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Maine Businesses Facing Higher Electricity Supply Rates
07/26/2013 10:58 AM ET  

Medium-sized commercial and industrial customers in Central Maine Power and Bangor Hydro Electric Company's service areas are facing hikes of more than 23 percent in so-called "standard-offer" rates.

State utility regulators have accepted bids and set new prices for so-called "standard offer" electricity supply for medium-sized commercial and industrial customers in Central Maine Power and Bangor Hydro Electric Company's service areas.

And the new prices are quite a bit higher than the current rates - more than 23 percent for customers of each company.

"It's my conclusion that at least a portion, if not most, of the price increase we're seeing is a reflection of the bidders' expectation that something similar to what happened last year will happen again this coming winter," says Public Utilities Chairman Tom Welch.

What happened, Welch says, were spikes in the price of natural gas. He says the cost of natural gas is the principal driver of electricity prices in New England.

This story was reported and written by Ed Morin.


 

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