2. Do I need to be a member of the Compact’s power supply program to receive 3. What is the Green Communities Act? 4. What is the relationship with Mass Save? 5. How do I sign up for a no-cost energy assessment?
The programs are funded from an energy conservation charge as well as part of the distribution charge on the first page of your electric bill. These funds are collected by Eversource and then returned to the Compact to administer the energy efficiency program for Barnstable and Dukes Counties.
services or rebates?
No. As long as you have an active Eversource electric account for a home or business on Cape Cod or Martha’s Vineyard, you are eligible to participate in the Compact’s energy efficiency programs.
On July 2, 2008, Governor Deval Patrick signed comprehensive landmark legislation to reduce energy consumption and spur clean energy technology. Among the major provisions is a requirement for program administrators to invest in energy efficiency when it is less expensive than building new facilities. In addition, utilities will need to buy more electricity from renewable power sources. By 2030, 25% of this would be from renewables. The law also encourages the creation of green communities.
Mass Save® is a collaborative of Massachusetts’ gas and electric utilities and energy efficiency service providers, including Company, Berkshire Gas, Cape Light Compact, National Grid, Eversource, Liberty, National Grid, and Unitil, and works closely with the Massachusetts Department of Energy Resources to provide a wide range of services, incentives, training, and information promoting energy efficiency that helps residents and businesses manage energy use and related costs.
Please call 1-800-797-6699 or click here to sign up for your no-cost energy assessment on your home or business.
2. How are the lead vendors chosen for energy assessments? – for single family 3. What is looked at during a home energy assessment? 4. Can I use my own contractor to do insulation work? 5. How do I proceed with the work that is recommended? 6. What rebates are available? 7. What are the tax credits available for heat pumps 30% of the purchase and installation cost up to $2,000 for Air Source Heat Pumps. Customers should always consult with their tax advisor to confirm eligibility. More information can be found here: https://www.masssave.com/-/media/Files/PDFs/THE-INFLATION-REDUCTION-ACT-FAQ.pdf 8. Can the Heat Loan be used to cover upfront costs until I receive my rebate? No, the customer must cover the upfront cost until they receive their rebate. The one exception is if a contractor is offering the rebate upfront on the invoice and the contractor requests the rebate be paid directly to them. Customers should confirm the availability of this option with their contractor.
All residential and low-income Eversource electric account holders on Cape Cod or Martha’s Vineyard are eligible to receive a no-cost energy assessment.
residential only
Single-family lead vendors are selected through a Request for Proposals process issued by Cape Light Compact.
During the assessment, a blower door test is conducted (where available) to determine how well air flows in your home. Also during the assessment insulation and other large appliances are looked at to determine how efficient your home is and any upgrades you could use.
If you would like to use your own contractor in the standard home energy assessment, that contractor would need to be a participating contractor of Cape Light Compact; however, you would need to complete an energy audit first through Cape Light Compact. For more information please visit https://www.masssave.com/residential/find-a-contractor
If you have had an energy assessment, you may have received a contract from the energy specialist. To proceed with work you may either sign the contract and return it to the energy specialist or select one of the Compact’s participating contractors. The list may be found at https://www.masssave.com/residential/find-a-contractor.
For a list of all available rebates please visit http://www.capelightcompact.org/resrebates.
2. Do I need to own the building that my business is in? 3. What is the incentive for work recommended? If work was recommended through a small business energy assessment, the Compact will cover up to 80% of the cost of the work installed by the Compact’s vendor. Enhanced incentives may be available for tenants and charitable non-profit organizations who meet minimum requirements. If a business prefers to use its own vendor to do the installations, the incentive level will vary based on prescriptive versus custom measures through the Compact’s application process or through the Customer Directed Option (CDO). 4. What is looked at during an assessment? 5. How do I proceed with recommended work? 6. What storage space is needed for materials that will be installed? 7. How are the old lighting materials disposed of? 8. Is there a warranty on work that is installed through an energy assessment? 9. How long does it take to get recommended lighting measures installed? 10. How is the billing for work handled? 11. What if I want my own contractor or vendor to do the work? 12. What if I am already doing a major renovation at my site?
All business customers with an active Eversource electric account on Cape Cod or Martha’s Vineyard are eligible to receive a no-cost business energy assessment. To sign up for an energy assessment call 1-800-797-6699 or sign up online.
No, every commercial customer who has an active Eversource electric account whether they rent or own the building is eligible to have a no-cost energy assessment. In order to proceed with the recommended work, if your space is rented, permission must be granted from the landlord or owner of the building.
The energy specialist will look at the HVAC, lighting controls, refrigeration controls, thermostats, variable frequency drives & motors, aerators, spray-valves, shower heads, vending controls, and weatherization. Additional measures may be eligible for incentives, if applicable.
After a thorough assessment by an energy services firm under contract with Cape Light Compact, you will receive a custom report that recommends specific cost-effective energy-efficient measures designed to maximize energy savings and promote greater comfort in your workplace. If you decide to proceed, Cape Light Compact’s vendor will make all the necessary arrangements for installing the energy-efficient measures at your facility. All installations will be performed by licensed tradespersons using top-quality materials backed by a full guarantee. We closely monitor this program to ensure quality performance on these efficiency improvements. Any permits that are needed will be secured by Cape Light Compact’s vendor.
The customer needs to provide a space for the material to be delivered and stored prior to installation. Space will also be needed to store the materials to be recycled until collected.
Cape Light Compact’s vendor is responsible for the recycling of all lamps and ballasts. The material is usually collected within 2 weeks after the installation is complete. If fixtures are replaced, the customer is responsible for disposing of the fixtures.
Yes, there is a one-year warranty on measures installed through an assessment.
Typically installations take place approximately 6-8 weeks from when the Agreement is signed and returned to Cape Light Compact’s vendor. This timeframe may vary depending on the availability of materials, labor and location. The customer will receive a notification when the materials are to be shipped to their site, if applicable. Once materials are at the customer’s site or the installation is ready to take place, they will be contacted by the Compact’s vendor to schedule the installation.
The customer will be billed only for their portion of the job. The bill will come from Cape Light Compact’s vendor.
If a business is interested in having their own vendor or contractors do the work, you must go through the Compact’s application process before starting the work or go through the Compact’s Customer Directed Option.
Contact Cape Light Compact at 1-800-797-6699 as soon as possible to see what options may be available.
1. Can the Compact provide information on electric vehicle charging station offerings? Two programs currently offer assistance with the installation of EV charging stations: Customers can participate in Eversource’s EV Charging Station Infrastructure program. Details can be found at https://www.eversource.com/content/ema-c/residential/save-money-energy/explore-alternatives/electric-vehicles/charging-stations The MassEVIP Workplace Charging is one of several Department of Environmental Protection (MassDEP) open grant programs aimed at making electric vehicles (EVs) and EV charging stations more widely available across Massachusetts. Additional details can be found here: https://www.mass.gov/how-to/apply-for-massevip-workplace-charging-incentives 2.Does the Compact plan on offering incentives for electric vehicle charging stations at some point in the future? Currently the Compact does not plan to offer any incentives for EV charging stations. Charging stations can be financed as part of the Energy Saver Home Loan program.
a. Purchase power on behalf of all customers in the municipality 2. What steps were taken to create Cape Light Compact? Structure 1. How is the Compact structured? The Compact is a municipal aggregation, enabled by Massachusetts General Law Chapter 164, Section 134. The Compact was initially structured as an intergovernmental agreement, authorized by town meeting votes, boards of selectmen, town council and county commissioners, similar to other entities such as regional school districts. The Compact was reorganized in 2017 as a joint powers entity under the Massachusetts Municipal Modernization Act. The Compact consists of 21 towns and Dukes Counties. The Compact’s Governing Board is made up of one representative appointed by each of the member municipalities and Dukes County. The Compact Governing Board is responsible for the establishment of the policies and development of the Compact, except with respect to those powers reserved to the member municipalities of the Compact by law or the Joint Powers Agreement. The Compact Governing Board elects officers at its first meeting following the end of each calendar year. The Board and its officers are responsive and responsible to consumers and the Board of Selectmen and Town Manager/Town Council at whose pleasure they serve. 2. Who makes the decisions at the Compact? Cape Light Compact has a Governing Board, comprised of representatives from each of the 21 member towns and the member county. The Compact also employs staff to administer its programs. Most of the day-to-day operations of the Compact are carried out by the staff, with the Governing Board providing policy direction to staff. The Governing Board also votes on the Compact’s operating budget and Energy Efficiency Plan. These authorities are laid out in the Compact’s Aggregation Plan and its Intergovernmental Agreement. 3. Who has oversight of the Compact? There are many levels of oversight of Cape Light Compact. Most directly, each member town and county of the Compact appoints a representative to the Compact’s Board. Through these representatives, each of the member towns and counties has a role in overseeing the Compact. Further, many of the Compact’s programs are subject to oversight by various state regulatory bodies, such as the Department of Public Utilities and the Department of Energy Resources. Aggregation Plan 2. How often does it get updated? Governing Board 2. When does the Board meet? 3. Are their meetings, and any committee meetings, open to the public? 4. Where can I find meeting agendas and minutes from the Governing Board Governing Board meeting agendas and minutes can be found on the Compact’s website at https://www.capelightcompact.org/about-us/board-meeting-information/. 5. What is the proper way to bring an issue before the Board? Each town has a representative to the Board. If a citizen has a concern they would like addressed, they should present it to their respective town’s board of selectmen or town manager, who will then notify the Town’s representative to the Compact’s Governing Board. If a member town has a concern that they would like addressed, the Town’s representative to the Compact would bring the matter to the full Compact Board for consideration. Joint Powers Entity 1. What is a Joint Powers Entity? 2. Who Can Form a JPE? 3. Who Authorizes and Executes a JPA? 4. How is a JPE Managed? 5. What Powers Does a JPE Have? 6. What Financial Controls Apply to a JPE?
Formation of Compact
1. What is the purpose of a municipal aggregation?
The 1997 Massachusetts Restructuring Act enabled towns and cities to establish municipal aggregators like Cape Light Compact that could:
b. Implement the energy efficiency programs instead of the local electric utility
c. Administer rate-payer funded surcharge. This charge appears on your monthly electric bill as the “Energy Conservation” charge and is one of the funding sources for Cape Light Compact’s Energy Efficiency Programs, which are available to every resident and business on Cape Cod and Martha’s Vineyard regardless of which electric supplier the ratepayer chooses.
The process of municipal aggregation for the Compact involved a multi-step public process that the Compact originally undertook from 1998 to 2001:
1.1 Vote of town meeting
1.2 Vote of selectmen, town council, or county commissioners
1.3 Town/county representative participates on Compact Governing Board
1.4 Planning process/development of policy including Aggregation Plan, RFPs, contracts
1.5 Development and release of Request for Proposals
1.6 Review of Aggregation Plan by citizens
1.7 Power supply contract to selectmen/town council for acceptance vote, conditioned on DPU approval and final signing
1.8 Power supply contract and Aggregation Plan submitted to DPU for approval
1.9 Final signing by each participating town
1.10 Notification of consumers of automatic enrollment
1.11 Administrative transfer of customers to Compact supplier(s)
1.12 180-day opt-out period begins on first day of service
1.13 File contract and report with state (DPU, DOER, Inspector General) within 15 days of signing contract
1. What is the aggregation plan?
Cape Light Compact developed its aggregation plan in compliance with Massachusetts law regarding public aggregation of electric consumers. It contains the required information on the structure, operations, services, funding, and policies of the Compact. The Compact’s original aggregation plan was approved by the Department of Public Utilities (DPU) then the Department of Telecommunications and Energy) in a proceeding that included the Massachusetts Attorney General and NSTAR (now Eversource).
When the Compact prepared and submitted its original aggregation plan, its understanding was that the plan would not need to be updated, but, instead, served as a document needed only for approval at the inception of the aggregation. The Compact maintained and updated several times its Inter-Governmental Agreement. On August 27, 2013, the DPU, which approved the Compact’s original plan, sent a letter to the Compact, asking that the Compact review its plan and update it if there were elements that no longer accurately described the Compact’s operations. The Compact found that there were elements that could be updated, and proceeded to file a revised plan. The DPU, in its order approving the City of Lowell’s aggregation plan, clarified events that would trigger the need to file a revised aggregation plan in the future.
1. How are Board members appointed?
Board members are appointed by their respective town’s or county’s appointing authority.
The Board’s regularly scheduled meetings are on the 2nd Wednesday of every month, starting in January. The Board may add or adjust additional meetings as needed
Yes, provided that the Board or Committee does not enter into Executive Session.
meetings?
The Legislature recently passed an Act Modernizing Municipal Finance and Government (Act). Part of the Act allows governmental entities to join together and exercise any of their common powers and duties within a designated region (a Joint Powers Entity or JPE). Governmental entities sign a Joint Powers Agreement (JPA) that governs the operations of the JPE. Only two municipal entities are needed to form a JPE.
A city, town or a regional school district, a district defined in G.L. c. 40, §1A (e.g., fire, water, sewer, etc.), a regional planning commission, however, constituted the Hampshire council of governments, a regional transit authority under G.L. c. §161B, a water and sewer commission formed under G.L. c. 40N or by special law, a county, or a state agency defined in G.L. c. 6A, §1 is able to form a JPE.
A JPA is authorized in a city, by the city council with the approval of the mayor; in a town, by the board of selectmen; and in a district, by the prudential committee. The chief executive officer of a city or town, or a board, committee or officer authorized by law to execute a contract in the name of the governmental unit will execute a JPA. The Act does not require a Town Meeting vote to join a JPE.
Each member of the JPE appoints a director to serve on the JPE’s board of directors. The JPE is also a public employer, and the board of directors may hire staff to carry out the purposes of the JPE. Subject to certain limitations, the board of directors must also appoint a treasurer and business officer for the JPE.
The Act provides that a JPE is a separate public entity with the authority to:
Sue and be sued;
Sign contracts and other instruments necessary to exercise its powers;
Make, amend and repeal policies and procedures;
Receive and expend funds;
Apply for and receive grants from the Commonwealth, the federal government
and other grantors;
Apply for state, federal or corporate grants or contracts to obtain funds to carry
out its purposes;
Submit an annual report to each member governmental unit with a detailed
audited financial statement;
Employ staff;
Borrow money;
Subject to the Uniform Procurement Act (and its exemptions), contract for goods
and services, purchase or lease land, buildings and equipment; and
Any such other powers as are necessary to properly carry out its powers as a body
politic and corporate.
The Act imposes requirements for audits, reporting and accounting. The JPE must establish and maintain a budget. Annual audits are to be distributed to its members and to the Department of Revenue. Annual reports to members are also required.
2. Who approves the energy efficiency budget and when? 4. Who approves the power supply budget and when? 5. Does the Board approve all disbursements from the Energy Efficiency Fund and Power Supply Reserve Fund? Financial Audits 2. Has the Compact had separate financial audits from the County’s audit? Records Retention Public Records 2. Why is some financial information redacted in documents given to members of the public? 3. Do people have to pay for public records requested of the Compact? 4. What has the Compact done to improve the transparency of its operations?
1. Does the Compact have budgets and how are they funded?
Yes. Cape Light Compact has an Energy Efficiency Budget and an Operating Fund Budget. Both can be viewed by year at
http://www.capelightcompact.org/reports. The energy efficiency fund is primarily funded by the Energy Conservation charge and a part of the Distribution charge on consumers electric bill. The Operating Budget is funded by a charge on the supply portion of an electric bill. These budgets are kept separate because they are funded from different sources and in order to aid in the extensive reporting to the DPU required for the Compact’s energy efficiency programs.
The budget is known as the Operating Budget and is reviewed and approved by the Cape Light Compact Governing Board. Funding is through a surcharge on the supply portion of an electric bill. The budget runs on a calendar year.
The budget is known as the Operating Budget and is reviewed and approved by the Cape Light Compact Governing Board. Funding is through a surcharge on the supplier portion of the Compact’s competitive electric supplier page. The budget runs on a calendar year.
No, once the budgets are approved by the Board, the day to day management of the budgets are assigned to staff.
1. Are all of the Compact’s funds included in Barnstable County’s annual audit?
Since the inception of the Compact, and until the creation of the JPE, all Compact funds have been included in the Barnstable County annual audit as Agency Funds. The County’s annual audits are public documents.
Starting with 2009 and going forward, the Compact has had Independent Audited Financial Statements prepared by a certified auditor licensed in the state of Massachusetts.
1. Why do you not have all documents from inception to date?
Similar to all public entities in Massachusetts, the Compact’s records are maintained consistent with the Massachusetts Records Retention Law, which outlines a schedule for which records must be kept permanently and which records are destroyed after a defined period of time.
1. Are the details of the Compact’s finances subject to public disclosure?
Details of the Compact’s finances and budgets are public knowledge except for redactions for customer privacy or competitively sensitive information. The Compact’s energy efficiency funds are subject to reporting via its Annual Report to the Massachusetts Department of Public Utilities, and the Compact operating budget is approved by the Compact Governing Board. Both budgets are available on the Compact website. Since 2002, the Compact has posted on its website and sent monthly town reports to each of the 21 Cape and Vineyard town managers detailing energy efficiency dollars spent, customers served, energy savings (kWh), and expenditures on a town by town basis. In addition, the Compact’s annual operating budget, any supplemental budgets, and the energy efficiency budget are also on the Compact website. Finally, the Compact has listed on its website a line-by-line accounting of all of the Compact’s revenues and expenditures from previous years.
The redactions keep individually identifiable customer’s information and Renewable Energy Certificate (REC) transactions private. This practice is consistent with Massachusetts General Laws, and as required by a nondisclosure agreement protecting electric customer information. Electric customer information is redacted to protect the identities of individuals and certain REC information is redacted because releasing the information would have an adverse impact on the ability of the Compact to compete in the electric market.
The Compact complies with the Massachusetts Public Records Law regarding all records requests to the Compact.
The Compact publishes budgets, draft minutes, board packets, financial statements, and line-by-line accounting of revenues and expenses on its website www.capelightcompact.org. All Compact meetings are open to the public. Any and all executive sessions are held in accordance with the Open Meeting Law. The Compact also provides updates to all of its member Towns.
Consistent with the 1997 Massachusetts Restructuring Act, the Cape Light Compact (Compact) was established by the 21 towns and 2 counties of Cape Cod and Martha’s Vineyard as a municipal aggregator to advance the interests of consumers in a restructured electricity market. To this end, one of the Compact’s primary missions is to provide a safe and secure power supply choice for consumers. The Compact leverages the aggregated purchasing power of all our customers to negotiate competitive pricing with strong terms and conditions that protect our customers, which gives our customers a worry-free, competitively-priced power supply option from a community-founded public organization. 2. How does the Cape Light Compact procure a competitive supplier? The Compact uses a competitive selection process to select suppliers that are responsible for providing retail electricity for all the participants in the Compact’s power supply program. Compact staff, board members, consultants, and counsel work together to ensure that the Compact secures contracts that are in the best interest of the Compact’s consumers. The size of the Compact’s aggregation gives it weight in conducting these negotiations that are not available to individual consumers. Most recently, the Compact selected NextEra® Energy Services Massachusetts (NextEra Energy Services) through this competitive Request for Proposal (RFP) process in 2018 to provide electricity to all Compact residential, commercial, and industrial electric customers on Cape Cod and Martha’s Vineyard for a term beginning in December 2018 and running through December 2023. The RFP allows for the potential of a three-year contract extension, through 2026 which the compact exercised in December of 2021. A green aggregation element was included in the RFP asking suppliers to include in their submissions proposals to match the electric usage of Compact customers with Renewable Energy Certificates. 3. What should you do if you are unsure whether you are receiving the Compact’s supply rate? If you are unsure about whether you are receiving the Compact’s supply rate, you can: 4. How often is the Cape Light Compact Rate lower than Eversource Basic Service or other competitive suppliers? Is the Compact always the lowest? We cannot guarantee savings compared to Basic Service. Since the start of the Compact’s current contract with NextEra which began in 2018, the Compact’s rates have been lower than Basic Service 70% of the time. Customers should very carefully review competitive supply options before providing their account number. Customers can learn more about what to look for here. You can view the Compact and Eversource’s rates dating back to 2002 by clicking here. 5. What is the meaning of “renewable electricity”? Renewable electricity is electricity that is generated by resources that are naturally replenished on a relatively short timescale, including wind, solar, geothermal, tidal, etc. For reasons discussed further below, a person is considered to be using renewable energy when their electric usage is matched with Renewable Energy Certificates. 6. What are Renewable Energy Certificates (RECs)? A Renewable Energy Certificate is a tradable commodity that represents the clean energy attributes of 1 megawatt-hour (MWh), or 1,000 kilowatt-hours (kWh) of electricity generated by a renewable energy resource (e.g., a solar farm). RECs were created for the purpose of tracing energy back to renewable generators. The electrons that power our homes and businesses can almost never be traced back to a specific generator – instead, the power from thousands of generators, large and small, of all different fuel types, flows into a regionalized power grid and ultimately to the consumer’s meter. Since it is impossible to know what kind of electricity ends up at the delivery point (i.e., the meter), electricity characteristics are tracked at the production point instead. In New England, and many other areas, for every MWh of electricity that is generated, a corresponding certificate is produced in a centrally-managed clearinghouse. This certificate includes all of the details of the source of the energy – when it was generated, by what kind of generator, associated emissions, etc. In effect, generators produce two commodities, which can be (and often are) tracked, traded, and consumed independently of each other; the electricity, which is delivered to the grid and ultimately the consumer, and the certificate. When the certificate is associated with a renewable energy generator, it is called a REC. Each REC has a unique identifier, allowing it to be tracked, traded, and ultimately, retired. The result of this is that electricity, even though its source may be unknown, that is matched with a REC is considered to be renewable energy. The inverse is also true – that electricity not matched with a REC is not considered to be renewable energy. So, a consumer that uses 3,000 kWh a year and purchases three RECs to meet that usage would be using 100% renewable energy, even though the electrons that she uses may not all be from a renewable generator. This definition of what constitutes renewable energy has been confirmed time and time again, including by the Federal Trade Commission1 and the National Association of Attorneys Generals. 7. What is the Massachusetts Renewable Portfolio Standard? The Massachusetts Renewable Portfolio Standard (RPS) is a statutory requirement that Retail Electric Suppliers obtain a certain percentage of their yearly sales of electricity from qualified renewable energy sources. Suppliers meet their RPS obligations by acquiring RPS-qualified RECs and retiring them, so that they cannot be used for RPS compliance again in the future. The RPS creates demand for RECs, which encourages developers to build renewable energy resources that can provide the RECs, thereby enabling the expansion of renewable energy. 8. What kind of RECs are the Compact/NextEra Energy Services using to get to 100% renewable? The Compact, through its supplier NextEra Energy Services, acquires both RPS-qualified RECs and Clean Energy Standard (CES) qualified Clean Energy Credits (CECs) from New England Sources to comply with state mandates. The Compact also acquires voluntary EarthEra™ RECs from renewable projects in the U.S. outside of New England through its supplier. The Compact requires NextEra Energy Services to purchase an additional 1% of MA Class 1 RECs over the RPS requirement and to also acquire voluntary EarthEra RECs above the state mandated requirements such that a total of 100% of the Compact customers’ electric load is matched. The additional 1% RPS-qualified RECs will include MA Class 1 RECs from local and New England-based sources: seven rooftop solar photovoltaic (PV) systems located on Cape Cod, Farmington Solar located in Maine, and the Princeton Municipal Light Department’s wind farm located in Princeton, MA. The local solar PV systems were installed in 2010 through the Cape and Vineyard Electric Cooperative, a local electric cooperative that has helped municipalities across Cape Cod and Martha’s Vineyard install over 40 megawatts of solar PV to date. In 2018, the Compact entered into a Power Purchase Agreement (PPA) with a subsidiary of NextEra Energy Resources, LLC to purchase energy and Massachusetts Class I RECs from just under 5 MW of the 77 MW Farmington Solar project. Princeton Wind includes two 1.5 MW wind turbines on the south flank of Wachusett Mountain that produce approximately 4,000,000 kWh of electricity each year. The Compact requires NextEra Energy Services to purchase an additional 1% of MA Class 1 RECS over the RPS requirement and to also acquire voluntary EarthEra RECs above the state-mandated requirements such that a total of 100% of Compact customers’ electric load is matched. By way of example, in 2022, the RPS requires that 20% of retail electric sales be met with RPS-qualified MA Class I RECs. NextEra Energy Services meets 21% of Compact customers’ retail electric sales with RPS-qualified MA Class I RECs. In 2022, the Commonwealth of Massachusetts requires that 51.3% of retail electric sales be met with clean energy resources that are located within the New England region. NextEra Energy Services purchases an additional 1% of MA Class I RECs and 47.7% of EarthEra RECs from sources in the U.S. outside of New England, in order to match an additional 48.7% of retail load with RECs such that a total of 100% of the Compact’s customers’ electric load is matched. 9. What is the EarthEra™ Trust? The EarthEra™ Renewable Energy Trust (Trust) is a fund established by EarthEra, LLC, an affiliate of NextEra Energy Services for the purpose of developing renewable energy projects in the United States, in order to accelerate the addition of clean energy sources. The Trust is overseen by an independent third-party trustee, which ensures that 100% of the funds deposited in the Trust are used solely for the development of new renewable energy projects. All revenue from the sale of the EarthEra™ RECs that NextEra Energy Services will use to match Compact customers’ usage will be deposited in the Trust. 10. Why did the Cape Light Compact choose to become a green aggregation by matching 100% of customers’ usage with renewable energy? As stated in its approved 2015 Aggregation Plan, one of the purposes of the Cape Light Compact’s power supply program is to utilize and encourage renewable energy development. One of the ways in which to accomplish this purpose is to become a green aggregation. Green aggregations are municipal aggregations that make an affirmative decision to meet more than the RPS-required amount of their aggregated electricity usage with renewable energy, usually through the purchase of additional RECs. This “greener” power supply option is the default option for customers participating in the aggregated supply. There are several municipal aggregations in Massachusetts offering higher renewable content products. After discussions over the course of several meetings on renewable electricity and the impacts, both environmental and economic, of becoming a green aggregation, the Compact Governing Board asked Compact staff to hold stakeholder input sessions to provide insight into the importance of renewable energy to our customers, and what concerns they may have that the Board should be aware of. The Compact held three public input forums (West Tisbury, Mashpee and Harwich) in the fall of 2016, and attended a forum sponsored by the Brewster Community Network. Those in attendance agreed that supporting renewable energy through the Compact’s power supply program was an important step in combating climate change, but that it must come at a reasonable price, and it is important for consumers to understand which projects they are supporting through the program. Compact staff presented findings from the input sessions in open session at the November 9th, 2016 Compact Governing Board meeting, and the Board voted to become a green aggregation by (1) requiring NextEra Energy Services to purchase 1% more MA Class 1 RECs than the RPS-required amount, (2) in addition to RPS-qualified RECs, requiring NextEra Energy Services to purchase EarthEra™ RECs such that a total of 100% of the Compact’s customers’ usage is matched with RECs, (3) requiring NextEra Energy Services to deposit the funds from the sale of the EarthEra™ RECs in to the EarthEra™ Renewable Energy Trust, and (4) requesting that NextEra Energy Services direct the proceeds deposited in to the Trust from Compact customers to developing renewable energy projects in New England. 11. How does becoming a green aggregation and teaming up with NextEra Energy Services help the environment and fight climate change? Becoming a green aggregation utilizes the vehicle of municipal aggregation to achieve renewable energy purchasing at scale, which makes a tangible impact on accelerating renewable energy development by creating more demand for renewable energy. The way this is accomplished is threefold: 12. How will offshore wind farms affect electric rates? It is hard to know how these projects will affect prices. Currently, we only know the price for Vineyard Wind 1 and market prices can always change. It is likely the contract prices for the additional wind capacity the state is in the process of procuring will come in higher than the current average market rates, but these contracts will only make up a small portion of total supply. A recent study conducted by Synapse Energy Economics, Inc. found that offshore wind will reduce customer bills. It’s important to remember that this is a state policy decision, with the goal of meeting our climate goals. If you have further questions, please call our Power Supply Planner at 508-375-6623. 13. When will we get Time-of-use (TOU) electric rates on the Cape and Vineyard? We will have TOU rates on Cape once Eversource has replaced the current meters with advanced metering infrastructure (AMI), also called interval meters. This is expected to happen in 2027 for customers in our region, and Eversource has committed to being able to roll out TOU rates for competitive suppliers (and municipal aggregators) one year following meter roll out.
1. Why does the Cape Light Compact have a power supply program?
Cape Light Compact Local Green℠ (also referred to as CLC Local Green℠) is a voluntary program that allows you match your annual electricity usage with additional Massachusetts Class 1 Renewable Energy Certificates. If you choose to sign up for this program, you may choose to match either 50% or 100% of your total electricity usage with Massachusetts Class 1 RECs which come from renewable energy resources in New England. All of the benefits and protections of the Compact’s default green aggregation power supply program still apply, but now your usage will be matched with 50% or 100% Class 1 RECs. By matching more of your usage with Class 1 RECs, you are providing extra support for the development of additional renewable resources in New England. Beginning with December 2021 meter read dates, the Compact will purchase additional Class I RECs such that a total of 50% or 100% of Cape Light Compact Local Green℠ power supply customers’ usage is met with Class I RECs, inclusive of the Class I RECs being purchased to meet the Massachusetts Renewable Portfolio Standard (“RPS”) and Clean Energy Standard (“CES”). What benefits does CLC Local Green℠ provide? What is a Massachusetts Class 1 REC? A Massachusetts Class 1 REC is a renewable energy certificate which represents the environmental attributes of electricity produced by a generating facility that is qualified as a Massachusetts RPS Class 1 resource. Renewable Energy Certificates, or RECs, are created when renewable energy projects produce electricity. The state requires all retail electric service providers to retire these Class 1 RECs sufficient to cover a certain minimum percentage of your electricity usage, as part of the Massachusetts Renewable Portfolio Standard (RPS). When you sign up for CLC Local Green℠, additional Massachusetts Class 1 RECs are retired based on your chosen percentage (50% or 100%) such that a total of 50% or 100% of your usage is met with Class I RECs, inclusive of the Class I RECs being purchased to meet the Massachusetts Renewable Portfolio Standard (“RPS”) and Clean Energy Standard (“CES”). More information on the Massachusetts Renewable Portfolio Standard (RPS) and qualifying RPS resources can be found on the state of Massachusetts website (www.mass.gov). How much does it cost to sign up for CLC Local Green℠? The price Premium for the CLC Local Green℠ product you select will be added to the price of the Compact’s standard electricity supply price. CLC Local Green℠ customers are served by the Compact’s competitively-selected power supplier, NextEra Energy Services Massachusetts, LLC. Are CLC Local Green℠ contributions tax-deductible? The premium (i.e., 1.3 cents/kWh for 50% or 3.6 cents/kWh for 100%) you pay for CLC Local Green℠ is recognized as a tax-deductible contribution for federal income tax purposes if you itemize your deductions. One hundred percent of the premium may be recognized as a tax-deductible contribution. The Cape Light Compact will mail you a statement every January documenting the aggregate amount of the premium you paid for the prior calendar year. What happens if I want to opt-out of CLC Local Green℠? You can opt-out of CLC Local Green℠ at any time by calling the Compact’s power supplier at 1-800-381-9192. There is no fee or penalty for opting out, and you can opt back in at any time. I thought Cape Light Compact’s standard green aggregation power supply program was already 100% renewable. How is CLC Local Green℠ different? The Compact’s standard green aggregation power supply program is 100% renewable by matching 1% of your electricity usage with additional Class 1 RECs, and 99% with voluntary EarthEra™ RECs. The voluntary EarthEra™ RECs are sourced from projects outside the New England area. The revenues from the EarthEra™ RECs are then used to fund new renewable projects, with a focus on developing projects in New England. With CLC Local Green℠, the additional RECs that Cape Light Compact retires on your behalf are all Massachusetts Class 1 RECs, which come from RPS-qualified projects in and around New England. The Class 1 RECs retired under CLC Local Green℠ are inclusive of the RECs already retired by the Compact on your behalf to satisfy the state RPS and CES requirements and the 100% renewable standard green aggregation program. By signing up for CLC Local Green℠, you are helping to further increase demand for Massachusetts Class 1 RECs, which helps to spur additional renewable development in New England.
CLC Local Green Product
Price Premium
CLC Local Green℠ 50%
1.3 cents/kWh
CLC Local Green℠ 100%
3.6 cents/kWh
If I sign up for CLC Local Green℠, who will be my power supplier?
Advocating for your energy rights is a core mission for Cape Light Compact. We work on your behalf to provide our Cape and Vineyard communities with maximum opportunities, benefits and savings available in today’s energy market. 2. Have you saved consumers money? 3. What kinds of things does the Compact advocate for? 4. What if I am concerned about an issue that I believe Cape Light Compact should advocate for?
Yes. Starting with work that saved Cape and Vineyard consumers $25 million dollars from the sale of the Canal plant, the Compact has continued to work tirelessly to save consumers money. You may find more examples of our efforts at www.capelightcompact.org/advocacy.
The Compact’s advocacy work covers a wide variety of areas, such as ensuring that utilities are not including expenses in their delivery charges that shouldn’t be there, working to make interconnecting distributed generation resources easier, providing the utilities with incentives to minimize service interruptions, and participating in planning for the modernization of our electrical grid. Most importantly, in almost all of this work, the Compact is the sole voice representing the interests of Cape Cod and Martha’s Vineyard.
Other examples of the Compact’s work include:
• Assisted towns in reducing costs through the purchase of more efficient streetlights and negotiated a cost-effective maintenance contract
• Ensured that eligible low-income residents receive a discounted electric distribution rate and expanded consumer protection and assistance
• Facilitated savings in natural gas contracts for Cape schools and electric savings for municipal buildings
For more information, visit www.capelightcompact.org/advocacy.
If you are concerned about an issue, bring it to the attention of your town’s Board representative.
2. What are the reporting requirements for the power supply fund?
Cape Light Compact files annual performance reports (“Plan-Year Report”) with the Department of Public Utilities, as well as a Three-Year Term Report.
Starting 12/1/14, the Compact will file an annual report with the Department of Public Utilities (DPU), and has filed an annual report with the Department of Energy Resources (DOER) starting with FY2012. In addition, the power supply fund is included in the Compact’s annual independent financial audits.
2. Is the Compact a member of a municipal retirement association? 3. How does BCRA allocate liabilities (retiree costs) amongst the employers? 4. Do Compact employees contribute to their defined pensions? 5. Does Barnstable County have any pension liability for present Compact employees or retirees? 6. If a present Compact employee worked for Barnstable County and now works for the Compact, are pension liabilities that belong to Barnstable County (as a result of services rendered to and paid by the County directly) being shifted to the Compact? 7. How does the Compact fund its pension liabilities? 9. Does Barnstable County have any OPEB liability for Compact employees? 10. How does the Compact fund its OPEB liabilities?
Answer: Yes, the Compact is a municipal entity similar to Massachusetts cities and towns and is required to provide a retirement benefit to qualifying employees. Municipal employees do not contribute to social security, and most municipal retirees will not qualify for social security. The pension system for all municipal entities is governed by Massachusetts General Laws, Chapter 32.
Answer: Yes, the Compact joined the Barnstable County Retirement Association (“BCRA”) on January 1, 2018. As of this date, all pension liabilities associated with all former Barnstable County employees and current staff have been re-allocated from Barnstable County to the Compact.
Answer: The BCRA is a cost-sharing multiple-employer defined benefit pension plan. An independent actuary calculates the BCRA’s total pension liability, which is allocated to members (employer) based on each member’s percentage of active payroll, as specified in Massachusetts General Laws, Chapter 32.
Answer: Yes. Consistent with Massachusetts General Laws, Chapter 32, employees contribute between 10 and 11% of their gross regular compensation towards their pension obligations. The most recent BCRA actuarial analysis indicates that most employees in the BCRA will have fully funded their pension liability by retirement age.
Answer: No, Barnstable County has no pension liability for any Compact employees or future retirees. Those liabilities have been transferred fully to the Compact.
Answer: No. For funding purposes, the Compact is allocated its proportionate share of BCRA’s total net pension liability based on the active employer’s covered payroll as calculated by the actuary.
For financial reporting purposes, the Compact is allocated its proportionate share of BCRA’s total net pension liability based on a blended rate of the following items:
• The proportionate share of active employer’s covered payroll calculated by the actuary;
• Early Retirement Incentive (“ERI”) is a direct charge calculated by the Public Employee
Retirement Administration Commission (“PERAC”) for only the employers that accepted the ERI;
• The direct amortization of the actuarial determined net pension liability for the Barnstable County Sheriff and Barnstable County Hospital since they no longer have active covered payroll.
Answer: The Compact funds its pension liabilities through employer and employee contributions. The employer contribution is appropriated through the Compact’s budget process (energy efficiency staff are included in the energy efficiency budget and power supply staff are included in the operating budget). The contribution is based on the pension fund appropriation provided by the BCRA and approved by PERAC. Employee contributions are made through mandatory payroll deductions in accordance with the withholding amounts established by
Chapter 32.
8. What are Other Post-Employment Benefits (“OPEB”) liabilities and why does the Compact have these liabilities?
Answer: OPEB liabilities consist of medical, dental, vision, and other health-related benefits paid subsequent to the termination of employment via retirement. The Compact has this liability because it offers health insurance coverage to its retirees.
Answer: No, Barnstable County has no OPEB liability related to Compact employees because the liability only exists with the current or last employer.
Answer: The Compact funds its OPEB liabilities through the Compact’s budget process (energy efficiency staff are included in the energy efficiency budget and power supply staff are included in the operating budget).