The Maine Public Utilities Commission (MPUC) has sent a groundbreaking order setting a month-to-month Standard Offer price for Bangor Hydro Electric (Bangor Hydro) Large Non-Residential Customers. Previously, prices were set months in advance for the entirety of each six-month term. Working with Freedom Energy Logistics (FEL) of Manchester, NH, Bangor Hydro will provide the MPUC the standard offer price no less than seven days before the beginning of each month. The first six-month term started September 1.
“We feel strongly that setting the Standard Offer price just weeks, instead of months, ahead of actual draw will be a great advantage to commercial and industrial users,” said August Fromuth, founder and Managing Director of Freedom Energy Logistics. “Energy markets are volatile because they are based on so many unknowns. The further out you predict prices, the less likely they are to reflect the actual price when the moment arrives. This new month-to-month model sets the price for the upcoming month and predicts what the market will look like in future months. History has shown that in billing periods, the actual price will be less than the prediction. With this Standard Offer, large consumers will be able to plan ahead and improve their bottom line.”
Bangor Hydro turned to FEL to structure the more flexible pricing approach. The standard class offering for September will be at the rate of $.07/kWh. Indicative prices based on present forward estimates range from $.07 for October, generally a low load month, to just less than $.10 for the peak load month of February.
All Bangor Hydro customers have been notified of this change in Standard Offer pricing and are eligible to take part in it regardless of whether they are taking service from the Standard Offer or from competitive suppliers now.
Fromuth is past chair of the ISO-New England End User Group and was instrumental in the formation of deregulation standards when markets first opened. Freedom accounts in Maine include Fairchild Semiconductor, Parkview Hospital and LaValley Lumber, and among their New England accounts are Whole Food Markets, Saint Anselm College and the Connecticut Retail Merchants Association.
Bangor Hydro Electric Company (http://www.bangorhydro.com) is an electric utility wholly-owned by Emera Inc. Bangor Hydro serves a population of 192,000 in an area encompassing 5,275 square miles in eastern and east coastal Maine. Bangor Hydro is a member of the New England Power Pool and is interconnected with other New England utilities to the south and with the New Brunswick Power Corp. to the north.
The Freedom Energy Logistics family of companies obtains power at the lowest possible price for New England consumers. FEL Power (felpower.com) provides high-end energy management services in electricity and natural gas. Its unique Direct to Grid (or Self-Supply) model guides large-scale users into New England’s wholesale electricity market, guaranteeing them access to electricity at the lowest available cost. Halifax American Energy Company (haecpower.com) is a retail electric energy marketer which, in partnership with South Jersey Energy, specializes in transactions converting wholesale and bulk power products into shapes and durations suitable for industrial, commercial, institutional and governmental end users. Its newest division, Resident Power (residentpower.com), is New Hampshire?s first competitive electricity aggregator to focus exclusively on residences and small businesses.