City Announces Launch of Valley Green Energy

Source: amherstma.gov

City Manager Paul Bockelman and Chief Sustainability Officer Stephanie Ciccarello announced a new program July 19 that will be available to Amherst residents and businesses this fall that will lower energy costs in an environmentally friendly way.

Amherst, along with Northampton and Pelham, have signed power supply agreements with First Point Power that will launch Valley Green Energy. The program, a regional group electricity purchasing program designed to provide residents and businesses in all three communities with the dual benefits of cleaner electricity and stable prices, will launch in November. The program’s prices will be fixed through November 2026, providing 24 months of stable prices and protection against seasonal electricity price spikes.

Valley Green Energy participants will automatically receive an additional 10% renewable energy content at ¢13,994/kWh, a price that will be lower and more stable than Eversource’s residential electricity rates (¢14,023/kWh as of August) in effect at the time of launch. However, because utility rates fluctuate and future prices are unknown, future savings cannot be guaranteed.

Bockelman said, “Lower prices and greener electricity… were the goals of the program and we achieved them with this initial offering. Much credit goes to the staff, advocates and our wonderful consultants at Peregrine Energy Group for bringing this program to our communities.” He added, “We have built a great partnership with Northampton and Pelham and are proud to bring this unique multi-community approach and greater market share to this initiative.”

Two additional program options will be available upon request. Participants can choose to receive electricity with 100% renewable energy content at a rate of ¢16.474/kWh or only the minimum amount of renewable energy required by law at a rate of ¢13.594/kWh. Customers can also opt out of the program and purchase electricity directly from Eversource at its rates.

Valley Green Energy received state regulatory approval in April. The program will change the price of electricity delivery on each participant’s electric bill, but the local utility will continue to manage billing, handle outages and deliver electricity without interruption. Nearly 200 other communities in Massachusetts already have similar programs, including nearby communities of Greenfield, Hatfield, Leverett and Northfield.

Ciccarello added, “After years of working to create Valley Green Energy, I am very proud that this initiative will benefit every resident and business in the city and support the city’s efforts to meet our climate goals.”

Valley Green Energy is a regional energy service program known as electricity aggregation, which is a type of group electricity purchasing program for cities and towns with no hidden fees or penalties. Valley Green Energy is administered by the City of Amherst, the City of Northampton, and the City of Pelham. The purpose of Valley Green Energy is to enter into contracts on behalf of consumers for the supply of electricity.

Participating in Valley Green Energy changes the delivery price on your electric bill, which is the part of your bill that you pay for the electricity you use. Through the program, residents and businesses in member communities will have new choices and more control over the costs and environmental impact of the electricity they use. While Valley Green Energy will not be able to guarantee savings over Eversource’s base rates, communities have committed to working toward competitive and stable prices.

Like all similar programs statewide, Valley Green Energy will use an auto-enrollment model, although participation is not required. Any account holder who qualifies for auto-enrollment will be notified by mail before the program launches and will have the opportunity to opt out. More information will be available in early September at www.ValleyGreenEnergy.org.