City locks in 3-year aggregate electric rate

Mayor Neil Perry spent two years advocating for an aggregate electric rate to lower costs for Methuen residents and businesses. In one of his first mayoral duties following Perry’s passing, Acting Mayor DJ Beauregard signed a 3-year contract with First Point Power locking in a 12-cent-per-kWh rate, which amounts to an average $19 monthly residential savings.

The Methuen Community Choice Power Supply Program is a municipal aggregation program which, according to Massachusetts law (M.G.L. c. 164, § 134), enables local government to combine the purchasing power of its residents and businesses so that it can provide them with an alternative electricity supply. Approximately 190 Massachusetts communities, to date, have chosen to develop community choice electricity programs to benefit their residents and small business owners.

“At a time when the cost of living for our residents is out of control, especially for individuals and families living on fixed incomes, I’m glad to share the news that this program will provide meaningful cost savings to our residents on their electric bills this winter,” said Beauregard in a press release. “The goal of the program is to lock in a competitive price that provides our residents with savings now and stability over the next three years.”

“Beginning with the December 2024 meter reads, the Program’s rate will be $0.12830 per kWh which is approximately 20 percent lower than National Grid’s current Residential Basic Service rate of $0.16055 per kWh,” according to the press release. 

Residents will not notice any change in their electricity service. The only discernible difference will be that First Point Power of Cranston, Rhode Island, will be printed under “Supply Services” on National Grid’s monthly bills. Residents and small business owners will continue to receive one bill from National Grid and to send payments to National Grid for processing. There will be no interruption in billing, power, or customer service. No action is required by ratepayers to participate in this cost-saving program. The Program will be operated on an opt-out basis, meaning that all Methuen residential and business customers currently on National Grid’s Basic Service will be automatically enrolled into the Program unless they choose to opt-out. There are no enrollment, early termination or cancellation fees attached to the Methuen electricity program. Residents who choose to opt-out can also opt-in at a later date if they so choose at no cost.

Residents who use a third-party supplier and are interested in opting in to the city’s rate should contact their supplier before switching and inquire about fees or penalties. 

Opt-out notices were set to be mailed citywide in mid-October. Those using third-party suppliers were mailed a postcard giving guidance on opting in to the aggregate program.

The city plans to set up a page on its website dedicated to the program where customers “can opt in or out with the click of a button,” Beauregard told City Council in early October. He added that if, over time, National Grid’s rate becomes lower than the aggregate rate, residents can opt out of the city program without penalty.

Have questions? Contact Methuen Environmental Planner/Energy Manager Joe Cosgrove at (978) 983 8563.