Council ponders return to Community Choice Power Program

Jun. 25—METHUEN — The City Council is considering reinstating the Community Choice Power Supply Program which has been suspended since June 2017.

After taking effect in June 2016, the program was suspended one year later when National Grid's rate for basic service went below the Community Choice rate.

Joseph Cosgrove, the city's environmental planner and energy manager, said Community Choice programs emerged 25 years ago as part of the Massachusetts Electric Utility Act of 1997.

"Communities were given the option to set up municipal choice programs on behalf of residents and small businesses," he said during the council's June 14 public hearing, adding that half of the communities in Massachusetts participate in Community Choice programs.

"There's a level of stability that isn't there with a basic service rate from the utility in our area, National Grid," he said.

Residents would automatically be enrolled in the program. However, they would be given the choice to opt out any time starting 37 days prior to the beginning of service.

According to a report from Attorney General Maura Healey, from 2018 to 2020, 450,000 customers used other power supply plans. As a result, they collectively paid $173 million more for electricity during that two-year period.

Resident Willian Haneffant of West Ayer Street said he felt like he was being pressured into using Community Choice. However, because of regulatory procedures, it could be up to one year before the program is available.

"What I have a problem with is the government, at any level, telling me what I should purchase for my own house," he said.

Mark Cappadona, president of Colonial Power Group, emphasized that customers would not incur a penalty if they chose to opt out of the program.

Based in Marlborough, Colonial is the regional manager of community aggregation programs.

"No one is going to try to hold customers in this program," he said, adding that he answers many customer phone calls himself. "It's none of this run-around, waiting for a half hour on a phone call."

Cappadona also said that from 2016 to 2017, Methuen customers who participated in Community Choice saved a collective total of $160,000 on their electric bills.

The program currently saves the average customer $10 to $12 per month.

However, should the program be reinstated, Cappadona said it will attract attention from other, less-reputable electric companies.

"Lots of third party suppliers now watch to see when a program is launching and they will literally try to create confusion," said Cappadona. "Unfortunately, there's nothing we can do about that."

Bernard Lynch, a consultant for Colonial, said National Grid changes its rates in the summer and winter.

"It is conceivable that a summer rate might drop below a [Community] Choice rate," he said.

Yet, National Grid's rates typically go back up during the winter.

In addition, Lynch said Haverhill has been using Community Choice for the past two years saving the average customer $180 per year.

Should the program be approved by the council and Mayor Neil Perry, a final nod will then be required from the state Department of Public Utilities.