SOUTHWICK — It will be a few more months before the town will open enrollment for the town’s municipal aggregation program because of an unexpected dip in the rate Eversource is currently charging its electricity customers.
“It’s just not advantageous right now with a better rate out there,” Chief Administrative Officer Nicole Parker said as the reason the town is holding off on starting the program right now.
In December, the town was notified by the state’s Department of Public Utilities that it had approved the plan it developed with Colonial Power Group to negotiate with competitive suppliers to lock in electric rates, which have been historically higher than Eversource rate per kilowatt-hour, for periods up to six months through the Southwick Community Choice Power Supply Program,
However, Eversource is currently selling electric power at 11.7 cents per kWh until at least Aug. 1 when it will be allowed by the DPU to adjust its rate, which is only twice a year: August and February.
“It’s a phenomenal rate … the cheapest in the state,” said Colonial Power Group Vice President Denise Allard about the current Eversource rate.
She said the reason for the dip in the rate is that Eversource bought access to the electricity its now selling last November when prices dropped because of the unusually warm fall.
An excellent example of why the town will wait are the rates currently offered by the city of Pittsfield, which is supplied by Eversource at the current 11.8 cents per kWh.
On the city’s municipal aggregation page, there is a note for the first half of 2025.
“Eversource filed their Basic Services Rates in December for the term starting February 1, 2025, and their rate will be $0.11825 per kWh compared to the City’s Aggregation Rate of $0.13849 per kWh, a difference of $0.02024 per kWh,” according to the aggregation page.
It also said residents are free to find an alternative provider — leave the aggregation program — if they want, at no cost or penalty.
In Grafton, which operates it own municipal aggregation program, which means it, and not an outside consultant, negotiates rates with various electricity suppliers, has three rates customers can choose: Basic, considered the lowest price is 13.235 cents per kWh; Energy Choice Standard is 14.035 cents per kWh; and Energy Green Choice is 16.195 cents per kWh.
In May 2023, Town Meeting approved an article that would let the town develop the aggregation program and several months later the Select Board chose Colonial Power Group to represent the town’s interest when negotiating electricity rates with a competitive supplier.
How the program works
Every eligible consumer in the town may participate in the program and all eligible consumers will also be able to decline service through the competitive supplier and choose any other power supply option they wish, including continuing to pay Eversource’s retail rates.
Those eligible consumers will be notified by mail — which the supplier will pay for — of the program once the Select Board choose the supplier.
While Southwick was waiting for the DPU to issue a ruling on its plan, administrative processes were changed to speed up approvals by the agency.
One of those changes was related to electricity customers who already have contracted with a third-party supplier for service.
Before, those customers would not be eligible to participate in the program, but that was changed to allow them to enroll.\
However, many electricity customers who buy power from a third party have signed contracts which penalizes them for early termination.
Allard said the standard early termination fee is $150.
She said electricity customers with third-party contracts should weigh the pros and cons of the town’s program before deciding.
Eligible consumers who are dissatisfied with services provided under the contract negotiated by the town may also communicate directly with the competitive supplier or Colonial Power Group to assist with the implementation of the plan by email at colonialpowergroup.com/contact or by calling 866-485-5858.
Eligible consumers may also opt-out at any time by contacting the competitive supplier. Eligible consumers may also bring issues to the Select Board.
Allard said customers can opt-in or opt-out as often as they please, including monthly.
Every electrical consumer in town will be enrolled automatically in the “standard” plan, at a rate that is negotiated with the supplier by the Select Board.
They will be given the choice to opt-in to an alternative plan, which would typically include a higher share of renewable energy at a higher price per kilowatt-hour.
The Select Board may seek Renewable Energy Certificates, at varying percentages, from a variety of local and national renewable sources, including but not limited to wind, solar, hydro and geothermal power.
The program won’t cost the town anything.
Colonial Power Group makes money from the town’s electricity customers using a predetermined formula of 0.1 cents for every kWh used.
As allowed by the statute, the town can and will charge an additional 0.1 cent per kWh.
Bills will be sent to Eversource by the competitive supplier under contract and will be included into the standard monthly utility billing.
Participating consumers will receive a “complete bill” from Eversource that includes the power supply charge and Eversource’s delivery charges. The bill shall include a clear delineation of all regulated and non-regulated charges.
