Electric Restructuring in Maine

The following are just some of the questions we receive on Maine electricity choices.

Why has Maine implemented electricity choices?
In the past, electric consumers in Maine, and the rest of New England, have paid some of the highest electric rates in the country. In response, the Maine Legislature passed a law in 1997 that opened up Maine's electricity supply to competition. Electric competition is taking place in states across the country, and is expected to help move Maine's overall electric rates closer to the national average over time. A major benefit of electric restructuring is that suppliers, not consumers, bear the financial risk of investing in new generation plants. Rates also may be lowered as the industry develops more efficient ways of producing energy. Electricity choice gives you the option to choose more environmentally friendly energy sources.

What do electricity choices mean to me?
Since March 1, 2000, Maine's electric consumers have had the opportunity to choose from competing suppliers to provide "Electricity Supply". "Electricity Supply" includes the generation portion of your electrical service that normally accounts for about 30% of your total electric bill. Your present electric utility continues to provide the "Delivery Service" to your home or business. "Delivery Service" includes:
- transmission and delivery of electricity to your home or business,
- maintain all lines and poles,
- power restoration during outages, and
- month billing for delivery service.

Can I stay with my present electric company?
Your present utility will continue to provide "Delivery Service" to your home or business. Your utility will maintain their wires and poles, read your meter, send a bill and restore power during an outage. The utility's delivery service will continue to be regulated by the MPUC, which will oversee their rates, safety and reliability of service. However, they will no longer be in the "Electricity Supply" business.

What does choice in "Electricity Supply" mean?
Electricity choices means that you can choose your "Electricity Supply". You can shop around for the best price, more services or a more environmentally friendly electricity supply. Suppliers may be actual owners and producers of electricity supply, brokers who purchase the output from actual producers for resale at retail, brokers who put individual customers in touch with Suppliers, or Aggregators who negotiate with Suppliers on behalf of groups of customers. All Suppliers must register with the MPUC to sell electricity in Maine. Suppliers may offer several choices with different services, fees and terms. Whomever you choose, be sure to confirm which of the Supplier's plans you are selecting.

What is the "Delivery Service" charge?
"Delivery Service" charges are payments to your utility to maintain their wires and poles, read your meter, send a bill and restore power during an outage. These charges normally account for nearly 70% of a typical residential bill. The utility's delivery service will continue to be regulated by the MPUC, which will oversee their rates, safety and reliability of service.

What is the "Electricity Supply" charge?
"Electricity Supply" is the portion of your electric bill open to choice. "Electricity Supply" includes the generation portion of your electrical service that normally accounts for about 30% of your total electric bill. Now, with electric choice, you can shop around for the best price, more services or a more environmentally friendly electricity supply. If you choose not to shop around for your electricity supply, you will automatically receive service under the "Standard Offer". The MPUC has conducted a competitive bidding process to select "Standard Offer" suppliers that will provide default electricity supplies for each of Maine's utility service territories.

What is "Standard Offer" service?
Maine consumers who don't want to shop around for their "Electricity Supply" will automatically receive service under the "Standard Offer". The MPUC has conducted a competitive bidding process to select "Standard Offer" suppliers that will provide default electricity supplies for each of Maine's utility service territories. All MPUC-licensed suppliers could have participated in this open bidding process. The MPUC selected Integrys Energy Services to serve all home and industrial accounts taking service under the "Standard Offer" in the Maine Public Service Company service territory as well as providing 80% of the market for mid-size business customers in northern Maine through February 28, 2004. In addition, Houlton Water Company, Eastern Maine Electric Cooperative and Van Buren Light and Power District have all selected Integrys Energy to serve their electric customers, starting March 1, 2000.

Can I change suppliers?
Ask your supplier if there are any "opt-out", "cancellation" or "exit" fees associated with their offerings. Be aware that most suppliers will ask you to enter into a contract.

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