Thousands of Worcester electricity customers see lower supply rates beginning with their October bills as the city cuts prices across all three options in its municipal electricity aggregation program.
The reductions mark the second price decrease in less than a year for Green Worcester ElectriCITY, the city announced Thursday. The new rates will remain in effect through December 2027, although whether they continue to beat National Grid’s rates will depend on future utility pricing.
Standard Green, the option used by most participants, falls from 15.32 cents per kilowatt-hour to 14.12 cents. The program’s Basic Green rate will decrease from 14.69 cents to 14.08 cents, while its 100% Green option will see the largest reduction, dropping from 16.51 cents to 14.19 cents.
For now, both Standard Green and Basic Green are below National Grid’s residential Basic Service rate of 17.185 cents per kilowatt-hour, which is scheduled to remain in effect through Jan. 31, 2027.
The city cautioned in its announcement that savings beyond that date cannot be guaranteed because National Grid’s subsequent rates have not yet been set.
Customers do not have to take any action to receive the new prices. Current participants will remain in their existing ElectriCITY option, with the rates taking effect with September meter readings and appearing on October National Grid bills.
The price reductions follow a change in how Worcester purchases some of the renewable electricity used by the program.
Since ElectriCITY launched in 2020, Worcester has purchased more renewable electricity than required under state law, including Massachusetts Class I Renewable Energy Certificates, or RECs. Such certificates help support renewable energy development by representing the environmental benefits associated with electricity generated from qualifying renewable sources.
The city said in Thursday’s announcement that it is pausing some of those additional purchases because recent changes in federal policy have diminished prospects for new renewable energy projects breaking ground in New England in the near term.
Instead, the program purchases less expensive voluntary National Wind RECs from outside New England. City officials said the change allows participants to continue purchasing renewable electricity beyond state requirements while lowering rates.
Worcester could resume its additional investment in local renewable energy certificates if market and policy conditions improve, according to the announcement.
Green Worcester ElectriCITY is one of more than 200 municipal electricity aggregation programs operating in Massachusetts. Such programs allow municipalities to purchase electricity on behalf of participating residents and businesses while National Grid continues to deliver the electricity and handle billing.
The Worcester program affects only the supply portion of a customer’s National Grid bill. Delivery charges are not affected.
Customers may also switch among ElectriCITY options or leave the program without a fee or penalty. Residents who receive low-income electricity discounts will continue receiving those benefits.
Since its launch in 2020, the program has saved participants more than $8.5 million compared with National Grid prices, according to the city’s announcement. Worcester also estimates its additional renewable-energy purchases have reduced greenhouse gas emissions by more than 137,000 metric tons of carbon dioxide.
The new prices are scheduled to remain in place through December 2027.
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