Fairpoint Spread 6 0 Update
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Melissa Peirce and her husband circled their rural Charleston home, hunting for evidence of an electricity thief. Their power bill had more than tripled, and they suspected a cheat was tapping into their power lines.
But they found no suspicious wires, and no signs of a filcher. “We live in the middle of nowhere,” Peirce said. So they considered how they could be using so much more electricity. They bought a new water heater.
They asked around. Neighbors and friends weren’t seeing the same bill hikes.
The Peirces’ bill had jumped to about $360 per month from about $100. “We thought we were doing something wrong with our electricity, because we don’t keep things running all the time,” Peirce said. “Nobody’s home half the time.” She called her power company, Bangor Hydro.
Her beef wasn’t with the power company, she learned. Bangor Hydro delivered the power through their lines, but another company actually supplied it. Peirce had forgotten she’d signed up to get that supply from FairPoint Energy, one of 16 “competitive electricity providers” operating in Maine in 2014. After a heated conversation, she found out the reason that her power bill was skyrocketing. The contract she’d signed with FairPoint at a fixed monthly rate had rolled over to a rate that changed monthly. It’s one of the various types of contracts such providers can offer.
Filings in a state regulatory inquiry show how that played out. In April 2014, FairPoint offered new customers in Emera Maine’s Bangor Hydro service area low introductory rates, about 6. Zip Code For Kaduna State Nigeria. Tems Cell Planner Crack Download. 4 cents per kilowatt-hour.
Most customers in the state at that time. When that fixed introductory rate ended, the competitive supplier, or CEP, rolled customers such as Peirce’s family into monthly variable rates that rose per kilowatt-hour.
That’s why her electricity bill jumped. Plans with rates shifting every month are not typical, but Peirce was hardly alone in losing money to middlemen who began selling electricity supply to residential customers in 2012. A Bangor Daily News investigation found hundreds of thousands of Maine CEP customers would have paid $20 million less if they had stuck with the default price in 2013 and 2014. While losses on variable rate plans such as Peirce’s were steep, the bulk actually came from fixed-rate contracts. That’s despite a claim by the largest provider, Electricity Maine, that it ”.”.
Electricity Maine made good on those promises at first, but soon the deals evaporated. Many customers who signed contracts with competitive providers didn’t fully understand the terms, prompting regulators to issue a warning about unexpected price spikes and require stricter notification practices. Consumers eventually got wise to the higher prices, dropping competitive suppliers in large numbers.
But those who are left are still paying a hefty premium for power. Early savings Customers in Maine basically have two avenues for buying electricity. If you do nothing, you get the standard offer, a fixed rate approved by state utilities regulators each year as a default option.
The vast majority of Maine households pay for electricity this way. Or, like Peirce, you can sign a contract with a competitive supplier, which can offer plans with varying terms and add-ons. Those suppliers got their first shot at competing for power customers in 2000, when Maine broke up electric utility monopolies.
But the market for selling electricity supply directly to residential customers remained largely untouched until 2011, when two Auburn entrepreneurs saw an opportunity to compete with the standard offer. “We will always beat the standard offer,” Electricity Maine co-founder Emile Clavet. “You’ll never, ever pay more than the standard offer, or we won’t be back.” On that promise, Electricity Maine basically created the residential CEP business in Maine. The company grew to, or 90 percent of the competitive supply market, through August 2012. The BDN’s analysis found CEP customers saved about $2.8 million in 2012, compared with the standard offer. Electricity Maine accounted for almost all of those savings, according to the BDN’s analysis of federal data.