By Mike Gleason Daily News Staff Posted Dec 5, 2017 at 7:04 PM
MEDWAY – The town has entered into a municipal aggregation agreement with an energy supplier, saving residents an estimated $215,500 over the first half of 2018.
The town entered into the six-month contract – its first under the new Medway Community Choice Power Supply program – with Constellation NewEnergy of Texas late last week. The state’s Department of Public Utilities approved the local aggregation program in October.
The town worked with energy consultant Colonial Power Group throughout the approval and bidding process. Mark Cappadona, Colonial’s president, said the agreement charges Medway customers about 11.8 cents per kilowatt hour, beginning in January. This represents a savings over the default rate of 13.2 cents per kilowatt hour that Eversource will begin charging in January.
The program has a “green” component as well, using power derived from wind renewable energy certificates.
Although municipal aggregation contracts may be longer or shorter than the six-month standard used by utility companies, Cappadona said this initial agreement avoids the risk of locking into a rate for the long term.
“This provides guaranteed savings for the first six months,” he said. ”(The town) was very happy to have one in the win column.”
Town Administrator Michael Boynton said in a statement that he was excited to help provide savings for residents.
“By aggregating our electricity and seeking competitive bids to get the best price, we are pleased to be able to provide Medway residents that opportunity to have a lower cost energy option while also utilizing a renewable energy source, which is beneficial for our environment,” he said.
According to Cappadona, aggregation has proven quite popular among Massachusetts towns. He noted there are 351 communities in the state, about 150 are participating in such programs. As around 50 towns have their own utility companies and can’t participate, that means half of those eligible to do so seek lower rates in the marketplace.
There will be an informational session about the Medway Community Choice Power Supply program at the Medway Town Hall on Dec. 19 at 7 p.m. Those seeking additional information may also call (866) 485-5858 ext. 1.