The city has signed a new 24-month contract with electricity supplier Constellation New Energy that will lock in these rates for the next two years, giving participants stability and protection from market volatility, according to officials.
“I’m glad to see that the program is able to provide meaningful cost savings to our residents on their electric bills this winter,” said Mayor Sean Reardon. “The goal of the Program is to lock in a competitive price that provides savings now and that will provide stability for the next two years.”
The city signed a contract for an initial rate of $0.13320 per kWh that lasts through October 2023. The new rate will represent an increase of $9 per month on the supply side of the bill given an average usage of 600 kWh. However, this new rate is 19 percent lower than National Grid’s recently announced Residential Basic Service rate of $0.18213 per kWh. The city projects an average savings of $20 per month for residents participating in the program from November 2023 through July 2024.
Newburyport launched its electricity program in January 2023 in an effort to develop an energy program that would be stable and affordable. From inception through May 2023, the program has saved residents and small businesses over $2.2 million in electricity costs as compared to National Grid Basic Service.
It is important to note that no action will be required by individual consumers. This change will be seen on the December 2023 bills. All accounts currently enrolled in the program will see the new rate and Constellation New Energy printed under the “Supply Services” section of their monthly bill, according to the city.
The Newburyport Community Choice Power Supply Program has no fees or charges. However, anyone switching from a contract with a third-party supplier may be subject to penalties or early termination fees charged by that supplier. Ratepayers should verify terms before switching.
Basic Service rates change twice a year or more, depending on rate class. As a result, 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 National Grid Basic Service. However, such savings and future savings cannot be guaranteed. Participants can opt out of the Community Choice Power Supply Program at any time, and can also opt in again free of charge.
In addition to the city’s program, National Grid has several programs to help income-eligible families and customers needing special assistance meet their energy needs.
To learn more visit: nationalgridus.com/MA-Home/Bill-Help/Payment-Assistance-Programs.
Based in Marlborough, Colonial Power Group is the leading aggregation-consulting firm in Massachusetts. Colonial Power has been working with local governments since 2002 in the design, implementation and management of municipal aggregation programs.
Residents may also visit colonialpowergroup.com/newburyport or call 866-485-5858 ext. 1 to learn more about Newburyport’s Community Choice Power Supply Program or to opt in or opt out.