EASTHAMPTON — Rates under the city’s new electricity program will take effect next month, offering a cheaper option that uses more renewable energy for residents and businesses compared to Eversource.
The new municipal aggregation program called “Easthampton Community Electricity,” will offer three, fixed-rate electricity supply alternatives, and eligible residents will be automatically enrolled in the city’s primary option.
Aggregation programs such as Easthampton’s have become a common option for Massachusetts cities and towns — more than 170 have signed up — allowing them to purchase electricity, or any utility service, in bulk from a company to offer more competitive pricing, renewable energy options and price stability to local residents and businesses.
Notification letters were sent to all eligible customers last month from the city’s chosen supplier, Direct Energy. The new rates will begin on electricity bills this October until November of 2027, when new rates will be determined, and residents can opt out at any time.
“We’re going to be saving money and getting a better, higher amount of renewable energy,” Mayor Salem Derby said in an interview.
The city’s primary option, “Easthampton Standard,” starts at 15.517 cents per kilowatt hour, just less than Eversource’s current Residential Basic Service rate of 15.934 cents. The option incorporates a 79% renewable energy usage, higher compared to Eversource’s option at 69% — the state’s minimum required renewable energy usage this year for utility companies.
The cheapest option, “Easthampton Basic,” costs 15.118 cents per kilowatt hour with a 69% renewable energy output, offering the minimum at the lowest price. The most expensive option “Easthampton Plus,” which costs 16.179 cents per kilowatt hour with a 100% renewable energy usage.
“The reason why it’s not an opt-in program is because we want to try to get as much participation as possible because that allows us to offer these lower rates and get more renewable energy,” Derby explained.
The program also seeks to support regional renewable energy growth by sourcing from top renewable energy resources classified by the state, primarily wind and solar projects in New England, the mayor said.
Derby said the rollout of the new rates is timely since energy prices have become “volatile” during the United States’ war with Iran. He added the new rates will not be impacted if customers have solar energy of any kind at home or at their business.
Municipal aggregation became possible in 1997 through the Massachusetts Restructuring Act. Neighboring communities with aggregation programs include Northampton, which has partnered with Amherst and Pelham, Hadley, Belchertown, Westhampton, Deerfield and others.
Aggregation programs are regulated by the Massachusetts Department of Public Utilities (DPU), which updated its regulations in 2024, making it easier for communities to launch such initiatives. Easthampton’s program has been a long time coming — it was approved by the City Council in 2022 and officially given the green-light by the DPU early last year.
The Easthampton Energy Advisory Committee and sustainability coordinator has worked to get aggregation implemented for more than five years now, and has worked with the city’s energy advisor Good Energy. The city also held a community meeting on Sept. 3 that can be viewed online, with more information on the program.
For more information visit easthamptoncommunityelectricity.com.
