Salem PowerChoice Program Users To See Price Drop

SALEM, MA – Beginning with June electricity meter reads, participants in the Salem PowerChoice program will see their rates lower for a second time in 2017.

PowerChoice Standard, which provides 100% green energy, will lower to 9.965 cents/kWh. PowerChoice Plus, which provides 100%-green energy and includes an extra 20% from renewable energy projects in New England, will lower to 10.065 cents/kWh. PowerChoice Basic, which does not integrate any additional renewable energy, will lower to 9.92 cents/kWh.

The program’s current 5-month contract with Constellation NewEnergy will expire in June. These new prices are the result of a 24-month contract for electricity supply between City of Salem and Agera Energy. The new prices apply to all rate classes, including residential, commercial, and industrial accounts. Prices will impact the Supplier Services portion of participants’ National Grid bills.

The new prices will take effect for program participants with their first meter read after June 1, 2017. Participants will see their new price on their National Grid bill beginning in July 2017.

"By committing to a two-year contract, the City has locked in a price that will not only remain stable for those two years, but also has the potential to protect program participants from any future increases in electricity costs," said Salem Mayor Kimberley Driscoll. "At the same time, we have reaffirmed our City’s commitment to sustainability leadership in Massachusetts. Salem PowerChoice continues to integrate 100%-green energy and has already reduced the City’s carbon footprint dramatically. Based on a combination of actual and estimated electricity use, Salem will have reduced its carbon footprint by more than 39,000 tons since program launch, the equivalent of taking more than 7,500 vehicles off the road for one year."

Salem PowerChoice is a municipal energy aggregation. By bulk purchasing electricity for the entire community through this program, Salem is working to make electricity costs more predictable and more stable, to bring 100 percent green energy to the City, and to give participants more control over the price and environmental characteristics of the electricity they use.

The program offers three alternatives to National Grid Basic Service:

• PowerChoice Standard is 100% green and is the default offering. New National Grid Basic Service customers in Salem are automatically enrolled in PowerChoice Standard, unless they choose to opt out.

• PowerChoice Plus is an option that allows participants to make their electricity supply 100% green with a focus on locally produced renewable energy. PowerChoice Plus includes an extra 20% from renewable energy projects in New England, in addition to the minimum required by the state. Participants may choose PowerChoice Plus for a small premium.

• PowerChoice Basic is the least expensive option within the program. PowerChoice Basic meets minimum state renewable energy requirements, but it does not include any additional renewable energy.

The new prices will be in effect from June 2017 meter reads until June 2019 meter reads. During that time, National Grid Basic Service prices will fluctuate and may at times be lower or higher than the program price, although the PowerChoice price is expected to be lower than the Basic Service price in total over the course of the entire two-year contract. Customers always have the right to leave, or opt out, of the program at any time with no penalty.

In compliance with state regulations for municipal energy aggregations, new National Grid Basic Service customers in Salem are automatically enrolled in the program unless they choose to opt out. Additional details, including information on how to switch from one option to another or opt out of the program, are available at www.salem.com/powerchoice. Customer support is available by email at salem@masspowerchoice.com or by phone at 1-844-483-5004.

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