Cape consumers offered new energy choices

Website Illuminates Power Supply Choices for Electricity Consumers on Cape Cod and Martha's Vineyard

Consumers face complex decisions when considering whether to stick with the Cape Light Compact or switch to another power supplier, but help is at hand. The "Tips for Choosing a Supplier"� page on the Cape & Islands Energy Information Clearinghouse provides the information required to factor both "out of pocket costs"� and "true costs"� into these decisions for Cape Cod consumers.
This chart supplied by CIRE analyses the different rate possibilities and can be clicked on to see larger.

 Under the provisions of the Massachusetts Electric Restructuring Act of 1997, consumers are free to choose a power supplier. On Cape Cod and Martha's Vineyard, where the Cape Light Compact is the default supplier, consumers are paying the highest rates in the state for basic power generation services.

"The Compact was created to represent the interests of local consumers, but it has not done an effective job of educating them about power supply options, and it is not even complying with state-mandated disclosure requirements," says Chris Powicki, principal of Water Energy & Ecology Information Services. "Skyrocketing rates hurt, but they also create opportunities to help consumers make informed decisions."

Residential and commercial consumers served by the Compact can take advantage of competing offers from NStar and Dominion Retail, and they can support renewable energy by purchasing "boutique green"� products from the Compact or other suppliers. The "Tips for Choosing a Power Supplier" page provides background information on supply options, and it presents a novel analytical framework for comparing individual choices. The framework accounts for pricing and contract terms, as well as "true costs"� issues such as air and water pollution, public health impacts, and climate change that are associated with the use of fossil fuels to generate electricity but are not reflected in the price of each kilowatt-hour. 

New choices, new prices, new problems

For Cape and Vineyard consumers, the framework yields valuable insights (see the table above which you may click on to enlarge for easy reading): 

• Based on current rates, residential and small business consumers can save about 15% on the supply portion of their bill by switching to Dominion Retail; residential consumers can save about 13% and small business consumers about 17% by switching to NStar.
• Contract terms are very important: The Compact's rates are capped through December; they may drop. Consumers that want to switch to Dominion Retail must be willing to act fast, to make a commitment, and to pay close attention when their contract ends in December. Consumers considering a switch to NStar may want to wait until later this spring, when rates for the second half of the year will be announced.
• The Compact, NStar, and Dominion Retail all offer dirty "system power" products: Most of the electricity they buy is generated by fossil power plants, which release emissions that degrade air and water quality and could forever alter the climate and character of this region.
• One of Dominion Retail's sister companies owns the Brayton Point Station, which is located upwind of the Cape and Vineyard and is the dirtiest plant in New England. Consumers that switch to Dominion will save money by patronizing a corporation that profits while polluting local environments. 
• The Compact offers cleaner (50% green) and 100% green products, giving consumers that elect to stick with the Compact the opportunity to support renewable energy by paying a modest additional premium. These products represent the best deal on "boutique green" in the state.

"Switching away from the Compact seems like an easy decision, but it's not," says Powicki. "Differing contract terms make "apples-to-apples" comparisons difficult, while some local consumers may find that cheaper options aren't necessarily the best ones when "true cost"� considerations are taken into account."

The Cape & Islands Energy Information Clearinghouse (www.cirenew.info) was developed by Water Energy & Ecology Information Services (WEEinfo) through the Cape & Islands Renewable Energy Collaborative (www.cirenew.org). WEEinfo (www.weeinfo.com), based in Cummaquid, provides strategic planning, research, analysis, and communications services to agencies, institutes, and companies in the energy and environmental sectors.