The Board of Selectmen listened to a presentation from Colonial Power Group on Wednesday, just a few weeks after accepting its bid that ultimately will be lower than National Grid and WMECo.

LENOX, Mass. — By enacting its group purchasing option with Colonial Power Group, residents now have the option of taming the expected increase in electric rates.

 

National Grid recently was approved for dramatic increases in electrical rate — up to 14 cents per kilowatt/hour. The increase happens to coincide with the town -—along with nine others — accepting the bid from Colonial Power for group purchasing at 12 cents kWh.

 

"A lot of times in municipal government, we are victims to things beyond our control," said Town Manager Christopher Ketchen. "This is one example of where the local government can step in on behalf of citizens to take the edge off."

 

The 12 cent rate is still an increase in rates than currently. But, with the group purchasing through Colonial managing the buying program, residents will automatically be given a slightly lower increase. 

 

According to Mark Cappadona of Colonial Power Group, residents are automatically enrolled in the program. They will still be paying their provider but on the bill, the provider will now be Hampshire Power. 

 

"If they choose to join the program at the lower rate, that's great. But they don't have to stay with the program," Cappadona said. "It is a huge bonus to the residential customer."

 

Residents can opt out at any point with no additional costs, he added.

 

Cappadona says the DPU's approval of electric rates represents the biggest jump in history. He said the driver is the closure of oil and coal-energy generating plants.

 

"Somehow we have to, [but] given the current regulations in place, it is very difficult to maintain assets," he said.

 

The closure of the plants have generated what some have called a shortfall of energy. Natural gas is inexpensive enough to fill the gap caused by the closures, but there isn't enough capacity. That led Kinder Morgan, a gas transmission developer, to propose a new pipeline that town officials are fighting.

 

"If we can bring capacity up here, it should alleviate some of the problems. But, I don't believe it will alleviate all of the problems," Cappadona said.

 

In other business, Ketchen said town revenues are up so far this year.

 

"The town has exceeded last year's revenue by about 5 percent in hotel and motel tax receipts," he said. "This is an all-time record for the first quarter."

 

Ketchen said $605,782 has been generated through rooms tax. He added that meals taxes remained "flat" from last year at about $79,000.

 

Chairman Channing Gibson credited some of that increase on the town and the local business's recent push for marketing to drive tourism.

 

Correction: Western Massachusetts Electric Co. is expected to file for a rate increase in November. The original story stated the utility had already been approved.