Community Electricity Aggregation Program

As the result of a settlement of a contract dispute between the Town and Public Power, LLC, the electric supplier for the Community Electricity Aggregation Program, the price paid by participants in the Program for electric supply will increase from 10.122 cents per kWh to 10.430 cents per kWh effective with meter reads after September 15, 2018. This new price will remain fixed through the remainder of the term of the Electric Services Agreement which ends in January 2021.

How Does the New Price Compare?

The new price is below prices bid by all other suppliers during the Town’s last competitive solicitation in 2017 and below estimates of a replacement supply in the current market. The new price is also below the current Basic Service rate offered by Eversource, which is 11.397 cents per kWh. The new price represents an increase of approximately $1.80 per month given an average usage of 600 kWh per month.

What Was the Dispute About?

The contract dispute concerned a claim by Public Power that certain unexpected cost increases resulting from a change in regulation should be passed on to consumers under the terms of the Electric Service Agreement.

In response to Public Power’s claim, the Town organized itself with 25 other communities to invoke the dispute resolution procedures under the Agreement. Following combined negotiations and consultation with expert advisors, the parties agreed to a settlement in which a portion of the cost increases would be included in the new price. The Amendment to the Agreement also includes language that prevents the pass-through of similar cost increases in the future.

The Town agreed to the Amendment because it believes the new rate will continue to provide value to participating consumers even with the price increase.

Moving Forward – Fixed Rate of 10.430 Cents per kWh Through January 2021

The Town’s rate will remain fixed at 10.430 cents per kWh through the remainder of the term of the Electric Services Agreement which ends in January 2021.

The Town expects that Eversource’s current Basic Service rate of 11.397 cents per kWh will increase with the winter rate change effective January 1 – June 30, 2019.  However, because the Basic Service rate changes every 3 to 6 months, there is no guarantee that the Program price will be below the Basic Service rate in future periods. All participating customers may leave the Community Electricity Aggregation Program at any time and without penalty.

Further Information

Please go to our dedicated webpage at https://masscea.com/acushnet/ for a rate comparison chart and information about the program.