By Cliff Clark | The Westfield News | cclark@thereminder.com
SOUTHWICK — Representatives from Colonial Power Group explained the benefits of the town’s municipal aggregation program at the Senior Center Monday morning.
“It’s all about choice,” said Mark Cappadona, the president of Colonial Power Group during his presentation to a group of about 50 elderly residents. “The town is bringing you a choice.”
“And the good news is that price (13.3 cents per kWh) is locked in for 35 months,” he said about the Southwick Community Choice Power Supply Program.
He was there with Colonial Power Vice President Diane Allard to explain the two separate mailings residents have received in the last two weeks.
Holding up two envelopes, both different in appearance and message, Cappadona said one was for residents already being billed by Eversource at its basic rate, which is currently 13.49 cents per kWh.
“If you got this,” he said, holding up one of the envelopes, “you don’t have to do anything.”
That “not do anything” means that Eversource customers will automatically be enrolled in the town’s power supply program.
While residents will see a decrease in their electricity costs, Eversource will continue to charge for the transmission and distribution of that power.
“It only affects the supply portion of your bill,” he said.
If a resident wants to opt out, Cappadona said they only need to return the postcard they received, or they can visit Colonial Power’s Southwick page or call 888-875-1711 no later than Nov. 8.
While the rate is locked for 35 months, Cappadona said it is possible that Eversource and third-party suppliers could beat the price during the contract period.
While the energy markets can be unpredictable, he suggested prices won’t necessarily decrease.
“If there are choppy waters and prices start to rise, you’ll still be paying 13.3 cents per kWh,” he said.
If that was to happen, residents can opt out of the program at any time, and if the rates rise above 13.366 cents per kWh, they can opt back in without penalty.
To find the best rates by third-party suppliers Allard suggested checking with Energy Switch Massachusetts.
For those residents who are already purchasing electricity from a third-party supplier, Cappadona stressed they can opt in to the town’s program, but with a caveat.
Check with the supplier to find out if there is an early termination fee.
He also suggested that those residents who use third-party suppliers who don’t charge an early termination fee, that they call and ask it to beat the town’s rate and make the choice that benefits them.
He also warned those using third-party suppliers that at the end of the contract it’s not unusual for those suppliers to slowly increase the price per kWh.
A couple of residents at the meeting asked how the program might affect those who generate electricity using solar power.
Generally, those residents who own their solar panels could still opt in, but those who are leasing to own the panels should check with the leasing company.
He also explained the rates for those who choose to rely on renewal or green energy.
There are two rates, 13.477 cents per kWh which is based on using renewable energy nationwide and 13.561 cents per kWh for renewable energy produced just in the commonwealth.
Allard also reminded everyone there that the 35-month contract rate covers two winters.
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. Colonial chose First Point Power.
The program doesn’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 will charge an additional 0.1 cent per kWh.
Cappadona said that 0.1 cents generates about 60 cents per customer each month.