The standard offer rate of 5.9 cents per kiloWatt-hour (cents/kWh) became effective on all energy used on our after November 1, 2020.
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 both supply and deliver power to all paying customers, because the utility was the only company allowed to sell power in that specific service territory.
Electric deregulation split the industry into two parts. The utilities became "delivery companies," and other companies, known as Competitive Electricity Providers (CEPs), could then directly sell customers the electricity supply. Delivery companies deliver electricity and are responsible for the utility infrastructure. The delivery companies issue the bill for the delivery and electricity supply charges, but the revenue from supply charges is forwarded to the CEPs.
Under deregulation, however, suppliers don't have the same obligation to serve that delivery utilities have. This could mean that some customers might not be able to get electricity supply at all. To prevent this from happening, a Standard Offer contract is arranged for each delivery area through a bidding process. The contracted supply then provides 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 when there is more the one bidder willing to supply power. Under the newest Standard Offer arrangement, power is supplied to EMEC by New Brunswick Power Generation Corporation (NB Power). The Cooperative purchases power from NB Power and resells it to the Co-op's members.
