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Electric customers can affect some cost factors

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March 02, 2009

Some factors that affect electricity costs – hurricanes and weather events, fuel costs and foreign markets – are well out of our control. But we can influence a number of other factors that affect electricity prices, such as bundling accounts, improving efficiency, and monitoring usage.

In some cases, the larger the load, the more leverage there is for a better rate. Communities, therefore, should look at bundling streetlight accounts, school accounts and public works accounts along with their other municipal accounts. Public works departments are typically large users of electricity, so bundling these accounts may enable a community to contract a lower price.

It should be noted, however, that bundling accounts is not always beneficial. If schools and towns are on separate budgets, they may want to proceed with caution before bundling. For example, a new school is typically more efficient and less costly than an older town hall. On the other hand, an older school might significantly raise the kilowatt-hour price for electricity.

Municipalities that plan energy efficiency into new buildings or renovations can significantly reduce overall electricity costs. Municipalities can benefit from designs that reduce ongoing costs for energy, water and maintenance.

This starts with a clear understanding of energy efficiency opportunities and the incentives and rebates offered by utilities, manufacturers and the state to offset incremental costs. It is also necessary to understand the savings that can be expected, and the potential financing mechanisms.

Building efficiencies can be used to meet long-term financial goals and reduce exposure to increased energy costs as well as meeting sustainability goals.

Monitoring overall electricity usage puts a municipality in a better position to manage capacity costs. If a community’s overall peak energy usage is lowered by the implementation of energy efficiencies or other means, its capacity tags will then decrease. This in turn will lead to a lower capacity cost, which can be a significant portion of the electricity rate.

Competitive electricity suppliers can help customers navigate through the complex energy environment. Competitive suppliers can offer fixed-price agreements, assuring price stability for the length of the agreement.

Constellation NewEnergy is the endorsed supplier to the MMA’s MunEnergy program. 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 .