Swampscott Aggregated Electric Rates To Rise With New 3-Year Deal

SWAMPSCOTT, MA — Swampscott residents who participate in the town's energy aggregation program will see higher rates starting in November as part of a new three-year contract the Select Board approved on Tuesday night.

Select Board member Doug Thompson said that residents benefited from a favorable negotiation that took place before the current three-year deal — which allowed them to avoid the steep market price increases that ensued amid supply-chain problems, the start of the Ukraine war and general inflationary issues in recent years.

He said that while wholesale prices have receded since their highs of last year, they are still higher than the rates negotiated in the previous contract three years ago.

The next rate for the "basic green power" program starting in November will be 14.837 cents per kilowatt hour, compared to the current National Grid rate of 16.055 cents. He said that equates to a $92 annual savings for those who opt into the program.

"So we're not talking about massive shifts here but $92 is $92," Thompson said.

The Select Board also approved previously proposed water and sewer rate increases expected to be about $111 per year for the average household.

Thompson said the town decided on the three-year contract to help provide as much rate stability as possible, with the understanding that rates could go down on the open market over that time. Residents are allowed to opt out of the program at any time in the contract if that is the case, but those who stay in the program would be paying more than the market rate.

"We had a long conversation about that and no one has a crystal ball to tell exactly where energy prices are going to be in three years," Thompson said. "But we felt like over the last three years it was better to have certainty."

"It's a fantastic program," Swampscott Town Administrator Sean Fitzgerald said. "Certainly, Swampscott has been one of the leaders. With this option, we are going to match the city of Salem's level of renewables."

Fitzgerald said the new contract is coming at time when there is likely going to be "an upswing in the market" because of ongoing nationwide summer heat waves and the intensifying war in Ukraine.

"The costs of electricity are projected to go up," Fitzgerald said. "This gives us a chance to have stability and great certainty. And, as a town, we're a customer, and I want all the town line items for energy to be stable. I want them to be predictable and steady. So we have three years of a pretty reasonable level of expectations."

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