33.8 cents/kWh: The proposed National Grid supply rate beginning November 1st would be a 200% increase

 

National Grid released it's proposed supply rate for November through April: 33.891 cents/kWh.    That's a 200% increase over the 11.491 cents/kWh they currently charge.   I assume this new rate will be in the news shortly, as it will be an expensive winter for much of Massachusetts.

The supply rate is in addition to the delivery service rate that National Grid charges, most recently 14.944 cents/kWh, and a $7/month customer charge.   A household using National Grids supplier that uses 500 kWh in a month this winter should expect a bill around $251.

Most of Lancaster will have at least a brief reprieve from the higher prices: if you're enrolled in the  Municipal Aggregation program your supply rate has been 14.974 cents/kWh since January.   That rate will continue through December.  I have not heard any news on a new contract or new rate for the aggregation program.

National Grid has to negotiate shorter supply contracts than the aggregation program, so their supply rate changes every six months.  The Municipal Aggregation program can negotiate multi-year supplier contracts that typically save a few cents for enrollees.

Last spring I put together a chart comparing the historical National Grid supply rates and Lancaster aggregation program supply rates -- you can take a look here: LINK

Last years Aggregation contract renewal was not very fruitful:  the Select Board first discussed the renewal in June, 2021 and continued until the 11th hour in December, when the town signed a one-year contract for a rate that was higher than National Grids default rate for most of this year.    That could continue to haunt Lancaster for several years now, unless the Select Board tracks down a better rate before January.  "Colonial Power" is the 3rd party aggregation program administrator that Lancaster uses and in the last two years most of their other client communities locked in multi-year contracts for closer to 10 cents/kWh.       Heath started a new contract in the same month as Lancaster, locking in 10.56 cents/kWh through 2024.

You can browse the aggregation program rates for other communities here:  https://colonialpowergroup.com/our-communities/

We should watch Harvard and see what they're able to lock in: their aggregation program's contract ends after November.