Aggregator Offers 10-25% Savings in MA, RI
Through its National Energy Choice program, NEChoice LLC, a
Boston-based energy aggregator, said it will offer gas to
commercial, industrial and municipal users in Massachusetts and
Rhode Island. The program offers savings of 10 to 25% off gas
supply. National Energy Choice chose e prime to provide gas to its
customers from a field of 50 competitors.
"National Energy Choice has already brought new electricity
options to its customers," said Stephen J. Remen, managing director
of National Energy Choice. "Now with our natural gas program, we
are offering another money-saving opportunity to our customers."
The National Energy Choice program offers contract terms of
either one or two years, and customers can pick from two contract
types: fixed percentage savings or fixed price. In the
fixed-percentage savings option, customers will be guaranteed a
percentage off the utility rate for gas regardless of any
fluctuations in market price. In the fixed-price option, customers
lock in their rate for the term of the contract. Savings
percentages for customers may fluctuate under this option. National
Energy Choice earns a fee by sharing a percentage of the savings it
obtains for customers.
National Energy Choice's announcement comes after Massachusetts
voters demonstrated their desire for choice in their electric
bills. Currently, commercial and industrial customers are able to
choose their own gas supplier. Residential customers statewide are
expected to be able to choose a supplier by mid-1999.
Christopher House, a Worcester-based nursing home and member of
the Massachusetts Extended Care Federation, has already signed up
for the National Energy Choice program. The nursing home, which
selected the fixed-price option, is currently saving 25% - about
$6,000 annually - off the natural gas supply portion of its bill.
The gas program also is offered to Massachusetts cities and
towns through the Massachusetts Municipal Association's (MMA)
MunEnergy program. MunEnergy, formed by the MMA and administered by
National Energy Choice, offers energy savings to municipalities
through a variety of measures. "MunEnergy has successfully saved
Massachusetts municipalities money with its innovative electricity
program," said Geoffrey Beckwith, executive director of the MMA.
"We look forward to building on this success with this new
initiative to save cities and towns money on their natural gas
National Energy Choice was able to negotiate favorable gas rates
because it is an energy aggregator that pools different gas users
to create a large buying group. Together, these energy users are
able to take advantage of the low prices that economies of scale
create. The deadline for participation in the program is Feb. 19.
Joe Fisher, Houston
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