PowerOptions FAQ
What is PowerOptions?
PowerOptions was formed in 1996 to enable Massachusetts hospitals, colleges and universities, human service agencies, and cultural institutions to save millions of dollars annually through the group purchase of electricity. The group was later expanded by legislation to serve any interested Massachusetts nonprofit or public entity and includes the purchase of natural gas and energy conservation services.
Who are the PowerOptions Members?
PowerOptions has over 500 members contracting for supply as of 2008. An example of the range of nonprofits includes: Amherst College, City of Cambridge, Boston College, UMass Medical Center, Beth Israel Deaconess Medical Center, YMCAs of Massachusetts, Museum of Science, and the Italian Home for Children. PowerOptions members purchase more than 1 million MWH and 9 million dekatherms of natural gas annually.
What are the advantages of PowerOptions membership?
Membership in the PowerOptions program is strictly voluntary and brings many benefits. First, members are able to review and sign our exclusive contracts for natural gas and electricity which have saved nonprofits millions in energy costs. Contracts are only available for review and execution by members in good standing.
The PowerOptions program is staffed by professionals to answer members' questions, help analyze savings options, advise on handling interactions with the electric suppliers, and provide ongoing oversight of the contract. PowerOptions also organizes free, regularly schedule educational seminars that keep members fully informed about changes in the market and how to maximize savings. PowerOptions publishes a monthly newsletter and provides other communications.
The PowerOptions program represents its members. interests by holding a seat on the NEPOOL End Users Committee, attending relevant Independent System Operator (ISO) meetings, and regularly monitoring Department of Public Utilities (DPU) proceedings on behalf of our members. We are a highly visible voice for consumer interests throughout the Commonwealth.
What are the savings?
As of 2008, members who have signed electricity and natural gas contracts have saved more than $250 million by taking their supply in the retail market rather than relying on regulated rates.
What does it cost to join?
Membership fees are collected annually and are based on annual electricity and natural gas (if applicable) usage. Refer to the Membership page for fee information.
How are energy suppliers chosen?
The PowerOptions Program undergoes a rigorous selection to choose energy suppliers, with due diligence and an RFP process. Price is an important consideration, but reliability of the supplier, financial backing, fair contract terms, and a proven ability to provide the required customer support are also essential factors. PowerOptions can provide a more detailed description of the selection process upon request.
What is the oversight of the program?
In addition to the program staff, PowerOptions has an Institutional Advisory Council composed of PowerOptions members from different sectors that meets monthly and provides valuable input to the program.
PowerOptions was created by HEFA. It is a Massachusetts charitable corporation and has received a 501c3 designation from the Internal Revenue Service. The PowerOptions Board of Trustees have responsibility for setting policy and reviewing fiduciary matters.
How can I get more information on PowerOptions?
Contact Wendy O'Malley at 617.737.8480 or womalley@mhefa.org
