EMEC announces rate increase

    Just as gasoline and heating oil prices have risen, the cost of electricity is about to rise as well. The Standard Offer electricity supply rate from Integrys Energy Services (Integrys) will increase to 9.15 cents per kilowatt-hour on energy used on or after March 1.
    Until now, Eastern Maine Electric Cooperative members have been sheltered from rising electricity supply prices due to an agreement in 2002 which froze electricity supply pricing at 5.8 cents per kilowatt-hour. That agreement ends on Feb. 29. Customers of Bangor Hydro and Central Maine Power, who will pay approximately 10 cents per kilowatt-hour beginning on March 1, have seen increases in their cost of electricity supply over the past four years, while the electricity supply rate for EMEC customers has remained unchanged.
    "No one is happy about this, including us," said EMEC CEO Scott Hallowell, who points out that the Co-op no longer sells power. Under deregulation the Standard Offer rate is selected though a competitive bid process. Since electricity deregulation, utilities like EMEC provide delivery service for electricity sold by another company, known as the Standard Offer Provider. The delivery utilities perform the metering and billing functions and therefore, customers still send money to the utility for both delivery and electricity supply. The electricity supply billings, however, are forwarded to the Standard Offer Supplier, in this case Integrys.
    The new electricity supply rate for Eastern Maine Electric members would have been higher were it not for agreements between Domtar Industries, Integrys Energy Services and Eastern Maine Electric.
    "Integrys will purchase some of its electricity supply from Domtar, which should provide Integrys some savings that will be passed on to Eastern Maine Electric members through a lower rate," Says Hallowell. "Based on the projected savings to Integrys, the Standard Offer Service rate on March 1 was lowered from 9.402 cents to 9.15 cents per kilowatt-hour. The amount of the actual savings is going to depend on the electricity market." If the actual savings to Integrys are lower or greater than projected, the 9.15-cent electricity supply rate to customers could fluctuate slightly up or down.