HOULTON, Maine — Customers of Houlton Water Company have been flooding the energy provider with questions after a recent report of anticipated increases in electricity costs throughout the state.
According to John Clark, president of HWC, electricity customers of the local utility company have begun expressing concerns after a recent article in the Bangor Daily News warned electric customers to prepare for price hikes this winter.
The article stated that the primary reason for the rate increase is New England’s reliance on natural gas to power electric generators, Clark said.
During the winter months much of the available gas is consumed for heating homes and businesses, resulting in a supply and demand issue that causes the cost of fuel to increase. Subsequently, the cost of daily operation increases for each electric generator, resulting in higher electric rates.
“Because of this, we wanted to dispel any concerns and fears our customers may have in regards to higher winter electric rates,” Clark said. “Houlton Water Company customers will not experience any price hikes or sticker shock this winter due to electric rates. HWC customers, currently being supplied energy through the standard offer of 6.5 cents per kWh, will avoid any price increases during the upcoming winter months.”
Clark said after the first of the year, HWC will begin receiving proposals for a new standard offer contract.
When an agreement has been made, the new standard offer will take effect April 1, 2015.
“We are hopeful energy prices will not dramatically increase from our current rate,” he said. “In the event of an increase, our low delivery rates and new initiatives such as our proposed direct tie to NB Power should help mitigate and smooth any future energy rate increases.
“We will keep our customers posted as more information becomes available,” he said.
