Jeanette DeForge | jdeforge@repub.com
SPRINGFIELD — The City Council endorsed a plan to allow officials to competitively purchase electricity directly through power suppliers, saving residents as much as 10% on their bills.
The 12-0 vote last week approved the draft power supply aggregation plan that now will be forwarded to the state Department of Public Utilities. From there, it should take about six months for the city to receive a final OK to begin implementing the program, said Tina Quagliato Sullivan, director of disaster recovery and compliance, who is overseeing the project.
As part of the plan’s development, the city requested comments from residents about the proposal and received five, which all endorsed the idea, she said.
“This will allow the city to negotiate on residents’ behalf and get a power supply directly,” she said. “We will get more stable rates and cost savings for residents.”
Once the city receives final approvals, Colonial Power Group, of Marlborough, Springfield’s consultant for the project, will go out to the market to serve as its broker to get the best deal on power, which is expected to save people an average of 7% to 10% on costs, she said.
“The city can decide if the rates are favorable, and we will decide if we should go forward,” Quagliato Sullivan said.
The program differs from third-party provider plans, frequently called predatory because they offer low “teaser” rates. Once residents are locked in, costs skyrocket past those of Eversource, the city’s regular supplier, said Mark Cappadona, president of Colonial Power Group.
The program will be an opt-out one, so essentially every ratepayer in the city will automatically be enrolled by statute. People can decline to participate, and the program also will offer an option to allow residents to purchase their power through green energy sources, but the rates will likely be higher, he said.
City Councilor Zaida Govan, who sponsored the proposal with Councilor Maria Perez and former Councilor Jesse Lederman, said she switched providers in the past and ended up paying more than she would have if she had stayed with Eversource.
She stressed that the city will have to spend a lot of time educating residents so they understand the change, but added those who do not will still benefit from lower rates.
Perez added that the benefit of the program is the city serves as the “gatekeeper” to ensure residents receive a fair deal.
Unlike the third-party provider programs, people will be able to opt in and out of the programs at any time and as often as they choose. Colonial Power Group will have a calculator on its website showing rate comparisons, Cappadona said.
Residents will see little difference in their service, since Eversource will continue to deliver the power, maintain the infrastructure and be responsible for making repairs when there is an outage, Cappadona said.
“The answer is Eversource will not raise rates … based on the delivery,” Cappadona said.
“This sounds exciting. The city is trying to work on behalf of residents,” City Councilor Jose Delgado said.
Already at least 175 of the state’s 351 cities and towns are participating in a Community Choice Power Aggregation Plan. Springfield has been discussing getting involved for close to a decade, City Council President Michael Fenton said.
While promoters said the program is about choice, Fenton said it is really about rates, since electricity is the same no matter what provider supplies it.
While Cappadona said residents will have the option of choosing green energy, Fenton said he expects few to do so, considering the socio-economics of the city.
“I think this is a terrific program and will be a benefit for the city, and I support it,” he said.
City Councilor Lavar Click-Bruce said the ability to opt in and out of the program will be a huge benefit, but the council will have to reach out to community centers, churches and other networks to ensure residents understand their options.
“It is much needed,” City Councilor Sean Curran said. “The rates are through the roof. This is a good policy of the Springfield City Council.”