Eversource Are Pushing Clients To Secure Third-Party Rates

We have recently been sent an email whereby officials from Eversource are pushing clients to secure third-party rates in preparation for the highest ever utility rates set to come into play over the coming months. The issue is that utilities by law are locked into specific term lengths that can result in high rates as opposed to third party supply who have access to multiple options to offset short term costs. 

I encourage you to reach out today in order for us to provide you with your best options and lowest rates available as we currently stand in a shoulder season whereby, we are seeing low third-party rates from Suppliers. 

Please note that the letter shows EverSource NH Industrial rates through January 2023.  The Commercial and Residential rate effective August 1 will be $0.22566.  The forecast for February based on today’s market shows a small relief of $0.16 through August of 2023

“ From: "Samaras, George J" <george.samaras@eversource.com>
Subject: RE:---- School System
Date: June 30, 2022 at 12:00:45 PM EDT
To: "Toussaint, Mark D" <mark.toussaint@eversource.com>, 

Hi All,

Happy to help on this topic. I advised that the school district may want to contract with a 3rd party supplier prior to the August 1st rate change. The new supply rates are going to impact all accounts currently on Eversource default service. The 3rd party supplier (of your choice) should be able to offer a better rate. A list of registered energy suppliers can be found on the NH Dept. Of Energy website.

The Eversource Default Service rates for the next six months are listed below for reference:

 INDUSTRIAL ACCOUNTS:

August:         $0.22423

September:     $0.19322

October:        $0.17523

November:      $0.24575

December:      $0.41884

January:         $0.4855

Please let me know if you have any questions.

Thanks,

George

George Samaras - Account Executive

 603-634-3665 George.Samaras@eversource.com"

Although the correspondence addresses a utility in New Hampshire, we can expect higher rates throughout New England.

We continue to recommend longer fixed price terms because the market is backwardated with lower long-term rates than short.  Although some have concerns with agreements that exceed 12 months, our relationship is only with suppliers that allow for a ‘blend and extend’ should the market drop significantly.  It blends the existing agreement into a second one that has a lower cost - the net rate is an average of the two. 

The market volatility is unprecedented and as a result, we suggest using rate averaging if the enrollment date is at the end of this year.

Multiple Account Averaging - Select accounts to enroll with third party supply fixed pricing throughout the summer and fall.

Account Averaging - The same principle as above except the selection is a percentage of the annual usage throughout the summer and fall.  This is our recommended approach for accounts that consume over 250,000 kWhs a year. 

The Neighborhood Energy team is versed to explain the ‘what if’ scenarios along with strategic counsel that will help you focus on your core competencies while keeping energy costs contained in a volatile environment.

Thank you for your continued support, your friendly Neighborhood Energy