Versant Power residential customers to see electric bills jump
Versant Power residential customers who buy their electricity through the state’s default power supply will see their electricity bills jump by an average of $30 a month, foreshadowing an expected increase by Central Maine Power that may be determined Wednesday.
According to the Maine Public Utilities Commission, Versant residential customers who receive the standard offer service can expect an increase of about 88.6% in their supply rates effective Jan. 1. The total bill for an average customer using 550 kilowatt-hours per month will increase to about $131 a month, up from about $101.
The new standard offer supply rates were set though a competitive bid process conducted by the commission, as required by Maine law. The increases reflect prevailing energy market conditions, including those in the regional electric power market in which prices are strongly influenced by natural gas.
The commission is expected to announce rates later today for CMP customers. Rates are expected to rise amid current market conditions.
“These prices are competitive and provide the best value for Versant’s Standard Offer customers,” Public Utilities Commission 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 England’s wholesale electricity market prices which have increased dramatically.”
The increases apply to Versant Power customers who do not purchase electricity from a competitive supplier of their choosing and instead receive the standard offer supply by default. The changes affect Versant Power’s Bangor Hydro District, which includes Hancock, Piscataquis and Washington counties and most of Penobscot County.
Standard offer suppliers for Versant Power-Maine Public District Residential/Small Business Class and Medium Business Class were awarded multiyear contracts in 2019. Those prices will be calculated and released next week.
Multiple bidders submitted sealed proposals in the PUC’s annual competitive process for setting standard offer electricity supply prices. The standard offer supply amount accounts for about 50% of the total customer bill.
For Versant medium-sized business customers, the new prices vary by month, averaging 11 cents per kWh. Versant medium-class businesses will see an average 77.7% increase annually in the supply portion of their bill. Prices for Versant large-business customers will be indexed to market prices and set in advance of each month.
Versant is the state's second-largest electric utility, serving 149,000 customers in northern and eastern Maine. CMP, the largest electric utility, has 646,000 customers in central and southern parts of the state.
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