CASE STUDY
Maine Electric Consumer Cooperative

In the fall of 1999, a group of eight large electricity consumers in Maine became aware that potential electricity suppliers were not taking an interest in supplying retail electric service to the Maine market that was scheduled to open for retail access on March 1, 2000. Concerned that without direct action on their part a retail market would simply not develop in Maine, these clients formed the basis of the Maine Electric Consumer Cooperative (MECC) and retained CES to manage the aggregation. Within a month, the membership in the aggregation group had increased to over 100 Maine companies, representing about 20% of the total commercial and industrial load in the State of Maine, and included many of the largest electricity users in the State. 

CES obtained competitive bids from a number of suppliers to supply the aggregation members. Enron was the lowest bid, and on March 1, 2000, began serving these 100 plus members for 12 months under a standard retail electricity supply contract. The importance of the size and diversity of this aggregation group cannot be overemphasized. Quite simply, this aggregation group created the retail market for electricity in Maine, and for the first 6 months of the market's operation, it was the market. Further, as a result of the competitive bidding process, these companies saved over $8 million the first year compared to what they would have spent had they taken service under the prevailing Standard Offer. 

Membership in the aggregation group continued to expand during the first year of operation as more and more small and medium sized commercial and industrial clients sought to achieve similar savings through purchasing electricity in the competitive market. At its peak the membership in this aggregation group was purchasing approximately 2 billion kWh per year - a little over 30% of all commercial and industrial load in Maine - through contracts brokered by CES. Further, CES had a profound effect on the expansion of the competitive market in Maine. In fact, by December 1, 2001, seventeen months after the opening of the retail electricity market in Maine, competitive suppliers were serving approximately 88% of large customer load and 42% of the medium customer load for Central Maine Power Company, and slightly lower proportions for Bangor Hydro Electric. 

This conversion represents both the largest and the most rapid voluntary conversion of any state in the United States that has undertaken to open its electricity market to retail competition. CES is proud of the role we have played in creating this market, and even more proud of the savings we have been able to secure for our customers through our procurement services.