Danvers Residents Catch Break On Electric Rates

DANVERS, MA — Danvers residents are catching a bit of a break on their electric rates through the end of the year thanks in large part to a mild weather that tempered a predicted spike in wholesale power prices.

The Municipal Light Board last week approved a reduction in the fuel charge used to cover what Danvers Electric spends on purchasing power that the Board said will result in about a 7 percent reduction in bills for the average residential customer.

The price easing comes at the same time when water and sewer rates were approved for a 5 percent increase beginning on July 1.

The electric rate is set to be in effect through at least December when it will again be reviewed.

"To further capitalize on the low wholesale electricity rates, Danvers Electric secured a short-term power purchase agreement with a regional supplier," Assistant Utility Director Clint Allen said. "This agreement allowed us to lock in favorable and below-budgeted pricing for the next couple of years and avoid unnecessary exposure to the volatile open market."

Current regulations require Danvers Electric to return any excess fuel costs collected the following year to the customers. This return of funds is included in the rate calculation from year to year.

Those with questions on electric rates can go to this website or call 978-774-0005.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)