PUC Sets Rate For Default Service After Asking Supplier For "Reasonable" Bid

Default Service Rate Falls 24%

December 10, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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After an initial RFP for standard offer service electricity supplies for the large customer class at Emera Maine-Maine Public District (MPD, formerly Maine Public Service) did not result in any bids, the Maine PUC has set a fixed standard offer rate for the class and has designated a default service provider.

Specifically, the PUC designated New Brunswick Energy Marketing Corporation (New Brunswick) as the standard offer provider to provide standard offer service for the Emera Maine—Maine Public District (MPD) large commercial and industrial customer class for the one-year term beginning January 1, 2020.

The price for the large commercial and industrial customer class for retail standard offer service at Emera-MPD for the period of January 1, 2020 through December 31, 2020 will be a fixed price of $0.0850/kWh. That's 24% lower than the current rate of $0.11175 per kWh.

As previously reported, a September 5, 2019 request for proposals for standard offer service for the large non-residential class in MPD for the term January 1, 2020 through December 31, 2020 did not receive any bids for the class.

The Commission therefore directed Commission Staff to employ alternative means to identify a standard offer provider [MPUC Rules, Ch. 301, § 8(D)]

The Commission delegated to the Director of Electricity and Gas Utility Industries the authority to either select a standard offer service provider or to approve a plan submitted by Emera Maine addressing the provision of service to the large commercial and industrial standard offer class.

Pursuant to this delegated authority, Commission Staff contacted New Brunswick to determine whether the company could provide standard offer service to the large class at, as described by the PUC in summarizing the process, "a reasonable rate."

New Brunswick filed a response with the rate as approved above, with the company stating that it would enter into a service agreement governed by the same terms as the agreement it signed on November 13, 2019 with Emera Maine with regard to the small and medium classes in MPD for the upcoming 2020 standard offer term.

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