Change in electric rates could prove shocking! Maine’s Public Advocate warns consumers

PRESS RELEASE: Maine Office of Public Advocate Warns North American Power Customers to Get Off Variable Rates (9/23/14)

The Maine Office of the Public Advocate is warning customers of North American Power that their fixed rate contracts for electricity have expired, or will soon expire, and they should act now to avoid paying hundreds of dollars in excess electricity costs this winter.

Earlier this year, North American Power sent a direct mail solicitation to residential electricity customers across the state, offering a 6-month fixed rate for electricity at a favorable price. Thousands of Central Maine Power and Emera Maine customers signed up for these offers, which have now ended or are about to end.

When the fixed rate term expires, customers are automatically rolled over to a variable rate, where the price changes each month based on wholesale market prices. Last winter, some variable rates went as high as 25 cents per kWh, or nearly four times the standard offer price, costing some customers hundreds of dollars in excess costs. The Office expects to see similar variable rate pricing, or worse, this winter.

“North American Power is supposed to let customers know their contract is expiring, but we know some customers haven’t gotten notice, and we’re concerned that those who have received notice may not understand the potential costs of switching to a variable rate.” said Public Advocate Tim Schneider. “Missing that single piece of mail could cost a customer hundreds of dollars this winter.”

 

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