Public advocate: Mainers largely overpaying in electricity bills - WMTW Portland

Public advocate: Mainers largely overpaying in electricity bills

Mainers overpaid $80 million in electricity bills in last 7 years according to public advocate

A new report from the Office of the Public Advocate says that Mainers overpaid $80 million over the last seven years by not electing to use the standard rate for their electricity.

The standard rate is bid on every year by the Maine Public Utilities Commission, and most private residences and small businesses elect to use it. It affects the energy supply, a separate cost from what CMP and Versant charge for delivery.

However, that standard rate covers the entire calendar year; it won’t fluctuate throughout the seasons. Consumers can sometimes strike a deal with competitive electricity providers during the warmer months when they aren’t using as much electricity.

The Maine Public Advocate, William Harwood, spoke with Maine’s Total Coverage about how this leads to some households overpaying.

"There may be a savings for a few months, but then they take their eye off the ball and before they know it, they're paying more than the standard offer," Harwood said.

If you aren’t paying close attention to prices, then you might be surprised when you look at your electric bill.

“We had people calling into our office that were paying 39 cents per kilowatt hour when the default rate was 17 cents. It just breaks your heart," Harwood said.

Seventeen cents was last year's approximate standard rate. This year is a great time to take another look at your bills, because the standard rate dropped to 11 cents per kilowatt hour.

If you’re paying more than that, you should call your provider about making a switch to the standard rate.

Phillip Bartlett from the Public Utilities Commission has advice for anyone looking to use competitive electricity providers.

“Put on your calendar when that contract expires. Watch your mail when you get a notice of renewal and then go and see how that compares to the standard offer rate,” he said.

Just watch out for any termination fees when you switch. A new law protects consumers from those fees when they switch to the standard rate, but only applies to contracts made after Oct. 15 of last year.