January 31, 2008
Electricity rates increase for businesses
Electricity prices for commercial and industrial standard offer customers of Central Maine Power Company and Bangor Hydro-Electric Company are set to increase in March, according to the Maine Public Utilities Commission.
The PUC, which accepted standard offer bids for their medium to large commercial and industrial customers on Tuesday, said, however, that the rate hikes will be offset by decreases in "stranded costs" built into transmission and delivery bills since Maine's electricity supply market was restructured in 2001, according to a press release. While the standard offer price for CMP's medium businesses will increase from nine cents per kilowatt hour to 10 cents per kilowatt hour, and from 9.2 cents per kilowatt hour to 9.8 cents for its large customers, the offsets mean prices for CMP's business customers should remain stable, according to a press release.
Bangor Hydro's new standard offer prices will increase from 8.6 cents per kilowatt hour to 10 cents per kilowatt hour for medium businesses, and from 10.3 cents per kilowatt hour to 11.1 cents for its large-class customers. Even after the offsets, the bills for Bangor Hydro's medium business customers will rise between seven and eight percent, and three percent for its large customers.
Maine Standard offer service is available to electricity customers that don't choose to purchase electricity on the open market. The PUC said only 25% of the medium to large commercial and industrial customers of CMP and Bangor Hydro use the standard offer, which means the majority are not affected by these rate hikes.
The PUC, which accepted standard offer bids for their medium to large commercial and industrial customers on Tuesday, said, however, that the rate hikes will be offset by decreases in "stranded costs" built into transmission and delivery bills since Maine's electricity supply market was restructured in 2001, according to a press release. While the standard offer price for CMP's medium businesses will increase from nine cents per kilowatt hour to 10 cents per kilowatt hour, and from 9.2 cents per kilowatt hour to 9.8 cents for its large customers, the offsets mean prices for CMP's business customers should remain stable, according to a press release.
Bangor Hydro's new standard offer prices will increase from 8.6 cents per kilowatt hour to 10 cents per kilowatt hour for medium businesses, and from 10.3 cents per kilowatt hour to 11.1 cents for its large-class customers. Even after the offsets, the bills for Bangor Hydro's medium business customers will rise between seven and eight percent, and three percent for its large customers.
Maine Standard offer service is available to electricity customers that don't choose to purchase electricity on the open market. The PUC said only 25% of the medium to large commercial and industrial customers of CMP and Bangor Hydro use the standard offer, which means the majority are not affected by these rate hikes.
Mainebiz web partners
Most Recent
Most Recent
Comments