It will cost more this winter to light the night; electricity companies have announced that rates will rise.
Mark Lovewell

As Cost of Electricity Rises, Islanders Pay More

<p>Islanders can expect to see their electric bills go up this winter, with Cape Light Compact and NStar both announcing increases in electricity costs beginning as early as December. Utility companies said the price increase can be attributed to a growing demand for natural gas paired with pipeline constraints.</p>

Islanders can expect to see their electric bills go up this winter, with Cape Light Compact and NStar both announcing increases in electricity costs beginning as early as December.

The utility companies said the price increase can be attributed to a growing demand for natural gas paired with pipeline constraints.

Cape Light Compact, which supplies electricity to 140,000 customers on the Cape and Vineyard, announced last week that electricity prices for residential customers will be going up from about 8.9 cents per kilowatt hour to about 15.4 cents for December to July 2015 meter readings.

While this represents a 73 per cent increase, electric bills will not be going up by that amount. Cape Light Compact purchases power on behalf of its customers, but those prices are not the only component of their customers’ electricity bills. NStar serves as the distributor for power, and each electricity bill includes distribution charges from NStar which include a fixed $3.73 monthly charge and, for the basic residential customer, about 10.5 cents per kilowatt hour in delivery costs.

On Tuesday, NStar said these costs are not expected to change.

The second part of the electricity bill, the actual cost of electricity, will be going up for most customers regardless of provider, part of a regional trend.

The average Cape Light Compact customer uses 540 kilowatt hours of energy per month, Cape Light Compact senior power supply planner Stephan Wollenburg told the Gazette.

For the average customer, the electricity bill will be going up by about $35 per month, from about $108 to $143, a 33 per cent increase.

“It’s a substantial increase,” Mr. Wollenburg said. “It’s really, really big, no doubt about it.”

NStar spokesman Rhiannon D’Angelo said that while the majority of Vineyard customers get their power from Cape Light Compact, some use NStar. NStar, too, has announced that its electricity rates are going up from 9.4 cents per kilowatt hour to about 15 cents starting Jan. 1. NStar, which serves 1.4 million customers in Massachusetts, said that for the average customer, bills will be going up $28, or 29 per cent.

Mr. Wollenburg said Cape Light Compact, like other electricity suppliers, is dealing with rising prices that are not likely to go down soon.

“Wholesale prices for electricity started going up winter of 2012/2013,” he said. In New England, he said, the amount of natural gas consumed has increased without investing in new pipeline capacity.

Mr. Wollenburg said the amount rates have gone up has increased in magnitude over time. “It generally takes a bit of time for the wholesale price to trickle down to the consumer,” he said.

In an early November press release, NStar said that more than half of New England’s electricity is produced using natural gas, which is an abundant and inexpensive fuel. But regional pipeline limitations and dependency on natural gas are nudging electricity prices upward, NStar said.

While customers can opt out of Cape Light Compact, Mr. Wollenburg urged caution for those looking into other energy suppliers.

“The important thing to keep in mind is that pretty much everyone buys at least most of their electricity through the same market,” he said. “People may be able to do a slightly better price here or there, but there’s no way to offer a price way better . . . if you get an offer that looks way better than what anyone else is offering, you need to make sure you really know what’s going on.”

He said some companies will try to sell electricity in a month when the cost is low, though the majority of electricity costs are driven by the winter months December through March, when rates can be three or four times as much as they are in April or September. So low rates can give way to market rates, which can be up to quadruple the introductory cost.

While people shouldn’t be scared away from looking for other offers, Mr. Wollenburg said, there are potential pitfalls. Those in the market should “do their homework and read the fine print.”

“What we tell consumers they should take away from that is that the most important thing they can do is energy efficiency,” he said. “By being really smart and pretty lucky they could do better than what the compact could offer, but the way to guarantee they save money is to take advantage of all the energy efficiency available.”

Cape Light Compact has also started a campaign to help lower electricity bills through efficiency; the company also offers a free energy assessment and rebates for some energy-saving measures.

NStar also offers a free home energy assessment and several energy efficiency rebates.

Paul Pimentel, chairman of the Vineyard Power board of directors, said the cost of electricity goes up when a large amount of natural gas has to be squeezed through a small number of pipes. “You’ll see this pattern over the next four or five years until we solve this pipeline problem,” he said.

Vineyard Power is an Island-based energy cooperative that is involved in bringing solar and wind turbine-based power to the Island. Mr. Pimentel said the rising costs of electricity brings home why the cooperative was created.

“We’re trying to break free of those relatively global impacts that we suffer from, being the end of the supply chain,” he said.

“One of the beauties of renewable energy is it’s not affected by a pipeline or anything like that,” Mr. Pimentel said. “It’s free and it doesn’t go up.”

But for those looking to lower their rising electricity bills, “investing in energy efficiency is the most efficient thing you can do,” Mr. Pimentel said. “More efficient than wind and solar.

“The usual stuff still applies,” he said. “Turn off lights when you don’t need them, all the usual caveats that you hear. Turn the thermostat down if you can handle it.”

Comments

Submitted by Anonymous (not verified) on Wed, 11/26/2014 - 19:07

Permalink

BG Edg

Natural gas prices have collapsed and continue to go down, yet the utilities here get away with rate increases. Why no pipelines to New England? Thank the tree huggers.

Submitted by Anonymous (not verified) on Thu, 11/27/2014 - 08:42

Permalink

Carol formerly Chilmark

It's not the tree huggers, BG, it's Mass' pathetically weak public utilities regulation. In Calif. (obviously a much, much larger state), our prices have been falling - but we have strong regulatory support for consumers. My electric costs have been flat or declining for three years, because I have a solar lease (rented solar panels on my roof), and I pay a flat lease payment instead of electricity. I get a refund (applied to my natural gas heating bill) every year as payment for the excess electricity my panels sent back into the grid.

We have much stronger programs for helping homes and businesses become very energy efficient.

Work on your local politicians for this. That's the pressure point.

Submitted by Anonymous (not verified) on Fri, 11/28/2014 - 13:03

Permalink

Carol Lashnits VH

Get yourself on a budget plan at least so you don't get socked in the winter months especially if you have any electric heat. And take advantage of the Energy Audit Program through Housing Assistance Corp. Depending upon your income, some of the fixes can be free. How is this increase going to affect propane I wonder.

Submitted by Anonymous (not verified) on Sat, 11/29/2014 - 14:49

Permalink

Ken Edgartown

Budget plan dont save you anything.It gives you a false sense of security and you dont see what the bills actually are. then you get hit with the difference at the end of the year. Its better to just see what your bill is no matter how painful. Lower fuel prices dont seem to be having an effect on anything. steamship is up, Greyhound and bus services are up. The airlines are up and now our electric rates are up. Ill be checking propane next week.

Submitted by Anonymous (not verified) on Sun, 11/30/2014 - 06:17

Permalink

Vineyardnomics - wouldn't you know Nomans Land

Vineyardnomics: (Daily rant)
If we reduce our energy consumption the cost of producing electricity remains the same so we have to pay 50% more per unit to offset the reduction in use.
Because it costs 800 dollars to send 5,000 gallons of gasoline over from the mainland we get charged a dollar a gallon extra – unless the cost of gas goes down – and then we get charged 1.50 a gallon extra - to offset the discount paid to the supplier.
(See reason no. 1)
If we buy something on Amazon we can get it often at a third less cost than buying it on island because the shipping costs from Amazon is included in the cost and so this means that it a fifteen dollar item has to cost 5 dollars more when it is shipped to the store in bulk. (as opposed to having it individually wrapped, packed, boxed and delivered to your door)
(See reason no. 2)
Because the Steamship Authority is called the Authority because it is there to serve the needs of people living on the island when it embraces huge expensive projects and sees a decline in tourism the cost of these improvements (which are there to serve tourism) is passed onto islanders as a valid expense related rate hike. (And god forbid that anything ever happens to reduce tourism and cars and trucks paying huge amounts to the SSA to fund their projected increases and be left with a bloated underused infrastructure. As in ramp up the advertising – fast.)
(See reason no. 3)
The roads are now saturated, we are getting a 35 million dollar bridge on top of the 8 million dollar bridge we used for 3 years and are about to tear down and take to the dump, and so to protect pedestrians and cyclists (who we definitely think are from Mars) we employ the Martha's Vineyard Commission to create a scheme with a vastly insufficient bicycle path plan at a cost of millions of dollars that will make cycling less safe and be a blight on our island. If they have their way – which is a great big – if.
God Bless the Martha's Vineyard Commission and God save the queen.
(See Reason no. 4 – no its actually reason no. 1 – no wait a minute – I'll have to get back to you on this one.)
And it is all worth every penny because this is such a great place. It truly is. Isn't life grand!

Submitted by Anonymous (not verified) on Sun, 11/30/2014 - 11:52

Permalink

VeryAnnoyed Vineyard Haven

I would like to publicly say thank you to all the politicians who stopped the pipelines and kill the coal. I do understand the need to be self reliant but our immediate world uses fossil fuel. By killing off the sources of fuel which creates the power for the lights to grow your own medicine, did you think there would be no repercussions of cost associated with this. Do you all understand the COST of your progress is going to be crippling for the average Vineyard family. At the moment the Delivery Charge is 10.9 cents and the Generation Charge is 9.3 cents which is going up to 15.4 cents Before increase the Total Electric cost per KWh was 20.2 cents or 795 KWh at $161.48 per month. Now the new bill will be 26.3 cents per KWh for 795 KWh or $209.08 per month. My bill is going up $47.60 per month for my budget billing. Again thank you for caring about the working class being hammered.

deshandra brown mvy

It would appear that the politicians want the cost of conventional electric service to increase, so they can then tell us 'how affordable' the overpriced proposed offshore wind power is.
As usual Massachusetts is the laughing stock of the country. Everyone else is enjoying lower utility bills due to the over abundance of natural gas, which caused the price to plummet in a FREE MARKET economy.. but the Peoples Republic of Massachusetts bucks the trend.

Submitted by Anonymous (not verified) on Wed, 01/21/2015 - 10:19

Permalink

Melissa McGuire Colorado

Actually, Massachusetts is often looked to as a model for creating more sustainable energy practices, clean environment, etc. Tell me, would you rather have a pipeline marring your landscape, leaking all over as they do, and polluting your waterways, killing wildlife, generally making MA look like NJ? Or would you rather pay a little more and continue to have the beautiful state, water, wildlife, that you have?
I'm moving there, and I'll pay more for a better quality of life.
Thanks for keeping it clean MA!!

Add new comment

Plain text

  • No HTML tags allowed.
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.