Infrastructure

Utilities

Two major events have changed the energy picture in Maine during the past several years. These changes have been brought about primarily by the restructuring of the electric utility industry and the completion of two natural gas pipeline projects from Canada.

The divestiture of generation assets by the state’s three utility companies in March 2000 provides Maine consumers with the ability to negotiate their own terms and rates with a number of energy providers licensed to supply electricity in Maine. With electric restructuring, Maine has developed a competitive market for electricity supply, which has lowered rates, especially for larger commercial and industrial consumers, who now have a number of choices for their electricity supplier.
Consumers who do not select their own energy supplier purchase electricity from a ‘Standard Offer’ provider selected through a competitive bid offer by the Maine Public Utility Commission (MPUC). Currently, the state’s three utility companies are mandated by the MPUC to be the Standard Offer providers.

The completion of two new natural gas pipelines in 1999 has further expanded Maine’s electricity generating capacity, while increasing choice among electrical consumers and stimulating competition among energy providers. Five new natural gas-fired electrical power plants with a generating capacity of 1,600 MW have been constructed and more than 25 additional municipalities in central, eastern, southern, and western Maine are now connected to the natural gas network.

Electric utility deregulation and the availability of natural gas build upon Maine’s competitive advantages in the energy arena.

Maine is also fortunate to have plentiful water supplies, with many basins and sources to draw from. Maine’s water utility services are provided by more than 150 utilities across the state and fall into three categories: water district, water department and water company. A water district is a quasi-municipal entity that is usually run by an independent elected or appointed board of trustees. A water department is a municipal entity that is governed by the town selectmen or council. Water companies are privately owned and usually overseen by a board of directors chosen by its shareholders. The Maine Public Utilities Commission regulates water utility rates and service quality.