Electric Rates to Jump by 1/3 Starting Nov. 1

In the second consequential announcement from the town in as many days, a sharp increase in electricity rates through the Franklin Community Choice Power Supply Program (also referred to as Municipal Aggregation) was announced, effective at the start of November. 

The Municipal Aggregation program, which is a kind of bulk purchase program by the town on behalf of participating residents, has successfully saved ratepayers an estimated 11.5 million dollars in electricity costs throughout the previous three-year contract, during which a low 10.7 cents per kilowatt-hour rate, was provided.

But that was an exceptional deal. Times have changed and, in an effort to continue to stabilize electricity costs and also lower carbon emissions, Franklin has signed a new 24-month contract with energy consultant Colonial Power Group and renewable electricity supplier Dynegy Energy Services to continue to manage and supply its electricity program for all residents in Franklin.

The new fixed rate is 15 cents per kilowatt-hours (kWh); which is an increase of 4.3 cents per kWh over the current rate of 10.7 cents per kWh, which is slated to begin with the November 2023 meter reads and end with the November 2025 meter reads. The change will be reflected in ratepayers’ December 2023 bill.

Are there better deals out there. Maybe, but you'll have to accept pricing risks and potentially other fees to get them. A look at the Department of Public Utilities "Energy Switch" website (which still shows the existing lower rates for the town program), nearly all supplier rates are  close to what the town is offering but most are only guaranteed for 12 months. And that is a potential risk.

For instance, the default supplier for Franklin (aka basic supplier), National Grid, announced its attractive-sounding summer rate of 14.2 cents per kWh back in March. But that was after imposing a crushing winter rate of kWh approximately 33.89 cents per kWh, driven in part by problems with the natural gas supply. 

Town Administrator Jamie Hellen explained that avoiding those kinds of wrenching shocks was the priority in settling on a supplier and a rate this time around. "What people want most is some certainty in billing," he said.  And the power market remains volatile. Fuel supplies are market and weather dependent and recent problems with  wind energy projects suggest that the low rates originally anticipated from some renewable sources may not fully materialize.

What to Expect

Consumers actively enrolled in Franklin's Community Choice Power Supply Program will receive a postcard. It contains information regarding the new rate + term along with a notice regarding automatic enrollment. Check your mailbox for a postcard from the Town of Franklin c/o Colonial Power, which will be mailed (to existing participating Consumers only) late September 2023.

“In these challenging fiscal times, this new contract represents a continued commitment to help stabilize electricity bills for ratepayers during this period of high inflation for all residents and small businesses,” said Jamie Hellen, Franklin Town Administrator. “Also, as a certified Green Community, I know many Franklin residents are concerned about our carbon footprint. This electricity program has allowed us to reduce our dependence on non-renewable energy sources and decrease our carbon emissions by securing a contract that relies on 100% wind renewable energy.”

The Franklin Community Choice Power Supply Program, is an electricity aggregation program that allows a municipality to purchase electricity in bulk on behalf of its residential and small business customers. The goal of municipal aggregation is to stabilize energy costs, achieve more affordable pricing and deliver savings over the life of the program against National Grid Basic Service, reduce the community’s carbon footprint, and enhance local control in its energy purchasing. To date 10,260 meters are participating in the program. Hellen estimates that's about 96 percent of the town's residential electricity customers.

Franklin Community Choice Program customers currently enrolled in the program will not need to re-enroll or do anything to continue to participate. Residents and business owners are eligible to opt-in or opt-out of the program at will, and those currently not enrolled in the program will need to enroll if interested in participating. There are no fees for enrollment or cancellation, however, residents and business owners with a supplier block on their account must contact National Grid to request that the block be removed to participate in Franklin’s Community Choice Power Supply program, and anyone switching from a contract with a third-party supplier may be subject to penalties or early termination fees charged by that supplier. Ratepayers should verify terms before switching.

Basic Service rates change twice a year or more, depending on rate class. As a result, the aggregation rate may not always be lower than the Basic Service rate. The goal of the aggregation is to deliver savings over the life of the program against National Grid Basic Service. However, such savings and future savings cannot be guaranteed.

As a Green Community since 2018, the Town of Franklin aims to help displace fossil fuel generation and consumption. The Franklin Community Choice Power Supply Program aligns well with the community’s renewable energy program, which utilizes 100% National Wind Renewable Energy Certificates (RECs).

For questions regarding billing or enrollment status, residents and business owners must contact Dynegy Energy Services directly by calling (866) 220-5696 or by visiting colonialpowergroup.com/franklin.

You can learn more about the Town of Franklin’s Community Choice Power Supply Program at www.franklinma.gov/MunicipalAg.