Needham is preparing to enroll its residents and businesses in a group electricity buying program that aims to provide stable costs and more renewable energy for the community.
Needham Power Choice, which launches in March, lets customers decide how much of their electricity is powered by renewable sources. While every participant will automatically receive at least 27% of electricity from renewable sources, they can choose to pay higher rates to receive up to 100% of electricity from renewable sources.
Here’s what you need to know ahead of your March meter reading:
How does it work?
Group electricity buying, known as municipal aggregation, is a program in which a municipality buys electricity in bulk from an electricity supplier for residents and businesses. Needham is joining more than 200 Massachusetts communities with similar initiatives.
After receiving bids from five suppliers, Needham selected Constellation in December 2024 as its electricity supplier, Gabrielle Queenan, the town’s sustainability manager, said at a public information session Jan. 30.
In accordance with state law, Needham Power Choice will automatically enroll all customers, though participation is not required. Customers can opt out at any time.
How much will I pay?
Needham Power Choice offers three options based on the percentage of electricity produced from renewable sources. The more electricity that comes from renewable sources, the higher the cost.
Regardless of which option customers choose, all Needham Power Choice prices will be fixed from March 2025 to March 2027.
Customers who choose the Needham Basic plan will get the lowest amount of electricity required by state law – 27% – from renewable sources. Its price is 12.226 cents per kilowatt-hour. By comparison, the current Eversource price is 13.078 cents per kilowatt-hour.
Customers in the Needham Standard plan will get an additional 15% of their electricity from renewable energy, bringing it to 42%. Its price is 12.880 cents/kWh. Residents and businesses are automatically enrolled in the Standard plan, which will always provide 15% more renewable power than the state minimum, even if the latter changes.
Those in the Needham 100% Green plan will get all of their electricity from renewable sources. Its price is 15.330 cents/kWh.
Customers who opt out of Needham Power Choice and stick with the Eversource Basic Service plan will get the same amount of electricity from renewable sources as those in the Needham Basic plan. Its price is 13.241 cents/kWh.
While Needham Power Choice’s rates are fixed for two years, residents and businesses in the Eversource Basic Service plan are subject to price changes every six months, MassPowerChoice Town Consultant Paul Gromer said at the information session Jan. 30.
“It is normal for Needham’s prices to be lower than Eversource sometimes and higher at other times,” according to the Needham Power Choice website. The program’s goal is to “provide savings when compared with the average of Eversource’s changing prices.”
Needham intends to sign a new, long-term contract when the Constellation contract expires in March 2027.
What’s the point of paying more?
Customers who enroll in Needham 100% Green will not actually receive 100% of their electricity from renewable sources. The system can’t target specific types of power to individual homes and businesses. Instead, voluntarily paying more enables the grid to obtain a higher percentage of its electricity from renewable sources.
Imagine a reservoir fed by streams and wells; once the water is in the reservoir, it mixes. “The same with electricity,” Gromer said. “You have all these different power plants. Some are solar, some are wind, some are coal, some are nuclear, some are natural gas. They’re all generating electricity, and they’re putting it into a big reservoir.”
The system tracks what is put into the grid on customers’ behalf rather than what shows up at their houses.
“Let’s say you’re 100% Green and you use 1,000 kilowatt hours,” Gromer said. “The accounting system makes sure that 1,000 kilowatt hours of green electricity were put into the grid to match what you took out.”
Who bills me?
All bills will continue to come from Eversource. Electric bills are made up of two parts — supply and delivery. Eversource delivers electricity for Needham customers no matter which plan they choose. Constellation supplies the power for those in Needham Power Choice. Residents eligible for discounts and fuel assistance from Eversource will continue to receive them.
How do I enroll or opt out?
Customers can opt in or out of Needham Power Choice at any time without penalties or fees, according to the Needham Power Choice website. Should someone opt out and then wish to re-enroll, they are not guaranteed the program price. If Constellation decides to charge market pricing, the participant will be notified before re-enrolling and can decide whether to continue.
The three pricing options for customers who opt in and stay enrolled in Needham Power Choice, however, are locked. “You can move from one option to another within the program and always be guaranteed you’d get [that] price,” Gromer said. Participants can switch among the Needham Power Choice options as many times as they’d like.
Customers who will be enrolled automatically should have received an opt-out notice in the mail from the town in January, Queenan said.
Needham Power Choice is advising customers not to confuse its program with third-party electric company advertisements, whose materials may resemble official mail from Needham. “If they don’t see the town seal, it is not the Needham Power Choice program,” Queenan said at a Climate Action Plan Committee meeting.
Residents and businesses can enroll, change program options, or opt out of Needham Power Choice by visiting NeedhamPowerChoice.com or calling 1-844-379-2171. Additional resources, including frequently asked questions, can also be found on NeedhamPowerChoice.com.
This story is part of a partnership between the Needham Observer and the Boston University Department of Journalism.