AARP Maine Notice on Competitive Electricity Rates

For years, Maine utility customers have had the option to choose their own electricity supplier rather than staying with the state’s Standard Offer. While the promise of choice sounds appealing, a new 2026 report prepared for the Maine Electric Ratepayer Advisory Council (ERAC) reveals a troubling reality: The vast majority of Maine households who switch to a competitive provider end up paying significantly more for their power.

The Standard Offer vs. Competitive Providers

MEMBERS ONLY

Most Mainers receive their electricity from Central Maine Power (CMP) or Versant Power. The supply of that power is almost always at the Standard Offer, which is a price negotiated by state regulators. However, Competitive Electricity Providers (CEPs) often market themselves to consumers through mailers, phone calls, or door-to-door visits, promising savings or "green" energy.

The data shows that these promises rarely result in actual savings. Over the last decade, Maine consumers who switched to these companies paid over $156 million more than they would have if they had simply stayed on the Standard Offer.

Why This Matters for Older Mainers

For those living on a fixed income, every dollar counts. This report highlights several areas of concern specifically for Maine’s older population:

Growing Costs for Households: Even though fewer people are signing up for these plans, the companies are making more money per customer. In 2024, the average household using a competitive provider paid over $1,000 per year for supply, a 48% increase since 2016, while the customer base for these providers fell by 16%. This indicates that they are collecting more revenue from each home in their program.

The "Price Gap": On average, for every one person who saved money by switching, ten people lost money. In some parts of Maine, such as Washington and Hancock Counties, customers were charged up to 54% more than the Standard Offer rate.

Targeting the Vulnerable: The report found that low-income households, including many seniors who receive Low Income Assistance Program (LIAP) benefits, often pay the highest premiums. In many cases, the financial help intended to make electricity affordable is being diverted to pay for these high-priced private contracts.

“Competitive Energy Providers are taking advantage of Mainers, and it’s unacceptable,” said Noël Bonam, AARP Maine State Director. “The ERAC report reveals that their pricing practices are hitting older people on low and fixed incomes the hardest—people who can least afford to pay more for a basic necessity like electricity. When households are already stretched thin, these overcharges can mean choosing between heat, food, or medicine. The Legislature must act now to protect consumers and stop CEPs from exploiting vulnerable Mainers for profit.”

Red Flags to Watch For

Competitive providers often use marketing tactics that can be confusing. AARP Maine encourages members to be wary of: