the utilities
that provide electricity everywhere....street lights, ballparks, malls,
homes, and offices. In our neck of the woods, that utility is Central
Maine Power (CMP).
Maine's residential customers' supply comes through something called the standard offer. The
standard offer is the default option for consumers who don't choose a
competitive electricity provider, and is created by taking a three-year
average of the cost of electricity the Maine Public Utilities Commission
sources through a competitive bid process among electricity suppliers.
Today,
residential and small commercial customers are seeing competitive
retail supply offers from a variety of companies. Here is some
information to help you understand this market so you can decide if you
would like to keep your standard offer or go with a CEP.
Remember, customers who make no choice will continue to receive standard offer service.
For those customers who choose to go with a competitive option, they
need only make arrangements with their new supplier who will then work
with the utility to make the switch, and the new service be put in place
around the time of the utility's next monthly billing cycle.
Nine questions to ask when choosing a supplier
1. What will I pay per "kilowatt hour" (kWh) of electricity?
2. Are there any additional customer charges or other recurring fees?
3. Is this offer a fixed-rate offer? If not, how can it change, and how do I find out when, and by how much, the rate will change?
4. Is there a contract? If so, how long is it for?
5. Is a deposit required? If so, how much?
6. What are my payment options?
7. What happens when my contract period expires?
8. What if I miss a payment?
9. Is there a penalty if I break the contract?
This table lists CEP offerings as of March 1, 2014.
Prices can change without notice, so I strongly urge you to go to the website or call the CEPs to confirm before signing up.
Competitive Electricity Provider
|
Rate for CMP Customers (¢/kWh)
|
Rate for Bangor Hydro Customers (¢/kWh)
|
Term
|
Early Termination Fee
|
Telephone
|
|
7.56
|
7.58
|
Until 3/1/15
|
n/a
|
n/a
|
|
7.55*
|
7.55*
|
Dec. 2014
|
$50
|
855-207-1600
|
|
7.59
8.97
|
7.59
8.97
|
6 Months Fixed
24 Months
|
$100
$100
|
866-573-2674
866-573-2674
|
|
7.49
|
7.49
|
Fixed till 12/31/14
|
$50
|
866-842-1084
|
|
7.9
8.1
|
7.9
8.1
|
One year
|
$75
|
855-485-3353
|
|
8.499
7.99
|
8.499
7.99
|
6-12 Months
|
Variable
|
855-857-6937
|
|
8.8
|
8.8
|
12 Months
|
$100
|
800-296-2721
|
|
6.69
8.64
|
6.69
8.64
|
6 months Fixed
12 months Fixed
|
Variable
|
888-313-9086
|
|
7.59
9.99
|
7.59
9.99
|
6 Months Fixed
12 or 24 Months Fixed
|
$60 + offset of unused
portion of elec. to others
|
888-997-8979
|
*Dead River says that its rate will not be higher than the standard offer.
All of these entities
have applied for and received a license from the PUC to sell
electricity. This means, among other things, that they have demonstrated
that they have the technical and financial ability to sell electricity.
The PUC does monitor CEPs for adherence to license conditions and to
other applicable state laws, but CEPs are not regulated the way CMP and
Bangor Hyrdo Electric and other utilities are. We do not have access to
the CEPs' business plan or profit numbers, for example. However, the
price you get is shaped by competition so regulation is not necessary.
The
above table contains a summary of terms. The offerings can change at
any time; I strongly recommend that you check the current price and read
all terms and conditions prior to signing up for any service.
For example, some may require that you allow them to perform a credit
check, or to report you to credit reporting agencies in the event that
you fail to make payments. Keep in mind that the Terms and Conditions
are sometimes not readily found on the website; sometimes you only see
it as you get closer to actually signing up.
Take care of your blessings,
Craig