How does the PUC set CMP’s delivery prices?
The PUC separately sets the five pieces that make up CMP’s delivery prices. The distribution piece covers the costs of local power lines, meter readers, bucket trucks and so forth. For most customers, this is the biggest piece of CMP’s delivery price. The transmission piece covers the costs of large power lines and substations and is regulated by the Federal Energy Regulatory Commission. The stranded cost piece covers costs of power contracts with small hydro, biomass, waste-burning and nuclear plants that are left over from before CMP became a delivery-only utility (CMP ceased selling energy when that part of the electric business was de-regulated in March 2000). Stranded costs continue to decline. The conservation assessment piece funds energy efficiency initiatives. The Electricity Lifeline Program (ELP) provides assistance to residential customers who qualify for the Home Energy Assistance Program.
