CASE STUDY
Lower Rates Through Interruptible Programs

Competitive Energy Services worked with our customers to take advantage of a program administered by the New England Independent System Operator ("ISO-NE") whereby its customers are paid to reduce their electric usage during periods of shortages in New England.

The program helps to reduce the potential for region-wide power blackouts during high-demand periods this summer, while at the same time lowering electric bills for participants. 

"This is a very important program for manufacturers in Maine that are able to interrupt part or all of their production processes to reduce electric usage when the market price is high," said Steve McGraw of the Chinet Company in Waterville and president of the Board of Maine Electric Consumer Cooperative. "Chinet has participated in these types of programs in the past and is very happy that the MECC and Competitive Energy Services are able to offer this program this summer to their customers." 

The Program, called Interruptible Program - 2000, is a voluntary program under which customers can elect to participate or not participate depending on their situation and market conditions at the time a request for interruption is issued. The program is quite simple. If a customer elects to participate, the customer is paid a share of the difference between the actual market price and that customer's contract price for each kilowatt-hour it does not use during the period of interruption. 

Depending on the market price for electricity, the payment to customers can reach levels up to $1 per kilowatt-hour for each kilowatt-hour interrupted. By participating in this Program, CES customers not only are able to make money, but they know that their actions help moderate the price of electricity for everyone in New England and help New England avoid rolling blackouts, like those experienced in California, during periods of severe electricity shortages. 

"We are especially pleased that we have been able to develop a program that is available to medium-sized commercial and small manufacturing facilities," said Glenn Poole, the Energy Manager for the International Paper (formerly Champion) mill in Bucksport and a member of the Board of MECC. "Our company has historically participated in this type of program when it was available to the largest electricity users in Maine, and we certainly hope many small and mid-sized customers will join us in participating in this new program." 

The Program was initiated in advance of the traditionally high price months of July and August where peak demands and supply shortages can lead to very high prices of electricity in New England. CES worked hard to design an interruptible program that is easy to participate in, that is voluntary and that provides significant financial incentives to the customer. This Program demonstrates how the competitive market works to lower electricity costs, and how the CES team responds rapidly with new programs to meet the needs of its customers.