2006 Electricity Program
Direct Energy has been chosen as the supplier for the PowerOptions Electricity Supply Program
through May 2011. Direct Energy is a wholly owned subsidiary of Centrica plc, and serves over 5 million
customers in North America -- their financial strength and past performance was a key factor in their selection.
The contract offered is the result of intense and careful negotiation between PowerOptions and Direct Energy. It addresses issues that we know are important to our members, including no hidden penalties and fees, strict force majeure provisions, flexible purchase provisions, competitive prices, and a Parental Guarantee from Centrica plc.
Pricing Terms
- Fixed pricing for full, firm, non-interruptible supply for any period of six months or more. When timed correctly, pricing should result in savings over what you would be charged by your LDC (local distribution company: NStar, National Grid, WMECO, Unitil-FG&E, etc.) and will give you a greater degree of budget certainty.
- Price quotes from Direct Energy will vary depending on when a member requests a quote, the contract term, account location, and amount of usage, and will be calculated according to a formula that was negotiated during the competitive selection process. Price quotes are updated often by Direct Energy, usually daily for large accounts. New accounts may be priced and contracted for supply at any time as long as members are in good standing. Members must submit one recent LDC bill to PowerOptions or their Direct Energy account representative to obtain pricing for any account.
- Options include an all-in price quote or the ability to fix the price for all elements of cost except pay for Congestion, Capacity, and RMR costs at monthly market prices in the future. Contract terms protect you from price changes for any unexpected new regulatory costs until 2010.
- The PowerOptions contract price applies to all of the customer's usage for an account (there is no "swing" provision except under very limited circumstances).
Staff Assistance
To help you attain maximum savings and fit with your budget needs, PowerOptions staff and Direct Energy account representatives are available to review current electric market trends and your annual usage patterns to help evaluate how your electricity purchase might take advantage of market trends. PowerOptions staff tracks the market and tries to notify members when pricing becomes attractive. PowerOptions continuously monitors the contract, audits a sample of price quotes and invoices, and provides ongoing education regarding electricity market issues.
Contract Pricing
Pricing is dependent on location, account type, and length of term requested. Please contact the PowerOptions staff at 617.737.8480 or womalley@mhefa.org to review your accounts and determine your eligibility for pricing.
