Central Maine Power Company, 83 Edison Drive, Augusta, ME 04336 (207) 622-NEWS
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Release: Immediate - An Energy East Company
CMP announces lower prices for March 1
Company estimates 10 percent savings for most residential customers;
businesses could save 25 percent to 35 percent
AUGUSTA, Maine, February 29, 2008 — Central Maine Power Company will lower its prices for electric delivery service to residential, commercial, and industrial customers starting tomorrow, March 1. Charges for residential and small business customers will drop by about 10 percent. For an average residential customer using 550 kilowatt hours per month, the savings will be about $3.50 a month or a little more than $40 per year. Savings for commercial and industrial customers will vary by usage, but their costs should fall between 25 percent and 35 percent on average.
“This will be a significant savings for all of our residential and small business customers, and larger commercial and industrial accounts, too,” said Sara Burns, president of CMP. “That’s especially good news for everyone whose electricity supply prices are going up.”
The new delivery prices will save customers nearly $175 million over the three-year period from March 2008 to February 2011. The savings are a result of declining stranded-cost expenses as long-term contracts for above-market power purchases expire and as obligations for the company’s former nuclear plant investments wind down.
Delivery prices for CMP’s residential customers started the decade at about 9.2 cents per kilowatt hour in January 2000. With the March 1 rate cut, the price for each kilowatt hour above the 100 kilowatt-hour monthly minimum will drop to about 5.6 cents, a decline of nearly 40 percent over eight years.
Under Maine law, CMP and other electricity delivery companies are not allowed to own generation or to sell electricity supply. Electricity supply is provided by unregulated, private businesses. Payments for CMP’s service cover only the cost of delivery; although the company’s monthly mailing includes a separate billing on behalf of energy supply companies. Most residential and small business customers in CMP’s service area purchase their supply through the Standard Offer service, which is administered by the Maine Public Utilities Commission.
About CMP: Central Maine Power, a subsidiary of Energy East Corporation, operates more than 25,000 miles of power lines and other facilities that deliver electricity to 80 percent of Maine’s population. Web site: www.cmpco.com.
About Energy East: Energy East Corporation is a respected, super-regional energy services and delivery company serving about 3 million customers throughout upstate New York and New England. By providing outstanding customer service and meeting customers’ energy requirements in an environmentally responsible manner, Energy East will continue to be a valuable asset to the communities we serve.
— CMP —