Electric rates to rise 2-3 percent in 2007

[Maine-ah]

The bad news is rates could have actually gone down if Maine wasn’t forced to subsidize power generation for Massachusetts and Connecticut through the New England Power Pool. The price to Maine residents will be $300 million, spread out over the next four years.

The Maine Public Utilities Commission is looking at the power-sharing agreement and will release a report this week that considers Maine’s options. Those include renegotiating the state’s fee schedule with NEPOOL; pulling out and going alone as a state; or joining with the power grid serving New Brunswick, Canada.

(snip)

The rates, effective March 1, are about 8.8 cents per kilowatt hour for CMP customers and about 9 cents for customers of Bangor Hydro. When combined with delivery charges, the rates will increase overall by 2.7 percent for CMP and 1.7 percent for BHE.

The Public Utilities Commission said rates would have decreased were it not for the new payments that electricity users in Maine are being required to make for additional electric generating capacity elsewhere in New England. While Maine generates enough power for its own uses, shortages are forecast for Massachusetts and Connecticut.

“The fact that the new standard offer rate is higher despite declines in energy prices illustrates the impact of recently implemented New England capacity payment rules. These capacity payments represent an unfair burden for Maine rate payers,” said Kurt Adams, chairman of the Maine Public Utilities Commission.

http://knox.villagesoup.com/Government/story.cfm?storyID=85233



:mad: :mad: :mad:

[mainegreen]

1. We need to bail on the power compact.

If the rest of New England can't get their act together, why should we have to pay?

Oh, Canada!

[Maine-ah]

2. twas my thought.

I don't know how we're going to handle another bill increase. We are so strapped at this point...and I can only imagine for the people that are worse off than us.

[high density]

3. Good question

From what I've read it sounds like they should be happy to have us on the grid.