Standard Offer

The standard offer rate will be 9.15 cents* per kiloWatt-hour until March 31, 2010.

What is Standard Offer Supply?

"Standard Offer" is a default supply of electricity with guaranteed availability. Before deregulation, electric utilities were responsible for the generation and delivery of electricity in each service area. Each utility was obligated to provide power to all paid customers, because the utility was the only company allowed to sell power in that specific service territory.

Electric restructuring split the industry into two parts. The utilities became "delivery companies," and other companies, known as Competitive Electricity Providers (CEPs), now directly sell customers the electricity. Delivery companies deliver the electricity and are responsible for the utility infrastructure. The delivery companies issue the bill for the delivery and electricity charges, but the amount of the electricity charges is forwarded to the CEP. Without safeguards, this would mean that some customers might not be able to get power at all.To prevent this from happening, a Standard Offer provider is chosen for each delivery area through a bidding process. The lowest bidder is then obligated to provide electricity to all paying customers in the given delivery territory. In this way, each electric customer in Maine is assured that electricity will be available.

Standard Offer contracts are awarded through a bidding process. Integrys Energy Services, Inc. won the latest bid to provide Standard Offer electric supply for Eastern Maine Electric Cooperative's service territory. The standard offer rate will be 9.15 cents per kiloWatt-hour until March 31, 2010, although this prices is subject to minor fluctuations up or down. This rate does not include delivery charges, which cover the costs associated with transmitting electricity to local substations and delivering it to homes and businesses.

For Questions About Integrys Energy Services, Inc., contact:

Integrys Energy Services, Inc.
142 Lower Lyndon Street
Caribou, ME 04345
www.integrysenergy.com

* This rate is subject to minor fluctuations up and down.