state of maine report 2017-2018.pdfpetroleum market share act report of the attorney general to the...

18

Upload: others

Post on 22-Sep-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

  • STATE OF MAINE

    OFFICE OF THE ATTORNEY GENERAL

    Aaron M. Frey, Attorney General

    PETROLEUM MARKET SHARE ACT

    REPORT OF THE ATTORNEY GENERAL

    TO THE MAINE LEGISLATURE

    PURSUANT TO 10 M.R.S. § 1677

    FOR THE REPORTING PERIOD

    2017 – 2018

    May 2019

  • 1

    Retail Petroleum Outlets Concentration 10 M.R.S.A. § 1677

    April 2019 I. INTRODUCTION

    This report is provided by the Attorney General to the Legislature pursuant

    to Maine’s Petroleum Market Share Act (“PMSA”), 10 M.R.S.A. § 1677. As

    required by the statute, the report describes the concentration of retail petroleum

    outlets. The concentration levels described in this report reflect conditions in

    Maine as of the end of May 2018. The statute also requires the Attorney General

    to make “a recommendation to the Legislature as to whether additional

    legislation is needed to further limit or curtail the activity of refiners operating

    retail outlets.” The Attorney General does not recommend any legislative

    changes at this point.

    The report focusses on markets for home heating oil and motor fuel oil. In

    general, the geography of petroleum markets is local. In the case of home heating

    oil, the market may encompass an urban area or a segment of a county. Motor

    fuel markets tend to be smaller, in some instances limited to a single

    neighborhood or one side of a busy street. For continuity purposes, our analyses

    retain the longstanding geographic markets developed by the Attorney General

    in the 1990s, when the PMSA reporting first began. The state is divided into 33

    home heating oil (“HHO”) markets and Maine’s 16 counties are used as the motor

    fuel oil (“MFO”) markets.

    As required by the PMSA, home heating oil and motor fuel oil wholesalers

    submit data annually to the Maine Attorney General indicating the annual

  • 2

    gallons supplied to each home heating oil and motor fuel retailer located in

    Maine. Using this data, the Maine Attorney General is able to determine the

    number of retail competitors and their percentage market shares within the pre-

    defined geographic markets.1 10 M.R.S.A. § 1673. Those figures, in turn, allow

    us to calculate where each of the HHO and MFO markets falls on a concentration

    index widely used by federal and state antitrust agencies to assess competitive

    conditions (usually in the context of proposed mergers and acquisitions). The

    Appendices to the Report show the concentration levels, and corresponding

    maps depicting those levels, for each pre-defined market. The tables in the

    Appendices also show concentration numbers for the same markets for the past

    ten years for comparison purposes.

    II. LEVELS OF CONCENTRATION

    A. Methodology

    The methodology employed by the Maine Attorney General to assess

    levels of concentration in Maine’s retail petroleum markets, as reflected in this

    report, is essentially the same methodology used by the U.S. Department of

    Justice, the Federal Trade Commission, and other state Attorneys General in

    evaluating the legality of a given merger or acquisition under applicable

    antitrust law. The Maine Attorney General has employed a similar analysis

    1 It should be noted that the Attorney General collects neither retail nor wholesale price information under the PMSA. Moreover, the data collected from individual wholesalers, which

    is confidential by statute, is aggregated and not identifiable by wholesaler or retailer in this

    report. 10 M.R.S.A. § 1675.

  • 3

    enforcing Maine’s merger law for more than thirty years. 10 M.R.S.A. § 1102-

    A.

    The most important factor affecting competition in a particular market is

    the level of concentration (how many sellers and the size of their market shares).

    The retail level sales volume data the Maine Attorney General receives annually

    from home heating oil and motor fuel oil wholesalers allow us to calculate market

    shares of retailers within a defined geographic area.

    1. Market Definition. The first step in a concentration analysis is to

    determine the relevant product and geographic markets. This report focusses

    on two product markets, home heating oil and motor fuel oil. Home heating oil

    is defined as “#2 fuel oil sold for heating residential, industrial or commercial

    space or water.” 10 M.R.S.A. § 1672(3). Motor fuel “means internal combustion

    fuel sold for use in motor vehicles,” as more fully defined in 29 M.R.S.A. §

    101(42). 10 M.R.S.A. § 1672(4).

    Determining geographic markets for this report is less straightforward.

    For the purposes of this report, we are not looking to identify the geographic area

    within which two merging companies operate, as we would if we were reviewing

    a proposed merger. Rather, we are dividing the state into a series of geographic

    markets to obtain a very broad snapshot of competition in the petroleum

    industry and trends across the entire state.

    The Maine Attorney General has taken different approaches to defining

    geographic markets for home heating oil and for motor fuel oil. At the time the

    Attorney General initially began preparing these reports, we conducted a series

  • 4

    of interviews with a number of persons knowledgeable in the petroleum industry

    in Maine. On that basis, we divided the state into 33 separate geographic

    markets intended to approximate economic and competitive circumstances

    relative to home heating oil sales. Motor fuel markets are generally more

    localized than home heating fuel markets. However, since our task is not to

    analyze a specific local merger, but rather to portray broad trends in levels of

    concentration across the state, we use county-wide markets. Markets are not

    static, of course, and economic and competitive factors over time might lead to

    slightly different geographic market selections today. Nonetheless, we have

    retained the original geographic markets to be able to compare concentration

    trends over time within consistent geographic areas.

    Importantly, these geographic market depictions are not used to analyze

    individual mergers or acquisitions in Maine. Each individual merger or

    acquisition proposal will require an evaluation of the unique competitive and

    economic circumstances in the areas within which both companies operate.

    2. Herfindahl-Hirschman Index. Market concentration is a well-

    accepted tool for evaluating competitiveness within identified markets. As a

    general rule, the fewer the competitors, and the higher those competitors’ market

    shares, the more concentrated (and less competitive) the market. Federal and

    state antitrust agencies (including the Maine Attorney General) employ the

    Herfindahl-Hirschman Index (“HHI”) to measure market concentration.2 The

    2 DOJ/FTC Horizontal Merger Guidelines (rev. ed. 2010)(available at

    https://www.justice.gov/atr/horizontal-merger-guidelines-08192010).

  • 5

    HHI concentration index is arrived at by squaring the market shares of all the

    competitors in a given market. This simple mathematical device expresses the

    insight that market power increases exponentially in proportion to market share.

    Federal antitrust guidelines used by the Maine Attorney General in merger

    enforcement indicate that a market with an index of 1000 or less should be

    viewed as unconcentrated (and therefore likely to function competitively).3 A

    market with an index between 1000 and 1800 is described as moderately

    concentrated; while any index over 1800 is termed highly concentrated.4 A

    market in the highly concentrated category is subject to a high degree of market

    power, unless the effects of high concentration are mitigated by other factors,

    such as ease of entry for a new competitor.

    Our analysis of levels of concentration in home heating oil markets tracks

    the categories reflected in federal guidelines. Thus, a home heating oil market

    with an index below 1000 is “unconcentrated,” 1000-1800 is “moderately

    concentrated,” and 1800-2500 is “highly concentrated.” Markets above 2500

    points are referred to as “extremely concentrated.”

    For our designated motor fuel markets, we have adjusted the

    concentration index to reflect the fact that the large, county-level geographic

    markets inevitably understate levels of concentration. Thus, for motor fuel, an

    index below 500 is “unconcentrated,” 500-1000 is “moderately concentrated,”

    3 For example, ten firms with market shares of 10% each would yield an index of 1000 (10 squared x 10). 4 For example, a market comprising five firms with market shares of 20% each would yield

    an index of 2000 (20 squared x 5).

  • 6

    and 1000-1800 is “highly concentrated.” Markets above 1800 points are referred

    to as “extremely concentrated.”

    Appendix A lists the geographic markets within which we measure

    concentration at the retail sales level for both home heating oil and motor fuel

    oil. The HHO markets map depicts the relative concentrations in the 33

    designated home heating oil geographic markets, based on the latest analysis of

    data from wholesalers. The MFO markets map depicts the relative

    concentrations based on the latest analysis of county-wide retail motor fuel

    markets. Again, these geographic market depictions are not used to analyze

    individual mergers or acquisitions in Maine. The tables in Appendix B contain

    the latest HHI concentration analyses within both home heating oil and motor

    fuel markets, as well as concentration comparisons in those markets over the

    last ten reporting years.

    B. Overview - Retail Home Heating Oil Markets.

    Overall, concentration levels in Maine’s home heating oil markets have

    remained relatively consistent. We note that some variations from last year are

    due to refinement/corrections made to the database compilation process (e.g.

    the higher concentration in Market 19 for this report as compared to the last

    report is due not to a substantive change in concentration but rather due

    primarily to a wrong address for a retailer in the prior reporting period).

    As was the case for the last reporting period, only one market achieved

    the unconcentrated designation - this time in southern coastal Maine between

    Kennebunk and Old Orchard Beach. The greater Augusta area saw a slight

  • 7

    decrease in competition, moving from unconcentrated to moderately

    concentrated. Generally speaking, the more competitive home heating oil

    markets (either unconcentrated or moderately concentrated) are located in the

    more densely populated areas of the state, such as those in reasonable

    proximity to the state’s major north-south highway (south of Waterville, at

    least), including greater Portland, Lewiston/Auburn, Biddeford/Saco, and

    Augusta. The greater Belfast coastal area is also among the more competitive

    markets in the state, as is central Penobscot County.

    The markets stretching from Waterville - Pittsfield – Bangor – Ellsworth

    to the coast, as well as the southern Penobscot and Hancock County areas, are

    moderately concentrated. These areas roughly follow the turnpike from

    Waterville through Bangor/Old Town then southeast (through Ellsworth to the

    coast. Similar to last year’s report, the least densely populated regions of the

    state, such as Northern and Downeast Maine, generally fall into the least

    competitive, extremely concentrated designation.

    Multiple home heating oil markets bordering or in reasonable proximity

    to New Hampshire remain depicted as among the most concentrated, or least

    competitive. However, since we don’t collect data pertaining to retailers based

    in New Hampshire who deliver in Maine, those regions may be more

    competitive than our maps depict.

    While, in general, concentration levels have remained relatively

    consistent, there are several markets that have shifted noticeably. The most

    notable shifts were improvements in two markets experiencing 2,000+ point

  • 8

    reductions in concentration levels, namely Market 7 (around Old Town and

    Orono), and Market 24 in the Gray/New Gloucester area.

    C. Overview - Retail Motor Fuel Oil Markets.

    The concentration levels for the county-wide motor fuel markets have not

    shifted significantly since the last report. Three counties remain extremely

    concentrated (Knox, Oxford, and Piscataquis), though Lincoln County improved

    from extremely to highly concentrated. Piscataquis County bears note in that

    it experienced a dramatic 2,500-point decline in concentration level, even

    though it is still extremely concentrated.

    All three southernmost coastal counties, namely, Cumberland,

    Sagadahoc, and York became more competitive shifting from highly to

    moderately concentrated since the last reporting period. Franklin and Hancock

    Counties retain their relatively competitive moderately concentrated levels.

    III. RECOMMENDATION

    The Attorney General is required to recommend whether additional

    legislation is needed to further limit or curtail the activity of refiners operating

    retail outlets. We do not recommend any changes on that basis, since there

    are no refiner retail operations in Maine in either home heating oil or motor fuel

    oil. Further, we recommend no changes to the law because it works relatively

    well for the Office as a starting point in merger enforcement. The ready

    availability of sales data from wholesalers enables the Attorney General to

    evaluate competitive conditions surrounding proposed mergers and

  • 9

    acquisitions in the petroleum industry much more quickly than we would be

    able to if the data were not required under the PMSA. This makes merger

    enforcement in this area more nimble for the Attorney General, and less

    burdensome for companies wishing to engage in merger or acquisition

    transactions in the Maine petroleum industry.

    * * *

  • APPENDIX A

    HHO MARKETS

    1. St. John Valley

    2. Ashland/Presque Isle

    3. Houlton

    4. Lincoln

    5. Woodland/Calais

    6. Cherryfield/Machias

    7. Old Town

    8. Ellsworth

    9. Bangor

    10. Dover-Foxcroft

    11. Pittsfield/Newport

    12. Belfast

    13. Rockland

    14. Mid Coast

    15. Augusta

    16. Waterville

    17. Skowhegan

    18. Jackman/Greenville

    19. Farmington

    20. Jay

    21. Lewiston/Auburn

    22. Bath/Brunswick

    23. Portland

    24. Gray

    25. Paris

    26. Rumford/Rangeley

    27. Bethel

    28. Bridgton

    29. Limerick

    30. Sanford

    31. Biddeford/Saco

    32. York

    33. Mt. Desert

    MFO MARKETS

    Androscoggin

    Aroostook

    Cumberland

    Franklin

    Hancock

    Kennebec

    Knox

    Lincoln

    Oxford

    Penobscot

    Piscataquis

    Sagadahoc

    Somerset

    Waldo

    Washington

    York

  • T6 R13 WELS

    T5 R12 WELSChesuncookTwp

    T6 R12 WELS

    FrenchtownTwp TA R11WELS TA R10WELS

    BigTwentyTwp

    T10 R10WELS

    T9 R15WELS T9 R10WELS

    T8 R17WELS

    T7 R18WELS T7 R7WELSTroutBrookTwp

    SaintJohn Twp

    T11 R15WELS ClaytonLake Twp T11 R13WELS T11 R12WELS T11 R11WELS T11 R10WELS

    Big Ten Twp T10 R16WELS T10 R15WELS T10 R14WELS T10 R13WELS T10 R11WELS

    T9 R18 WELST9 R17WELS T9 R16WELS T9 R14WELS T9 R13WELS

    T8 R18WELS

    T4 R5 NBKP

    NortheastCarry Twp

    T6 R6WELS

    West MiddlesexCanal Grant Twp

    T5 R19 WELST5 R18WELS

    T4 R7WELST4 R9WELSPlymouthTwpPittstonAcademyGrant

    HammondTwpT3 R10WELS T3 R7WELS

    TB R11WELSTB R10WELS

    Greenville

    Bowdoin CollegeGrant East Twp

    T1 R9WELST1 R11WELS

    ShawtownTwp

    T5 R17WELS NesourdnahunkTwpT5 R11WELSRussellPond Twp T5 R9WELS T5 R7WELST5 R14WELS

    ComstockTwpT4 R17WELS

    ElmStreamTwp

    T8 R14WELS EagleLake TwpT8 R15WELST8 R16WELS T8 R10WELS T8 R9WELS T8 R8WELSSoperMountainTwp T8 R7WELS

    T7 R15WELST7 R16WELST7 R17WELS T7 R14WELS T7 R12WELS T7 R11WELST7 R13WELS T7 R10WELS T7 R9WELS T7 R6WELST6 R18WELS T6 R10WELST6 R17WELS T6 R11WELS T6 R8WELST6 R15WELS T6 R14WELS

    MountChase

    T4 R15 WELSDoleBrookTwpT4 R14WELS T4 R11WELST4 R12WELST4 R13WELS

    T4 R10WELS

    T3 R13WELS T3 R12WELSLobsterTwpT3 R11WELSPrentiss TwpT4 R4 NBKP

    HerseytownTwpT2 R9WELSTX R14 WELS

    Days AcademyGrant Twp T1 R6WELSSpencerBay TwpLily BayTwp

    BlakeGore AlderBrookTwpSoldiertownTwp T2R3 NBKP

    T2 R8WELSRainbowTwpT2 R12WELST2 R13WELSBald MountainTwp T4 R3SandyBayTwpT1 R12WELST1 R13WELS

    T1 R8WELS

    T19 R12WELS MadawaskaFrenchvilleSaintAgatha

    T17 R3WELS

    T16 R5WELST16 R13WELS

    T15 R14WELS T15 R8WELS

    T12 R10WELS

    WestmanlandT15R15WELST15 R6WELST15 R13WELS T15 R11WELST15 R12WELS T15 R10WELS WintervillePltT15 R9WELS

    T14 R15WELS T14 R13WELS T14 R11WELS T14 R10WELST14 R12WELS

    T13 R16WELS

    GrandIsleFortKentT18R10 WELST18 R12WELS

    T18R13WELSSaintFrancis

    VanBurenSaintJohn Plt CrossLake TwpNewCanadaWallagrassT17 R14 WELST17 R13WELS T17 R12WELSAllagash CyrPltStockholmMadawaskaLake TwpT16 R6WELSEagleLakeT16 R14WELS T16 R8WELST16 R12WELS T16 R9WELS

    NewSweden

    T13 R15WELS T13 R14WELS T13 R12WELS T13 R11WELS T13 R10WELS

    T12 R14WELS T12 R13WELS T12 R12WELS T12 R11WELS

    T11 R16WELS

    T12 R17WELS T12 R15WELS

    T9 R12WELS

    T8 R11WELS

    T7 R19WELS

    Big SixTwp

    T5 R20 WELS

    Little W Twp

    T2 R10WELS

    T1 R10WELS

    T3 R8 WELS

    PiscataquisCounty IslandBeaverCove

    SeboomookTwp

    Big W Twp

    SinclairTwp

    MountKatahdinTwp

    T5 R15WELS

    T8 R19 WELS

    T7 R8WELS

    East MiddlesexCanal Grant Twp

    T14 R14WELS

    T15 R5WELS

    T14 R16 WELS

    T18 R11WELS

    Hamlin

    T13 R13WELS

    T12 R16WELS

    T19 R11WELS

    T11 R17WELS

    T10 R12WELS

    T9 R11WELS

    Bowdoin CollegeGrant WestTwp

    T8 R6WELS

    T6 R7WELS

    T5 R8WELS

    Patten

    Stacyville

    SoldiertownTwp T2R7 WELSGrindstoneTwp

    T4 R8WELS

    WestForks Plt MoxieGoreLowerEnchantedTwp

    JohnsonMountain Twp

    FlagstaffTwp Bald MountainTwp T2 R3Caratunk

    HighlandPltPleasantRidge Plt

    SandwichAcademyGrant TwpHolebTwp

    IndianStream TwpChaseStreamTwp

    AppletonTwpHobbstownTwp MooseheadJunction Twp

    CovePoint TwpT5 R6BKPWKR SquaretownTwp

    MiseryTwpT5 R7 BKP WKR

    UpperEnchantedTwp

    ParlinPond TwpBradstreetTwp

    MooseRiverDennistownPltForsythTwp

    KineoTwpLongPond TwpJackmanAtteanTwp PiscataquisCounty IslandSaplingTwp

    BigMooseTwp

    ThorndikeTwp BrassuaTwp

    T3 R5BKPWKRKing& BartlettTwp

    EastMoxieTwpThe ForksPltBowtownTwp

    CarryingPlace TwpCarryingPlaceTown TwpDeadRiver Twp

    PiercePond TwpT3 R4BKPWKR

    Taunton &RaynhamAcademy Grant

    RockwoodStrip T1R1 NBKP SandbarTract TwpMiseryGore Twp

    MayfieldTwpMoscow

    TomheganTwpRockwoodStrip T2R1 NBKP

    BigelowTwp

    HarfordsPoint Twp

    Ashland

    T10 R8WELS BlaineCoxPatent

    T11 R4WELST11 R9WELS T11 R7WELSWestfieldT10 R9WELS T10 R3WELSScopanTwpMasardisT10 R6WELST10 R7WELS ETwp

    T9 R8WELST9 R9WELS BridgewaterT9 R3WELST9 R4WELST9 R7WELS T9 R5WELS TD R2WELS

    WashburnWade

    PresqueIsleMapletonNashvillePlt

    WoodlandPerhamT14 R5WELST14 R9WELS T14 R8WELS T14 R6WELST14 R7WELS

    FortFairfield

    ConnorTwp

    T13 R9WELS

    T12 R9WELS T12 R8WELS CastleHillT12 R7WELSEaston

    ChapmanT11 R8WELS GarfieldPltMarsHill

    T13 R8WELS T13 R5WELSPortageLakeT13 R7WELS

    LimestoneCaribou

    Caswell

    OxbowNorth Twp

    Strong

    SalemTwp FreemanTwpPhillips

    Avon

    CarrabassettValleyRedingtonTwp

    NewPortland

    WymanTwp

    KibbyTwp

    GorhamGore

    SkinnerTwpMerrillStrip Twp

    KingfieldMountAbramTwp

    Eustis

    Jim PondTwp

    NewVineyard

    MadridTwp

    WeldFarmingtonTemple

    NewSharon

    Township6 Northof Weld

    PerkinsTwpCarthage Wilton

    WashingtonTwp

    Industry

    CoplinPlt

    LowelltownTwpBeattieTwp

    T4 R3 WELSLinneus

    CaryPltAmityT3 R3WELS

    Merrill Ludlow HoultonNewLimerick

    TA R2WELSForkstownTwpSherman T3 R4WELS

    DyerBrookHersey Hodgdon

    T8 R3WELST8 R5WELS MonticelloTC R2WELSDudleyTwpT7 R5WELS LittletonHammond

    MoroPlt

    Oakfield

    IslandFallsCrystal

    HaynesvilleGlenwoodPlt

    WestonUpperMolunkusTwpNorth YarmouthAcademyGrant Twp

    OrientBenedictaTwp SilverRidge TwpT2 R4WELS

    BancroftTwpReedPlt

    Smyrna

    T1 R5WELS

    SaintCroix Twp

    WebbertownTwp

    Livermore

    CantonJay

    LivermoreFallsHartford

    Chesterville

    Lincoln

    TA R7 WELSMolunkusTwpMedway DrewPltVeazieGore

    Prentiss TwpT7 R3NBPPCedarLake Twp WebsterPltCarrollPltT2 R8NWP SpringfieldSeboeisPlt Lee

    HopkinsAcademyGrant TwpLong A TwpWoodville

    PukakonTwp

    MillinocketT4 IndianPurchaseTwp

    MacwahocPltT3 IndianPurchase TwpEastMillinocket

    MattamiscontisTwp

    Lagrange PassadumkeagEdinburg

    T3 R1NBPPEnfieldHowland BurlingtonLowell

    Lakeville

    T2 R9 NWP

    KingmanTwp

    Maxfield

    Mattawamkeag

    WinnChester

    Greene

    Lewiston

    Wales

    Sabattus

    MonmouthTurner

    MinotMechanicFalls Auburn

    Poland Lisbon

    Durham

    Leeds

    Grand LakeStream PltT6 NDBPPSakomTwpCalaisT43 MDBPP

    RobbinstonGreenlawChopping Twp

    Crawford CharlotteT36 MDBPP CooperDennysville

    ForestTwpT11 R3 NBPP

    CodyvillePlt

    T42 MDBPP

    VanceboroBrooktonTwpT8 R3NBPP LambertLakeTwp

    ForestCity TwpDanforthT8 R4NBPP

    TopsfieldKossuthTwpWaiteTalmadge FowlerTwpT6 R1NBPP

    T37 MDBPPMeddybempsT26 EDBPP

    PrincetonBigLakeTwp

    IndianTwpRes

    CathanceTwp

    WhitingTrescottTwp

    EastportEdmundsTwp

    Pembroke

    Alexander

    Lubec

    BaringPlt

    Baileyville

    Perry

    DyerTwp

    PleasantPoint

    TopshamBrunswick Bath

    PhippsburgFreeport

    BowdoinhamBowdoin DresdenWoolwich

    WestBath ArrowsicYarmouthHarpswell Georgetown

    Northfield

    CentervilleTwpT19 MD BPP

    T19 EDBPPWesleyBerryTwp

    DevereauxTwpT28 MDBPP T25 MDBPP MarionTwp

    MachiasJonesboro MachiasportColumbia

    WhitingMarshfieldWhitneyville

    RoqueBluffsJonesport

    ColumbiaFallsHarringtonMilbridge

    WinterHarbor

    Addison

    Gouldsboro

    Cutler

    T24 MDBPP

    Beals

    Beddington

    SteubenSullivan

    CherryfieldT10 SDBPP

    T18 MDBPP

    T30 MDBPP

    EastMachias

    DayBlockTwp

    T22 MDBPPDeblois

    T9 SD BPP

    T16 MDBPP

    T7 SD BPP

    YarmouthCumberlandFalmouth

    Westbrook

    FreeportPownal

    Portland

    ChebeagueIslandLongIsland

    NorthYarmouth

    SouthPortlandCapeElizabethScarborough

    GreenfieldTwpGreatPondT32 MD BPP

    T39 MD BPPArgyleTwp T40 MDBPPAlton

    GrandFalls TwpSummitTwp

    MilfordOldTown

    Greenbush T41 MDBPP

    Amherst

    T35 MDBPP

    OqitonTwpT3 NDBPP

    IndianIsland

    Bradley AuroraOrono

    T34 MDBPP

    FryeIslandStandish

    Gray

    Windham

    NewGloucester

    Buxton

    Raymond

    Gorham

    Ellsworth

    OtisDedham Eastbrook

    OsbornMariaville

    SorrentoTrentonSurryPenobscot

    VeronaIsland

    Sedgwick

    Castine

    TremontBrooklin

    SwansIslandNorthHaven

    Vinalhaven

    Frenchboro

    Brooksville

    DeerIsle

    Isle au Haut

    BlueHill

    Stonington

    Bucksport

    OrlandFletchersLanding Twp FranklinHancock

    Lamoine

    Waltham

    Clifton

    WestParis

    Hebron

    BuckfieldParisNorway

    Sumner

    Oxford

    Hermon Bangor Eddington

    Kenduskeag

    Newburgh

    VeazieCarmel

    HampdenBrewer

    HoldenOrrington

    GlenburnLevant

    RangeleyAdamstownTwpRangeleyPltRichardsontownTwp

    Tim PondTwp

    DavisTwpLowerCupsupticTwpParkertownTwp

    LincolnPltSandyRiver Plt

    CoburnGore

    LangTwp

    MerrillStrip Twp

    AlderStreamTwpParmacheneeTwp

    Chain ofPonds TwpBowmantownTwp

    StetsontownTwp

    SevenPondsTwp

    TownshipEMagallowayPlt

    CSurplusAndove

    r NorthSurplus

    TwpRoxbury

    TownshipDTownshipCByronUpton

    AndoverMexico

    Rumford

    Peru

    Dixfield

    UpperCupsupticTwpLynchtownTwp

    MassachusettsGore

    DallasPlt

    OxbowTwpDover-Foxcroft

    Sangerville

    Sebec

    CharlestonWellington GarlandDexterHudsonCorinthHarmony Exeter

    Katahdin Iron Works TwpElliottsvilleTwp

    Bradford

    T4 R9NWP

    ShirleyBarnardTwpBowerbankWillimantic

    CambridgeRipley

    GuilfordAbbot OrnevilleTwpKingsburyPlt

    Monson MedfordBlanchardTwp

    Corinna

    Milo

    Atkinson

    LakeView PltBrownville

    EbeemeeTwp

    Parkman

    WilliamsburgTwp

    T7 R9NWP

    Bethel

    MasonTwpWoodstock

    RileyTwp Hanover MiltonTwp

    BatcheldersGrant Twp Greenwood

    Gilead

    Newry

    GraftonTwpAndover WestSurplus Twp

    StonehamAlbanyTwp

    PlymouthDetroit

    HartlandPalmyra

    StetsonNewport

    DixmontTroy

    Etna

    Unity Thorndike

    Burnham

    SaintAlbans

    Pittsfield

    Denmark

    HarrisonBridgton

    Stow Lovell

    OtisfieldFryeburg

    Sweden

    Brownfield

    Porter

    CascoNaples

    SebagoHiram

    Baldwin

    Waterford

    MorrillWaldo

    Knox Brooks Swanville

    Belfast

    WinterportMonroeJackson Frankfort

    MontvilleFreedom

    Prospect

    SearsmontLiberty Belmont

    StocktonSpringsSearsport

    NorthportIslesboro

    Parsonsfield

    NewfieldLimerick

    Limington

    Waterboro

    Cornish

    Hollis

    ShapleighActon

    HopeUnion

    Appleton Lincolnville

    SouthThomastonOwlsHead

    RockportRockland

    SaintGeorgeMuscleRidge Twp

    Friendship

    CriehavenTwp

    Thomaston

    NorthHaven

    Vinalhaven

    Camden

    Washington

    Cushing

    MatinicusIsle Plt

    Warren

    LymanAlfred

    Sanford

    Dayton

    Lebanon

    DamariscottaNewcastleAlna Nobleboro

    Waldoboro

    Whitefield

    Bremen

    Georgetown

    MonheganIsland Plt

    Bristol

    BoothbayHarbor

    Dresden

    Edgecomb

    Wiscasset

    BoothbayWestportIsland

    SouthBristol

    Jefferson

    Perkins Twp Swan Island

    Southport

    Biddeford

    KennebunkportArundel

    Kennebunk

    SacoOld OrchardBeach

    Manche

    ster

    Augusta

    ChelseaFarmingdaleHallowell

    Fayette

    Rome

    Vassalboro China PalermoReadfield

    Randolph

    WindsorWinthrop HibbertsGore

    LitchfieldRichmond

    Belgrade

    Somerville

    Pittston

    SidneyMountVernon

    Vienna

    GardinerWestGardiner

    Wayne

    SouthBerwick Ogunquit

    Kittery

    NorthBerwick

    Eliot

    Berwick

    York

    Wells

    FairfieldBenton

    AlbionWinslowWaterville

    UnityTwpOakland

    Clinton

    SouthwestHarbor

    MountDesertBar HarborTrenton

    CranberryIsles

    Tremont

    Gouldsboro

    SolonEmbden

    CornvilleMadison

    ConcordTwpLexingtonTwpAthens

    AnsonCanaanSkowhegan

    Norridgewock

    MercerSmithfield

    Starks

    BrightonPltBingham

    19

    18

    1716 12

    26

    202725 21

    29 24

    31

    1528

    11

    30

    10

    6

    4 5

    31

    2

    79

    833

    2213

    23

    32

    14

    1£¤1

    £¤201

    £¤2

    £¤1

    £¤1A £¤1

    £¤202

    £¤1A

    §̈¦95

    §̈¦295

    ®

    0 25 5012.5 Miles

    HOME HEATING OIL MARKETS2017 - 2018

    NHS - InterstateNHS - OtherNHS - Intermodal connector , US Routes

    0 - 1000 Unconcentrated1001 - 1800 Moderately1801 - 2500 HighlyOver 2500 Extremely

    HHO Market AreasBoundaries and Numbers

  • £¤201

    £¤2

    £¤202

    £¤2

    £¤302

    £¤201A

    £¤1

    £¤2A

    £¤1A

    £¤1

    £¤1A

    £¤1A

    §̈¦195

    §̈¦295

    §̈¦495

    §̈¦95 §̈¦395

    A n d r o s c o g g i n

    A r o o s t o o k

    C u m b e r l a n d

    F r a n k l i n

    H a n c o c k

    K e n n e b e c

    L i n c o l n

    P e n o b s c o t

    S a g a d a h o c

    S o m e r s e t

    W a l d o

    W a s h i n g t o n

    Yo r k

    K n o x

    O x f o r d

    P i s c a t a q u i s

    ®

    0 25 5012.5 Miles

    MOTOR FUEL OIL MARKETS2017 - 2018

    NHS - InterstateNHS - OtherNHS - Intermodal connector , US Routes

    0 - 500 Unconcentrated501 - 1000 Moderately1001 - 1800 HighlyOver 1800 Extremely

  • APPENDIX B

    HHI DATA TABLES

    HHO & MFO Concentration by Market Area 2008 to 2017

  • HHO MARKET CONCENTRATION

    Home Heating Oil by HHO Market

    Market Area 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

    inc/dec from

    previous yr

    01. St. John Valley 3736 3624 3388 3889 3834 4134 3434 3242 3391 3455 64

    02. Ashland /Presque Isle 3147 3041 2905 2962 3618 3707 3348 3351 3751 3808 57

    03. Houlton 4200 4074 3762 3338 6568 3917 3725 3168 3194 4092 898

    04. Lincoln 1767 1502 1431 1576 1776 1594 1584 1490 1316 1593 277

    05. Woodland /Calais 4507 2759 2893 3353 4491 3167 3071 3154 3103 2821 -282

    06. Cherryfield / Machias 3616 5040 3002 2918 2568 3198 2444 2625 2012 2544 532

    07. Old Town 1886 1892 2025 2427 2680 1725 1564 3822 4439 1952 -2487

    08. Ellsworth 1954 1668 1139 1894 1812 1664 1536 1487 1446 1817 371

    09. Bangor 1156 1030 3046 1524 4153 1701 1063 1741 1538 1831 293

    10. Dover-Foxcroft 3447 3042 3152 4528 3838 3680 3791 2819 3242 3399 157

    11. Pittsfield / Newport 1826 1834 1777 2215 2167 2216 3687 1947 2172 2394 222

    12. Belfast 1994 1962 1634 1916 1230 1100 1398 1007 1486 1109 -377

    13. Rockland 1576 1889 1947 2340 2088 1728 1721 2647 2157 2104 -53

    14. Midcoast 1931 3001 2525 3101 2886 3366 3163 2755 1972 1880 -92

    15. Augusta 987 1010 1449 1144 995 849 857 911 850 1370 520

    16. Waterville 1621 1647 1865 1758 1881 2190 1950 2231 2275 2311 36

    17. Skowhegan 3536 2688 2255 2397 2485 1863 2162 2525 2688 2724 36

    18. Jackman /Greenville 3298 5694 6328 5938 5441 5450 8681 8002 8214 8305 91

    19. Farmington 2594 2220 3796 3618 2305 2531 2702 1654 2404 2110 -294

    20. Jay 5382 6205 5000 5200 5128 5913 5190 3282 4137 4436 299

    21. Lewiston /Auburn 1500 1249 1139 2327 2013 1846 2212 2247 1574 1553 -21

    22. Bath / Brunswick 2056 3191 2505 1661 2361 4064 2258 2214 2138 1918 -220

    23. Portland 1212 964 1140 1261 1234 1420 1772 1520 1250 1186 -64

    24. Gray 1974 2321 2397 2868 3922 1585 3061 3429 4043 2018 -2025

    25. South Paris 3893 5806 4542 4152 3958 1684 3982 3492 3498 3532 34

    26. Rumford /Rangeley 1752 1850 1427 1789 1861 2295 1541 2565 2638 2016 -622

    27. Bethel 5014 2882 4072 3869 4550 2330 8022 10000 10000 10000 0

    28. Bridgton 2774 2728 2507 2126 2123 2550 2297 1182 1132 1936 804

    29. Limerick 2187 2467 2463 2602 2953 2833 2760 2237 2813 2543 -270

    30. Sanford 3571 4930 3043 6273 4146 3102 2999 3377 3191 2485 -706

    31. Biddeford /Saco 2004 2150 2228 1932 1582 3805 1204 1601 1236 915 -321

    32. York 2626 3550 3632 5098 7906 4574 7654 4428 5420 5071 -349

    33. Mt. Desert 4320 3339 2432 2942 3664 9234 3635 3030 2714 3554 840

    0 - 1000 unconcentrated

    1001 - 1800moderate

    1801 - 2500high

    over 2500 extreme

  • MFO MARKET CONCENTRATION

    Motor Fuel Oil by County

    Market Area 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017(rev)

    2017-2018 inc/dec from

    previous yrAvg Median

    Androscoggin 1077 745 694 796 897 2051 872 1399 989 1528 539 1105 1474

    Aroostook 1375 1477 1146 981 1285 1137 1021 1301 1480 1642 162 1285 1211

    Cumberland 741 537 447 493 697 693 644 1103 748 874 126 698 695

    Franklin 991 887 932 1060 1027 988 874 819 840 944 104 936 1008

    Hancock 820 657 452 570 797 661 640 925 915 830 -85 727 729

    Kennebec 1015 619 750 740 767 709 768 895 889 1093 204 825 738

    Knox 1459 2445 1850 2082 2256 2020 2279 2417 2319 3102 783 2223 2138

    Lincoln 1899 900 846 931 858 816 762 1966 1459 1579 120 1202 837

    Oxford 2060 1775 1628 1534 2014 1724 1702 2012 1815 1995 180 1826 1869

    Penobscot 1157 667 581 1098 804 591 824 1148 959 1045 86 887 698

    Piscataquis 3046 3917 8135 5149 4552 3868 3387 5516 5599 3038 -2561 4621 4210

    Sagadahoc 1364 3337 1136 1120 998 991 992 1027 929 966 37 1286 995

    Somerset 769 556 588 547 440 436 577 1576 1314 1097 -217 790 438

    Waldo 819 804 404 621 775 548 590 1461 1125 1200 75 835 662

    Washington 1042 500 489 558 621 617 610 1455 1299 1222 -77 841 619

    York 1240 606 690 820 774 878 768 1135 1058 871 -187 884 826

    (year = July 1 - May 31; example: 2017 = July 1, 2016 - May 31, 2017)

    0-500 Unconcentrated

    501-1000 Moderately

    1001-1800Highly

    Over 1800Extremely

    PMSA Letter of the AG 5.1.2019PMSA Report of the AG - May 20191 - Annual Report Cover PMSA 2017-2018 (002)2 DRAFT 2017-2018 report narrative 2 (002)3 - 2019 PMSA Report to Legislature5 2 APPENDIX A for RPT 20196 HHO markets w highways7 MFO 2017-2018 map w highways8 APPENDIX B for rpt 20199 Copy of 2008-2018 HHO Indices of Concentration10 Copy of 2008-2018 MFO Indices of Concentration