Concord plans time of use pricing to promote electrification and decarbonization

During the recent Light Board meeting on January 8, 2025, in Concord, Massachusetts, discussions centered on the town's electricity pricing structure and its implications for energy consumption and decarbonization efforts. The meeting highlighted a critical need to revise the current rate system, which charges customers more for higher electricity usage, potentially discouraging the shift from fossil fuels to electric alternatives.

The board noted that Concord has made strides toward greening its power supply, with a percentage of its electricity now sourced from non-emitting resources. However, the existing pricing model does not incentivize residents to increase their electricity usage for heating and transportation, which is essential for reducing greenhouse gas emissions. The board emphasized that customers should not face higher costs for using more electricity, as this contradicts the goal of promoting electrification.

A significant point raised was the anticipated rise in transmission costs due to the increasing demand for electricity. The current infrastructure is not adequately equipped to handle the projected surge in electricity needs, necessitating upgrades and new transmission lines. This situation could lead to higher costs for all customers, particularly during peak usage times when electricity prices can spike dramatically.

The board discussed the potential implementation of a time-of-use pricing strategy, which would charge customers based on the actual cost of electricity at different times of the day. This approach aims to align pricing more closely with supply and demand, encouraging users to shift their consumption to off-peak hours when electricity is cheaper. The proposed system would be a default opt-out for most residents, ensuring that the majority benefit from lower rates while supporting the town's decarbonization goals.

In conclusion, the Light Board's discussions underscored the need for a revised electricity pricing structure that promotes sustainable energy use and prepares the community for future demands. As Concord moves forward, the implementation of a time-of-use strategy could play a pivotal role in achieving both economic savings for residents and environmental benefits through increased electrification. The board's next steps will involve further analysis and community engagement to refine these proposals and address the challenges ahead.