[Summit] Providence Community Electricity

Tue Mar 14 03:57:08 UTC 2023

Could you explain this part in more detail? Is a billing cycle one month?
If I opt out before 4/11, I'm never allowed to join?

If you opt out before April 11, 2023 you will never be enrolled in the
program. If you opt out after that date, you will be reverted to RI Energy
in the following billing cycle.

On Mon, Mar 13, 2023, 9:25 PM Proft, Kevin <Kproft at providenceri.gov> wrote:

> Hello,
>
>
>
> I am the Deputy Director of Sustainability for the City of Providence. I
> am currently filling in as Acting Director while the Smiley Administration
> continues to staff up.
>
>
>
> A recent thread from the Summit digest with the subject line, “The New
> Electricity Option, What do you think?” was shared with me today. It is
> clear that people are uncertain about the program and looking for
> information. I’ll try to answer some of the questions that came up in the
> thread here:
>
>
>
>    1. What are the downsides to the new electricity option?
>
>
>
> Providence Community Electricity (PCE) is the City’s new electricity
> supply program. By aggregating customer accounts from Providence and six
> other Rhode Island cities and towns, the program has enough buying power to
> buy electricity from generators at rates that are competitive with or
> (ideally) lower than RI Energy’s supply service, while also sourcing more
> energy from regional renewable energy projects. At launch, the standard
> rate is about 9% cheaper than the utility’s rate and includes 5% more
> renewable energy.
>
>
>
> A potential downside is that the City cannot guarantee that PCE’s rate
> will always be lower than RI Energy’s. The initial rate is locked in for
> six months. Like all electricity suppliers, including RI Energy,
> Providence's supplier must periodically enter into new supply contracts.
> The new contracts result in adjusted rates that reflect current market
> conditions. The City is confident that our supplier will regularly deliver
> comparable or cheaper rates compared to RI Energy, while also sourcing more
> electricity from renewable projects. Remember, it is in our suppliers
> interest to do so, as customers will begin to opt-out if they do not
> deliver on these goals.
>
>
>
> Another potential downside is that, at launch, Budget Billing – which
> allows customers to spread their utility costs evenly over billing periods
> to avoid price swings in winter and summer – will only be available for
> delivery costs. There are two parts to your utility bill – supply and
> delivery. The City is moving customers to a new supplier, but delivery will
> remain the responsibility of RI Energy. While PCE customers will continue
> to receive just one bill from RI Energy, there is a disagreement between
> the City, its consultant, and the PUC and RI Energy about whether RI Energy
> needs to continue to extend the budget billing option to supply costs. In
> our opinion it does. We are working to resolve this issue as quickly as
> possible, but it will, unfortunately not be resolved before launch.
>
>
>
>    1. Can you opt out, and if so, how?
>
>
>
> PCE is an automatic enrollment program. This type of program is enabled by
> State law and was approved by the Providence City Council in July 2020. The
> reason we use an automatic enrollment program is that it provides the
> program with the buying power needed to negotiate favorable rates for the
> community.
>
>
>
> With that said, you may opt out of the program at any time, without
> penalty. If you opt out before April 11, 2023 you will never be enrolled in
> the program. If you opt out after that date, you will be reverted to RI
> Energy in the following billing cycle.
>
>
>
> You may opt out of the program in three ways: (1) complete the opt-out
> form included with the notification letter recently sent to impacted
> customers and mail it back via the pre-paid and pre-addressed envelop, (2)
> Call Providence's supplier, NextEra Energy Services Rhode Island, LLC at
> (888) 387-1084. This is a call center specific to RI’s program, not
> NextEra’s main call center. Submit the opt-out form at
> Electricity.ProvidenceRI.gov
>
>
>
>    1. Will the program always be cheaper?
>
>
>
> The goal of Providence Community Electricity is to provide a stable and
> cost competitive supply rate compared to RI Energy’s rate. While Providence
> Community Electricity will be less expensive than the utility-offered
> service at launch, savings compared to the utility rate cannot be
> guaranteed in every contract period going forward. That said, Good Energy –
> the City’s consulting partner for this program – has secured savings for
> its approximately 50 active clients in Massachusetts over the course of
> each of those programs. Remember, if you are dissatisfied with Providence
> Community Electricity’s performance, you may always opt out at any time,
> without penalty.
>
>
>
>    1. Will this program really source more energy from renewables?
>
>
>
> NextEra was directed by participating municipalities to procure
> electricity with a greater amount of local renewable energy than is
> required by State law. Doing so increases demand for renewable energy
> credits (RECs) - specifically RI New RECs. In New England, increased demand
> for RECs has translated into greater development of new renewable energy
> generation.
>
>
>
>    1. What if I am already with a third-supplier and don’t want to switch?
>
>
>
> Anyone that has proactively chosen their own electricity supplier will
> *not* be automatically enrolled in the program.
>
>
>
>
>
> Sincerely,
>
>
>
> *Kevin Proft*
>
> Dep. Director | Dept. of Sustainability
>
> City Hall, 25 Dorrance St., 501B, Providence
>
> 401.680.5476
>
>
> _______________________________________________
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>
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