HALLOWELL, Maine (AP) — Central Maine Power and Versant Power customers who elect to use the standard offer for electricity will pay lower rates in the coming year.

The Maine Public Utility Commission on Wednesday approved a standard offer for CMP residential customers that reduces the cost of electricity by 12% and overall bills by about 5% after taking into account transmission costs.

The cost reduction for a typical CMP customer amounts to a monthly savings of $4.70, or $56.38 annually, regulators said.

The standard offer approved for Versant customers on Tuesday amounts to a 10% reduction for the electricity, which equates to 3.6% reduction in the total bill after taking into account transmission costs.

The rate reductions are good news for residents “finding it hard to make ends meet” and businesses that are “struggling to keep their doors open,” PUC Chairman Philip L. Bartlett II said.

The rates reflect electricity supply and demand conditions in New England and their impact on wholesale energy markets, he said.