Acting Gov. Jane Swift and other state officials praised the economic benefits of electricity deregulation and called the state a pace-setter in its implementation.
But at the halfway point toward a seven-year transition to a competitive marketplace, these officials acknowledged that the remaining challenge is to provide residential customers with a choice of suppliers.
The occasion was a press conference announcing Williams College’s signing of a 21-month, fixed-rate contract for electricity with the Boston-based AES NewEnergy Inc., which is expected to save the college $1.3 million in electric bills over that period, a sum that could represent more than one-third of its cost, according to the current default rate. And the Sterling and Francine Clark Art Institute’s contract is expected to save that institution between $165,000 to $200,000, about a 25-percent savings. Dalton-based Crane & Co. expects to save as much as 20 percent on the account it has contracted for with AES NewEnergy.
“Today’s announcement is an example of how electricity competition is starting to work in Massachusetts,†said Swift. “Our state has been a leader in electricity industry restructuring, which has brought tens of millions of dollars of benefit to businesses and institutions throughout the Commonwealth.â€
David O’Connor, commissioner of the state Department of Energy Resources, said that because the Electricity Restructuring Act of 1997 guaranteed discounts for customers who remained with their utilities, these customers found no incentive to switch to competitive suppliers. Nor, said O’Connor, did suppliers find many opportunities to offer better prices.
O’Connor also said the immaturity of wholesale electric markets and the need for major improvements in the transition grid have slowed the transition to an electricity marketplace.
Swift said most customers have yet to derive benefits from competition.
“We have to continue to develop generating capacity,†said Swift. “The demand for power continues to rise. We have to foster competition if consumers are to benefit.â€
Swift said that with a modern, efficient distribution system, affordable energy and protection of the state’s natural resources, “we can not only avoid the mistakes made in California but become a model for the country.â€
Swift said that morning, Thursday, she had declared all the state’s beaches and parks open free for state residents to try to cool off during the long, intense heat wave.
Williams Vice President for Administration and Treasurer Helen Ouellette said, “It’s a red-letter day when the governor tells us to forget the dishes and laundry and go swimming.â€
Swift said she had asked Massachusetts residents to refrain from using dishwashers and washing machines and dryers during peak daytime hours in the record heat.
And she urged people to “check in on your elderly neighbors.â€
The day’s event showed, said O’Connor, “the benefits of new power plants, and entrepreneurial zeal.
“There’s more than enough power to keep up with demand.â€
O’Connor said large customers are the first to benefit from competition. Large customers with unusual energy use patterns find it harder to benefit, as do residential and small business consumers.
James Connelly, chairman of the state’s department of Telecommunications and Energy, also stressed the need to work on transmission.
“Even more important is getting the retail pricing right,†said Connelly. “That’s the core to any market system. If we bet it wrong nothing else goes right.â€
“I hope it’s a beginning,†said Connelly. “I firmly believe it’s a beginning.â€
Ouellette said the savings realized from the new energy contract will enable the college to put more resources toward its core mission of education.
Robert Gniadek, head of finance and business operations at the Clark Art institute, said that without the energy savings the institution would have had to look at curtailing its programs or take other cost-cutting measures.
“We’re fortunate to have signed up quickly,†said Gniadek. “I shudder to think what our bill would have been in this heat wave without [our new contract].â€
He invited those present to visit the Clark where the Impressionist exhibition is on view and, he said, “The building is cool and dry.â€
Ouellette said the $1.3 million the college expects to save over the 21-month contract represents a savings of 36 percent over the current default rate.
Steven M. Rothstein, managing director of AES New Energy for New England, and a 1978 Williams graduate, said the company considers electric utilities, Western Massachusetts Electric Co., and Massachusetts Electric Co., as partners.
And Rothstein praised state Rep. Daniel E. Bosley (D-North Adams) as “a real leader in this effort throughout the last several years.â€
Although Bosley was unable to be present, state Sen. Andrea Nuciforo (D-Pittsfield) said, “The seeds of a free market are starting to grow in the generation of electric power. We’re seeing today the growth of seeds planted by electricity deregulation.â€
Rothstein, manager of AES NewEnergy’s New England division, said, “We are especially proud of the savings we have been able to offer to businesses and colleges here in Western Massachusetts. Across the Commonwealth, we are beginning to see customers enjoy the direct benefits of choosing an electricity supplier.â€
“The fact that colleges like Williams and Smith, and business like Crane Paper, are opting to choose a competitive electricity supplier reflects the positive momentum in Massachusetts’ restructured electricity market,†he said.
Crane & Co. energy management engineer Andre St. Pierre, contacted later by telephone, estimated that the company’s contract for one of its accounts with AES New Energy could save the company as much as 20 percent in electricity costs.
That small- to medium-sized account, St. Pierre said, was the company’s only account under default service. Its other 22 accounts are under standard service.
Clark Art Institute Director for Operations and Finance Tony King, contacted later, said that calculating a conservative $165,000 energy savings over the 21-month contract, the institution expects to realize about a 25-percent savings in electricity costs, which amount to about $700,000 over the same 21-month period.
Additional new AES NewEnergy customers include Raytheon Co. in Lexington; Texon Paper in Russell; Finns Technology in Turner’s Falls; Massachusetts High Tech Council in Waltham; Plastican Corp. and Leaktight Corp., both in Leominster; New England Wooden Ware in Gardner; Assumption College and Smith College in Northampton.
AES NewEnergy was founded in 1996, two years before Massachusetts enacted its industry restructuring law. Its early start allowed the company to establish itself in the New England marketplace and build the kind of infrastructure and resources needed to supply electricity at competitive rates, Rothstein said.
According to information provided by the company, it has accounts for electricity with more than 700 medium-to-large businesses, municipalities and other organizations in New England.
These customers, said Rothstein, have “real opportunities to save money.â€
“It’s just starting, but it is working.â€
Electricity deregulation, also known as electricity restructuring, is the process by which the traditional monopoly structure for generating and delivering power to retain consumers is opened to competition by legislative or regulatory initiative.
Twenty-five states and the District of Columbia have enacted legislation or issued regulatory orders creating competition.
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Veteran Spotlight: Coast Guard Capt. Thurman 'Tom' Maine
By Wayne SoaresSpecial to iBerkshires
MASHPEE, Mass. — If I were to describe the best attributes of this week's veteran, they would be an infectious personality, role model, leader, wonderful family man and a person that leads by example in the very best way.
The aforementioned, are the primary reasons why Thurman "Tom" Maine enjoyed a successful and distinguished military career in the Coast Guard from 1983 to 2014.
Born in North Stonington, Conn., Maine entered the Coast Guard at the age of 21 and was sent to boot camp in Cape May, N.J. His first assignment was at Coast Guard Station in Provincetown, R.I. From 1994 to 1997, he was a helicopter pilot for Coast Guard Air Station at Otis Air National Guard Base and was elevated to operations officer, chief pilot at the base from 2004 to 2007.
During his 31-year career, Maine flew some of the Coast Guard's most elite helicopters; the Sikorsky H-3 (the Coast Guard's last amphibious aircraft), the Sikorsky H-60 (the most widely flown military helicopter in the world) and the H-65 (a smaller, faster helicopter that deploys on ships).
Maine continued to rapidly climb the ranks and in 2009 was promoted as the Coast Guard's liason to the Chairman of The Joint Chiefs of Staff at the Pentagon, a position he held until 2011. Following that assignment, he was promoted to captain and rose to be the commanding officer at the Coast Guard's prestigious Aviation Training Center in Mobile, Ala.
During his tenure as commanding officer, he suffered a devastating blow when four Guardsman were killed during a night training exercise. He conveyed that his greatest achievement in his entire military career, was the leadership he provided
to his 600-member unit and the families of the fallen Guardsmen, by always being accessible, communicating constantly and holding vitally important family nights.
He said this tragedy, "gave him the ultimate opportunity to live out his faith." He also lobbied intensely for the student pilot who was killed to be awarded his designation posthumously, which he did.
If I were to describe the best attributes of this week's veteran, they would be an infectious personality, role model, leader, wonderful family man and a person that leads by example in the very best way. click for more
Northern Berkshire United Way entered the 1990s with big goals — and met almost all of them. It ended the decade with the largest campaign in its history.
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