MPS customers to see decrease in electric bill

13 years ago

PRESQUE ISLE — Maine Public Service Co. customers will see a reduction in electric rates effective Jan. 1, 2012 as a result of a decrease in its stranded cost rates.

The stranded cost rate change will affect residential, commercial and industrial customers. The change will amount to about a 13-percent decrease in delivery costs or about $10.80 for the residential customer with an average monthly delivery bill of $83.80. The rate change will vary for commercial, industrial and transmission-level customers with all customers seeing a decrease.

Stranded costs are regulated by the Maine Public Utilities Commission and represent about 13 percent of the delivery portion of the average residential and small business customer bill. Stranded costs are related to past power generation and power supply obligations. MPS has not generated or supplied electricity since deregulation in 2000. The reduction in stranded cost rates reflects the lower remaining balance of the company’s stranded cost. These costs will eventually be eliminated as they are paid off.

Once implemented, the new rates will be posted at www.mainepublicservice.com.