Bangor, ME—Emera Maine customers in the Bangor Hydro District have a new stranded cost rate effective March 1, 2014. The current rate expired on February 28.
A typical residential customer using 500 kWh per month will see their total bill of $80.26 increase by $1.54 (1.9%) to $81.80 per month. Stranded cost rates are approved by the Maine Public Utilities Commission.
Stranded cost rate cases happen every three years and the new rate is expected to be effective through February 28, 2017.
Stranded costs are largely above-market supply costs generated from power contracts that were required before the electric industry was restructured in 2000. There are also newer contracts with renewable generators that are not stranded costs, but are recovered through stranded cost rates. For example, utilities are sometimes required to buy power from generators that the State wants to encourage or support. When utilities are required to buy at above-market contract prices and sell at lower market prices, the difference is recovered through stranded cost rates.
Stranded cost charges are included as part of the electricity delivery charge on the customer bill.
Emera Maine is an electricity delivery company. Our role is to deliver electricity that is generated or supplied by others.
Emera Maine, headquartered in Bangor, Maine, is Maine's second largest electric utility. The company delivers electricity to 154,000 residential, commercial, and industrial customers throughout eastern and northern Maine.
Emera Maine came to be as the result of a merger of Bangor Hydro Electric Company and Maine Public Service. Bangor Hydro became part of the Emera Inc. group of companies in 2001 and MPS was acquired in 2010. The two companies formally merged as one utility on January 1, 2014.
Emera Maine's service territory spans 9,350 square miles over five counties. The company's 410 employees operate a system consisting of 1,056 miles of transmission lines, 6,654 miles of distribution lines, 260 miles of underground and submarine cable, as well as 104 substations.
Both companies are committed to operational excellence, growth through transmission development, and providing energy solutions to its customers.