Cape & Islands Energy Information Clearinghouse

A Community Resource Developed Through The Cape & Islands Renewable Energy Collaborative

The Hummer/Photo Source:Winnepeg Luxury Cars   Canal Electric Plant/Photo Source: Richard Judge   Sinking of the Argo Merchant/Photo Source: National Oceanic and Atmospheric Administration   Solar Flare/Photo Source: National Optical Astronomy Observatory   Race Point Photovoltaic Installation/Photo Source: Cape Cod Chapter of the American Lighthouse Foundation   Woods Hole Research Center Ordway Campus Green Building Showcase/Photo Source: Cape Cod Center for Sustainability   Woods Hole Research Center Ordway Campus Green Building Showcase/Photo Source: Cape Cod Center for Sustainability   Cape Cod Regional Transit Authority's Propane-Fueled Bus/Photo Source: Cape Cod Regional Transit Authority
The energy present Tools for Managing the Transition The Energy Future

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)
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.

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:

Evaluating Your Current Supplier
Who is my supplier?

How much am I currently paying for power supply? How is my power being generated?

What is an energy disclosure label?

What does my labels Power Sources section mean?

What does my labels Air Emissions section mean?

What does this information say about my supplier?

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
-- Marthas 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 labels Power Sources section mean? Your labels Power Sources section lists the relative contributions of known resources and system power to your suppliers 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 genericit 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 EPAs Toxics Release Inventory, the plants 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 labels Air Emissions section mean? Your labels Air Emissions section tells you whether the power you are buying is cleaner or dirtier than the regional average. It also indicates how your powers 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 suppliers 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 Englands 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 ownor establish contracts withgenerating 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 ownor establish contracts withrenewable 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 wont 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 bills 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 greenyou 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 deliberations100% 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 nearbyinstalled 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 states 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 reputablebut 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 ASystem 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 BCheaper 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 CCleaner 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 DCleaner 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 EGreen 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 Es 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 dont, someone else will make your decisions for you. Your choices are characterized below:
Cape Cod & Marthas Vineyard
Nantucket

Cape Cod & Marthas 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 NStars 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 Grids 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 Grids service territory. These lists provide contact information for individual suppliers.

Green Options

GreenUp. Under National Grids 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 consumers guide to power supply options, call the Consumer Education Hotline maintained by the Massachusetts Division of Energy Resources (DOER) at 888.758.4469. Visit DOERs 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

 


CIRenew Logo
This website is being developed through the Cape & Islands Renewable Energy Collaborative (CIRenew). Its framework was created under a community planning grant award from the Massachusetts Technology Collaborative (MTC). The Clearinghouse provides a central location for the collection, classification, and distribution of data, information, and tools addressing energy supply and use in the Cape & Islands region, both now and in the future.
  • Project management and content development: Chris Powicki, Water Energy & Ecology Information Services
  • Web design/development and content development: Dick Elkin
  • Graphic design: Elizabeth Hooper, Hooper Design
__