MAINE PUBLIC UTILITIES COMMISSION

REPORT ON COMPETITIVE ELECTRICITY
PROVIDER AND STANDARD OFFER
PRICE COMPARISIONS

Presented to the
Joint Standing Committee on
Energy, Utilities and Technology
February 15, 2018

 I.

INTRODUCTION

Electricity customers in Maine receive and pay for two distinct services – delivery and
supply. Delivery service, which is provided by utilities such as Central Maine Power and
Emera Maine, includes the transmission and distribution of electricity. Delivery service rates
are regulated by the Maine Public Utilities Commission (Commission) and the Federal
Energy Regulatory Commission. Supply service, which is provided by Competitive Electricity
Providers (CEPs) and Standard Offer Suppliers (SOS)1, includes electric energy, capacity
and related services. Supply service is not price-regulated but is governed by competition.
However, suppliers must have a license before serving customers in Maine, and must
comply with Chapter 305 of the Commission’s rules, which includes provisions for consumer
protection. Customers that do not affirmatively sign up for service with a CEP automatically
receive standard offer service. Standard offer service is procured annually through
competitive bid processes administered by the Commission. Prices are set based on the
lowest bids received.
Since retail competition began in Maine in 2000, most large commercial and
industrial customers have chosen to receive supply service from a CEP and only a handful
have received standard offer service. In contrast, there were very limited CEP options for
residential customers until about 2012. At that time, the relationship between standard offer
prices and prices in the wholesale market presented an opportunity for CEPs to offer lower
prices to residential customers. Since 2012, although the relationship between standard
offer prices and prices in the market have been less favorable for CEPs, retail competition in
the residential sector has remained relatively strong, peaking in 2014 with more than
160,000 residential customers being served by a CEP.2 The number of CEPs in the
residential sector has also grown since 2012. For example, during 2015 and 2016, more
than a dozen suppliers were active in the residential market.
During its 2017 session, the Legislature enacted An Act To Improve Transparency
in the Electricity Supply Market, P.L. 2017, c. 74 (Act). The Act adds several consumer
protections regarding residential customer purchases of electricity supply from CEPs and
directs the Commission, in consultation with the Public Advocate, to:
conduct an analysis to determine the difference in price, if any,
residential consumers paid for generation service by purchasing
from a competitive electricity provider instead of receiving
standard-offer service between 2014 and 2016. In evaluating
any price difference, the Public Utilities Commission shall
include, where possible, if and how the product purchased by
the residential consumer differed from standard-offer service.

1

Technically speaking, Standard Offer Suppliers are also Competitive Electricity Providers (CEPs), but the nature
of their supply service is fundamentally different from other CEPs and is administered by the Commission.
2 We note that cost is not always the primary consideration for customers seeking CEP service. Some customers
may choose a CEP that offers a renewable product even if the cost for that product is higher than standard offer.
2

 The Act requires the Commission to report the findings of the analysis to the Joint Standing
Committee on Energy, Utilities and Technology by February 15, 2018.
II.

SUPPLY PRICE ANALYSIS

As noted above, the Act directs the Commission to conduct an analysis of the costs
or savings to residential customers that have received electricity supply service from a CEP
compared to what the customers would have paid for standard offer service during the years
2014 through 2016. The Commission has conducted this analysis by using publiclyavailable information published by the U.S. Energy Information Administration (EIA) in EIA
Form 861. EIA Form 861, which is published on an annual basis, provides detailed
information by state and by supplier regarding the retail sales, revenues, and numbers of
customers served in each major customer sector. The EIA Forms 861 are available at
https://www.eia.gov/electricity/data/eia861/index.html
The results of the Commission’s analysis are summarized below. As shown,
customers that received electricity supply service from a CEP over the three-year period
2014 through 2016 paid approximately $77.7 million more than what they would have paid
for standard offer service. On average, customers served by CEPs paid approximately 56%
more than they would have paid for standard offer service in 2016; 60% more in 2015; and
12% more in 2014. On a dollar per customer basis, on average, customers served by CEPs
paid approximately $245 more than they would have paid for standard offer service in 2016;
$278 more in 2015; and $67 more in 2014.

Residential Cost of Electricity
Competitive Electricity Provider (CEP) vs. Standard Offer Service (SOS)
Source of CEP Data - EIA Form 861

Weighted Average Prices ($/kWh)

Calendar
Year
2016
2015
2014
TOTAL

CEP

SOS

$0.1011
$0.1077
$0.0834

$0.0649
$0.0671
$0.0744

Number of
Differenc e in
Perc ent Customers with
Charges at CEP v s.
Differenc e
CEPs
SOS Pric e ($)
55.8%
60.5%
12.0%

117,544
136,139
163,679

$28,739,752
$37,897,764
$11,032,570
$77,670,086
.

Supplier-specific information for these three years is shown below.
3

 2016
Residential Cost of Electricity
CEP vs. Standard Offer Service
Source of CEP Data - EIA Form 861

Weighted average standard offer price ->

Rev enues
T housand
Competitiv e Elec tric ity Prov ider (CEP)
Dollars

$0.0649

per kWh

Differenc e in
Av erage CEP Pric e v s.Charges at CEP
Customers CEP Pric e SO Pric e
v s. SO Pric e

Sales
MW h

Number

$/ k W h

%

Dollars

Constellation Energy Services, Inc.
Ambit Energy Holdings, LLC
ENGIE Retail, LLC
Electricity Maine, LLC
FairPoint Energy LLC
C. N. Brown Electricity, LLC
XOOM Energy Maine, LLC
North American Power and Gas, LLC
Clearview Electric Inc.
Mega Energy of Maine, LLC
Agera Energy LLC
First Point Power, LLC

$283
$3,034
$419
$62,536
$5,405
$680
$1,021
$3,726
$2,870
$17
$183
$26

3,821
42,721
4,933
599,382
58,856
7,116
11,603
36,048
25,642
176
2,281
337

161
5,345
489
87,764
10,075
1,061
1,641
4,663
5,967
17
324
37

$0.0742
$0.0710
$0.0849
$0.1043
$0.0918
$0.0956
$0.0880
$0.1033
$0.1119
$0.0960
$0.0802
$0.0783

14.3%
9.4%
30.9%
60.8%
41.5%
47.3%
35.6%
59.2%
72.5%
48.0%
23.6%
20.7%

$35,417
$261,307
$98,848
$23,635,608
$1,585,246
$218,572
$267,965
$1,385,985
$1,205,834
$5,478
$34,963
$4,529

TOTAL

$80,200

792,916

117,544

$0.1011

55.8%

$28,739,752

Amount per customer:

$245

2015
Residential Cost of Electricity
CEP vs. Standard Offer Service
Source of CEP Data - EIA Form 861

Competitiv e Elec tric ity Prov ider (CEP)
Constellation Energy Services, Inc.
Glacial Energy Holdings
Ambit Energy Holdings, LLC
ENGIE Retail, LLC
Electricity Maine, LLC
FairPoint Energy LLC
C.N. Brown Electricity, LLC
XOOM Energy Maine, LLC
North American Power and Gas, LLC
Clearview Electric Inc.
Mega Energy of Maine, LLC
Union Atlantic Electricity
Gulf Oil Limited Partnership
Agera Energy LLC
First Point Power, LLC
TOTAL

Weighted average standard offer price ->

Rev enues
T housand
Dollars

Sales
MW h

$0.0671

per kWh

Differenc e in
Av erage CEP Pric e v s.Charges at CEP
Customers CEP Pric e SO Pric e
v s. SO Pric e
Number

$/ k W h

%

Dollars

$250
$115
$1,457
$115
$81,170
$7,483
$814
$1,173
$6,213
$837
$16
$155
$580
$116
$4

3,144
1,167
21,392
1,158
758,677
66,076
8,228
11,721
45,043
6,611
161
2,106
5,973
1,427
45

243
106
3,607
397
106,786
12,497
1,184
2,006
5,502
2,694
17
155
838
83
24

$0.0795
$0.0985
$0.0681
$0.0993
$0.1070
$0.1132
$0.0989
$0.1000
$0.1379
$0.1266
$0.1012
$0.0736
$0.0970
$0.0813
$0.0933

18.4%
46.9%
1.5%
48.0%
59.4%
68.8%
47.4%
49.1%
105.6%
88.7%
50.9%
9.7%
44.6%
21.1%
39.1%

$38,838
$36,694
$21,197
$37,298
$30,262,973
$3,049,300
$261,801
$386,021
$3,190,915
$393,402
$5,497
$13,687
$178,712
$20,248
$1,181

$100,497

932,929

136,139

$0.1077

60.5%

$37,897,764

Amount per customer:

4

$278

 2014
Residential Cost of Electricity
CEP vs. Standard Offer Service
Source of CEP Data - EIA Form 861

Weighted average standard offer price ->

Rev enues
T housand
Competitiv e Elec tric ity Prov ider (CEP) Dollars
Constellation Energy Services, Inc.
Liberty Power Corp.
Electricity Maine, LLC
FairPoint Energy LLC
C.N. Brown Electricity, LLC
XOOM Energy Maine, LLC
North American Power and Gas, LLC
Mega Energy of Maine, LLC
Union Atlantic Electricity
TOTAL

Sales
MW h

$0.0744

per kWh

Differenc e in
Av erage CEP Pric e v s.Charges at CEP
Customers CEP Pric e SO Pric e
v s. SO Pric e
Number

$/ k W h

%

Dollars
$1,268
($45,986)
$5,882,810
$3,530,950
$33,812
$709,553
$936,292
$466
($16,594)

$273
$306
$81,512
$11,712
$779
$1,814
$6,010
$2
$195

3,655
4,731
1,016,516
109,959
10,020
14,838
68,195
26
2,844

388
269
132,213
18,708
1,333
2,697
7,677
6
388

$0.0747
$0.0647
$0.0802
$0.1065
$0.0778
$0.1222
$0.0881
$0.0923
$0.0686

0.5%
-13.1%
7.8%
43.2%
4.5%
64.3%
18.5%
24.1%
-7.8%

$102,603

1,230,784

163,679

$0.0834

12.0%

Amount per customer:

$11,032,570
$67

The Commission also examined the same issue for the years 2012 and 2013. This showed
that CEP customers paid approximately $2.5 million more than they would have paid for
standard offer service in 2013 and approximately $3.5 million less than standard offer
service in 2012. As noted above, prior to 2012, there were few, if any, competitive options
for residential customers and virtually all residential customers received standard offer
service. Over the full period 2012-2016, customers paid about $76.7 million more for CEP
service compared to standard offer service.
III.

CONSULTATION WITH THE PUBLIC ADVOCATE

As specified in the Act, the Commission has consulted with the Public Advocate
regarding the price comparison analysis. The OPA regularly tracks and provides consumer
information on CEP prices and comparable standard offer service prices and, based on this
information, periodically publishes an Electricity Guide. The OPA has indicated that its
comparable data is generally consistent with the EIA information presented above. Attached
to this Report is the OPA’s most recent Electricity Guide.
IV.

STANDARD OFFER COMPARABILITY

The Act directs the Commission, where possible, to indicate if and how CEP
products purchased by residential consumers differed from standard-offer service. During
the 2014-2016 period, several CEPs did offer renewable, or “green,” supply product options.
The information available to the Commission through CEP reporting does not reveal what
portion of the sales were associated with a renewable product as opposed to a standard
energy product. One supplier, Clearview Electric Inc., was offering only renewable energy
supply products during this period. The CEP that served the vast majority of residential
customers during the 2014-2016 time period, Electricity Maine, LLC, did not offer any
renewable supply products. The Commission also notes that several of the CEPs in this
5

 time frame offered “variable” monthly rates as compared to the fixed price standard offer
service. A variable product typically involves price changes every month based on a price
index or changes in wholesale market prices. Alternatively, CEPs also offered fixed prices
for various terms that differed from the term for which standard prices were in effect.

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