When Needham launches its new electricity purchasing program in March, it won’t be alone. More than 200 Massachusetts communities have similar programs meant to use the power of the marketplace to help residents receive their electricity from a more sustainable mix of generation sources at more stable — and potentially lower — prices.
The program, called Needham Power Choice, will change only the most invisible part of the way electricity gets to outlets in Needham homes and small businesses. The parts consumers see, from the poles and wires to the monthly Eversource bills, will remain the same. But instead of Eversource determining which power sources — gas-fired generation plants, hydroelectric dams, solar or wind farms, etc. — supply the original energy, Needham’s contractor, Constellation New Energy, negotiates with the suppliers and creates the mix of sources.
Constellation is not a small player in the energy world; it’s a conglomerate that spans the electricity market. Last year, corporate net sales were nearly $25 billion. Traded on NASDAQ, it has defined itself by promoting the use of renewables.
“It’s important to buy electricity that’s generated by renewable energy sources,” said Gabby Queenan, the town sustainability manager. “Especially local renewable energy, which is what we’re doing.”
“The goal all along has been to get to match the Eversource price or do a little bit better and get as much green power as we can for that price,” said Nick Hill, a professional energy consultant and member of the Needham Climate Action Committee that worked with the town to get the program going. “It makes it easier to green the electricity supply and then also if we can get a better deal for members of the community as a whole in the same way that a large customer has a much better time buying any commodity on the market.”
The program will offer three options plus an opt-out, meaning customers can choose to continue with Eversource’s pricing and mix of sources. The core option, called “Needham Standard,” will provide at least 15% more energy from renewable sources than the currently mandated minimum. Initially, the price will be about half a cent less per kilowatt hour than the price that Eversource will charge this spring. There will also be a 100% renewable option and a basic option which will match Eversource’s renewable mix at a slightly lower price.
In addition to the local, renewable sourcing, the timing of any pricing changes is the other main difference for consumers. Eversource is permitted to review and change its KwH charges every six months, subject to state approval. That means twice each year consumers’ rates may change up or down.
With Power Choice, rates are locked in for two-year periods, in this case from March 2025 to March 2027. Over that time, consumers won’t benefit if energy prices drop, but they’re protected from rising prices. Both Hill and Queenan were careful to say that the pricing may save customers money, but that’s not certain. Over any two-year span, savings will depend on the ups or downs of the greater energy market.
While the program won’t launch until March, Queenan said residents can and should learn about the choices they’ll have. She pointed to the program’s website as a source of information.
“We’re helping support our local New England renewable energy market,” Queenan said. “And we’re sending that signal to the market that there’s a desire to make our local grid greater and cleaner.”
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