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About MMA MunEnergy Tips for evaluating municipal energy budgets
As municipalities look toward the fiscal 2009 budget season, many local officials are assessing their approach to budgeting energy costs.
Electricity costs have been rising and are volatile. Many experts agree that these costs are not coming down any time soon.
A Dec. 13 report from Independent System Operator New England, which runs the six-state power grid and the region’s $10 billion wholesale power market, offers no hope that rates will drop significantly unless the price of natural gas plummets – an outcome few energy investors are banking on.
The report concludes that New England’s electricity rates, among the highest in the nation, will continue to depend almost entirely on the price of natural gas over the next two decades, no matter what policies state leaders adopt for conserving energy and approving new kinds of power plants.
What options do local leaders have to shield their city or town from the impact of this type of market? The best approach is to proactively manage energy as a strategic asset. An energy management plan will prevent spikes in energy costs from breaking the municipal budget.
Cities and towns can benefit from a number of electricity purchasing strategies. While Massachusetts utility rates change every three to six months, a “fixed-price” product reduces risk by providing long-term stability. Municipal consumers may lock in rates for as far out as five years.
A long-term approach helps municipalities to confidently budget electricity costs each fiscal year. The fixed price option insulates the community from market volatility and provides a hedge against what is expected to be a continually rising market.
Constellation NewEnergy, the endorsed supplier to the MMA’s MunEnergy program, offers several products to cities and towns.
For more information, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
About MMA MunEnergy Tips for evaluating municipal energy budgets
Tips for evaluating municipal energy budgets
As municipalities look toward the fiscal 2009 budget season, many local officials are assessing their approach to budgeting energy costs.
Electricity costs have been rising and are volatile. Many experts agree that these costs are not coming down any time soon.
A Dec. 13 report from Independent System Operator New England, which runs the six-state power grid and the region’s $10 billion wholesale power market, offers no hope that rates will drop significantly unless the price of natural gas plummets – an outcome few energy investors are banking on.
The report concludes that New England’s electricity rates, among the highest in the nation, will continue to depend almost entirely on the price of natural gas over the next two decades, no matter what policies state leaders adopt for conserving energy and approving new kinds of power plants.
What options do local leaders have to shield their city or town from the impact of this type of market? The best approach is to proactively manage energy as a strategic asset. An energy management plan will prevent spikes in energy costs from breaking the municipal budget.
Cities and towns can benefit from a number of electricity purchasing strategies. While Massachusetts utility rates change every three to six months, a “fixed-price” product reduces risk by providing long-term stability. Municipal consumers may lock in rates for as far out as five years.
A long-term approach helps municipalities to confidently budget electricity costs each fiscal year. The fixed price option insulates the community from market volatility and provides a hedge against what is expected to be a continually rising market.
Constellation NewEnergy, the endorsed supplier to the MMA’s MunEnergy program, offers several products to cities and towns.
For more information, contact MunEnergy Program Manager Emily Neill at (617) 772-7513 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
Written by MunEnergy Program Manager Emily Neill
