What’s Happening with Electricity Rates and What Can Be Done About it?
Consumers have been on an electric rates rollercoaster ride this past year. Many have been left reeling from a...
Maybe this will be the last year I have to write about this stuff (more below on why), but I want to report an offer I received from a competitive electricity supplier. First, some context. I live in Quincy, Massachusetts, so I am able to choose an electricity supply service from three options.
My utility, National Grid, offers Basic Service supply at a rate of 15.4 cents per kWh through July 31, 2026. Then it goes up to 17.3 cents through January 31, 2027 (proposed, not yet approved by the Department of Public Utilities). Wholesale electricity supply costs are highest in November-January because natural gas inventories are stretched thin because of heating needs. Basic Service renewable energy content is the minimum required by state law.
But the City of Presidents has a municipal aggregation program, very similar to those offered in many communities in Massachusetts and Rhode Island. The standard offer is 13.8 cents per kWh for a product that has 10% more Class I renewable energy certificates (RECs) than required by law and offered by National Grid. My family is enrolled in the Premium product at 14.7 cents per kWh, and it adds enough Class I resources (an additional 31%) to bring the mix up to 100% renewable energy. The price and product are fixed until December 2027.
Nonetheless, I just received another direct mail solicitation from a competitive electricity supplier, Clean Choice Energy. They offered a product at 16 cents for three months. They claim it's 100% renewable energy, but the fine print shows no commitment to Class I resources. That’s important because RECs from Texas, for instance, cost far less than those from New England. That’s because projects in Texas don’t need the extra revenue to get financing. So buying RECs from Texas has virtually no impact on investment decisions. The generator and Clean Choice Energy will take your money, though.
After 90 days, CleanChoice Energy can charge whatever they want. Think this through. Today they would charge more than National Grid or Quincy’s municipal aggregation. But if Basic Service pricing is going up 1.9 cents in August, that’s a clue as to what CleanChoice Energy might do when they face the same wholesale market.
Now let’s see a breakdown of the options that a Quincy ratepayer can choose from:
| National Grid Basic Service | Quincy Aggregation Basic Offer | Quincy Aggregation Premium Offer | CleanChoice Energy | |
| Price in June 2026 (cents per kWh) | 15.4 | 13.8 | 14.7 | 16 |
| Class I Content Above State Mandate | 0% | 10% | 31% | No Commitment |
| Price from August 2026 - January 2027 (cents per kWh) | 17.3 | 13.8 | 14.7 | Set by CleanChoice Energy |
| Price from January 2027 - July 2027 (cents per kWh) | TBD | 13.8 | 14.7 | Set by CleanChoice Energy |
Green Energy Consumers Alliance has a long history of promoting municipal aggregation and Class I renewable energy. We have called for a ban on retail suppliers signing up residential customers because three decades of data show that those suppliers are predatory and greenwashing. Look at the table above. A consumer receiving the mailed solicitation would only choose CleanChoice Energy if they were totally unaware of Basic Service and municipal aggregation.
It appears that the Massachusetts legislature will pass a bill this year that does not ban retail suppliers statewide but will allow cities and towns to pass their own local bans. That is a huge consumer protection provision. The bill also further regulates the retail market and would ban suppliers from enrolling low-income customers. Overall, it would be a great improvement.
Perhaps CleanChoice Energy sees the writing on the wall and is trying to sign up folks who are not paying attention before the law passes.
For more on this topic:
Blog: Predatory Electricity Suppliers are Causing Real Pain to Consumers
Web page with information and a map on Municipal Aggregation
Blog: Data Shows: Retail Electricity Suppliers Love To Greenwash
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