General program information
What is Beverly Community Electric?
Beverly Community Electric is a municipal electricity aggregation, which is a form of group electricity purchasing.
Typically, your electric utility, National Grid, provides two sets of services to you:
- They deliver your electricity. Delivery services appear on your bill as delivery charges.
- They also supply your electricity, which means they buy electricity for you and pass the cost along to you. The cost of the electricity they buy for you appears on your bill as supply charges.
But in Massachusetts, there are actually three ways to purchase your electricity:
- Your utility can do it for you, as just described. This is called Basic Service, and this is how most people buy their electricity.
- You can sign a contract with an electricity supplier yourself. You may have received offers in the mail or over the phone.
- Your municipal government can sign a contract with an electricity supplier on your behalf. This third option is municipal electricity aggregation, and this is what Beverly Community Electric is.
Learn more about how aggregation works.
What gives Beverly the authority to launch an aggregation?
Municipal electricity aggregation was enabled by the Massachusetts Restructuring Act of 1997 (Chapter 164, Section 134), which allows local municipal governments to aggregate the electricity supply loads of the electricity consumers within their geographic boundaries in order to negotiate more favorable terms with an electricity supplier.
Municipal aggregations are subject to oversight by the Massachusetts Department of Public Utilities, and Beverly’s aggregation plan is subject to a regulatory review and approval process before the City will be authorized to implement the program. (Learn more about Beverly’s implementation process.)
Nearly 50% of Massachusetts communities have already launched electricity aggregations.
Why is Beverly launching this program?
The primary goal of Beverly Community Electric is to provide more clean, renewable electricity to Beverly residents and businesses, electricity price stability, and consumer protections, all at a competitive price. Beverly Community Electric will be a City alternative to National Grid’s Basic Service. It will also be a transparent alternative to other electricity offers, but without high pressure or fees of those other offers.
(Please note that, while Beverly Community Electric will offer the potential for savings when compared with National Grid’s Basic Service price, Beverly Community Electric cannot guarantee savings.)
Massachusetts state law already requires that a minimum amount of renewable energy be included in all the electricity sold in the state. The default option in Beverly Community Electric will include additional renewable energy over and above the state required minimum. Beverly Community Electric will also offer options to choose other amounts of renewable electricity.
How will I benefit from Beverly Community Electric?
With Beverly Community Electric, the City will use the bulk buying power of the community to provide you with new electricity choices that will give you greater control over the environmental characteristics and price of your electricity supply.
- Cleaner electricity – Beverly Community Electric participants will automatically receive more renewable electricity than is required by state law. (The standard amount is still to be determined, depending in part on electricity prices at the time the City enters into a contract with an electricity supplier). Or you will be able to choose other amounts of renewable electricity.
- Price stability – The program will provide a fixed price for electricity supply over a long period of time. This will make the program different from National Grid’s Basic Service, where the price changes every six months or less, and from many commercial offers in the market place.
- Consumer protections – Beverly Community Electric will provide a trustworthy, City-vetted alternative to other electricity supply offers in the marketplace. The program will include consumer protections, such as no hidden fees and the ability to opt out of the program at any time with no penalty.
Is Beverly the only community in Massachusetts that is implementing an aggregation?
No. Municipal electricity aggregation has been building momentum across Massachusetts. Beverly is joining approximately 150 other Massachusetts communities that already have aggregations. Increasingly, communities are implementing “green” aggregations like the Beverly’s program will be, which increase the amount of renewable electricity in the community’s electricity supply beyond the minimum amount required by state law.
What will change for me with Beverly Community Electric?
You will see two key changes as a result of participating in Beverly Community Electric:
- On the supply services portion of your National Grid electricity bill, you will see the Beverly Community Electric electricity supplier listed instead of National Grid’s Basic Service. Beverly will choose its supplier through a competitive procurement process after the Beverly Community Electric aggregation plan receives regulatory approval.
- National Grid will use the Beverly Community Electric price to calculate the supply charges on your bill instead of their own Basic Service price.
Additionally, the amount of renewable energy that you receive may change, depending on which program option you choose.
Otherwise, everything else will remain the same. You will continue to receive your electricity bill from National Grid, you will continue to pay National Grid, and you will continue to call National Grid if your power goes out.
If you are eligible for any discounts from National Grid, those discounts will be unaffected by your participation in Beverly Community Electric.
I received a call/visit/letter in the mail about my electricity bill. Is it from the City, this program, or National Grid?
No. The City of Beverly will send a letter to electricity accounts that are eligible for automatic enrollment after Beverly’s aggregation plan receives regulatory approval. That letter has not been mailed. It will arrive in an envelope bearing the City seal, and the letter itself will also bear the City seal. The letter will not ask for additional information. If your account is eligible to be automatically enrolled, as will be the case for most Beverly electricity customers, you will not need to provide any additional information.
Please note: National Grid, the City of Beverly, and Beverly Community Electric do not make sales calls or visits to your home.
Any person or company who asks for additional information when they market their program (such as the account number on your electrical bill) to you does not represent Beverly Community Electric or National Grid.
If you receive a letter that does not include the City seal, it is not from the City and does not represent Beverly Community Electric. If you want to confirm whether you have received a legitimate City communication, you can contact customer support with Beverly’s program consultants.
If you receive a call or a visit from someone who wants to discuss your electricity, keep these two things in mind:
- You should treat your National Grid electricity account number like you treat your credit card information. Do not give it out unless you want to purchase your electricity from someone else.
- You do have the right to select an electricity supplier of your choice. If you choose to explore this option, please check the terms of the agreement carefully. Things to check for include, but are not limited to: minimum bill amounts, contract length requirements, early termination fees, low introductory rates that change after the introductory period ends, and rates that vary.
If you feel a sales person has fraudulently identified themselves as working for National Grid or the City, please report it to the Department of Public Utilities Consumer Division 617-737-2836, or DPUConsumer.Complaints@state.ma.us.
How long will Beverly Community Electric last?
The program will last as long as Beverly believes it is providing value for the community. Beverly will sign an initial contract with an electricity supplier when the program launches. At the end of that contract, Beverly can decide whether to continue the program or discontinue it and return all participants to National Grid’s Basic Service.
Who do I call if the power goes out?
Call National Grid if your power goes out, as always. National Grid will continue to deliver your electricity and maintain the polls and wires, and will remain responsible for addressing power outages.
I have solar panels on my property or participate in a community solar program. Will I continue to receive credits on my bill?
Yes. Net metering credits will work the same way if you participate in the program. Your credits will continue to appear on your National Grid bill and will continue to be calculated based on National Grid’s Basic Service price, not a Beverly Community Electric price.
How do I maintain my account's tax-exempt status if I participate in Beverly Community Electric?
Tax exempt accounts that wish to maintain their tax exempt status in Beverly Community Electric must submit tax exemption documentation to the program’s electricity supplier.
This means that tax exemption documentation must be submitted each time the program’s electricity supplier changes.
The program’s electricity supplier is required by the State of Massachusetts to have valid tax exemption documentation on hand for all tax exempt accounts.
You may have submitted tax exemption documentation to National Grid already, but National Grid does not share this documentation with the program’s electricity supplier. It is the customer’s responsibility to submit this documentation.
More information about where to send your tax exemption documentation will be available closer to program launch.
Enrolling and participating
How do I join Beverly Community Electric?
Most electricity accounts in Beverly will be automatically enrolled when the program launches.
Specifically, all electricity accounts on National Grid’s Basic Service will be automatically enrolled at launch, unless they opt out.
If you have a contract with an electricity supplier at the time the program launches, your account will not be automatically enrolled, but you can choose to enroll, and the enrollment process will be easy. Please be aware that your electricity supplier may charge early termination fees, so you should carefully review your current contract terms and conditions before making that decision.
More information about enrollment will be available after Beverly’s aggregation plan receives regulatory approval.
Who will be eligible to participate in Beverly Community Electric?
All metered electricity customers within the geographic boundaries of Beverly will be eligible to participate. All Beverly electricity customers with National Grid’s Basic Service will be automatically enrolled when the program launches. The automatic enrollment model is state law.
Do I have to participate?
No. While the program has an automatic enrollment model in accordance with state law, participation is not required. There is no penalty for opting out. You may do so at any time. If you receive a letter notifying you that your account will be automatically enrolled, you may opt out of the program before being automatically enrolled, and you may also opt out any time after enrollment. If you opt out, the supply services portion of your National Grid electricity bill will remain on National Grid’s Basic Service price.
Can I opt out and then re-enroll?
Yes, however if you opt out of the program and want to re-enroll, there’s a possibility that you will be charged a market price instead of the program price. You’ll just want to ask at the time you re-enroll.
Pricing, potential savings, and billing
Will Beverly Community Electric provide savings compared with National Grid?
Beverly Community Electric will offer the potential for savings compared with National Grid’s Basic Service price, and it is the City’s aim to provide a price that is competitive with National Grid’s average price. However, National Grid’s prices change every 6 months for residential and commercial accounts and every 3 months for industrial accounts, and future prices are not known. As a result, Beverly Community Electric cannot guarantee to provide savings.
Will I know the program price and the price of each program option before I am enrolled?
Yes. If you are a National Grid Basic Service customer and eligible for automatic enrollment in Beverly Community Electric, you will receive a letter in the mail with program information, including pricing, before you are enrolled.
What will my electricity supply price be if I participate in Beverly Community Electric?
Beverly Community Electric anticipates having three options, but we do not yet know the prices for the different options in the program. The prices will be determined when the City signs a contract with an electricity supplier. That contract will be signed after a competitive procurement process, which will occur after the state regulatory review and approval process for the Beverly Community Electric aggregation plan has been completed.
Beverly Community Electric will provide a stable electricity supply price. Why is a stable electricity supply price important?
Having a stable price for the supply part of your electricity bill can protect you from the seasonal price increases that occur when you have National Grid’s Basic Service. When you have National Grid’s Basic Service, the price that is used to calculate the supply services portion of your electricity bill changes every 6 months for residential and commercial customers, and every 3 months for industrial customers, often rising in the winter.
Having a stable price for the supply part of your electricity bill can also provide a predictable alternative to the variable prices offered by some commercial electricity supply offers. Some commercial electricity supply offers will provide a stable price for a few months, but then the price will vary monthly and will rise significantly.
The Beverly Community Electric price will be fixed for longer than 6 months, and when it changes, the City will announce the new price publicly before it takes effect.
However, because National Grid’s prices change and future prices are not known, Beverly Community Electric cannot guarantee to provide savings compared with National Grid’s Basic Service.
What if National Grid's price falls below the Beverly Community Electric price?
The Beverly Community Electric price will be a long-term price, while National Grid’s Basic Service price changes every 6 months for residential and commercial customers and every 3 months for industrial customers. As a result, it is likely that for some months, the National Grid price may fall below the Beverly Community Electric price. Beverly Community Electric cannot guarantee that it will beat National Grid’s Basic Service price at all times. The program aims to match or beat the average of the changing National Grid prices, although there is no guarantee that it will do so.
Remember that you are free to leave the program at any time and return to National Grid’s Basic Service with penalty or fee.
Will I receive a second electricity bill?
No. National Grid will continue to bill you for your electricity. This is the only electricity bill you will receive as a participant in Beverly Community Electric. The program will be integrated into your existing electricity bill. See an example National Grid bill.
Where will I see Beverly Community Electric on my National Grid electricity bill?
Beverly Community Electric will appear on your electricity bill in two ways:
- On the supply services portion of your electricity bill, you will see the Beverly Community Electric supplier listed as your electricity supplier instead of National Grid’s Basic Service.
- The price that National Grid uses to calculate your supply charges will be a Beverly Community Electric price instead of their own Basic Service price.
Electricity supply and electricity suppliers
I have already signed my own contract with an electricity supplier. Can I participate in Beverly Community Electric?
Yes. If you have already chosen an electricity supplier, you will not automatically be enrolled in Beverly Community Electric, but you choose to participate, and enrolling will be easy. Please be aware that your electricity supplier may charge early termination fees, so you should carefully review your current contract terms and conditions before making that decision. More information about enrolling will be available closer to program launch.
What's the difference between National Grid and an electricity supplier?
In Massachusetts, an electric utility like National Grid is fundamentally an electricity delivery company. National Grid does not generate electricity for you. They are responsible for delivering electricity to you, for maintaining the poles and wires, and for addressing power outages. They charge you for these services on the delivery portion of your electricity bill.
An electricity supplier is a company that buys electricity for you.
- For most electricity customers, their utility is also their electricity supplier. When you first open your electricity account, this is the case. When National Grid is also your electricity supplier, you have what is known as National Grid’s Basic Service.
- You may also choose your own electricity supplier. If you do, the name of that company will appear on your National Grid bill as your electricity supplier, and National Grid will use the rate you negotiated with that electricity supplier to calculate the supply charges on your bill.
- In Beverly Community Electric, the City will choose an electricity supplier on your behalf. If you participate, the name of the company selected by the City will appear on your National Grid bill as your electricity supplier, and National Grid will use a Beverly Community Electric price to calculate the supply charges on your bill.
What is electricity supply?
Electricity service has two parts: supply and delivery. Supply refers to the electricity itself. Delivery is the process of bringing that electricity to you over the wires.
With Basic Service, your electric utility (National Grid) is your electricity supplier and also delivers the electricity to you.
With Beverly Community Electric, National Grid will continue to deliver your electricity, but Beverly will choose its own supplier.
What is a competitive electricity supplier?
A competitive electricity supplier is not your electric utility. Electricity suppliers do not deliver your electricity. They buy it for you, and your electric utility delivers it.
A competitive electricity supplier is a company licensed by the Massachusetts Department of Public Utilities to purchase electricity and related services from the wholesale electricity markets for resale to retail electricity customers.
If you sign a private contract with an electricity supplier or you participate in a municipal program like Beverly Community Electric, your electric utility (National Grid in Beverly) will use your electricity supplier’s price to calculate the supply charges on your electricity bill instead of their own Basic Service price.
Does Beverly Community Electric replace National Grid as my electric utility?
No. National Grid will remain the electric utility for Beverly and will continue to deliver your electricity, and your primary relationship for electricity will remain with National Grid.
Beverly Community Electric will change the supplier on your National Grid electricity bill, and it will change the price that National Grid uses to calculate the supply portion of your electricity bill. But your electricity bill will continue to come from National Grid, and National Grid will continue to be your electric utility.
Will National Grid provide me with a lower quality of service if I participate in Beverly Community Electric?
No. National Grid’s quality of service to you will be unaffected by your participation in Beverly Community Electric. National Grid does not profit from the supply charges on your electric bill. They make their profit from delivery charges. As a result, they have no preference whether they choose your supplier or Beverly does.
I am currently eligible for a low-income discount from National Grid. Will that change?
No. If you are eligible for a low-income discount from National Grid, it will be unaffected by your participation in the program. You will continue to receive that discount.
I have budget billing from National Grid. Will this change?
No. If you participate in Beverly Community Electric, budget billing will continue to apply to your bill with no change.
What is renewable electricity?
Renewable electricity is generated by sources that can be renewed as opposed to sources that can be used only once, such as fossil fuels. Under Massachusetts state law, a variety of resources qualify as renewable. The main sources of renewable electricity are solar, wind, and small hydroelectric projects. Renewable electricity is sometimes referred to as green electricity or clean electricity.
What is the minimum amount of renewable electricity required by Massachusetts law?
The minimum amount increases every year. For 2021, Massachusetts state law requires that 18% of your electricity comes from newer renewable energy projects in New England (Massachusetts Class I RECs). In 2022, that number will increase to 20%.
In addition, state law requires the inclusion of a minimum amount of renewable energy from older renewable energy projects in New England (Massachusetts Class II RECs), as well as from some alternative energy sources that are considered highly efficient but not renewable.
For more information, visit the Massachusetts Department of Energy Resources page on compliance information for the Renewable Portfolio Standard.
Why is renewable electricity important?
Using renewable electricity is an important step you can take to fight climate change and increase your independence from fossil fuels like gas, coal, and oil. Electricity generated from renewable sources does not cause air pollution and does not emit the gases that cause climate change.