For Immediate Release: November 27, 2017
South Yarmouth, MA – Cape Light Compact announces pricing for its green aggregation power supply program for the next six-month term, beginning on customers’ December meter read dates and ending on June 2018 meter read dates. While pricing for the upcoming term has increased slightly over the current pricing period, the Compact is proud to continue offering savings to customers against the utility’s basic service pricing while enabling customers to support renewable energy resources.
As has been the case over the last several winters, the electricity market pricing continues to be higher on average during the winter months, primarily due to natural gas pipeline constraints in New England causing market volatility. Although the Compact’s green aggregation power supply program supports renewable resources by matching all customers’ electricity usage with renewable energy certificates (RECs) and helping to finance new renewable energy projects, the electricity itself that is delivered to customers’ homes comes from the New England power grid. Nearly 50% of the electricity produced in New England came from natural gas in 2016, and even though the cost of natural gas is generally low across the country, winter natural gas consumption for heating purposes in New England restricts the amount of leftover pipeline capacity available for electricity generators to use, driving the price of electricity up.
Other factors driving the price increase for the upcoming term include increasing capacity market prices and the cost of compliance with the new Massachusetts Clean Energy Standard regulations set forth by the MA Department of Environmental Protection that take effect in 2018. The capacity market is managed by New England’s bulk power grid operator (ISO-NE), and is designed to ensure that enough electric generation capacity is built and available to provide power when called upon to meet peak demand. Capacity market costs are paid for by all New England electricity customers through their power supply prices. The Massachusetts Clean Energy Standard is a recently-passed set of regulations which requires, among other things, that power suppliers in Massachusetts purchase and retire additional RECs on an annual basis to help the Commonwealth reach the carbon reduction targets mandated by the 2008 Global Warming Solutions Act.
“Even in this volatile market, the Compact is pleased that our green aggregation pricing continues to remain below Eversource’s basic service pricing and that our customers can feel good about their electricity,” said Maggie Downey, Cape Light Compact Administrator. “Our power supply agreement with NextEra® Energy Services Massachusetts, LLC allows our customers to support current and future renewable energy projects, while offering pricing stability without contracts or surprises.”
The Compact’s new residential pricing, which starts on customers’ December meter read dates, will be 12.8 cents per kilowatt-hour (kWh), and they will see this price reflected on the bills that they receive in January. The average residential customer using 584 kWh per month will see a savings of $2.08 per month compared to the utility’s upcoming basic service price, and an increase of $13.14 per month against the Compact’s current price. In aggregate, Compact residential power supply customers are expected to save over $1 million dollars versus the utility’s basic service pricing over the upcoming pricing term.
The Compact’s new commercial rate for December 2017 through June 2018 meter read dates will be 12.7 cents per kWh and the industrial rate for the period of December 2017 through March 2018 meter reads will be 12.0 cents per kWh.
“There are things that we can do locally to help offset the higher electric prices by participating in the Compact’s energy efficiency programs, which are available regardless of your income level or whether you own or rent your home or business,” Downey said. “Having a free home energy assessment and installing recommended insulation will not only reduce your energy bills but will make you more comfortable as well. We also have many offers available for businesses to take advantage of. We encourage customers to call our energy efficiency hotline at 1-800-797-6699 to save money on energy bills this winter”
|Eversource Basic Service – Proposed||13.157 cents/kWh||12.961 cents/kWh||12.209 cents/kWh|
|Cape Light Compact||12.800 cents/kWh||12.700 cents/kWh||12.000 cents/kWh|
|December ’17 -June’18 meter reads||December ’17 -June’18 meter reads||December ’17 – March ’18 meter reads|
ABOUT CAPE LIGHT COMPACT JPE
Cape Light Compact JPE, is an award-winning energy services organization operated by the 21 towns on Cape Cod and Martha’s Vineyard and Dukes County. The Compact’s mission is to serve its 200,000 customers through the delivery of proven energy efficiency programs, effective consumer advocacy and renewable competitive electricity supply. For more information, visit www.capelightcompact.org.