Lower winter power rates force change in Concord community power

Jenny Kane/AP photo, file
Published: 01-13-2025 3:47 PM |
Relatively low winter power rates from the state’s electric utilities have led to a change in Concord’s community power program.
When Concord joined community power in 2024, city councilors chose a default setting known as Plus which included more renewable energy but cost more than the Basic rate, a move they said was in line with the city’s clean-energy goals.
Since then the Plus rate has been near or below the supply rate offered by Unitil, the utility for most of the city, and Eversource. But both utilities will have new rates starting Feb. 1 that are about 20% lower than their current rate, undercutting the financial advantage from community power.
As a result, Concord City Manager Tom Aspell has changed the community power default from the second-cheapest level, Plus, to the cheapest rate, Basic.
The Basic rate pays for 25% renewable energy content, the same percentage as utilities, rather than the 33% renewable purchased in the Plus rate.
This move will slightly lower bills for people who are on the city’s default: The Basic rate will be 8.9 cents per kilowatt-hour on Feb. 1, compared to the current Plus rate of 9.3 cents. Although totals depend on how much electricity is used, that will trim about $2.60 off the average bill of a person who stayed with the city’s default.
Despite that change, Unitil will be cheaper than Concord Community Power as of Feb. 1, with a rate of 8.306 cents. Any city resident can opt out of community power and switch back to Unitil without a penalty.
Eversource’s winter rate of 8.929 cents is slightly higher than the Basic rate for Concord Community Power. Liberty, the state’s other regulated electric utility, has a winter supply rate of 8.4 cents. New Hampshire electric Cooperative, which is not regulated, has a rate of 8.108 cents per kilowatt-hour.
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The cost of power makes up about half the average electric bill, with the rest going to the utility to pay for poles, wires, and grid maintenance.
Community power programs, which currently cover about half of the state’s electric customers, purchase power on the open market rather than buying whatever the local utility offers. They provide more local control to towns and cities, including the ability to support cleaner energy supplies, and although they are often cheaper there is no guarantee that they would always cost less.
Regulated utilities set supply rates twice a year. The so-called winter rate that starts Feb. 1 lasts until Aug. 1, when a summer rate kicks in.
David Brooks can be reached at dbrooks@cmonitor.com.