News

2/2/2010

EMEC Residential Members to See 10% Drop in Total Electric Costs

ELECTRICITY SUPPLY PRICE TO DECREASE FOR EASTERN MAINE ELECTRIC CO-OP MEMBERS

 Impact On Residential Bills to be 10%  Decrease

on Energy Used After 3/31/10

        Eastern Maine Electric Cooperative has good economic news for its members in Eastern and Northern Maine.  The cost of electricity supply will drop on all electricity used beginning April 1st, when a new Standard Offer supply contract will begin.  The first year of the new three-year contract, awarded to New Brunswick Power of Fredericton, New Brunswick, will lower the cost of electricity supply for Cooperative members from the existing rate of 9.15 cents per kilowatt hour to 7.354 cents per kilowatt-hour.  The decrease will bring a savings of 1.796 cents per kilowatt-hour on electricity used beginning April 1, 2010.  

The new rate will result in a decrease of approximately 10% in the total residential electric bill and a 19% decrease in the standard offer supply portion of the bill.  For a family using an average of 600 kilowatt-hours per month, the change will bring savings of $10.78 per month or $129.36 per year.  A business using an average 2000 kilowatt-hours per month will save $35.92 per month or $431.04 per year.  Actual savings will vary depending upon the kilowatt hours used.

There will be a slight change in the standard offer supply rate in years two and three.  In year two of the contract, the price per kilowatt-hour for supply will be 7.637 cents, and in year three, the price will be 7.859 cents.

 “We are very glad that our members will see a rate decrease,” said Co-op CEO Scott Hallowell.  “A reduction in costs to individuals and businesses should be helpful, particularly during the current economic times.”

One advantage of the three-year contract is that Co-op members will be better able to predict their electric costs for three years instead of just one.   “In these days of fluctuating oil and fuel prices, we’re striving to provide as much rate stability as possible,” Hallowell said.

The Standard Offer rate is selected through a competitive bid process.  Following the deregulation of Maine’s electric market, utilities like Eastern Maine Electric provide delivery service for the electricity sold to its customers by another company, known as the Standard Offer Provider. The delivery utilities are responsible for the power lines and perform the metering and billing functions for both delivery service and electricity supply.  The electricity supply billings, however, are forwarded to the Standard Offer Supplier. 

            Eastern Maine Electric Cooperative is a not-for-profit consumer-owned utility serving approximately 12,600 members in a 3,000 square mile area in rural Washington, Penobscot, and AroostookCounties.

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