Deal seals real time rate

By Jonathan Cook
Turley Publications Reporter

STURBRIDGE - The Board of Selectmen has changed electricity providers in the hopes of saving thousands of dollars.
At the behest of Finance Director Barbara Barry, Geoffrey Rogers of Hampshire Power was invited to present information about three different options available to the town.
Rogers said Hampshire offers a fixed rate, which would drop the current price of electricity for the town to 8.2 cents per kilowatt/hour from 9.4 cents. “All the competitors have the same deal,” Rogers said. “The difference is they have shareholders and a highly paid CEO. We don’t have that. Our price is almost always lower than theirs.”
The co-operative provider also offers a profit sharing arrangement. “The profit-sharing customer pays the utility price. Whatever the National Grid price may be, that’s your price. At the end of the year, if we’ve made any money off your account then we split it down the middle,” Rogers explained.
“This past year was a particularly good one because the wholesale price that we’ve been paying has been very low,” he added.
He specified that the largest customer will get $69,000 back this year.
Selectmen agreed to go with the third option, which currently offers the cheapest rates, but carries with it the greatest risk – real time price.
Rogers said that throughout the day the wholesale price of power changes. At night, when very little power is being used, the price can be as little as zero.
“The real time customer pays our wholesale price, plus 2.4 cents per hour,” he said, which is the cost of running the program. “The good news is, on the average the real time price is significantly lower than any other price anywhere. The down side is that if you have a period when wholesale prices go crazy, you’re on the hook,” Rogers said.
Rogers took a look at the total amount of electricity used by the town last year and reported that the town would have saved $65,377.43 had it utilized the Hampshire Power real time price instead of buying electricity from National Grid.
He said a profit sharing deal would provide about half the expected return of real time, but is less risky.
Interim Town Administrator Michael Racicot said the town currently has no contract, but is still buying power from National Grid.
Selectman Scott Garieri called the savings potential substantial.
“I think it’s worth the approach to go with real time,” he said.
The board unanimously approved a one year deal at the real time price.
Hampshire Power is the electricity program of the Hampshire Council of Governments, which came into being upon the disbandment of county government.
According the Web site hampshirecog.org, Hampshire Power has “long-term goals to help bring western Massachusetts more affordable and sustainable energy.”
They purchase electricity at a wholesale rate and pass the savings along to their members who are currently municipal organizations, school districts, non-profit and for profit small businesses as well as one state agency, the Department of Fisheries and Wildlife.
“We’ve been serving loads for about three and a half years,” Rogers said. “Our combined load is about six and a half megawatts and growing.”
Barry is familiar with the non-profit company’s relationship with her home town of Palmer where she serves as a District Councilor. She said Palmer is a real price customer of Hampshire Power.