Central Maine Power offers lower rates to encourage electrification
industry news
Spring 2023
By June Donenfeld
Central Maine Power (CMP) recently announced new rate options for customers with heat pumps or above-average electricity usage. The two new opt-in electric rates were approved by the Maine Public Utilities Commission in 2022 and went into effect January 1 this year: the Seasonal Heat Pump rate and the Electric Technology rate. (Versant Power has offered a discounted residential heat pump rate for several years.)
SEASONAL HEAT PUMP RATE
The Seasonal Heat Pump rate is a pilot program, with signup limited to the first 5,000 customers who own, or plan to install, air source heat pumps.
The program was designed to offset higher winter heating costs by offering a significantly reduced kilowatt hour delivery rate in the colder months (November through April) and a higher one in the summer. CMP’s Seasonal Heat Pump rate carries a higher monthly service charge than their standard rate ($31.67 vs. $13.66). And unlike the standard service charge, the Seasonal Heat Pump rate does not include the first 50 kWh of use, though the first 750 kWh is free of sales tax.
ELECTRIC TECHNOLOGY RATE
This rate has broader eligibility and aims to help Mainers adopt new electric technologies like heat pumps, electric vehicles and EV charging stations. It’s available to all residential customers and you don’t need to have a heat pump or EV to qualify. Households that use at least 800 kWh a month benefit the most from this program, and there is no limit on the number of CMP customers who can enroll. If your usage fluctuates, you will have to calculate your average monthly usage over the year to understand if you will be coming out ahead. The Electric Technology rate offers a lower delivery rate year-round (the Seasonal Heat Pump rate does not), but has the same increased monthly service charge of $31.67.
YOUR BOTTOM LINE
These programs might be better options for some CMP customers than others. For instance, if you produce most of your own electricity with solar panels, the new rates may not benefit you because of their higher minimum monthly service charge. To weigh the pros and the cons for your own household and learn more, visit these websites, which have detailed information and online calculators to help you decide what’s best for your wallet.
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This article appeared in the Spring 2023 edition of Green & Healthy Maine HOMES. Subscribe today!
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