Electricity bulk buy results in $12 million in savings according to company – news – the herald news, fall river, ma – fall river, ma

Customers in 23 communities bulk-buying electricity have so far saved more than $12 million, according to the consultant handling the region’s energy bidding and purchasing.

While customers in the 23-community group have agreed to a fixed kilowatt-hour rate for the next two years under contract, the end of January marked a time the initial “winter season” savings has been quantified.

The total savings for the first part of winter is $12,008,824, based on a total of 169,000 participating customers, according to Philip Carr, Good Energy’s business development director for New England.

Carr said Fall River’s 26,000 customers are projected to save the most collectively of any community in the group, $2.27 million, with an average savings of $87.50 during the four-month “winter” period through April 30.

Good Energy contracted a 9½-cent per kilowatt-hour rate with electricity supplier ConEdison Solutions. Electricity production in the us It took effect with meter readings in January and will remain the same through Dec. Electricity news philippines 31, 2017.

• For 95,000 customers in Fall River, Somerset, Swansea, part of Westport and other communities serviced by National Grid, compared with National Grid’s 13½-cent per kilowatt-hour rate, the projected savings through April 30 should average 27 percent or $87.50.

• For 74,000 customers in Freetown, Dartmouth, part of Westport, New Bedford and other communities serviced by Eversource Energy, compared with Eversource’s almost 11-cent rate, six months of winter savings through June 30 should average 12 percent or $50 total.

“We know for sure what the savings will be until the end of the winter rates,” said Ross Perry, municipal management director for the Southeast Regional Planning and Economic Development District. Hp gas online registration SRPEDD hired Good Energy to handle the bulk-buying process for its eligible communities.

In total dollars, the National Grid customers would save $8.3 million collectively over four months, and the Eversource customers would save $3.7 million collectively over six months this winter, Carr said.

When National Grid and Eversource have new rates for the ensuing six months re-bid — as required by the state’s public utility law — Good Energy expects their rates could fall slightly below ConEdison’s rate for that period, Carr said.

“You’re up 12 points in the first quarter and lose three points in the second quarter,” Carr said. Gas and water llc The key, he said, “is to be up at the end of the fourth quarter.”

He estimated that 8.9 percent of eligible customers in the 23 communities opted out of the deal by asking to be removed from participation, as required by the state energy aggregation law.

Fall River City Administrator Cathy Ann Viveiros said the $87.50 average savings for four months is “in line with projections estimated at $80 to $100.”

“I think the two-year savings will be very positive for our consumers,” Viveiros said, adding, “At the end of the day, we think it’s a very good initiative.”

Good Energy, which entered the electricity aggregation business full force about 2011, has its pioneering focus in Illinois with about 450,000 accounts in 150 communities and its main focus now in Massachusetts, Carr said.

SRPEDD hired Good Energy after a bid process to tap into a 1997 state law allowing electricity aggregation to encourage independent supplier participation, market competition and lower energy rates.

Unlike public utilities, including National Grid and Eversource, independent electricity suppliers can bid any time they believe the market is favorable, and are not held to prescribed six-month periods.

Carr described “great contract terms” for the bid awarded to ConEd. Electricity quiz for grade 5 He said the price, the two-year rate, the ability of customers to leave any time they wish, and the contracts with two reputable companies — his own and ConEd — add up to prospects for good savings.

Perry said Good Energy “streamlined the process,” which enabled it to gain approval of the state Department of Public Utilities within about six months.

Carr said early last month Good Energy gained a similar contract with the Metropolitan Area Planning Council, the planning agency serving 101 cities and towns in metropolitan Boston. Hp electricity bill payment online As was the case with SRPEDD, the council and Good Energy will be pitching various eligible communities to see if they want to choose Good Energy and the MAPC for its representation. Electricity generation in usa Not all 101 communities are eligible, and Carr said their goal is to sign up communities with about 150,000 customers, nearly the same as SRPEDD’s area.

While the number of participants in this region remains “a moving target” through the process — as some could opt out of the deal and others may join after their contracts with other independent suppliers expire — Carr estimated Good Energy’s annual revenue from the current 169,000 accounts ConEd reported at $1 million to $1.2 million.

That figure is based upon 1/10th of 1 cent for every kilowatt-hour, or $1 for every megawatt-hour of electricity used, Carr said. Electricity word search j farkas answers The vast majority of these customers are residents, with a smattering of small businesses, he said.

After January’s meter readings and electric bills — and known savings — Carr said, “This is really the tipping point” to see how the buying power and political pressures are reconciled in the ensuing months and contract period. Gas efficient cars 2012 He said communities like Plymouth and Wareham are among those “taking a look” at whether they should join.

Carr said that ConEd and the company they out-bid by about a half-cent per kilowatt-hour, Constellation Energy, are major suppliers — but more competition will be sought in the late fall of 2017.

“These are the two biggest players in the state,” Carr said, and acknowledged reports they expected one or two others to bid this past November.

“We’re always looking to make things more competitive,” he said, adding that in the next round of bidding, “Our goal is to have a third very large supplier.”