City of Salem Selects ConEdison Solutions for Salem PowerChoice Municipal Electricity Aggregation Supplier

The City of Salem has selected ConEdison Solutions as the electricity supplier for the Salem PowerChoice program. A municipal electricity aggregation program, Salem PowerChoice will provide Salem residents and businesses with a cost-effective, transparent electricity supply alternative to National Grid. By bulk purchasing electricity for the entire community, Salem PowerChoice will bring 100% green energy to residents and businesses at a price significantly below the recently announced National Grid Basic Service winter rates.

Salem PowerChoice will begin in January 2016 with an initial 12-month electricity supply contract. The program will offer a fixed, stable price of 10.39 cents/kWh for all customers, including residential, commercial, and industrial. This rate will offer the average household a savings of $13/month over National Grid’s winter Basic Service rates at program launch and it will offer protection from the significant winter and summer fluctuations in the National Grid prices for the duration of the contract.

Through Salem PowerChoice, the City will set a new environmental standard for municipal aggregation in Massachusetts. The program will deliver 100% green energy to all electric customers in Salem and will include an additional 5% new wind energy over and above the state requirements for new energy. The inclusion of such a high percentage of energy from new wind projects positions Salem five years ahead of the state and makes Salem one of the first two energy aggregations of the nearly fifty across Massachusetts to achieve this important environmental milestone. As a result of this, the City anticipates reducing its greenhouse gas emissions by more than 45,000 tons of CO2.

Those customers who wish to make an even greater commitment to renewable energy will be able to enroll in the optional PowerChoice Plus program for a small premium. This even greener option consists of 20% new wind energy. PowerChoice Plus still represents a savings over National Grid’s winter Basic Service rates at program launch, though the savings are smaller.

“As a Green Community, and as a City that is serious about finding tangible local solutions to addressing climate change and our impact on the planet, I am very pleased to be able to take this positive step forward,” said Mayor Kim Driscoll. “Not only are we greening up our electricity supply City-wide, but we expect to able to save residents and businesses money on their electric bills at the same time. By standing together as a community, we can truly bring about meaningful change both for ratepayers and for our environment.”

“This is yet another example of Salem being creative to reduce carbon emissions and support renewable energy sources and renewable energy development” said Cindy Keegan, Chair of Salem’s Renewable Energy Task Force.  “We hope that as this process moves forward additional options to support even greener energy and local sources will be available while remaining economically viable.”

Salem residents and businesses that currently receive National Grid Basic Service do not need to do anything to participate in Salem PowerChoice. They will be automatically enrolled in the program on their first meter read date after January 1. Eligible residents and businesses will receive information about the program in December in the mail and through community events, including details about how to opt out, how to select the greener Salem PowerChoice Plus product, and more. They can choose to opt out of the program before launch or at any time after launch with no penalty.

While Salem PowerChoice will offer savings at launch, it will offer a fixed 12-month price. National Grid residential and commercial prices change every six months and industrial prices change every three months. As a result of these market fluctuations, Salem consumers experience tremendous volatility. The recently announced winter National Grid residential rates of 13.038 cents per kWh represents a 30% increase above the summer of 2015 rates. The Salem program will eliminate that seasonal volatility with the fixed program price, though that price may not always be below the National Grid Basic Service price. The program goal is to deliver savings over Basic Service when costs are averaged across all 12 months, however.

Salem PowerChoice will only impact electricity supply rates. National Grid will continue to deliver electricity and maintain and repair power lines. Customers will continue to receive one bill from National Grid, and they will continue to contact National Grid when their power goes out.

For more information about the program, visit http://www.salem.com/planning-and-community-development/pages/salem-powerchoice.

Salem has developed its aggregation plan and is implementing its aggregation program with assistance from Peregrine Energy Group of Boston and Bay State Consultants of Newburyport.