IMPORTANT NOTIFICATION DISCUSSING PROGRAM RATE(S) CHANGE BEGINNING WITH METER READS AFTER SEPTEMBER 15, 2018.
As the result of a negotiated resolution of a contract claim by Public Power, LLC, the electric supplier for the Community Electricity Aggregation Program, the price paid by participants in the Program for electric supply will increase from 10.130 cents per kWh to 10.430 cents per kWh effective with meter reads after September 15, 2018. This new price will remain fixed through the remainder of the term of the Electric Services Agreement, ending January 2020.
How Does the New Price Compare?
The new price is below the prices bid by all other suppliers during the Town’s last competitive solicitation in 2017 and below estimates of a replacement supply in the current market. The new price is also below the current Basic Service rate offered by National Grid, which is 10.87 cents per kilowatt hour (kWh). The new price represents an increase of approximately $1.80 per month given average usage of 600 kWh per month.
What Was the Claim About?
Under certain circumstances, the Electric Services Agreement with Public Power allows an increase in the electricity price in the event Public Power incurs unexpected cost increases resulting from a change in regulation, with the intent that those costs would be passed on to consumers under the terms of the Electric Services Agreement.
Public Power claimed that such a regulatory change occurred and resulted in increased costs, and it requested an increase in the electricity price. In response to Public Power’s claim, the Town organized itself with 25 other communities and entered into negotiations with Public Power. Following negotiations and consultation with their advisors, the parties agreed to an increase in the electricity price to account for some of the claimed cost increases. The amendment to the Agreement includes language that prevents the pass-through of similar cost increases in the future.
The Town believes the new rate will continue to provide value to participating consumers even with the price increase.
Moving Forward – Fixed Rate of 10.430 Cents per kWh through January 2020
The Town’s rate will remain fixed at 10.430 cents per kWh through the remainder of the term of the Electric Services Agreement, ending January 2020.
It is the expectation of the Town that National Grid’s current Basic Service rate of 10.87 cents per kWh will increase with the winter rate change effective November 1, 2018 – April 30, 2019. However, because the Basic Service rate changes every three to six months, there is no guarantee that the Program price will be below the Basic Service rate in future periods. All participating customers may leave the Community Electricity Aggregation Program at any time and without penalty.
Please go to your community’s dedicated webpage at www.MILLBURYPOWERCHOICE.COM for a rate comparison chart and information about the program. If you have any questions regarding the price increase or your options, please call (844) 627-7232.
The Millbury Power Choice rate in comparison to National Grid Basic Service rates is shown below:
Millbury Power Choice Community Electricity Aggregation Program
(Standard Product –
No Action Required)
Current National Grid
Utility Basic Service
(Supply Services Only)
September 2018 – January 2020
Rates apply to service beginning and ending on the days of the month that your meter is read in your service area.
November 1, 2018 – April 30, 2018
Residential & Small Commercial rates change every six months. *Large Commercial rates change every three months.
Disclaimer: A goal of the Aggregation program is to produce savings for customers, but savings cannot be guaranteed compared to the utility’s basic service rate which changes every three months for industrial customers and every six months for residential and small commercial customers. The Aggregation program seeks to provide price stability and average savings over the full term of the program, but because future basic service rates are not known, there is no guarantee of savings.
Rates indicated above are for Supply Services only. The Millbury Power Choice rate of $0.10430/kWh will remain fixed and will not change from your September 2018 meter reading until your January 2020 meter reading.
On January 27th, 2017, the Town of Millbury received the Department of Public Utilities (DPU) order approving the town’s aggregation program, Millbury Power Choice. The town’s aggregation consultant, Good Energy, then conducted a competitive bid for an electricity supplier and ultimately awarded Public Power, LLC. An opt-out letter was then sent to every eligible account in Millbury. Eligible accounts are defined as those currently on National Grid’s Basic Service and not in contract with a third party supplier (TPS). Additionally, any account holder that has previously asked National Grid not to have their information shared with marketers were deemed ineligible. Any account that is not initially eligible is able to join the program at a later time. The opt-out letter clearly compared the National Grid rate and the Millbury Power Choice rate and provided contact information for those having questions. This website will have information about the program along with contact information for anyone wishing to speak to a program representative. Finally, it should be emphasized that no one affiliated with the town’s aggregation program will be calling, going door-to-door, or sending mailers. The only communication will be the opt-out letter, which will be recognizable as coming from the Town of Millbury.