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Town Board Challenges Constellation's Controversial Marketing Tactics

August 27, 2024 | Town of Acton, Middlesex County, Massachusetts


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Town Board Challenges Constellation's Controversial Marketing Tactics
During a recent government meeting, the board discussed a draft letter to Constellation, a third-party energy supplier, in response to a marketing mailer sent to residents. The mailer promoted a seven-month fixed-rate energy contract, which raised concerns among board members regarding the potential pitfalls of third-party supply contracts.

Sustainability Director Andrea Becerra highlighted issues with such contracts, noting that they often lead to significant price increases after the initial fixed period. She cited a recent case where a resident faced a rate exceeding 40 cents per kilowatt hour, emphasizing the risks associated with these agreements. Becerra also pointed out that the town currently has a municipal contract with Constellation, making the comparison in the mailer particularly inappropriate.

The board debated the necessity of sending the letter, with some members questioning whether it was the town's role to critique private marketing strategies. Member Dean expressed concerns about the potential hypocrisy of the town, which had opted for Constellation's services due to cost-effectiveness, while now appearing to discourage residents from considering similar offers.

In defense of the letter, other members argued that it was a necessary communication to inform Constellation about the misleading nature of their marketing, which could mislead residents into unfavorable contracts. They emphasized that the letter was not an attempt to stifle competition but rather to protect residents from potentially deceptive practices.

The discussion underscored the ongoing tension between municipal interests and private market operations, as board members weighed their responsibility to inform and protect residents against the backdrop of free market principles. The board ultimately agreed to proceed with the letter, aiming to raise awareness within Constellation about the implications of their marketing tactics.

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