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Electricity Supply Price Dropped on 11/1/17

Standard Offer supply price dropped November 1, 2017 by about a penny per kWh


Impact is About 6.2% Drop
in Per-kWh Bundled
Delivery and Supply

The Standard Offer electricity supply price that Eastern Maine Electric Co-op (EMEC) members pay to NB Power will drop about a penny, 0.995 cents per kiloWatt-hour (¢/kWh), for electricity used on or after November 1, 2017. 

Under a new, three-year Standard Offer agreement, Co-op members will continue to purchase electricity supply from New Brunswick Power Generation Corporation (NB Power). The supply price will drop approximately 13% from 7.695 ¢/kWh to 6.7 ¢/kWh. 

For residential members, the impact of this change is approximately a 6.2% decrease in the per-kWh bundled supply and delivery rates*. For a residential member using 500 kWhs per month, the total savings will be  about $4.97 per month. 

What is Standard Offer Supply?

Standard Offer Supply was put in place due to the deregulation of Maine’s electricity industry in 2000. Understanding Standard Offer Supply requires understanding the difference between delivery and supply, the two separate segments of the electricity industry.

Delivery charges cover the costs of operating, maintaining, and repairing the local delivery grid. The delivery grid includes local substations, power lines, poles, transformers and other equipment necessary to deliver electricity to your home. Supply charges cover the cost of generating and transmitting electricity to the delivery utility’s local grid. 

Back in 2000, the supply segment of the industry was deregulated and opened to competition. Since then, willing sellers have been able to compete to sell electricity supply to homeowners and businesses. While deregulation opened the supply segment of the industry to competition, it does not require suppliers to sell power to anyone who asks. Deregulated suppliers can pick and choose to whom they offer to sell. (At present, no competing suppliers are selling residential electricity in EMEC’s delivery territory.) In order to ensure that every Mainer had guaranteed access to at least one supply of electricity, Standard Offer Supply was mandated.

In each delivery utility’s service territory, Standard Offer price is determined by competitive bidding among suppliers. In exchange for an awarded contract, the Standard Offer provider has an obligation to serve all customers who are not served by any other supplier. 

Many new residents to Maine do not even realize the industry is deregulated, because Co-op members receive one bill for both supply and delivery. EMEC meters and bills for supply as well as delivery, but collections for supply are forwarded to the electricity supply provider.




Contact: Charlie McAlpin  (207) 454-1524  cmcalpin -at-

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