Almost exactly a year ago, I reported about a direct mail solicitation received from one of those retail electricity suppliers. Let’s call the company “Greenwashing Energy Choice.” Since then, that same company has been sending me similar pitches.
This month’s offer is all about greenwashing, just like the others. But there’s a plot twist this year. I live in Quincy, the City of Presidents, which started a green municipal aggregation program in June 2024, enabling residents to pay 14.7 cents per kWh for 100% renewable energy sourced from projects located in New England. The price is locked in through December 2027. That’s lower than what our utility, National Grid, charges for a product that only meets the state’s minimum requirements for renewable energy.
Quincy’s product is nearly 2 cents cheaper per kWh than the price that Greenwashing Energy Choice is charging today. Furthermore, according to the fine print, the 16.6 cents offered now is good for just 3 months. After that, the price is subject to change based upon “market conditions” and several costs including energy costs, operating costs, expenses, and profit margins. What could go wrong?
Not All RECs Are Created Equal
Price is one thing, but I want the best green power available so I read their fine print on the content. They say they will always include 100% renewable energy, and in 2023, they served their Massachusetts customers with renewable energy certificates (RECs) from Connecticut, Illinois, Maine, Massachusetts, North Carolina, New Hampshire, New York, Rhode Island, and Vermont. This detail is important. For good reasons, RECs from Illinois and North Carolina are not eligible for the Massachusetts Renewable Portfolio Standard or the Rhode Island Renewable Energy Standard.
Green Energy Consumers Alliance operates in Rhode Island and Massachusetts, which is part of the New England power grid. Chances are that you live in this region. Our organization supports putting more new renewables onto our grid. By doing so, we reduce greenhouse gases and other pollutants that cause harm to public health, create local jobs, build new capacity, and become less dependent on imported fossil fuels. Because we have been at this for 25 years, we know that building renewable energy in New England is more difficult than in the wide-open spaces where the deer and buffalo roam. Consequently, RECs cost more here than in Illinois and North Carolina. It’s great that those states are building wind projects, but those projects don’t need more money from Massachusetts consumers to be profitable. In other words, your purchase of a REC from those states fattens the wallets of generators there and the company sending me these direct mail offers.
Don’t Expect a Pat on the Back for What’s Required by Law
Massachusetts law says that in 2024, suppliers are required to have 28% of their mix coming from “Class I” projects located in our six New England states. So, the real question is whether the remaining 72% will come from New England or be non-Class I from Illinois or North Carolina. We know for a fact that RECs in those states can be purchased for about $3.50 per MWh, less than a tenth of what Class I RECs cost from New England. You get what you pay for. We’ve written about this several times. Here’s a blog from 2015: Why Buying New England Class I RECs is the Only Way to Make the Switch.
Help Us Stop These Ripoffs
Green Energy Consumers Alliance supports banning retail electricity suppliers and so do 100 other organizations in the Bay State. Municipal aggregation has been proven to be far superior. Earlier this year, the Massachusetts State Senate passed a bill that would ban retail suppliers. Governor Healey supports the ban too and would have gladly signed the legislation. But the House of Representatives failed to stand up for consumers.
2025 is a new year, and we will give it another shot. Stay tuned.
We need you because legislation is not a spectator sport.
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