Maine PUC Rejects Standard Offer Bids at BHE, Orders Alternative Default Service Plan

The Maine PUC rejected the results from a solicitation for Standard Offer power supplies for the large non-residential class at Bangor Hydro-Electric, citing the "unreasonably high prices bid."

The solicitation had sought supplies for the six month period beginning September 1, 2011.

"[W]e find that the prices that were bid during this RFP process to provide standard offer service for the large non-residential class in BHE's service territory were unreasonably high compared to the prices bid for CMP's large class and our view of the market," the PUC said.

The PUC directed BHE to submit by August 2, 2011, a plan for providing Standard Offer service to customers in the BHE large class during the period from September 1, 2011, through February 29, 2012.

Under Chapter 301, section 8(D)(2) of the PUC's rules, in the event the Commission rejects standard offer bids, the PUC may, "either select a standard offer provider for the applicable standard offer class(es) through alternative means or issue an order directing the transmission and distribution utility to provide standard offer service to the applicable standard offer class(es) through purchases from the regional wholesale bulk power markets, contracts with wholesale suppliers or other appropriate arrangements, as specified by the Commission, until the selection of a standard offer provider is made through a new bid process."

Additionally, the PUC directed Commission Staff to open an investigation to examine whether structural issues regarding classes similar to BHE's large non-residential class warrant a different approach for providing Standard Offer service.

Coincident RFPs had also sought supplies for the BHE medium non-residential class and the medium non-residential class and large non-residential class at Central Maine Power. The PUC accepted results from these solicitations.

New Standard Offer rates for these classes can be found in our related story today