5/2/2012 - Town of Lunenburg Announces New Power Rates, 25% Drop- Lowest Rates in State

 

For Immediate Release

Lunenburg, Massachusetts – April 26, 2012: The Town of Lunenburg today announced the extension of a contract with ConEdison Solutions as its competitive power supplier for the Town’s electricity customers. The selection -- made on a competitive basis – is part of the Town’s "Community Choice Power Supply" program, a program for electric power supply that has helped lower electricity costs for Lunenburg consumers.

Lunenburg’s rates will drop 25% from 7.7 cents/kWh to 5.85 cents/kWh, bringing the residential rate down to its lowest rate in almost 10 years. Lunenburg can now boast having the lowest electricity supply rates in the state.

"Once again, electric customers in the Town of Lunenburg will be able to protect their interests as consumers through purchase options," said Lunenburg Town Manager Kerry Speidel. "With the authorization of the Board of Selectmen, the Community Choice Power Supply initiative allows the Town to provide local energy services in a way that stabilizes costs, promotes competition and ensures local control over energy supplies. This phase of the program begins at a time with the summer cooling months and associated increases in electrical consumption fast approaching and, therefore, will prove advantageous in assisting the Town’s consumers in realizing savings on their electric bills. We will monitor rates closely over the course of the summer and beginning of fall when new basic service rates will be set."

The Community Choice Power Supply initiative provides Town residents and businesses with energy price stability, and also offers opportunities for potential cost savings. The program creates competition among energy suppliers to help ensure competitive rates and to endow the Town with local control over energy supplies. Acting on behalf of the Town’s 4,500 electricity ratepayers, the Town of Lunenburg selected ConEdison Solutions on a competitive basis because of the provider’s ability to stabilize rates, its

capacity to maximize savings opportunities, and its strong record of performance as an energy supplier in the Northeast.

The new rates take effect with the June meter reading for all participating customers.

Background

In 1997, the Massachusetts legislature approved structural changes that promoted energy supply competition and provided local municipalities with the option of introducing supply-related competition and customer choice within their jurisdictions. Lunenburg’s Community Choice Power Supply program was approved at the Town Meeting in November 2010, and first took effect last January.

Electricity services provided to local ratepayers by Unitil are now divided into two parts. The first part, which remains regulated by the state, involves the physical delivery of power supplies over the wires to consumers. Unitil, which directly charges ratepayers for this service, continues to maintain these wires and will continue to read meters. Unitil remains responsible for maintaining the day-to-day reliability and quality of delivery provided to ratepayers.

The second part of electric service involves supplying the actual power running through these wires. This component is now a competitive service. Under the Community Choice Power Supply program, these supplies now come from ConEdison Solutions, which is categorized as a "competitive power supplier." Charges for the supply component of electric service will be incorporated into normal bills that consumers receive from Unitil, which will indicate supply-related charges and other standard billing information.

All eligible consumers of Unitil "basic service" are automatically enrolled in the Community Choice Power Supply program. Ratepayers may "opt out" of the program by choosing another competitive power supplier or by choosing to default back to "basic service" supplies provided by Unitil. Those choosing to "opt out" must do so within 30 days from the date that the Town mails an "opt out" postcard and a Consumer Notification Form to ratepayers.

Consumers may also return to Unitil’s "basic service" alternative after the initial "opt out" notice period by contacting ConEdison Solutions and asking to cancel their accounts, with no penalty charge. If, however, a consumer participates in the program, chooses to opt out, and then wishes to return to the Community Choice program the ratepayer can do so only upon acceptance by the supplier.

"Unitil is very pleased that the Town of Lunenburg is taking this exciting step to bring the benefits of electricity supplier choice to its homes and businesses. We have worked closely with the Town throughout this process and fully support municipal aggregation programs," said Alec O'Meara, Media Relations Manager for Unitil’s electricity distribution company in Massachusetts.

Colonial Power Group, Inc., a Massachusetts energy consulting company, was chosen in a competitive process to design, implement, and administer the Community Choice Power Supply program on behalf of the Town. "This program provides price stability, local control, and competition without adding a single dollar to the tax burden of

Lunenburg’s residents and business community," said Brian Murphy of Colonial Power Group, Inc. "We commend the Town’s leaders for their innovative approach to creating a new paradigm in energy purchasing."