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If you're one of the many Burlington households enrolled in the town's municipal aggregation program, get ready for a new number on your electric bill this fall.

The Select Board approved a new two-year supply contract at its meeting this week, locking in a rate of $0.15646 per kilowatt hour — up about 18% from the current $0.13229/kWh.

The higher price reflects a shift in the energy market since the town signed its last contract two years ago, when rates were more favorable. However, even at the higher rate, the town's contract is still projected to run about 10% below the Basic Service rate from Eversource effective August 1.

What's changing, and when

The town's consultants recommended locking in a rate last week after seeing a dip in the market outlook — so Town Administrator John Danizio, acting on authority the Select Board granted at their June 8 meeting, signed the new 24-month contract. The Select Board formally reaffirmed the approval at Monday's meeting.

A few things to know:

  • The current rate holds steady through October, when the existing contract expires.
  • The new rate and new supplier — First Point Power, taking over from Constellation NewEnergy — kick in this fall, with residents expected to see the change reflected on their bills around late October or November.
  • The new rate, which applies to the supply portion of electric bills, is locked in for 24 months, ensuring rate stability until the contract comes up again in 2028. Eversource's Basic Service rate changes every six months.
  • Participation is automatic for those already enrolled, and residents will get a postcard in the mail explaining the change with instructions on how to opt out if they'd rather go elsewhere.
  • Residents looking for alternative suppliers that aren't Eversource or First Point can find one via the Mass Energy Switch program. Contracts secured for these programs are often for shorter terms than the town's municipal aggregation term.

Why lock in for two years instead of waiting it out?

Select Board members discussed whether a shorter, one-year term might make more sense given the uptick in rates, but ultimately decided the potential upside didn't outweigh the risk of ending up worse off if rates continued climbing. Locking in for 24 months means residents get a guaranteed price — and a likely overall edge over Eversource — regardless of where the broader energy market goes from here.

Just how much has the program saved residents? According to town analyst Sam Hockenbury, who presented projections to the board on June 8, the aggregation program is on track to save the town — residents and businesses combined — an estimated $2.6 million over the full two-year contract term, an 11.5% savings compared to what bills would have looked like without the program. Broken down, that works out to roughly $250 saved per household, $800 per commercial business, and about $21,500 on average for each of the town's four industrial users.

Board members credited the town's staff, particularly Hockenbury, for the outreach that's made the aggregation program a known quantity for residents. As one board member put it, people increasingly recognize the program by name and know they've saved money because of it.

Previous Burlington Buzz coverage of Municipal Aggregation:

Town to Move Forward With Municipal Aggregation in Burlington – Burlington Buzz
Municipal Aggregation in Burlington was discussed at the Select Board, as the town’s application is stuck in the state queue.
Burlington BuzzNicci Kadilak
Municipal Aggregation is Coming to Your Electricity Bill – Burlington Buzz
Here’s what you need to know about municipal aggregation: program details, how to opt out, and the new price of your electric supply.
Burlington BuzzNicci Kadilak
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