HAVERHILL — The city has reached an agreement with a new electricity supplier aimed at harnessing the buying power of all Haverhill residential and businesses customers to save them money.
The 36-month contract begins in November with First Point Power electricity supply company (former supplier was Residents Energy) at the new rate of a little over 14 cents ($.14377) per kilowatt hour (kWh).
Postcards are being sent to Haverhill households this week informing customers of the change.
Haverhill residents and businesses who are currently enrolled in the expiring city of Haverhill Community Choice Power Supply Program managed by Colonial Power Group have been paying almost 11 cents ($0.10860) per kWh. That rate under the former contract expires with the November 2023 meter reads when the new rate of $0.14377 per kWh takes effect.
The new rate, which will be fixed for three years, represents an increase of $21 per month on the supply side of the bill given average usage of 600 kWh. However, city officials say it is 21% lower than National Grid’s recently announced Residential Basic Service rate of about 18 cents ($0.18213) per kWh.
Residents in the city’s aggregation program can expect to see an average savings of $23 per month for the months of November 2023 through July 2024.
“The city is once again bundling all of its residential customers together to try to buy electricity for you at a cheaper rate,” Mayor James Fiorentini said.
“The purpose is to try to stabilize rates for our residents, prevent big price spikes and hopefully in the long run save money for our residents While in the past this has saved our residents more than $14 million when compared to National Grid basic Service, there is no guarantee of success.”
The city’s electricity aggregation program remains an “opt in” program. That means that if a customer wants to remain in this program, they don’t have to do anything and they will be automatically enrolled.
“I’m glad to see that the program is able to provide relief to our residents on their electric bills this winter,” Fiorentini added. “The goal of the program is to lock in a competitive price that provides savings now and that will provide stability for the next three years.”
Haverhill launched its electricity program in December 2015 in an effort to develop an energy program that would be stable and affordable. From inception through May 2023, the program has saved residents and small businesses more than $14 million in electricity costs when compared to National Grid’s basic service.
It is important to note that no action will be required by individual consumers. This change will be seen on the December 2023 bills. All accounts enrolled in the program will see the new rate under the “Supply Services” section of their monthly bill.
Under the program, Haverhill customers will continue to receive one bill from National Grid and will continue to send their payments to National Grid for processing.
The Haverhill Community Choice Power Supply Program has no fees or charges, however, anyone switching from a contract with a third-party supplier may be subject to penalties or early termination fees charged by that supplier. Ratepayers should verify terms before switching.
For more information or to “opt in” or “opt out” of the program, visit colonialpowergroup.com/haverhill or call 866-485-5858, ext. 1.
National Grid’s Basic Service rates change twice a year or more, depending on rate class. As a result, the aggregation rate may not always be lower than the Basic Service rate. The goal of the aggregation is to deliver savings over the life of the program against National Grid’s Basic Service. However, such savings and future savings cannot be guaranteed.
National Grid has several programs to help income-eligible families and customers needing special assistance meet their energy needs. To learn more visit nationalgridus.com/MA-Home/Bill-Help/Payment-Assistance-Programs.
The Massachusetts Department of Public Utilities issued an order on Sept. 1 that requires National Grid to change its residential and small business Basic Service periods to February through July and August through January. This is expected to mitigate large seasonal changes in basic service electricity supply prices and differences across electric distribution companies.
See mass.gov/news/dpu-orders-schedule-changes-to-basic-service-rates.
Based in Marlborough, Colonial Power Group is the leading aggregation-consulting firm in Massachusetts. Colonial Power has been working with local governments since 2002 in the design, implementation and management of municipal aggregation programs.