June 8 2016
Burlington Power Rate Agreement Soon to Be More Expensive Than Eversource
By: Rich Hosford
Burlington residents may want to make a change to their power supplier to save money after July 1st.
As reported by BNEWS, last fall the town entered into a municipal aggregation agreement with Colonial Power Group that went into effect at the start of this year. What that did was secured a rate of 9.62 cents per kilowatt hour as opposed to the 10.05 cents Eversource customers were paying at the time. The rate was locked in for a year and will end this December.
However, BNEWS spoke to Eversource media relations manager Michael Durand who said that as of July 1st Eversource will be lowering its rate to 8.208 cents per kilowatt hour. This means everyone in the municipal aggregation program, which is most residents because they were auto-enrolled, will be paying more than they need to.
Burlington Purchasing Agent Kate Moskos said that under the town’s agreement there is nothing stopping residents from dropping out at this time.
“That is definitely an option,” she said. “When we locked in the rate it was better at the time.”
There is no penalty to opt out of the municipal agreement and return to Eversource service. Residents can call Colonial Power Group, Inc. at (508) 485-5858 or opt out online here.
There is always a chance when Eversource resets its rates in January that it could rise. In fact, Durand said, it is likely.
“Prices tend to be less in the summer,” he said. “In large part in the winter there is a natural gas pipeline capacity shortage and most of the newer plants are fueled by natural gas because it’s domestic, cleaner and less expensive. When we have a capacity issue, when residential and commercial customers are looking for gas and power plants want it as well, you end up with higher prices.”
However, Moskos said the town is currently in talks about next year’s municipal aggregation program and she doesn’t believe that anyone who opts out of the current one will have any trouble joining in next year if they choose to.