Tips for Choosing a Power Supplier
Explore
your options. Weigh the tradeoffs.
Make your own decisions.
The
Skinny on Power Supply Options for Cape & Islands Consumers
(last update 02.05.07)
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For
the first time, all local consumers have power supply choices.
Choosing a supplier is not an easy decision, as cheaper products
may not always be the best ones, and contract terms must be
carefully considered. Options available to residential consumers
are characterized below.
Cape & Vineyard Residents
(click here
for a table comparing options)
Dominion Retail offers the lowest fixed rate - about 10% lower
than competing offers from Cape Light Compact and NStar. This
corresponds to a savings of about $5 per month for an average
consumer using 500 kWh/month, and this rate is good through
the end of the year. Consumers must act by February 28 to
take advantage of this offer.
Cape Light Compact is offering a lower fixed rate than NStar
through June 30, as well as a good deal on green power. Rates
for both companies could go down - or up - in the second half
of the year.
For just a few extra dollars a month, you can support renewable
energy by purchasing "boutique green" products from
the Compact or other suppliers.
Dominion Retail's contract terms, especially those relating
to early termination, require careful consideration. No exit
fees are incurred by consumers who elect to switch away from
the Compact or NStar. However, consumers who switched from
the Compact to NStar in 2006 and are thinking of switching
to Dominion Retail or going back to the Compact need to account
for an NStar reconciliation charge; this charge could total
almost $20 for an average consumer for the first 2 months
of 2007.
The Compact, NStar, and Dominion Retail market conventional
"system power" products, with more than 60% of their
energy produced by burning fossil fuels. However, in the first
half of 2006, more than 50% of the power Dominion Retail supplied
to Massachusetts consumers was generated by a nuclear plant
owned by one of its sister companies; this plant doesn't release
air pollution or greenhouse gases, but it does generate nuclear
waste. This sister company also owns the dirtiest power plant
in New England, sited directly upwind of the Cape and Vineyard.
Nantucket Residents
(click here
for a table comparing options)
MX Energy is offering a teaser rate through April that is
lower than the current fixed rate available from National
Grid. In May, its rate will begin to float according to market
conditions. Whether this variable rate will be lower or higher
than National Grid's rate remains to be seen.
National Grid will announce a new fixed rate by early April
covering the period from May 1 through October 31.
For just a few extra dollars a month, you can support renewable
energy by buying "boutique green" products through
National Grid's GreenUp program or from other suppliers.
To
get detailed information on your options, click here.
Of
course, the best way to reduce your bill and protect the environment
is to use electricity more efficiently. Click here for tips.
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On March 1,
2005, the rate protections mandated under the Massachusetts Electric
Restructuring Act of 1997 disappeared. If you do not take an active
interest in selecting a power supplier, someone else is choosing
how much you pay, and most of the electricity you buy is being produced
by power plants that harm local environments and communities.
No matter what
supplier you select, your local distribution company—NStar
or National Grid (formerly Nantucket Electric)—will remain
responsible for keeping the juice flowing and “turning back
on the lights” after power outages. These companies also will
continue to provide delivery and customer services, which due to
skyrocketing fossil fuel prices now account for less than 50% of
your total electric bill.
Practical information
and tips for choosing a supplier are presented below. To immediately
review your supply options, click here:
Knowing
Your Supply Options
What's the difference between
power supply options?
Is cheap power smart power?
Is cleaner and green power available right now?
Are cleaner and green options more expensive
than dirtier options?
How do I buy cleaner and green power?
What are the benefits of buying cleaner and going green?
What is a green power product?
Can I buy green power products right now?
What should I consider when going green?
Choosing
Your Supplier
How do I compare supply options?
How do I compare the "true costs" of supply options?
What else should I consider when choosing a supplier?
What are my supply options?
-- Cape Cod
-- Martha’s Vineyard
-- Nantucket
Evaluating
Your Current Supplier
Who is my supplier? If you live
on the Cape and Vineyard, the Cape Light Compact is your supplier
automatically unless you choose to be served by NStar or to
go with another competitive supplier such as Dominion. The Compact,
a municipal aggregator, is providing supply services under a power
purchase agreement with ConEdison Solutions, a competitive supplier.
If you live
on Nantucket, National Grid provides your power supplyunless
you choose a competitive supplier.
Regardless of
supplier, Cape and Vineyard consumers receive delivery and customer
services (i.e. metering, billing, electricity distribution) from
NStar, and Nantucket consumers receive these services from National
Grid.
- Click here
for more information on power supply issues.
- Click
here for more information on power delivery services.
How
much am I currently paying for power supply?
How is my power being generated? To answer these questions,
you need an up-to-date energy disclosure label from your current
supplier. All suppliers are required to prepare updated disclosure
labels on a quarterly basis. NStar and National Grid are required
to distribute energy labels as bill inserts. Current labels are
available from their websites. The Cape Light Compact is required
to deliver updated disclosure information to Cape and Vineyard consumers
via mailings, news releases, public service and town meeting announcements,
newsletter inserts, public presentations, and its website.
- NStar disclosure
information is no longer readily available on its website. Check
for an insert in your next bill, or contact customer service at
1.800.592.2000.
- Click here
for Cape Light Compact disclosure information.
- Click here
for National Grid disclosure information (labels for green products
appear at the top of the page; labels for other products appear
at the bottom).
What
is an energy disclosure label?
Under state law, licensed suppliers must prepare energy disclosure
labels to help you compare competing offers. Your disclosure label
(see sample)
must specify the following:
- The price
per kilowatt-hour (not including charges for customer and delivery
services) and other contract terms, such as length of contract,
fixed or variable pricing, etc.
- The sources
of the power being sold, in terms of fuels used for electricity
generation (coal, oil, natural gas, nuclear, hydro, wind, bioenergy,
solar, etc.)
- The emissions
characteristics of these sources, in terms of harmful pollutants
and greenhouse gases, relative to the regional average of all
sources in New England and to new generating units
- The health
effects associated with emissions of sulfur dioxide (SO2) and
nitrogen oxides (NOx), including asthma, aggravation of existing
cardiovascular disease, and respiratory illness
- The environmental
effects of SO2 and NOx, including haze, smog, and acid rain, as
well as nutrient loading in ponds, lakes, and coastal waters
- The contributions
of carbon dioxide (CO2) emissions to global climate change
Your label must
also specify the percentage of your power generated by facilities
where employees are under union contract, and it must include customer
service information and contacts.
What
does my label’s “Power Sources” section mean?
Your label’s “Power Sources” section lists the
relative contributions of “known resources” and “system
power” to your supplier’s product mix, including the
percentage being generated by individual dirty sources (such as
coal and oil), cleaner sources (such as natural gas and nuclear
power), and green sources of electricity (such as the sun, wind,
and water).
“Known
resources” represent generation from power plants owned by
or under contract to the supplier. For example, a generator that
owns a gas-fired plant can include some or all of the power from
this facility in the supply portfolio it offers to consumers. This
supplier can also contract some or all of its power to a broker,
which can then use the contracted power in building a supply mix.
Many suppliers
and brokers in New England rely primarily or exclusively on “system
power,” rather than electricity produced by individual generating
facilities. This power is generic—it is purchased through
power markets, and its “source” is equivalent to the
supply mix for the entire region. Fossil fuels such as natural gas,
coal, and oil are burned to produce most of the power generated
in New England. On a daily basis, fossil power generation produces
more harmful emissions than any other U.S. industry. When running,
the Canal plant in Sandwich introduces an average of more than 1.5
tons of SO2 and NOx and 200 tons of greenhouse gases into local
environments each hour in order to generate the electricity that
is physically consumed in Cape & Islands communities. According
to the Toxics Release Inventory maintained by the U.S. Environmental
Protection Agency (EPA), the plant emitted more than 20 pounds of
mercury into local environments in 2001 alone; the amount of mercury
found in a household thermometer is sufficient to contaminate a
pond's food chain and to transform predatory fish into unhealthy
food. The Canal plant relies mostly on high-sulfur fuel oil.
Located just
upwind of this region is the Brayton Point Station, which sits on
Mt. Hope Bay at the head of Narragansett Bay. The largest fossil-fuel-fired
plant within New England, the Brayton Point facility, is owned by
Dominion, and it runs largely on coal. It is the single largest
source of air pollution in New England. Preliminary data from the
EPA indicate that the facility emitted more than 70 million pounds
of SO2 and more than 21 million pounds of NOx in 2003. According
to EPA’s Toxics Release Inventory, the plant’s smokestacks
released 180 pounds of mercury and more than 1 million pounds of
other toxic substances in 2001.
Modern gas-fired
power plants generate most of the power in New England. They are
clean, relative to oil and coal units. However, they do release
pollutants and substantial quantities of greenhouse gases.
Nuclear plants
and large hydroelectric facilities are also significant contributors
to the New England supply mix. They release no air pollutants or
greenhouse gases, but they do have other serious impacts. For example,
local communities are downwind of the Pilgrim Nuclear Station, the
only nuclear plant in Massachusetts, while large hydro facilities
ruin natural water courses, alter habitats, and harm fisheries.
- Click here
for more information on the local, state, regional, and national
power supply portfolios.
- Click here
for more information on electricity policy and market issues.
What
does my label’s “Air Emissions” section mean?
Your label’s “Air Emissions” section tells you
whether the power you are buying is cleaner or dirtier than the
regional average. It also indicates how your power’s emissions
stack up against those from new, highly efficient generation units.
Supply mixes with lower-than-average emissions are important because
the Cape & Islands region is particularly vulnerable to the
adverse effects of pollutants and greenhouse gases.
- Click here
for more information about the adverse impacts associated with
air emissions.
What
does this information say about my supplier?
The power source and air emissions data provided on your label can
help you can evaluate whether your supplier is concerned only about
the price of electricity, or whether it is making an effort to generate
and/or buy power from sources with below-average emissions. By comparing
your supplier’s label against the labels prepared by competitors,
you can identify cleaner and green options at the best price.
Knowing
Your Supply Options
What's
the difference between power supply options?
Power suppliers compete primarily based on the price of their electricity,
the contract terms, and the environmental characteristics of the
power they are selling. All of this information is detailed on energy
disclosure labels.
Comparing suppliers
based solely on price is easyall of them sell power by the
kilowatt-hour (kWh). Comparing suppliers based on price and contract
terms takes a little more effort. Some suppliers may offer a fixed
price for 6 months, a year, or other periods; others may offer variable
pricing over specified periods. Additional contract details may
also have important effects on the overall costs and benefits of
individual options. To make an informed decision, you may need to
consider issues such as commitment and exit terms, price certainty,
market volatility, and even energy usage patterns.
Adding fuel
and emissions characteristics to the decision matrix introduces
an even broader range of economic, environmental, and social considerations.
The discussion below largely focuses on these issues.
Is cheap
power smart power? In the short
term, you can save money by finding the lowest-price supplier. However,
the cheapest product may not represent the best deal under uncertain
market conditions, particularly if a comparably priced option offers
a longer contract period or other beneficial contract terms. Moreover,
under present energy and environmental policies, low-price options
that rely exclusively on “system power” may not be the
best ones for Cape & Islands consumers: The prices paid for
electricity generated by fossil fuels and other sources do not reflect
“true cost” considerations such as air pollution, water
pollution, habitat destruction, public health impacts, national
security complications, and climate change risks. New England’s
“system power” mix is heavily dependent on dirty power
and other sources that impose environmental and social costs on
local communities.
- Click here
for more information on energy and environmental policy issues.
- Click here
for more information about the adverse impacts associated with
air emissions.
Is cleaner
and green power available right now?
In the New England electricity marketplace, increasing quantities
of cleaner power are being produced, and Cape & Islands consumers
can choose from a growing variety of green power products.
“Cleaner”
is a relative term. Power plants burning low-sulfur oil have lower
emissions than those that continue to rely on less expensive, higher-sulfur
fuel, such as the Canal station in Sandwich. Large, modern gas-fired
facilities produce much lower emissions than those that fire coal
or fuel oil, as do smaller gas-fired technologies such as fuel cells
and microturbines. Nuclear plants and large hydro facilities produce
no air pollution or greenhouse gases, but they are far from benign.
Green power
is inherently cleaner. Wind, solar photovoltaic (PV), and low-impact
hydro technologies are generally considered to be the most environmentally
benign sources of electricity. Bioenergy sources such as waste-to-energy,
landfill gas, and wood-fired plants generate some pollution, but
they produce electricity without adding to net emissions of greenhouse
gases. They also use fuels that are not subject to resource depletion
over human timescales.
- Click here
for more information on the local, state, regional, and national
power supply portfolios.
- Click here
for more information on cleaner and green options.
Are
cleaner and green options more expensive than dirtier options?
Cleaner products may be priced competitively with “system
power” and other dirtier options, and their “true costs”
are lower. Existing green power products available to Cape &
Islands consumers are more expensive than other optionsbut
not by muchand purchasing these "boutique" products
offers significant ancillary benefits. Ultimately, large-scale efforts
to "go green" may improve the region's “triple bottom
line,” yielding economic, environmental, and social advantages.
In the coastal
community of Hull, for example, green power generated by a wind
turbine has reduced electricity bills for a couple years, and a
second turbine was installed in 2006. Massachusetts consumers served
by a number of municipal utilities will begin saving money as soon
as a wind project under construction in the western portion of the
state goes on line. By agreeing to buy the green power generated
by this facility for the next 22 years, these munis secured a supply
agreement that provides their consumers with long-term cost certaintyat
a price well below current market rates.
Similarly, the
Cape Light Compact's agreement with a landfill gas project in northern
Vermont promises to reduce the electricity bills of Cape and Vineyard
consumers. This agreement reduces the Compact's cost of complying
with the state-mandated Renewable Portfolio Standard (RPS). Under
state law, all suppliers licensed in Massachusetts are required
to purchase a minimum amount of renewable energy certificates (RECs)
from facilities that meet RPS criteria. As of March 1, 2006, suppliers
must hold RECs (in megawatt-hour-equivalents) from qualified facilities
equivalent to 2.5% of total retail sales (in megawatt-hours); the
RPS ratchets up to 3% in 2007. Monetary savings associated with
the Compact's proactive approach to RPS compliance will accrue to
consumers served under its municipal aggregation programs.
How
do I buy cleaner and green power?
In Massachusetts, cleaner power products are offered by licensed
suppliers that own—or establish contracts with—generating
units that have lower emissions than other sources. For these products,
cleaner “known resources” supply a percentage of generation,
reducing reliance on the “system power” mix (and the
dirty coal- and oil-fired units that contribute to it). Modern power
plants fired by natural gas represent the predominant source of
cleaner power in New England.
Green power
products are offered by suppliers that own—or establish contracts
with—renewable energy producers. Green “known resources”
make up a substantial percentage of the supply portfolios for these
products. Hydro plants and bioenergy facilities account for the
majority of renewable generation within New England; wind, solar
PV, and other installations are also used in creating supply mixes
for some green products.
What
are the benefits of buying cleaner and going green?
Cleaner and green power sources impose lower "true costs"
on local environments and communities. In fact, some green sources
do not produce any of the emissions that are degrading local environmental
quality, causing health problems, and threatening to forever alter
this region. All renewable sources reduce reliance on finite fuels
that must be imported from other regions of the United States or
from other countries. Present-day green power products may also
be tax-deductible, and they may enable you to invest in the development
of renewable resources in your community, this region, or elsewhere
in Massachusetts. Future green products could provide local consumers
with long-term price certainty.
Buying smarter
power now won’t shut down the Canal or Brayton Point plants
or other facilities, but it gives you the opportunity to accelerate
the transition to a sustainable energy future by sending clear signals
to the electricity marketplace. By increasing demand for cleaner
and green power, you encourage suppliers to invest in generation
from more efficient technologies and from renewable energy facilities.
You also tell your current supplier to deliver cleaner and green
options or lose your business.
- Click here
for more information about the adverse impacts associated with
power supply options.
- Click here
for more information on electricity policy and market issues.
What
is a green power product? Four
different types of green products exist. Most of those available
today are based on renewable energy credits (RECs), which are derived
from the environmental attributes associated with renewable generation,
rather than from the green electrons supplied to the grid by wind,
solar, and other installations. RECs were created under the provisions
of the Massachusetts Renewable Portfolio Standard (RPS) and similar
standards elsewhere in the United States. They are generated for
each megawatt-hour of green electricity produced, as the means used
to track progress relative to the RPS. Owners of renewable facilities
can sell both megawatt-hours and RECs.
Green product
types are characterized below:
- "Boutique"
green products allow you to support existing renewable
energy facilities. Products based on RECs may be purchased from
suppliers and brokers either by the kilowatt-hour-equivalent,
in blocks of kilowatt-hour-equivalents, or for a set fee. Because
credit-based products are distinct from commodity kilowatt-hour
purchases, buying them adds a premium to your electric billbut
it gives you an opportunity to ensure that some or all of the
electricity you consume is offset by power from renewable sources.
Costs for these boutique products may be billed as a generation
services surcharge, or they may be billed separately.
- Delivered
(or bundled) green products allow you to buy power from
renewable energy facilities. Like conventional "system power"
products, they are based on electricity fed to the power grid;
the difference is that a substantial percentage of their supply
mix is generated by green “known resources,” reducing
reliance on conventional sources. Delivered green products are
purchased by the kilowatt-hour, with commodity charges reflected
in your electric bill’s generation services section.
- Investment-grade
green products allow you to support the development of
new renewable energy capacity, and they may be purchased either
by the kilowatt-hour-equivalent or for a set fee. Charges may
be reflected in the generation services portion of your bill,
or they may be billed separately.
- "Mixed"
green offerings are delivered or boutique green products that
incorporate an investment-based component. Typically, suppliers
and brokers guarantee to add new renewable energy capacity at
specific facilities or in specific areas when they collect sufficient
revenue or sell a certain quantity of power or RECs. Charges may
be reflected in the generation services portion of your bill,
or they may be billed separately.
Can
I buy green power products right now?
Boutique green products are available to local consumers through
the Cape Light Compact, National Grid, and others. By paying a small
premium over the rate for a “system power” product,
you can buy products based on RECs generated by low-impact hydro
facilities, bioenergy plants, wind turbines, and solar PV installations.
No green power
products give you the opportunity to invest in specific renewable
energy projects in the Cape & Islands region as of yet. Some
green suppliers offer investment-grade or mixed products that devote
a portion of revenues to renewables deployment in Massachusetts,
New England, or the United States. The New
England Wind Fund, offered through Mass Energy starting in Fall
2006, represents a prominent example: One-time donations to or monthly
payments collected by the fund will be held by Mass Energy and invested
to support new wind projects in New England.
Delivered (bundled)
green products currently exist only in theory for Cape & Islands
consumers. However, they are available to consumers elsewhere in
the Commonwealth.
What
should I consider when going green?
Buying green power offers you a number of choices:
- How
much green power do I want to buy? Boutique green products
are available in different shades of green—you can buy credits
to offset some or all of your electricity demand. Similarly, delivered
products may offer supply mixes that rely on renewables to varying
degrees.
- What
green sources do I want to support? If you are partial
to a particular renewable energy source, you may want to factor
this into your deliberations—100% wind, 100% low-impact
hydro, and other options are available. If you want to buy zero-emissions
electricity, look for products that do not include waste-to-energy,
landfill gas, or other combustion-based renewable technologies
in their supply mix.
- Where
are the green electrons being generated? Buying products
based on power generated by renewable energy facilities located
in Massachusetts or elsewhere in New England is most likely to
reduce the harmful emissions imposed on the Cape & Islands
region.
- Is the
green product tax-deductible? By purchasing green power, you
are assigning an economic value to the electricity's environmental
and other benefitsand you are making an investment that
benefits society. The money spent on some green power products
available from licensed Massachusetts suppliers is eligible for
treatment as a tax-deductible contribution under a recent ruling
by the U.S. Internal Revenue Service. In other words, you may
be able to go green and add a new entry to your form for itemizing
deductions.(Click here
for more information on the tax-deductibility of green products
in Massachusetts.)
- Is
the green power being generated by facilities that comply with
state RPS requirements? RPS-eligible facilities are new
and nearby—installed or upgraded after 1997, and located
in New England. Buying credits produced by these facilities sends
important market signals: It reduces the amount of RECs available
for licensed suppliers to fulfill their compliance obligations
under the state’s RPS. This helps build demand for construction
of new renewable facilities within New England.
- Will
my green power purchases lead directly to the installation of
new renewable generation in the Cape & Islands region?
At present, no green power products give you an opportunity to
invest in specific renewable energy projects in the Cape &
Islands region. However, buying products from green power brokers
licensed in Massachusetts may allow you to secure matching funds
to promote renewable energy development in your community under
the Clean
Energy Choice program offered by the MTC. For every dollar
you spend on green power, the MTC provides matching funds that
may be used by your community to support the purchase of PV panels,
educational materials, or other products.
- Is
the green supplier licensed in Massachusetts? No license
is required to sell credit-based products to local consumers.
Unlicensed suppliers may be perfectly reputable—but their
products should be given additional scrutiny (see next question).
Suppliers licensed in Massachusetts must provide consumers with
energy disclosure labels, and they must comply with other state
requirements. Their supply mixes typically include some generation
by RPS-eligible facilities, and purchases of these products generate
matching funds to support renewable energy development in your
community.
- Is
the green power generated by facilities certified as environmentally
beneficial? Third-party certification programs can help
you identify products derived from facilities in Massachusetts,
elsewhere in New England, or elsewhere in the United States that
meet environmental and other performance standards established
by advocacy groups and other organizations. Green-e,
a program administered by the Center for Resource Solutions, identifies
products that meet stringent environmental criteria, and it requires
participating suppliers to provide standardized consumer disclosure
information. The certification program administered by the Low-Impact
Hydropower Institute identifies hydro facilities that are
minimizing adverse environmental impacts. EcoPower
is a designation granted by the Environmental Resources Trust
to green products based on RECs generated from facilities that
meet specific age and emissions characteristics.
Choosing
Your Supplier
How
do I compare supply options? You
need your current electric bill, as well as information preferably
energy disclosure labelsfor each option being considered.
Your bill shows how much power you consumed last month and in previous
months. By multiplying your monthly energy use in kilowatt-hours
by power supply prices, you can determine how much each option would
have cost you in recent months. By evaluating contract terms, you
can examine variables such as whether suppliers are offering fixed
prices for 6 months, 1 year, or longeror if prices will vary
on a regular basis.
By comparing
the power source and air emissions information on these labels,
you can evaluate whether suppliers are concerned only about the
price of electricity, or whether they are making an effort to generate
and/or buy power from sources with below-average emissions. You
can also identify cleaner and green options at the best price. An
example “true cost” evaluation of supply options is
presented below.
How
do I compare the “true costs” of supply options?
Through a “true cost” analysis, you can explore
answers to the following questions:
- Can I save
money and reduce my energy footprint?
- Can I only
save money by purchasing dirtier power?
- Can I invest
some spare change or a few extra dollars each month to purchase
power that is less harmful to the environment, human health, and
community character in the Cape & Islands region?
In the example
below, five hypothetical supply options are characterized using
information illustrative of what you might see on disclosure labels.
This example is designed to highlight some of the possible tradeoffs
between price, source, and emissions characteristics. At present,
residential consumers in Massachusetts are unlikely to face this
many options because retail power markets remain immature. In addition,
the prices per kilowatt-hour reflect those in 2004 and much of 2005far
lower than those available today to most local consumers.
Option
A“System Power”
Price: 7.500 cents/kWh
Sources: “system power” supplies 100% (e.g.,
natural gas, 36%; nuclear, 24%; coal, 15%; oil, 12%; other sources
to a much lesser degree)
Emissions: regional average |
Option
B“Cheaper Power”
Price: 7.450 cents/kWh
Sources: “known resources” supply 100%
(e.g., supplier owns or has contracts with coal- or oil-fired
plants)
Emissions: higher than regional average |
Option
C“Cleaner Power”
Price: 7.750 cents/kWh
Sources: “system power” supplies 75%; “known
resources” supply 25% (e.g., supplier owns or has contracts
with gas-fired, nuclear, or large hydro plants)
Emissions: lower than regional average |
Option
D“Cleaner Power”
Price: 7.450 cents/kWh
Sources: “known resources” supply 100%
(e.g., supplier owns or has contracts with gas-fired, nuclear,
or large hydro plants)
Emissions: much lower than regional average |
Option
E“Green Power”
Price: 9.750 cents/kWh (credit-based surcharge is 2
cents/kWh; this extra cost offsets a 100% “system power”
buy at 7.500 cents/kWh)
Sources: “known resources” supply 100%
(e.g., supplier owns or has contracts with low-impact hydro,
wood, landfill gas, wind, and solar PV facilities)
Emissions: far lower than regional average |
Assume you are
an average residential consumer using 500 kWh per month. For each
of these options, the table below compares your out-of-pocket costs
over a 4-month period for the supply portion of your bill, plus
the emissions characteristics.
|
Month
(electricity use)
|
Option
A: System
Power
|
Option
B: Cheaper Power
|
Option
C: Cleaner
Power
|
Option
D: Cleaner
Power
|
Option
E: Green
Power
|
|
1
(505 kWh)
|
$37.88
|
$37.62
|
$39.14
|
$37.62
|
$49.24
|
|
2
(525 kWh)
|
$39.38
|
$39.11
|
$40.69
|
$39.11
|
$51.19
|
|
3
(490 kWh)
|
$36.75
|
$36.51
|
$37.98
|
$36.51
|
$47.78
|
|
4
(480 kWh)
|
$36.00
|
$35.76
|
$37.20
|
$35.76
|
$46.80
|
|
Out-of-Pocket
Costs
|
$150.01
|
$149.00
|
$155.01
|
$149.00
|
$195.01
|
|
Emissions
Characteristics
|
Dirty
|
Dirtiest
|
Somewhat
Cleaner
|
Substantially
Cleaner
|
Green
|
Option E’s
air emissions are far lower than those of competing options, at
an extra monetary cost of a little more than $10 per month. Option
E represents your best choice for minimizing the environmental and
social costs associated with your electricity use.
If green power
is too expensive, you can make smarter decisions by comparing the
sources and emissions characteristics of options that are similar
in price. Assume that only Options A, B, C, and D are affordable.
By choosing Option D, you can save money and reduce your energy
footprint.
Unfortunately,
lower-cost, cleaner alternatives such as Option D may not always
be available. Assume that only Options A, B, and C exist. On price
alone, Option B looks good: Option A is 25 cents more per month,
and Option C is $1.50 more per month. But these savings come at
a costhigher emissions of pollutants and greenhouse gases.
In this example, you can help promote a sustainable energy future
by spending a nominal sum to buy “system power” or investing
just a little more to buy cleaner power.
What
else should I consider before choosing my supplier?
In addition to price, sources, and emissions, you should consider
several other factors before signing a contract with a power supplier:
- Are the
energy prices fixed throughout the contract period, or will they
vary on a monthly or other basis?
- What is
the term of the contract?
- What are
the entry and exit provisions? Are there early termination or
other fees? If you opt out, can you opt back in?
- Are there
minimum bill amounts?
- Does the
supplier have a customer service center or website?
- Will the
supplier bill you directly, or will the charges be included on
your bill from NStar or National Grid?
- Does the
supplier (or any sister companies) own or operate dirty, cleaner,
or green power plants?
- How does
the supplier conduct its business?
- What is the
supplier's reputation?
- Is the supplier
involved in local communities?
A supplier's
motivations may also factor into your decision. For example, as
distribution companies required to provide basic supply services,
NStar and National Grid do not make any profit on the electricity
they sell; their rates must be approved the the Massachusetts Department
of Telecommunications & Energy. As a government agency and municipal
aggregator, the Cape Light Compact exists to protect the public
interest and to leverage the buying power of consumers in 15 Cape
Cod towns and six towns on Martha's Vineyard. Competitive suppliers
exist to make a profit on the power they sell. Some green suppliers
compete to generate profits on their investments in renewable energy;
others are nonprofit organizations committed to accelerating the
transition to a sustainable energy future.
What
are my supply options? In
the Cape & Islands region, most consumers face limited supply
optionsunless they opt to invest in boutique green products.
Medium and large commercial and industrial consumers, including
businesses, organizations, and municipalities, can choose among
a wider array of options. New options may become available at any
time. You should check on them frequently via the links below. If
you don’t, someone else will make your decisions for you.
Your choices are characterized below:
Cape Cod & Martha’s Vineyard
Nantucket
Cape
Cod & Martha’s Vineyard
As a municipal aggregator within NStar's service territory, the
Cape Light Compact has supplanted NStar as a "default"
power supplierconsumers on the Cape and Vineyard are served
under an agreement negotiated with ConEdison Solutions, a competitive
supplier, unless they opt out. NStar continues to offer basic supply
services to all customer classes, and other companies are competing
for the right to serve some types of consumers.
If you opt out
of the Compact, you can switch to NStar or go with another competitive
supplier. You can opt out at any time, but whether you can opt back
in is up to ConEdison Solutions. NStar cannot refuse service to
anyone by law. Boutique green products are available through the
Compact and from other suppliers; the Compact's 50% and 100% products
offered the best deals on green power in Massachusetts in 2006.
You can choose to invest in these products whenever you want.
Detailed information
on individual options is available below:
Cape
Light CompactConEdison Solutions
Consumers interested in switching back to the Compact can
call 800.381.9192 or visit the organization's website;
you will need a copy of your electric bill.
Pricing:
In January 2007, the Compact's rates for residential and small business
consumers dropped to 11.652 and 11.671 cents/kWh, respectively.
The rates are fixed until the beginning of July. For large commercial/industrial
consumers, the rate is 12.871 cents/kWh for January-March.
The municipal
consumers that control the Compact's decision-making processes have
once again granted themselves a rate break. Their rate is 11.301
cents/kWh - a substantial increase from the price available in 2006,
but still lower than that provided to the overwhelming majority
of commercial/industrial consumers served by the Compact. This situation
runs contrary to the Compact's mandate to provide equal savings
to all consumers.
None of these
rates include regulated charges for power delivery or customer service;
those charges continue to be billed by NStar.
(The Compact-ConEdison
Solutions price for 2005 was 7.132 cents/kWh for residential consumers
and 7.169 cents/kWh for commercial and industrial consumers. In
January 2006, rates skyrocketed because the Compact failed to properly
manage risks, exposing consumers to the Category 5 market forces
associated with Hurricane Katrina. Prices jumped to 12.919 cents/kWh
for residential consumers - an 81% increase, 13.369 cents/kWh for
small commercial and industrial consumers - an 86% increase, and
14.377 cents/kWh for large commercial and industrial accounts -
a 100% increase. The municipal consumers that control the Compact's
decision-making processes granted themselves a rate break from March
2006 through the end of the year, paying only 9.99 cents/kWh. Prices
for other consumers were reduced by 1 cent/kWh in late summer. )
Power sources
and air emissions: The Compact and ConEdison Solutions offer
a “system power” product, making no effort to create
a cleaner and green supply mix. The Compact exists to represent
consumer interests, but it has yet to ask local consumers what kind
of electricity they would like to buy. As a result, the buying power
of almost 200,000 consumers is not being used to get the best deal
on electricity from cleaner and green sourcesand local consumers
have lost an opportunity to deliver market signals that encourage
suppliers throughout New England to invest in smarter power. Click
here
for Compact disclosure information.
Green options:
Boutique green products are available through the Compact and from
other suppliers licensed in Massachusetts or located elsewhere in
the United States. More information is available below
on green power products available to Cape & Vineyard consumers.
NStar
Consumers interested in switching to NStar can call 800.592.2000
or 800.381.9192; you will need a copy of your electric bill.
Basic pricingfixed:
In January 2007, NStar's residential rate increased to 11.858 cents/kWh
through June 30, 2007. The rate for small business consumers is
11.878 cents/kWh over the same period. From January - March 30,
the rate for large commercial/industrial consumers is 13.054 cents/kWh.
All of these prices are higher than the Compact's over the same
period. None of them include regulated charges for power delivery
or customer service; those charges are also billed by NStar.
Contract
terms: Consumers who switch from NStar fixed-price supply service
to another supplier may incur a reconciliation charge or credit,
depending on whether variable prices were lower or higher during
previous months.
Basic pricingvariable:
For all customers, NStar offers products that vary in price on a
monthly basisin some months, the variable price is higher
than the fixed price; in others, it is lower. Click here
for rate information. These prices do not include regulated charges
for power delivery or customer service; those charges are also billed
by NStar.
Power sources
and air emissions: NStar offers “system power” products,
making no effort to create a cleaner and green supply mix. Disclosure
labels are not readily available on this company's website; they
are supposed to arrive quarterly with your electric bill.
Green options:
If you are an NStar customer, you can buy boutique green products
from suppliers licensed in Massachusetts or located elsewhere in
the United States. More information is available below
on green power products available to Cape & Vineyard consumers.
Dominion
Retail - Residential Consumers
Consumers interested in switching to Dominion Retail can
call 866.275.4243 or visit the company's website;
you will need a copy of your electric bill.
Pricing:
Dominion Retail is offering residential consumers a fixed rate of
10.65 cents/kWh through the end of the year. This rate, which is
only available to consumers who sign up by February 28, is lower
than the current rates available from the Cape Light Compact and
NStar (but these rates may drop or increase in July). Note: Consumers
who are considering a switch to Dominion Retail and had previously
opted out of the Compact to buy power from NStar on a fixed-price
basis should be sure to account for the utility's reconciliation
charge; for a consumer using 500 kWh/month, this reconcilation charge
could total almost $20 for the first 2 months of 2007.
Consumers who
initiated service with Dominion Retail in 2005 are paying a slightly
higher rate of 11.22 cents/kWh through June; they can switch to
the lower rate through the end of the year but will be subject to
contract terms enumerated below. (At present, they are free to switch
to another supplier with no exit fee.)
Contract
terms: Consumers who sign up by February 28 are contractually
obligated to stick with the company through December 2007. They
will automatically remain with the company after this period under
a new pricing schedule to be announced toward the end of the year.
Consumers that elect to switch to another supplier before the contract
term ends are subject to a $50 early termination fee. Either before
or after the contract term ends, consumers must provide 30 days
of advanced written notice to switch to another supplier.
Power sources
and air emissions: During the first half of 2006, the Millstone
Nuclear Plant in Connecticut accounted for more than 50% of Dominion
Retail's supply portfolio; this plant is owned by another Dominion
company. Accordingly, the company's power was much, much cleaner
- in terms of air pollutant and greenhouse gas emissions - than
the "system power" mix; nuclear power plants raise other
concerns, of course.
The power being
delivered during the remainder of 2006 and in 2007 is at present
of unknown origin; the company projects a "system power"
mix but may alter this depending on market conditions. Of potential
concern is the fact that one of its sister companies also owns the
Brayton Point Station, which is located just upwind of the Cape
and Vineyard. This facility, which burns mostly coal, releases more
pollutants and greenhouse gases than any other power plant in New
England, and the heated water it discharges to Mt. Hope Bay has
been linked to fish kills and additional ecological damage.
Competitive
Suppliers - Commercial & Industrial Consumers
Depending on customer class, you may be able to shop around
for a better deal among competitive suppliers. A variety of options
exist for commercial and industrial consumers. To investigate competitive
options, click here
for a list of suppliers active in NStar’s service territory;
this list provides contact information for individual suppliers.
Green
Options
Compact Green.
The Cape Light Compact and ConEdison Solutions offer boutique green
products to offset either 50 or 100% of conventional "system
power" purchases. The 50% and 100% "Compact Green"
products add 0.9 and 1.6 cents to the price of each kilowatt-hour
purchased, respectively. For residents, the overall supply rate
is either 12.552 or 13.252 cents/kWh, respectively.
An average consumer
can support renewable energy projects throughout New England for
about an extra $5 to $8 per month. Supporting existing green facilities
is not the only benefit. A portion of every $1 spent on Compact
Green is not only tax-deductible, but also it is matched by the
MTC through a grant to your community. In 2006, these funds were
used to support the installation of solar PV systems on 19 schools,
a library, and a fire station - one system in each Cape and Vineyard
community. MTC also grants an equal amount to assist low-income
consumers throughout the state with their energy bills.
Compact Green
products are based on credits from low-impact hydro facilities located
in New England, a landfill gas project in Chicopee, and wind and
solar PV facilities. The supply mix includes credits generated by
local solar PV projects installed through programs administered
by Cape & Islands Self-Reliance and the Vineyard Energy Project.
Click on the link below for rates, supply mixes, and other information,
including disclosure labels and a calculator showing the environmental
benefits associated with green power purchases:
Cape
Light Compact Green
Other Massachusetts
Green Products. Regardless of your supplier, you may be able
to buy credit-based green products directly from brokers licensed
in Massachusetts. Some of these products are tax-deductible; buying
any of them will generate matching funds for your community from
the Massachusetts Renewable Energy Trust. For rates, supply mixes,
and other information, including disclosure labels, visit the websites
of individual suppliers or call the numbers listed below:
Community
Energy; 866.946.3123
Massachusetts
Energy Consumers Alliance; 800.287.3950
Sterling Planet;
800.473.1362
Other Green
Products. Right now, regardless of your supplier, you can buy
credit-based green products from suppliers active in specific U.S.
regions or nationally. A huge range of options is available. Click
on the link below for more information:
U.S.
Green Power NetworkRetail Certificate Products
Nantucket
National Grid continues to offer supply services to all customer
classes, other companies are competing for the right to serve some
types of consumers, and numerous green power products are available.
More information is available below.
National
Grid
Basic pricingfixed:
For residential consumers, National Grid's price is 11.672 cents/kWh
from November 1, 2006-April 30, 2007. Rates for small commercial/industrial
consumers are 11.406 cents/kWh for the same period. For large commercial/industrial
consumers, rates are 10.874 cents/kWh from February 1 - April 30,
2007. None of these prices include regulated charges for power delivery
or customer service; those charges are also billed by National Grid.
(For residential
consumers, National Grid's price was 9.693 cents/kWh from May 1,
2006-October 31, 2006 and 10.718 cents/kWh from November 1, 2005-April
30, 2006. The latter represented an increase of more 50% since the
beginning of 2005.)
Contract
terms: Consumers who switch from National Grid fixed-price service
to another supplier may incur a reconciliation charge or credit,
depending on whether variable prices were lower or higher during
previous months.
Basic pricingvariable:
For all customers, National Grid offers products that vary in price
on a monthly basisin some months, the variable price is higher
than the fixed price; in others, it is lower. Click here
for rate information if you are a residential consumer; click here
for rate information if you are a commercial or industrial consumer.
These prices do not include regulated charges for power delivery
or customer service; those charges are also billed by National Grid.
Power sources
and air emissions: On balance, National Grid's supply mix is
a tiny bit cleaner than the regional average, with "known resources"
including 2% biomass, which slightly reduces reliance on dirty system
power. Click here
to find disclosure labels if you are a residential consumer; click
here
to find disclosure labels if you are a commercial or industrial
consumer
Green options:
You can buy credit-based green power products from suppliers licensed
in Massachusetts through National
Grid’s GreenUp Program. More information is available
below on green products available to
Nantucket consumers.
MX
Energy - Residential Consumers
Consumers interested in switching to MX Energy can call 800.785.4373
or visit the company's website;
you will need a copy of your electric bill.
Pricing:
MX Energy is offering residential consumers an introductory rate
of 10.8 cents/kWh through April; after that, the rate will vary
according to market conditions. This rate is presently lower than
that of National Grid, but there is no guarantee it will be going
forward.
Contract
terms: Consumers are free to cancel service with MX Energy at
any time; no exit fees will be charged. However, consumers must
provide 30 days of advanced notice to return to National Grid. It
may be worth comparing National Grid's rate history over the past
couple years to identify months when variable rates are generally
lower than fixed rates and, thus, whether MX Energy may offer savings
over time (historical rates can be accessed by clicking here).
Power sources
and air emissions: MX Energy offers “system power”
products, making no effort to create a cleaner and green supply
mix.
Competitive
Suppliers - Commercial & Industrial Consumers
Depending
on customer class, you may be able to shop around for a better deal
among competitive suppliers. A variety of options exist for commercial
and industrial consumers. To investigate competitive options, click
here
for suppliers active in National Grid’s service territory.
These lists provide contact information for individual suppliers.
Green
Options
GreenUp.
Under National
Grid’s GreenUp
Program, you can buy credits offsetting either 50 or 100% of
your "system power" purchases. All of these products are
offered by suppliers licensed in Massachusetts; some of them are
tax-deductible. They will increase the cost of each kilowatt-hour
you purchase by anywhere from less than a penny to just over 2 cents.
If you are an average residential consumer, you can spend as little
as an extra $7 each month to ensure that renewable sources are used
to meet 100% of your electricity needs.
A portion of
every $1 you spend is not only be tax-deductible, but also it is
matched by the MTC through a grant to Nantucket. The state will
provide ratepayer funds to promote green power development in your
community and an equal amount to assist low-income consumers throughout
the region with their energy bills.
These products
are based on electricity generated by low-impact hydro facilities,
bioenergy plants, wind turbines, and solar PV installations. Click
on the link below for suppliers, rates, supply mixes, and other
information, including disclosure labels.
GreenUp
Providers
Other Products.
You can buy premium-price, REC-based green power products from
suppliers active in specific U.S. regions or nationally. Click on
the link below for more information:
U.S.
Green Power Network--Retail Certificate Products
If you
have questions or would like to order a free consumer’s guide
to power supply options, call the Consumer Education Hotline maintained
by the Massachusetts Division of Energy Resources (DOER) at 888.758.4469.
Visit DOER’s
restructuring website for additional information.
Disclaimer:
This information is presented for educational purposes only,
not to recommend, promote, or endorse any power supplier or product.
Every effort has been made to ensure the accuracy of this information;
however, it is subject to change or correction.
Explore
your options. Weigh the tradeoffs. Make your own decisions.
Last updated
02.06.07