FOR MORE INFORMATION PLEASE CONTACT
Stephan Wollenburg (508) 375-6623
For Immediate Release: December 9, 2013
Cape Light Compact Announces Power Supply Prices for 2014
Barnstable, MA, December 9, 2013 –Cape Light Compact is pleased to announce its prices for calendar year 2014. The power supply price for calendar year 2014 for residential customers and small commercial/industrial (“commercial”) customers is 9.090 cents per kWh. The power supply price is 11.27 cents per kWh for medium and large commercial/industrial (“industrial”) customers for the January through July 2014 time period.
Electricity prices, including Cape Light Compact’s, are higher than the previous six months for two reasons. First, the price of electricity in New England is based on the delivered price of natural gas into the region. While natural gas prices (the “commodity”) have risen slowly over the last two years, the cost to deliver natural gas into New England (the “basis”) has skyrocketed. During periods of high demand, such as in the winter when natural gas is used for heating as well as for electricity generation, the infrastructure delivering natural gas into the region is strained, resulting in high and very volatile basis prices during the peak winter months.
This situation is coupled with an additional pricing stress this year as a result of a program approved by Federal Energy Regulatory Commission (“FERC”) which will be implemented by Independent System Operator-New England (“ISO-NE”) which addresses the region’s over-dependence on natural gas for electricity generation. This program is called the “winter reliability program” and is meant to ensure that, in the event this winter is unusually harsh, there will be enough non-natural gas generation available to meet the region’s needs.
Dr. Joyce Flynn, Chairman of Cape Light Compact, stated “the Compact, working with its staff, made a decision to lock in prices for the entire 2014 calendar year in order to save customers money during this critical first half of the year, which includes the winter months, by offering a very competitive price, and one that is below the local distribution company. Providing a fixed price for residential and commercial customers also provides price certainty for the entire year, which is particularly important during volatile time periods such as this winter. The Compact recognizes that while our prices may be higher than other competitive suppliers and the local distribution company in the second half of 2014, price certainty will benefit customers if we have an unusually hot summer, which could lead to another period of strain on our natural gas infrastructure. As always, customers have a choice in whom they select for power supply, and the Compact encourages customers to consider and review their options.”
ABOUT CAPE LIGHT COMPACT
Cape Light Compact is an intergovernmental organization consisting of the 21 towns and two counties on Cape Cod and Martha’s Vineyard. The Compact’s mission is to serve our 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 or call 1-800-797-6699.