Plymouth has signed a new three-year aggregate agreement with the electricity supplier Dynegy Energy Services that should save participating residents quite a bit on their electric bills.
PLYMOUTH – The town has signed a new three-year aggregate agreement with the electricity supplier Dynegy Energy Services that should save participating residents quite a bit on their electric bills.
Town Manager Melissa Arrighi signed the three-year contract, which will collectively save residents enrolled in the program more than $8 million in the next three years.
“We are pleased to offer an energy program that will not only provide price stability and affordability, but also a 100 percent renewable energy option,” Town Manager Melissa Arrighi said. “Our goal with the program was to lock in competitive pricing, provide stability, and offer a green-energy option that will help reduce the impact of climate change.”
“The town has saved with these contracts,” Planning Technician Patrick Farah added. “Over the past three years, participating residents saved $7 million in electricity costs. The expectation is the savings will top $8.4 million over this next three years.”
Participants in the program, whether they are residential or commercial property owners or renters, will pay 9.807 cents per kilowatt hour under the new contract. Competition for suppliers is tough, but aggregate agreements can save towns and their residents money.
We’ll explain that in a moment.
But first, Farah noted that there’s more good news. Customers who want to go green and stick with renewable energy have the option of signing up for this renewable source with Dynegy Energy Services for for 9.897 cents per kilowatt hour; the customer can receive 100 percent green, renewable power instead of the standard plan.
Customers wishing to participate in the optional program must “opt-in” by calling Dynegy directly at 866-220-5696.
“The average residential home uses about 620 kilowatt hours per month, which comes out to about 56 cents more a month if you went with the green product, or about $6.70 more for the year,” Farah said. “That’s 100 renewable and green. It’s wind power.”
Plymouth and many other towns in Massachusetts have signed aggregate agreements with electricity suppliers, other than the ones Eversource uses. In other words, they have a choice to stay with the supplier Eversource uses or choose a different supplier.
In Plymouth, Town Meeting opted to adopt electricity aggregation in the spring of 2017, joining with other communities to sign a three-year agreement with consultant Colonial Power Group to garner energy cost savings for residents. The rationale behind aggregation is simple: strength and savings in numbers. Colonial Power Group shops around for the best rates for the town. In this case, the company found that Dynegy Energy Services was the best choice. Three years ago, Colonial went with another supplier for a significant cost savings.
The program in Plymouth is called the Plymouth Community Choice Power Program.
Residents in the program saved money, as Eversource’s chosen supplier was charging more – 9 percent more overall.
Confusing to some when they see their electricity bill is that it is from Eversource. But Eversource is not a supplier of electricity; it’s a delivery company that owns the pipes, the wires and the systems that deliver electricity.
Eversource charges for this service and makes its money through these delivery charges, not through a markup on electricity. That’s why customers see line items on their bills citing “distribution charge,” “transition charge” or “transmission charge.” Eversource buys electricity and sells it to customers at the same rate the utility pays for it. The utility does not make money on the electricity provided.
Colonial Power Group has successfully signed aggregate agreements with Plymouth, Plympton, Pembroke, Kingston, Halifax and Abington among towns in the area and has more than 60 such agreements with towns throughout the state.
Plymouth residents who are part of the aggregate save money on electricity because the agreement locks the rate at certain lower levels. Residents can opt out of the aggregate participation. However, being part of the aggregate agreement is a financial benefit to residents.
No action will be required by individual consumers, but they will see the new provider on their November bills.
Consumers with questions about the program should call Colonial Power Group at 508-485-5858, ext. 1. Customers will automatically be placed into the program’s standard product offering, unless they choose the green option by calling Dynegry at 866-220-5696.
Customers should also keep in mind that the Eversource Basic Service rates change twice a year or more, depending on rate class. So, the aggregation rate may not always be lower than the Basic Service rate.The goal of the aggregation is to deliver savings over the life of the program against Eversource’s Basic Service.
Being part of this aggregate program doesn’t cost anything; there are no fees or charges to join. And Arrighi stressed that ratepayers can join and leave the program as they choose.
Residents may also visit http://www.colonialpowergroup.com/plymouth as well as call 866-485-5858, ext. 1, to learn more about Plymouth’s Community Choice Power Supply Program or to opt-in or opt-out.