Winchendon residents to see lower energy bills

Winchendon residents to see lower energy bills

Katie Landeck
News Staff Writer


WINCHENDON — If everything goes as planned, by next winter Winchendon residents should see a reduction in their energy bills.

At the Special Town Meeting in October 2012, the town voted in favor of an article to “become an aggregator of electric power on behalf of its residential and business communities.”

This meant that town officials could bundle together the electricity used by individual residents and town businesses before placing them out to bid.

Theoretically, the company that offers the lowest rate would be awarded the contract and people at home would start seeing lower electric bills.

Fast forward a little less than a year and a half later and the pieces of that deal are finally coming together.

Not long after the Town Meeting vote, the town partnered with Colonial Power Group, an energy consulting company that specializes in aggregating electricity for towns.


“All we do is municipal aggregation in Massachusetts,” said representative Mark Cappadona who attended Monday’s Board of Selectman meeting to answer questions. “This is our soul focus.”

The company has helped negotiate similar deals for Ashland, Lancaster, Lanesborough, Lowell, Lunenburg and Marlborough.

However, the progress in Winchendon was temporarily stalled while Colonial Power faced inquiries from the Department of Public Utilities. While the hearing was in progress, officials held the project in abeyance.

“Questions were raised by the attorney general’s office, all of which have been since answered and resolved, and in fact all resolved in favor of Colonial Power,” said Town Manager James Kreidler at the meeting.

Now, the town is in a place where they can start to move forward with the deal.

The first step will be for the Board of Selectmen to pass an aggregation plan, according to Mr. Cappadona.

After that aggregation plan is passed, Colonial Power Group and Mr. Kreidler will bring the plan to the Department of Public Utilities and the Department of Energy Resources.

Mr. Cappadona said it will likely be a short process to receive approval from the Department of Energy Resources, but the DPU is another story.

“At the DPU, they have cut down the process. It just depends on the backlog,” he said.

If everything goes as planned, he added, the company and town would be ready to start taking bids four to five months from now, according to Mr. Cappadona.

“Next winter’s heating season we very likely will be on this program,” said Chairman Robert O’Keefe.

However, the town does not have to be on this plan by next winter.

Once the plan is approved and Winchendon starts to take bids, they have the option to wait if the prices are not competitive.

“You can choose to move forward or not sign until the market is in your favor,” said Mr. Cappadona.

Like stocks, the energy market fluctuates depending on factors such as the availability of natural gas. This makes for good times and bad times to buy into the market. However, by riding these waves, the town has the ability to get a better deal.

“There’s all sorts of choices you’ve never had before,” Mr. Cappadona said. “You guys control your energy for the first time … You guys decide what you want for the rate.”

The goal is a lower energy bill for participating individuals in Winchendon who are currently on National Grid’s basic plan.

“Every time we do something at the local government level to save a nickel, it’s good but ... this actually puts it at people’s kitchen tables when they are writing the bills every month,” said Mr. Kreidler.

Looking ahead, after a contract is negotiated, all Winchendon residents who will be affected by the change will be mailed an informative card.

There is a 30-day wait period where residents have a chance to opt out before they are automatically switched over to the rate negotiated for them by town officials.

During the wait period, Colonial Power Group will host informational meetings in the town.

To opt out, a resident simply needs to sign the card and mail it back. Mr. Cappadona said typically about 3 percent of a community opts out.

For people who choose to stay in the plan, the only change will be the price and the energy provider listed on the bill from National Grid.

“You have a problem with meter billing or any of those issues, it is still National Grid,” said Mr. Cappadona. 

In addition, consumers would stay on the same payment cycle and mail the bill to the same place, according to officials.

Residents are not tied into this new plan. If someone who opted out wants to switch to the aggregated rate, they have the option.

At the same time, if someone decided to opt out after participating, they can do that as well. All changes are free of charge, according to Mr. Cappadona.