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Tamworth energy committee warns residents of Community Power rate increase; board asked to support bill to block cost-shifting
Summary
Energy Committee rep reported Community Power will raise rates after losing a planned power-purchase agreement; the change may make Community Power rates slightly higher than Eversource and the committee asked the board to support House Bill 760 to prevent utilities from shifting losses to community power customers.
Gabrielle told the Select Board that the Community Power Coalition — the municipal aggregation that supplies electricity for participating towns — has voted to raise its rates slightly after an anticipated power purchase from a generation project fell through. She said the change could put Community Power rates above Eversource’s in the next rate period, ending an era where Community Power typically charged less than the utility.
Gabrielle said the coalition originally planned to source about 30% of its power from a purchase-power agreement tied to a generating plant in Berlin. When that contract fell through, the coalition was forced to hedge on the spot market at a time of higher prices, causing upward pressure on its rates. She said Community Power historically saved the average household about $11 per month compared with Eversource, but that may no longer be the case for the coming rate period.
The committee described concerns with a Public Utilities Commission decision requiring utilities to buy a portion of power on the spot market, which exposes them to price swings, and allowing utilities to recover losses from customers across service territories — including customers served by community power providers. Gabrielle characterized that as a cost shift that would expose community power customers to costs the utilities incurred after taking market risk.
Gabrielle asked the Select Board to send a letter to state legislators in support of House Bill 760, which she described as legislation to stop utility cost-shifting to community power programs. She said the bill has bipartisan support.
Board members and community members asked about the opt-out process and how customers would learn the new rate; several board members asked the Energy Committee to prepare clear opt-in/opt-out instructions for distribution at town offices and the library. Gabrielle said member communities on a Community Power Coalition call had expressed the same concerns and that the coalition would work with legislators on possible remedies.
No formal action was taken on Feb. 3; the Select Board asked for the bill language to be provided so the board could consider sending a letter of support.
