SOUTHWICK — While the town has adopted a municipal aggregation power program to offer residents an opportunity to lower their electric bills, when it might be implemented is unclear.
“There’s still not enough energy savings to make sense,” said Colonial Power Group Vice President Denise Allard.
In May, the Western Massachusetts division of Eversource filed with the state’s Department of Public Utilities its basic plan for residentialc per kilowatt-hour rates starting on Aug. 1.
Weeks later, the DPU approved the six-month rate at 13.49 cents per kWh, which is 1.7 cent increase from the 11.7 cents per kWh rate residents have been paying since February.
That rate is locked in until Jan. 31, 2026.
“The good news is that you’re only paying 13.49 cents per kWh,” Allard said, which is still one of the most competitive rates in the state.
For example, National Grid’s basic rate will be fixed at 16.05 cents per kWh through Jan. 31.
However, the basic kWh rate for customers of the New Hampshire-based Unitil, which provides power to cities and towns in the north-central region of the state, will be 11.77 cents through Jan. 1. Unitil’s electricity rates are typically some of the highest in the state and nation.
Despite that, Allard said Colonial Power continues to monitor the electricity markets.
She said there could be “some movements” in the market, like a dip below the Eversource rate that would create potential savings for the town’s electricity customers.
If that were to happen, Allard said the town could lock in a rate to start the program on any day.
In December, the town was notified by the state’s DPU 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 kWh, for periods up to six months through the Southwick Community Choice Power Supply Program.
There was an expectation that once the program was approved, Colonial Power and the town would roll out the program.
However, on Feb. 1 Eversource’s kWh rate dipped dramatically to 11.7 cents per kWh, which Allard said was “phenomenal” and the “lowest rate in the state.”
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 chooses the supplier.
Customers who are currently contracting with a third-party supplier for electricity can participate in the program, but to do so they could be charged $150 as an early termination fee.
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 www.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.
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 kWh.
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 in 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.
