UPDATE ON TOWN OF MARSHFIELD'S AGGREGATION PROGRAM

Good Energy wanted to update the Town of Marshfield on how their aggregation program rates compare to current (and soon to be in Eversource) utility rates. What some of us already realized and others may have come to understand is just how successful the programs have already been and how they are positioned for continued success. 

First and foremost, it’s important to understand that none of our programs have ever been expected to be below utility prices-to-compare 100% of the time. Aggregation programs, in general, endeavor to provide savings over the entire contract term. The opt-out letters used to inform eligible ratepayers include multiple references to savings not being guaranteed due to the way rates are set during the year. Nevertheless, all of Good Energy’s New England programs have performed and/or outperformed expectations thus far, yours included. When the programs began, National Grid’s residential rate was more than twice program default product rates, while programs in Eversource were nearly 65% below the residential rate. Yes, Nat Grid’s summer rate is now just a bit below the program defaults, and to a lesser degree, Eversource’s summer rates beginning next month, but the accrued savings over the initial launch months easily eclipse any near-term losses in savings. Given how high the current summer rates are historically, we expect winter rates to rise again in both utility service regions, providing continued overall net savings.

It is important to remind participants, as important as savings are, it is only half the story. The other objective, to varying degrees for these programs, was to increase the amount of renewable energy being included. We’ve achieved that, when compared to the utilities, and for a very modest compromise in savings. A penny for the planet, maybe two, seems well worth it. Some will participate in a program based strictly on price, but many will be willing to go the extra mile and opt up for what we estimate to be approximately $20 more per month. And when winter rates return, it is likely that the 100% green product for your programs will be below utility rates.

Other program benefits to consider:

• Programs have been municipally vetted and DPU approved
• Program rates remain fixed and stable during the entire contract term
• Participants can confidently set it and forget it; no need to seek out, deal with, or scrutinize other supply options (including the utilities) or solicitations 

Lastly, we discussed the scenario where a participant may leave a program and then try to return under the same terms and conditions. This is not guaranteed, i.e., suppliers have the prerogative to not offer the original program rate to account holders that come and go. Certainly, a ratepayer may opt out at any time without penalty (benefit), but they should understand what they may be sacrificing in the future.

One final item that has caused some confusion is how ratepayers are billed. Please note, an account holder receives a bill for the previous month’s service, e.g., payment is made in July for June service. This is obviously important throughout the course of the program, but also upon launch and for the final month of a supply contract.

For the moment, it may be a good time to consider opt-up campaigns. Our periodic enrollment sweeps will restart once utility rates rise above program default product rates. 

 Again, many thanks for your participation. We welcome any additional comments or questions.

Gary Fogelman, Manager

Good Energy, LP

232 Madison Avenue

New York, NY 10016