Electricity rate hike

I am writing in regard to your Feb. 8 article on Central Maine Power customers’ electricity rate hike. Such newsworthy items should be reported with the paying customer’s interests in mind. The customer should know that a 28 percent increase in his or her “overall” electricity bill is a result of a much larger percent increase in the standard provider’s rates. I, as a customer of Maine Public Service, was disappointed with the reporting of MPS’ standard provider’s increase in a recent article.

This article states that the increase is not labeled as an “overall” electricity rate increase, which it is. In CMP customers’ case, the actual increase should be explained as the percent increase of the standard offer in the deregulated environment that we now deal with. The reporting of the increase as only 28 percent averaged the actual cost of electricity with the cost of transmitting it by CMP.

The company which is the standard provider is actually increasing its rates 50.3 percent (8.52 cents minus 5.67 cents divided by 5.67 cents) for large commercial users and 60.6 percent (3 cent average increase divided by current 4.75 cent average) for industrial users.

In this respect, it becomes more obvious that deregulation of the electric industry has moved the consumer into an environment whereby our total costs for electricity will continue to rapidly increase due to the rates charged by the standard providers while the transmission costs of such electricity remain constant.

David Farnum

Mapleton