Versant Power customers to see rate changes
Thursday, June 29, 2023
Bangor and Presque Isle, ME – Starting July 1, Versant Power residential customers will see changes to electricity delivery rates. Versant's rates are based on the cost to provide safe, reliable service throughout northern and eastern Maine.
- A sample residential customer in the Bangor Hydro District using 500 kilowatt-hours per month and paying $139.57 for delivery and Standard Offer supply will now pay $156.43, a $16.86 increase. If that customer uses 750 kilowatt-hours per month, they will see a $25.29 increase, and if they use 1,000 kilowatt-hours per month, they will see an increase of $33.72 per month.
- A sample residential customer in the Maine Public District using 500 kilowatt-hours per month and paying $122.00 for delivery and Standard Offer supply will now pay $135.59, a $13.59 increase. If that customer uses 750 kilowatt-hours per month, they will see a $20.40 increase, and if they use 1,000 kilowatt-hours per month, they will see an increase of $27.20 per month.
Customers in the Bangor Hydro District will see changes to three of five rates on their bills: stranded costs, distribution, and conservation. Customers in the Maine Public District will see changes to four of five rates on their bills: stranded costs, distribution, transmission, and conservation.
The graphs below show the breakdown of the five components of your total bill, the largest of which represents electricity supply. Versant Power does not profit on the cost of electricity. They pass through to consumers what they pay generators for producing power.
Much of the total delivery rate increase comes from the stranded cost portion of the bill. A residential customer using 500 kilowatt-hours of electricity per month will see an increase of $12.97 in stranded costs in the Bangor Hydro District and an increase of $7.91 per month in the Maine Public District.
Stranded costs pay for state programs and policies and are increasing because of the cost of state net energy billing programs, which offer incentives for rooftop, business and community solar energy production. Versant Power does not profit from these programs and passes through to customers the amount the state requires to fund them.
The Maine Public Utilities Commission approved Versant’s request for a distribution rate change, which will take effect in two phases. Half of the approved amount will take effect July 1 and the second half will take effect January 1, 2024 when electricity supply prices are expected to decrease. Distribution rate changes will support several projects to maintain and improve our service, including modern metering system upgrades and improvements to our tree pruning program.
The increase in transmission rates for the Maine Public District reflect the costs needed to continue investing in improvements to our system to increase its safety and reliability. Transmission rates are regulated by the Federal Energy Regulatory Commission (FERC) and updated annually based on a pre-set formula. Transmission rate changes in the Bangor Hydro District took effect on January 1, 2023 and will not change at this time.
The decrease in conservation rates is due to a lower funding level assessed for the Efficiency Maine Trust, the state entity that works with Maine customers on energy efficiency and conservation projects.
New rates for all customers will be posted at versantpower.com as of July 1, 2023. Customers with questions about bill changes are encouraged to call the Versant Power Customer Contact Center at 207-973-2000.