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As electricity rates climb, customers try to conserve

11/10/2014

As a lawyer in Worcester, Janet S. Merrill likely can afford the 37 percent increase in electricity rates that National Grid is scheduled to begin in November.

As a lawyer in Worcester, Janet S. Merrill likely can afford the 37 percent increase in electricity rates that National Grid is scheduled to begin in November. 

Still, she has done several things to conserve energy at her 3,000-square-foot home in Worcester. She dries clothes on hangers instead of running the dryer. New storm windows have been installed. She replaced her old gas-fired steam boiler with a more efficient one that cost $7,500. In return, she is receiving a $1,900 rebate from MassSave, plus a $3,000 rebate from the city's Worcester Energy program. 

And she has lowered the thermostat in her home to a cool 55 degrees. When friends come by, she raises the temperature to 60 degrees. 

"It's really cold in my house. I dress warmly … sweaters, jackets. And I crash in the TV room upstairs where I put a gas heater. That's how you save money," Ms. Merrill said with a laugh, a little embarrassed for people to know how low she has her thermostat. 

She's prepared, but, she worries about her clients with low incomes, some of whom are elderly. She said the rate increase from National Grid and rate hikes coming from NStar and other utilities will be particularly bad for renters, because a lot of them use electric heat. And many of them, including those whose rent is subsidized by the state or federal government, have to pay for utilities separate from their rent. Utilities are generally prohibited from turning off someone's service during winter months. But, come spring, the bills have to be paid or the power can be cut off in most cases. 

"Since many of them heat with electricity, their bills are already high. And it's projected to go up even higher. It makes a bad situation even worse," said Ms. Merrill. "Many of them will be cold, and they're not going to be able to pay their bill. Once the moratorium ends, they'll be subject to having their utility shut off." 

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Ms. Janet S. Merrill, a lawyer in Worcester

Like what Ms. Merrill and countless others have done, there are many things that people can do to reduce their electricity consumption and save money. 

Stephen S. Rolle, Worcester's director of planning and regulatory services, which operated the WE program that is giving Ms. Merrill a $3,000 rebate for switching to a more efficient boiler, said it has been so successful since it was revamped in March, that as of Sept. 8, all of the $625,000 state Green Communities grant has been fully committed to 171 applicants. The services range from insulation projects to replacing old boilers with energy-efficient boilers and some solar projects. 

He said while WE no longer has funding to help people to conserve energy, there are other resources available. He said MassSave is the primary resource. 

MassSave is a partnership between the electric and gas utility companies throughout the state and local contractors and retailers of home energy-saving products. The program offers free energy assessments, rebates, loans, and other information about ways to better conserve energy. Information about the popular program is available at www.MassSave.com. 

According to NationalGrid, partners with that company and all the energy companies statewide in 2013 performed 84,000 residential home energy assessments. Energy-efficiency efforts undertaken by homeowners last year resulted in a savings of enough electricity to power about 152,000 homes, and enough gas equivalent of heating nearly 15,000 homes. 

Robert A. Eckel is regional vice president for the New England region for Westboro-based Conservation Services Group, which administers some of the MassSave programs. He said there's a lot of interest in MassSave because it has a wide array of options and solutions because every customer's situation ia a little bit different. 

"It really starts with taking stock of where you're using your electricity and coming up with strategies about how to reduce it," he said. "You can typically find ways to save between 20 and 30 percent in an average home." 

When you're focusing on electricity, a lot of that is appliances, lighting and electronics in the home. He said in Massachusetts, most homes are heated with gas and oil. But any heating system uses some amount of electricity.

A big savings, he said, can be realized in switching out old appliances and electrical systems for upgraded, more efficient ones. He recommended buying products with the Energy Star label that identifies more energy-efficient products. 

"New equipment these days use so much less energy. Replacing older equipment with more efficient equipment will pay for itself in a short time," he said. That's in addition to rebates and other incentives that are offered in many cases. 

The 41 municipally operated electric companies throughout the state, including 10 in Worcester County, offer a similar program to help customers save money. 


Shrewsbury Electric and Cable Operations' 15,000 customers will see a rate increase of about 16 to 18 percent, less than half of National Grid's. The average customer uses 750 kWh hours of electricity each month, which currently costs $87.44. It will go up to $101.27. National Grid projects its increase will amount to an extra $33 on the typical household's monthly bill. 

SELCO's increased rate will be 10 percent, when the summer months are taken into consideration. SELCO's general manager, Michael R. Hale, said when the energy purchase price increases, there will be an increase in the rate. When the cost goes down, so does the rate. In the summer months, the rate will likely decrease to what it is currently. 

Michael H. Plasski is an energy auditor with Home Energy Loss Prevention Services, which provides energy efficiency programs for several of the municipal utilities. Information about HELPS is available at www.MuniHelps.org. 





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