Cape Light Compact Announces New Pricing

PRESS RELEASE

For Immediate Release: November 20, 2014

CAPE LIGHT COMPACT ANNOUNCES WINTER ELECTRIC PRICE AND URGES CONSUMERS TO “CHILL THEIR BILLS” WITH ENERGY EFFICIENCY

Barnstable, MA – As everyone is aware, electricity prices are headed up this winter. Recent announcements and filings from Massachusetts utilities, including NSTAR, have demonstrated the magnitude of these increases. The Cape Light Compact, in the midst of this challenging market, completed an RFP for its power supply program. At the conclusion of this process, the Compact selected two suppliers – ConEdison Solutions for residential customers and NextEra Energy Services for commercial and industrial (C&I) customers. Starting with December meter reads, the Compact’s price will be 15.371 cents per kilowatt hour for residential customers and 14.3 for commercial customers.

Stephan Wollenburg, the Compact’s Senior Power Supply Planner, noted that last fall the Compact negotiated rates that kept its residential price below others in the region for 2014. “We had a very successful, competitive year,” he said, “but we’re working in a very volatile environment.”

The cost of natural gas for the region’s electric generating plants is what is driving the electric price increases, Wollenburg explained. While natural gas remains at relatively low prices in other parts of the country, dramatically increasing natural gas consumption in New England has not been met with similar increases in the pipeline capacity used to get the gas into the region. This dynamic has driven winter electricity prices to levels not seen before. “It’s crucial for everyone to understand that these winter prices are almost sure to persist for at least a few years,” Wollenburg said. “Unfortunately, the high prices we’re seeing now are not an anomaly.”

“There are things that we can do locally,” Wollenburg said. To help prepare for the winter electricity price spikes the Cape and all of New England are likely to see for the next few years, the Cape Light Compact has launched a “Chill Your Bill” campaign (www.capelightcompact.org/chillyourbill). The campaign is aimed at immediate actions consumers can take for energy efficiency and longer term improvements for homes and businesses. “High electricity prices will affect everyone – there’s no supplier that will be immune,” Wollenburg said. “That makes energy efficiency the most important tool that people have to combat high electricity prices.”

The volatile prices have been accompanied by a marked increase in the number of competitive suppliers marketing to residential customers. “We’ve seen a number of suppliers offering teaser rates – prices that start low, but can skyrocket at the end of the initial period,” Wollenburg noted. “We always encourage customers to be very careful when signing up for a new competitive supplier, and should never do it on the phone. Customers can always reach out to us with questions.” The Compact is also offering a 12-month fixed-price option for residential customers interested in a more stable rate. “All else being equal, longer-term options tend to be a little more expensive than shorter-term rates. These longer-term offers will be lower than 6 month prices during the winter period, but are likely to be more expensive starting in July. Still – it’s an option we want to make available to our customers.”

“Consumers should visit our website www.capelightcompact.org and call for a free energy assessment that will identify the kinds of things they can do to reduce their electric usage,” he said. “The Compact works on consumer’s total bill – in times of high electricity prices, it becomes even more important for people to take advantage of the Compact’s energy efficiency programs.”

November, 2014 Prices

Residential Commercial Industrial
NSTAR 9.379 cents/kWh 9.078 cents/kWh 10.278 cents/kWh
Cape Light Compact 8.892 cents/kWh 8.892 cents/kWh 7.752 cents/kWh

New Pricing

Residential Commercial Industrial
NSTAR 14.972 cents/kWh 14.427 cents/kWh 20.170 cents/kWh
1/1/15-6/30/15 1/1/15-6/30/15 1/1/15-3/31/15
Cape Light Compact 15.371 cents/kWh 14.300 cents/kWh 20.070 cents/kWh
December ’14 -July’15 meter reads December ’14 -July’15 meter reads December ’14 – April ’15 meter reads

For More Information Contact:

Lindsay Henderson – (508) 375-6889

lhenderson@capelightcompact.org

ABOUT CAPE LIGHT COMPACT

Cape Light Compact is an award-winning energy services organization operated by the 21 towns and two counties on Cape Cod and Martha’s Vineyard. The Compact’s mission is to serve its 200,000 customers through the delivery of proven energy efficiency programs, effective consumer advocacy, competitive electricity supply and green power options. For more information, visit www.capelightcompact.org.

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