Salem PowerChoice Program to Offer Lower Prices

From the City of Salem:

SALEM, MA – Program prices for Salem PowerChoice, the City’s municipal electrical aggregation program, will lower for all three program options beginning in January 2017. PowerChoice Standard will go down to 10.033 ¢/kWh. PowerChoice Plus will go down to 10.628 ¢/kWh. PowerChoice Basic will go down to 9.975 ¢/kWh. At the same time, the program will continue to deliver 100% green energy. These rates are the result of a new 5-month contract for electricity supply between the City of Salem and Constellation NewEnergy.

For program participants, these prices will impact the Supplier Services portion of their National Grid bill. The lower prices will take effect for program participants with their first meter read after January 1, 2017. Participants will see their new price on their National Grid bill beginning in February 2017. These new prices apply to all rate classes, including residential, small business, and medium and large business accounts.

“By continuing this program into 2017, we extend our City’s commitment to offering a well-vetted and fully transparent alternative to the electricity supply options in the market. We also reaffirm our City’s commitment to sustainability leadership in Massachusetts,” said Mayor Kim Driscoll. “Based on actual program electricity use through September and estimated use for October through December, Salem is on track to reduce its carbon footprint by approximately 28,400 tons of carbon dioxide in the program’s first year. This is the equivalent of removing more than 5,400 vehicles from the road for one year.”

The Salem PowerChoice program is a municipal energy aggregation. By bulk purchasing electricity for the entire community through this program, Salem is working to make electricity costs more predictable and more stable, bring 100% green energy to the City, and give participants more control over the price and environmental characteristics of the electricity they use.

The program offers three alternatives to National Grid Basic Service:

PowerChoice Standard is 100% green and is the default offering. New National Grid Basic Service customers in Salem are automatically enrolled in PowerChoice Standard.

PowerChoice Plus is an option that allows participants to make their electricity supply 100% green with a focus on locally produced renewable energy. PowerChoice Plus exceeds state requirements for integrating renewable energy from new renewable energy projects in New England by more than 40%.

PowerChoice Basic is the least expensive option within the program. PowerChoice Basic is not 100% green. It meets minimum state renewable energy requirements.

The new prices will be in effect for January through May 2017 meter reads. During that time, National Grid Basic Service will offer the least expensive option overall. However, PowerChoice program participants have the right to opt out at any time with no penalty. When the current electricity supply contract ends in May, Salem will have the choice to either negotiate a new electricity supply contract or return all program participants to National Grid Basic Service.

In compliance with state regulations for municipal energy aggregations, new National Grid Basic Service customers in Salem are automatically enrolled in the program. Additional details, including information on how to switch from one option to another or opt out of the program, are available at www.salem.com/powerchoice. Customer support is available from the City’s consultants by email at salem@masspowerchoice.com or by phone at 1-844-493-5004.

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