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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Friday Front Porch Feature: A Charming House Like New
By Breanna SteeleiBerkshires Staff
The home prior to renovations.
NORTH ADAMS, Mass. — Are you looking for a newly renovated home with great space? Then this might be the perfect fit for you!
Our Friday Front Porch is a weekly feature spotlighting attractive homes for sale in Berkshire County. This week, we are showcasing 100 Autumn Drive.
This three-bedroom, two-bathroom split level was built in 1965 and is 1,396 square feet on 0.32 acres.
The house was completely renovated recently. It includes a one-car garage, and comes with appliances including a dishwasher and stove/oven, and other major appliances.
The house is listed for $359,500.
We spoke with owners Michael Zeppieriand Chris Andrews, who did the renovations. Zeppieri is an agent with Alton and Westall Real Estate Agency.
What was your first impression when you walked into the home?
Zeppieri: I purchased this home to do a full renovation flip and saw tremendous potential in this mid-century split level home that had not been updated since it was built in the 1960s, in a great North Adams neighborhood.
Andrews: The house was a much different house when we first purchased it in 2022 (photo attached is from about 2010.) The interior was painted all in dark colors and we brightened it up with neutral colors. The transformation makes you feel like you are in a totally different house.
What were the recent renovations, any standout design features?
Zeppieri: The house has had a complete reconfiguration including new kitchen with high-end appliances, ceramic tiled baths, hardwood floors, new windows and roof ... just to name a few. All a buyer has to do is move in and enjoy.
Andrews: Yes, we renovated the entire house. New windows, new roof, all new custom black gutter system, new blacktop driveway, hardwood floors were installed through out the house. New kitchen and bathrooms as well as painting the exterior and interior of the house. New paver patio in the back yard.
What kind of buyer would this home be ideal for?
Zeppieri: The buyer for this home could be a first-time homebuyer or a retiree ... the location is close to attractions in North Adams ... and the property is located in Autumn Heights, which is a very small residential development with several long-term owners.
Andrews: This home is truly ideal for a variety of buyers. Whether a first-time homebuyer, a small family or even someone looking to downsize from a larger home.
What do you think makes this property stand out in the current market?
Zeppieri: The location, price and move-in condition of this home make it a true market leader in the North Adams Market.
Andrews: This house is completely renovated and in a desirable location of North Adams. The natural light in the home really makes the interior pop. And with all the upgrades the home stays quite cool in the summer months.
Do you know any unique stories about the home or its history?
Zeppieri: This home was built for the Gould family in 1969 and they lived there till 2010. It was always a family home during that time in which the Goulds had two children ... and Virgina Gould managed Mohawk Forest Apartments and was a very active resident of North Adams.
Andrews: Built in about 1965.
What do the current owners love about this home?
Zeppieri: As the current owner it was a fun project to transform this home and get it ready for its next adventure with a new family to enjoy for many years.
Andrews: No one has lived in the house since we purchased the home. The new owners would be the first to live in the house since the renovations have been completed.
What would you say to a buyer trying to imagine their life in this space?
Andrews: I would suggest seeing the house either on a sunny day or at twilight to really get a vision of how special the home feels.
You can find out more about this house on its listing here.
*Front Porch Feature brings you an exclusive to some of the houses listed on our real estate page every week. Here we take a bit of a deeper dive into a certain house for sale and ask questions so you don't have to.
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