Bulletin - May 2007
New Electricity Contract Update
The response to our new electricity supply contract through Direct Energy, has been enormous – over 400 members have asked for quotes. We estimate that during the last five months, PowerOptions members have signed-up to the tune of over 155 MW/year. With many more members still waiting to sign contracts, our consortium is bigger than the largest municipal utility in the state.
Although winter stayed too long in the Northeast, temperatures remained somewhat mild compared to winters past. Energy prices have been attractive, despite some market increases in March, and we often see better pricing in the spring as the weather warms up and before the NOAA hurricane forecast. If you would like to get a quote for electricity, give us a call. If you would like information about current utility basic service rates, we also have that information available.
If you have requested a quote and haven't heard from your Direct Energy account manager, please let us know and we'll get you one right away.
Electricity Slamming Alert!
We have recently had a report from one of our members that they were "slammed". "Slamming" is when a supplier switches you to their service without your authorization, and it's against the law. These firms operate by calling you, sometimes claiming to be from a program run by your utility company (NStar, National Grid, WMECO, etc.) and, during the conversation, obtain your "consent" and ask for your account numbers. You may not be aware of providing consent.
Here's how to keep from being slammed:
- Warn your staff not to give out your utility account numbers over the phone to anyone you don't know. The slammers may call your accounts payable staff directly, making it sound like they are from your utility company.
- Ask for separate monthly bills from your utility company and your supplier, rather than combined bills – this makes it harder to slip it past you.
- If you choose combined bills, look at your utility company bills every month to make sure the supplier is the same company with which you have a contract.
If you think you may have been slammed, it is important to report it – the Mass. Department of Public Utilities (DPU, formerly the DTE), which licenses suppliers, needs your help in tracking down these companies.
2008 Natural Gas Program RFP Released
Our current natural gas supply arrangement ends in October 2008. For budgeting reasons, many of our member organizations prefer to lock in their prices well in advance, so in January, PowerOptions issued a new Request for Proposals to all licensed suppliers. The goal is to have a new program in place this summer that will allow flexibility in contracting for gas beyond October 2008.
Activity in Massachusetts on Energy Policy
Since last fall's elections there has been an unusual amount of activity on energy issues in Massachusetts. On the local level, the City of Cambridge and City of Boston have announced major green power and energy efficiency initiatives:
Governor Patrick has reorganized the state's energy programs. The Governor appointed Ian Bowles as the first Secretary of Energy and Environmental Affairs, and he restructured the electricity and gas responsibilities of the DTE into the new Deptartment of Public Utilities (DPU) with a new chair, Paul Hibbard. Speaker DiMasi has introduced major energy legislation that will be the focus of much debate over the coming months.
We will continue to keep you apprised of these changes as they unfold – what they mean to your organization, and what we are doing to advocate on behalf of energy consumers like you.
Membership News
The PowerOptions membership has grown rapidly recently; with over 530 active members from every part of Massachusetts, we are the biggest energy purchasing consortium in New England. Our natural gas program has also grown substantially from 4 million decatherms per year (the last time we solicited supplier proposals in 2005) to an estimated 9 million decatherms next year. Thanks to all of you for making this program a success.
Capacity "Tag Day" coming up!
The new electricity capacity charge that went into effect last December has added 8-13% to everyone's electricity supply bills (applies to both LDC basic service and competitive supply contracts). Watch your mail for an announcement of a PowerOptions meeting coming this summer – "Tag Day" – when we will take about how this new capacity market works and what you can do to lower the price that your institution pays. We will have speakers from ISO New England, utility companies, and PowerOptions members discussing strategies to deal with this new charge.
Green Power Update
PowerOptions is exploring options for providing our members with "green" or renewable sourced power for all or a portion of their electricity use. We hope to roll out a program over the next few months. If you are interested in giving us your thoughts on green power or learning more about the program, please email Carter Wall at cwall@mhefa.org or call her at 617-737-8480.
