Consumer Frequently Asked Questions

What is PowerOptions?
PowerOptions (www.poweroptions.org) is a non-profit consortium sponsored by the Massachusetts Health and Educational Facilities Authority (www.mhefa.org) and supported by its members. As of 2007 there were more than 530 PowerOptions members participating in the gas and/or electric program. Any non-profit organization or government agency in Massachusetts may be a member. Members pay an annual membership fee.

PowerOptions periodically solicits competitive proposals from suppliers for electricity and natural gas supply. Unlike most contracts in the retail market, the PowerOptions contract is written by and for the consumer, and offers many protections that are unavailable from other suppliers, such as a guarantee from the supplier's parent company. For more information about PowerOptions, please call 617/737-8480.

Why should I buy electricity or gas from anyone other than my local utility company? Because energy prices go up and down all the time, no supplier can guarantee that you will save money, but there are a number of good reasons to consider buying your electricity and natural gas from a supplier other than your local utility company. These are the reasons most often cited by PowerOptions members:

1. The opportunity to save money by buying when you think prices are good. Contracting with a competitive supplier gives you control over when you buy – allowing you to watch the energy markets and lock in at a time when you think prices are favorable. Taking service from your local utility company does not allow you to do this.

2. Insurance against price spikes. Contracting with a competitive supplier allows you to fix a price, protecting you from price spikes due to hurricanes. During the months following hurricanes Katrina and Rita in the fall of 2005, gas prices went up over 50%.

3. Greater budget control. Fixing a price allows you much greater certainty about what you will be spending in the next year, which many institutions find very helpful when setting their budgets.

I've never contracted for electricity or gas before – how do I start?
Call PowerOptions and we'd be happy to help you get started. We are a non-profit agency set up to serve our member organizations and we can give you disinterested advice.

Will my power be turned off if I don't renew with a supplier?
If your contract comes to an end and you are current with your payments, your service will automatically switch back to your local utility company – your power will not be cut off.

How do I know if I'm going to save money?
Because energy prices go up and down all the time, no supplier can guarantee that you will save money, but there are a number of good reasons to consider buying your electricity and natural gas from a supplier other than your local utility company. Unlike your local utility company, buying from a competitive supplier allows you to lock in a price when you think prices are good, and protects you from sudden price spikes.