New supplier choices in the market may lower energy costs
by Joy JordanIt’s not news that energy prices have been rising incessantly and, in turn, affecting the cost of doing business. Business owners, as well as homeowners, have been struggling with the cost increases for at least the past year. With no end in sight, concerns have been growing as budgets have been adjusted.
What many business owners and residents don’t know is that a regulation enacted last year allows Massachusetts residents and businesses to shop around for energy providers. The Electric Restructuring Act calls for a change from a monopoly system to a competitive market. This means that you can purchase your electricity supply from a company other than your current electric company. However, your current electric company, NStar, will continue to deliver the electricity to your home or business.
For more information on the specifics of changing your energy delivery to a competitive supplier, read the FAQ from state Dept. of Telecommunications and Energy at www.mass.gov/dte/consumer/basic_service_faqs/busin_faqs.htm.
The entry of new players into the energy delivery market here on the Cape may be the source of some relief, but whether they can in fact lower bills remains to be seen.
The current players
NStar and Cape Light Compact have been the only options on the Cape for some time. NStar is Massachusetts’ largest investor-owned electric and gas utility, and transmits and delivers electricity and natural gas to Cape Cod. It had a monopoly in the area for some time. In 1998, the Cape Light Compact was formed to offer residents and businesses on the Cape the option to aggregate under their municipal governments in order to see lower energy prices. However, since electric rates vary from day to day according to market conditions, the fact that Cape Light Compact, through ConEdison Solutions, offers locked-in rates makes the switch a gamble. Sometimes the consumer benefits, but if rates are locked in and then the market rates go down, NStar customers can end up paying less than Compact members.
That is the current situation. The Cape Light Compact locked-in rate is 12.919 cents/kWh, whereas NStar’s fixed rate for small business customers is 11.011 cents/kWh, and its variable rate for June has gone down to 9.211 cents/kWh. However, NStar’s rates will be reevaluated in June and may increase then, whereas the Compact rate is good through the end of the year. At press time, both NStar and the Compact had predicted that reevaluations would cause prices to go down for both. Additionally, Cape Light Compact supporters point to its “green” offerings as a factor for some customers. NStar does not offer any green energy programs, whereas the Compact offers cleaner electricity produced from 100 percent renewable energy resources located in New England – at an additional cost, of course.
The reduction in NStar’s rates has led many customers to switch from the Compact to NStar. Will the entry of other new players cause even more customers to leave the Compact in search of lower rates?
The competitive suppliers
The state’s Department of Telecommunications and Energy’s Web site lists 34 suppliers and brokers currently serving customers in the Cape Cod service territory. See the accompanying chart for the full list of all competitive energy suppliers licensed with the state. All competitive suppliers are required to note their current pricing in kilowatts per hour for easy comparison. Since rates fluctuate, its best to perform this type of comparison at the time you are considering a change, and the chart lists contact information for each supplier to enable you to do so. It may take a bit of time and legwork to research these companies, but the end result could be lower utility bills.
One of the firms that has been actively recruiting customers on the Cape is Dominion Retail. It has been using direct mail and other advertising methods to reach residents and businesses here. In fact, Dominion has made a strong push into the region – earlier this year, it sent a mailing to all Cape residents and businesses regarding its offerings and pointing to its lower prices.
Dominion is currently advertising a special rate of 10.9 cents/kWh through the ends of this year, while those receiving electric service under the Cape Light Compact program (ConEd Solutions) are paying 12.919 cents/kWh through the end of the year. That could amount to a 15 percent savings for the remainder of 2006. Keep in mind that service and maintenance is still provided by NStar, even when delivery is from Dominion or another supplier.
Does it make sense to switch to one of these alternate providers? As with anything, it pays to do your research. Price is the most obvious factor, of course, but other issues important to you may be considered as well, including contract terms, power sources, air emissions and union practices.
According to the NStar Web site, “The Department of Telecommunications and Energy requires all Competitive Suppliers to provide you with rate information prior to signing a contract or an agreement. The information should include current rates, contract terms, environmental characteristics, and labor practices in a standard format similar to food labels. This information can help you compare offers from Competitive Power Suppliers.”
As with any consumer decision, more choices are generally a good thing and can serve to reduce prices across the board. With those choices, however, come additional responsibility and due diligence on the part of the consumer. Evaluate your needs and research your options to find the best energy supplier for your business.
Competitive Energy Suppliers
APS Energy
Small Commercial, Large Commercial
Mansfield, MA
Telephone: 508-337-9090
www.alternatepower.com
Accent Energy MA, LLC
Large Commercial, Small Commercial
Dublin, OH
Telephone: 800-928-7775
Acela Energy Group, Inc.
Large Commercial, Small Commercial
Norwood, MA
Telephone: 781-255-0316
www.acelaenergy.com
American Powernet
Large Commercial
Wyomissing, PA
Telephone: 508-888-1106
www.americanpowernet.com
Axsess Group
Large Commercial, Small Commercial
Northborough, MA
Telephone: 508-351-9050
www.axsessgroup.com
Better Cost Control
Small Commercial, Large Commercial
Newton, MA
Telephone: 617-332-7767
www.bettercostcontrol.com
Chamber Energy Coalition, Inc.
Large Commercial
Springfield, MA
Telephone: 413-733-3287
www.chamberenergy.com
Competitive Energy Services - Massachusetts, LLC
Small Commercial, Large Commercial
Portland, ME
Telephone: 207-772-6190
www.energymassachusetts.com
ConEdison Solutions
Small Commercial, Large Commercial
Burlington, MA
Telephone: 781-203-2707
www.conedsolutions.com
Constellation NewEnergy
Large Commercial
Boston, MA
Telephone: 617-772-7500
www.newenergy.com
DSR Energy, Inc.
Large Commercial, Small Commercial
North Providence, RI
Telephone: 401-353-2854
www.dsrenergy.com
Dominion
Small Commercial, Large Commercial, Residential
Pittsburgh, PA
Telephone: 866-275-4243
www.dom.com
Energy Management Services
Contact: John Orr
New Canaan, CT
Telephone: 203-409-3895
Energy Rebate
Small Commercial, Large Commercial
Ashland , MA
Telephone: 800-440-4372
www.energyrebate.com
Gexa Energy, LP an FPL Group Company
Large Commercial, Small Commercial
Houston, TX
Telephone: 866-918-4392
www.gexaenergy.com
Global Companies LLC
Large Commercial, Small Commercial
Providence, RI
Telephone: 800-421-5875
James Devaney Fuel Company
Small Commercial, Large Commercial
Newton, MA
Telephone: 617-964-8383
www.jamesdevaneyfuel.com
Market Direct Energy
Small Commercial, Large Commercial
Stamford, CT
Telephone: 888-844-1953
www.marketdirectenergy.com
Metromedia Power, Inc
Large Commercial, Small Commercial
Westboro, MA
Telephone: 888-289-4324
www.metromediaenergy.com
Northeast Energy Partners
Small Commercial, Large Commercial
Bloomfield, CT
Telephone: 860-882-0175
www.neenergypartners.com
Patriot Energy
Small Commercial, Large Commercial
Woburn, MA
Telephone: 781 376-1888
www.patriotenergygroup.com
Power Management
Large Commercial, Small Commercial
Pembroke, MA
Telephone: 781 826-4200
www.powermanagementco.com
Risk Services Group, Inc.
Large Commercial, Small Commercial
Shrewsbury, MA
Telephone: 866-498-7475
SUEZ Energy Resources NA
Large Commercial
Boston, MA
Telephone: 1-866-999-8374
www.suezenergyna.com
Select Energy
Small Commercial, Large Commercial
Berlin, CT
Telephone: 800-789-2213
www.selectenergy.com
Sempra Energy Solutions
Large Commercial
San Diego, CA
Telephone: 619-696-3177
SourceOne
Small Commercial, Large Commercial
Boston, MA
Telephone: 617-399-6124
Sprague Energy Corp.
Large Commercial, Small Commercial
Auburn, NH
Telephone: 603-483-0166
www.spragueenergy.com
Strategic Energy
Large Commercial, Small Commercial
Hingham, MA
Telephone: 781-749-4201
www.sel.com
Supreme Energy
Small Commercial, Large Commercial
Weymouth, MA
Telephone: 781-331-7900
www.supremeenergy.com
TransCanada Power Marketing, Ltd.
Large Commercial
Westborough, MA
Telephone: 508-871-1857
www.transcanada.com
U Source
Large Commercial
Hampton, NH
Telephone: 603-773-6530
www.usourceonline.com
WPS Energy Services, Inc
Large Commercial, Small Commercial
Green Bay , WI
Telephone: 1-603-483-0166
www.wpsenergy.com
World Energy Solutions, Inc
Small Commercial, Large Commercial
Worcester, MA
Telephone: 508-459-8100
www.worldenergy.com
Source: www.nstaronline.com
Joy Jordan is managing editor of Cape Business magazine. She has worked in the technology and publishing industries and was chief copy editor for Cape Cod Community Newspapers. 
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