MADISON ELECTRIC WORKS - THE POWER FOR SUCCESS

No matter how high energy prices rise, Madison Electric Works (MEW) will always offer competitive electricity rates. MEW offers certain advantages no for-profit utility can match.

Rate Comparisons

Take a look at MEW’s current “all-in” electric rates per kilowatt hour versus the average all-in rates of other New England states.

Source: Energy Information Administration

Under MEW’s current energy provider contract (which expires Dec. 31, 2008), the 5.1 cents per kWh rate is the highest it would ever be. Based on your electricity usage and the cost to serve your business, it is very likely that MEW can offer you a lower rate.

Comparing Rates Within Maine

Let’s compare MEW’s current rates with the rates of those of Maine’s two largest for-profit utilities – Central Maine Power (CMP) and Bangor Hydro-Electric.

Source: Maine Public Advocate’s Office

Using these numbers as baseline rates, MEW can cut your business’s electricity bills by a minimum of 50%.

MEW can further save your business money by designing rates based on cost-to-serve only.

Non-Profit Utility = More Profit for Your Business

Since the Town of Madison owns MEW, it operates as a municipally owned, non-profit utility. The term “non-profit” is the key to how MEW can reduce your business’s electricity rates.

When designing a rate, for-profit providers must take their shareholder’s wishes and sales goals into consideration. They have to account for adequate profit margins in the electric rate your business pays per kilowatt hour.

Since profit margins do not figure into MEW’s rate equation, they can design rates that cover the cost to serve. Local businesses and customers benefit from these savings.

Lower Delivery Rates - Always

Your electric bill is divided into two parts – standard offer rates and delivery rates. Standard offer rates are based on the current cost of energy. Delivery rates reflect the cost it takes to ‘deliver’ the energy to your location. Local utilities, such as MEW, determine these rates.

For-profit utilities add their desired profit margin into their delivery rates. Since MEW has no desired profit margin, they can pass this advantage along to your business in the form of reduced costs.

Even as the cost of energy rises and standard offer rates rise along with it, MEW will always have the ability to offer your company competitive delivery rates thanks to its non-profit status.

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