AUGUSTA – A price cut by Central Maine Power Co. means the average customer will soon save about $1.25 on their monthly bill for electricity delivery.
CMP announced Thursday that its delivery charge for residential and small business customers will drop 4 percent beginning March 1.
That’s not enough to offset an impending 40 percent increase in the cost of the electricity itself. Electricity is provided by Constellation Energy.
CMP sends out bills that cover both the cost of delivery, which CMP provides, and the cost of the electricity from Constellation, which is not affiliated with CMP.
CMP spokesman John Carroll said the 4 percent price cut coming in March from CMP means the average residential customer’s bill should fall from $35.93 to $33.67 per month, or $15 annually.
“We’re pleased that we can continue to lower prices for customers,” said CMP President Sara Burns in a statement announcing the savings. “Beginning March 1, our delivery price will be 32 percent lower than in January 2000. Our company has invested in new technology and reshaped our business to operate more efficiently. We’re still delivering safe, reliable service, but customers are paying less.”
Carroll said that factoring in differences in kilowatt use base prices, the 32 percent in reductions since 2000 means a residential customer will be saving more than $150 a year on their CMP bill. Without the price cuts – and without any cost increases – that bill would be about $48.15 per month now, he said.
The 4 percent decrease coming in March stems from the Jan. 10 Maine Public Utilities Commission approval of a CMP proposal that reduces the company’s rates for residential and small business customers.
CMP expects that its costs will continue to drop, which will produce more savings for customers in the future, Carroll added.
Changes in Maine law in 2000 split the electric utility industry into two parts, with separate companies providing electricity and delivery. Central Maine Power restructured itself as an electricity delivery company. Residents and businesses in CMP’s service area then buy their electricity from energy supply companies. Constellation is the supplier for most Maine customers.
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