Lancaster, Mass. Chooses Constellation to Supply Fixed-Price Electricity to Residents

LANCASTER, MASS. (Oct. 31, 2012) - The Town of Lancaster has chosen Constellation, a longtime retail electricity supplier in Massachusetts, as its competitive power supplier for the town's electricity customers.

The selection -- made on a competitive basis - is part of Lancaster's new "Community Choice Power Supply" initiative, a program for electric power supply that will help stabilize electricity costs for consumers.

"Electric customers in the Town of Lancaster will be able to protect their interests as consumers through a new purchase option," said Lancaster Town Administrator Orlando Pacheco. "With the authorization of the Board of Selectmen, the Community Choice Power Supply initiative allows the town to provide local energy services in a way that stabilizes costs and promotes competition.

"This program begins at a time with the winter heating months and associated increases in electrical consumption fast approaching, so it comes at a great time to help the Town's consumers realize savings on their electric bills," said Pacheco. "We will monitor rates closely over the course of the next year when new basic service rates will be set by the utility for residential and small commercial customers effective on April 30, 2013."

The Community Choice Power Supply initiative provides Lancaster residents and businesses with energy price stability, and also offers opportunities for potential cost savings. Acting on behalf of the Town's 2,900 electricity consumers, the Town of Lancaster selected Constellation Energy Power Choice, Inc. (Constellation) on a competitive basis because of the provider's ability to offer stable rates, its capacity to maximize savings opportunities, and its strong record of performance as an energy supplier in the Northeast.

The program begins at the December meter reading for all consumers. The new Lancaster residential fixed-price competitive rate is $.0718/kWh.*

"We're proud that Constellation's competitive, fixed-price power supply will help Lancaster residents stabilize their energy bills," said Bruce Stewart, chief marketing officer for Constellation. "Our company brings many assets to the Community Choice Power Supply program, including a strong record of performance and customer service throughout Massachusetts and the Northeast."

In 1997, the Massachusetts legislature approved structural changes that promoted energy supply competition and provided local municipalities with the option of introducing supply-related competition and customer choice within their jurisdictions. Lancaster's Community Choice Power Supply program was approved at the Town Meeting in May 2012.

Under the State program, services provided to local consumers by National Grid include both the physical delivery to consumers of power supplies over the wires, which continues to be regulated by the Commonwealth, and the supply of the actual power running through the wires. National Grid, which directly charges consumers for the physical delivery of power, will continue to maintain the wires and read meters. National Grid will remain responsible for maintaining the day-to-day reliability and quality of delivery provided to consumers.

However, the supply of the actual power running through the wires is now a competitive service. Under the Community Choice Power Supply program, these supplies may now come from Constellation, which is categorized as a "competitive power supplier." Charges for the supply component of electric service will be incorporated into regular bills that consumers receive from National Grid, which will indicate supply-related charges and other standard billing information.

All eligible consumers of National Grid "basic service" in Lancaster are automatically enrolled in the Community Choice Power Supply program. Consumers may "opt out" of the program by choosing another competitive power supplier or by choosing to default back to "basic service" supply provided by National Grid. Those choosing to "opt out" during the initial opt-out notice period may do so simply by returning the opt-out postcard within 30 days from the date that the Town mails the opt out postcard and a Consumer Notification Form to ratepayers.

Consumers may also return to National Grid's "basic service" alternative any time after the initial "opt out" notice period by contacting Constellation or National Grid to cancel their accounts, with no penalty charge. If, however, a consumer that chooses to opt out of the Community Choice program, later wishes to return to the program, the consumer can do so only upon acceptance by Constellation at the then current market rate.

Colonial Power Group, Inc., a Massachusetts energy consulting company, was chosen in a competitive process to design, implement, and administer the Community Choice Power Supply program on behalf of the Town of Lancaster.

"This program provides price stability, and competition without adding a single dollar to the tax burden of Lancaster's residents and business community," said Brian Murphy of Colonial Power Group, Inc. "We commend the town's leaders for their innovative approach to energy purchasing."

_{*Utility rates are subject to change and therefore Constellation can't guarantee savings over the term of Lancaster's new "Community Choice Power Supply" program.}

_{*Constellation's residential and small commercial fixed-price competitive rate of $.0718/kWh does not include taxes, utility distribution charges or other utility fees, charges or credits. Estimated savings are based upon the utility's rates to compare. Generation Services for residential and small commercial customers set at $.07314/kWh in effect from November 1, 2012 - April 30, 2013}