Worcester Electric Rates Will Drop In Winter: New Aggregation Plan

WORCESTER, MA — Electricity rates in Worcester will be lower this winter for residents signed up for the city's aggregation program, part of a change in prices that will be in effect for the next two years.

Worcester will begin a new two-year contract with energy supplier Direct Energy in December. The aggregation rate will stay fixed for the next two years at 16.31 cents per kWh for standard plan users, and 17.73 cents per kWh for 100% Green plan users.

Both those rates will be lower than National Grid's upcoming rate of 18.21 cents per kWh, which goes into effect in November.

Worcester's new two-year contract could mean slightly higher rates during non-winter months. Utilities like National Grid typically lower rates during summer months. National Grid's summer rate dropped from over 33 cents per kWh to 14.12 cents per kWh on May 1.

Under Worcester's current aggregation plan, utility payers saw two different rates between 2022 and 2023. The winter rate for the standard plan from December 2022 to July 2023 was 25.63 cents per kWh, and 16.91 cents per kWh from August to December (27.49 cents and 18.76 cents for the 100% Green plan). With the new Direct Energy contract starting in December, rates will remain constant at the 16.31/17.73 rates over the next 24 months.

Worcester's standard aggregation plan offers 40 percent of electricity generated from renewable sources, and the 100% Green plan is totally from renewable sources.

Dozens of communities in Massachusetts offer aggregation plans, with municipalities brokering the local electricity supply through contracts with companies like Direct Energy. Residents have to opt in to aggregation plans, otherwise the local utility — National Grid in Worcester's case — acts as the energy supplier.

Utilities like National Grid and Eversource own distribution systems like power lines, and so they charge a separate rate for distribution that aggregation plans don't change.

Worcester estimates aggregation plan users have saved a combined $12 million since the city began offering the option in 2020. The aggregation plan's renewable mix has also prevented about 155 million pounds of CO2 from being emitted, the city says.

If you want to sign up for Worcester's electric aggregation plan, visit the program website.