Acting Governor Jane Swift supports electricity deregulation

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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.” 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.” 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.” 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.” 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.” 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.” 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.” “I hope it’s a beginning,” said Connelly. “I firmly believe it’s a beginning.” 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].” He invited those present to visit the Clark where the Impressionist exhibition is on view and, he said, “The building is cool and dry.” 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.” 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.” 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.” “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.” “It’s just starting, but it is working.” 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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SteepleCats Earn Narrow Win on Road

LYNN, Mass. -- Caden Dulin hit a sacrifice fly in the top of the sixth inning to drive in the winning run as the North Adams SteepleCats beat the North Shore Navigators, 6-5.
 
Warren Holzemer homered, and Lanesborough's Derek Paris went 2-for-3 with a double in a nine-hit attack for North Adams.
 
Pittsfield High grad Cam Sime went three innings on the mound in the win. Andrew Rubayo earned the win with two innings of one-hit relief.
 
North Adams (2-5) hosts Danbury, Conn., on Sunday at 4 p.m. at Joe Wolfe Field.
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