Beware of misleading electricity supply offers

Have you received a low-priced offer from an electricity supply company? If so, make sure you know what they are offering before you sign up. That low price may look great, but it may not be what it seems. A low initial price in a private offer can be a gimmick that leaves you paying more in the end. According to the 2024 report from the Massachusetts Attorney General’s Office, private supply contracts cost the average household $190 more than their utility’s Basic Service.

Chelsea Electricity Choice is a public service from the City of Chelsea that is designed to provide stable, predictable prices, more electricity from clean, renewable sources, and consumer protections. According to a report by UMass Amherst, the majority of communities with aggregation programs like Chelsea Electricity Choice achieve these goals and also see some savings.

Chelsea Electricity Choice offers transparent prices.

Yes!

Chelsea Electricity Choice prices are fixed by contract for the term of the contract. The current Chelsea Electricity Choice prices are fixed until June 2026. Period. What’s more, the City will provide notice of the new prices before they go into effect.

Warning!

Other electricity suppliers frequently entice customers with a low price, then raise the price sharply. Suppliers are hoping you will enroll with them for the low price, then stop looking at your bill before the higher price starts. The details of how the pricing works are usually in the fine print.

Chelsea Electricity Choice offers stable prices.

Yes!

Chelsea Electricity Choice locks in long-term, fixed-price contracts that provide stability and predictability without the possibility of monthly variable pricing. At the end of the current contract, the City intends to sign another long-term, fixed-price contract.

Warning!

Variable prices are a common risk with private offers. Frequently, your price will automatically move to a price that changes monthly at the end of your contract period. Variable prices that change monthly are often much higher than your initial price, and customers often lose a lot of money.

Chelsea Electricity Choice has no hidden fees or penalties.

Yes!

You may opt out of, or leave, Chelsea Electricity Choice at any time with no fee or penalty. You may also change from one option to another within Chelsea Electricity Choice at any time with no fee or penalty. These are just some of the consumer protections built into the program.

Warning!

Many private electricity supply contracts include early termination fees that are as high as $150 if you break the contract.

Chelsea Electricity Choice offers renewable energy with a local impact.

Yes!

Chelsea Electricity Choice enables you to buy more of your electricity from renewable sources that are all within the New England region. Purchasing electricity locally builds demand for more renewable energy on our grid. That in turn stimulates the development of new renewable energy projects in New England.

Warning!

Private electricity supply contracts may enable you to buy more of your electricity from renewable sources, but those sources are typically outside of the New England region. As a result, your choice is not helping to build demand for new renewable energy projects in our region.

Frequently asked questions about private electricity supply contracts:

How do I learn the terms of my private electricity contract or of an offer I have received?

The electricity supplier can tell you the terms of their contract. To understand whether a contract has any of the features highlighted above, call the electricity supplier and ask them.

If you have already signed a contract and are currently receiving your electricity supply from a private supplier, their phone number is on your Eversource bill near their name.

If you have received an offer from a private supplier but have not yet signed up with them, their phone number will be listed on the offer. Do not give them your Eversource account number unless you are ready to choose them as your supplier.

What happens at the end of my electricity supply contract?

At the end of a private electricity supply contract, any number of things could happen. In many contracts, your account automatically rolls into monthly variable pricing if you do not make another choice. You should check with your electricity supplier to find out exactly what will happen with your account.

At the end of the Chelsea Electricity Choice supply contract, the City will accept competitive bids and sign a new long-term, fixed-price contract. The City will make an announcement with the new price information 30 days before the new prices take effect.

Why is a private company able to offer prices that are lower than Chelsea Electricity Choice prices?

This is often the result of the electricity supplier using their knowledge of seasonal electricity price changes.

Electricity prices are typically higher in the winter months and lower in the summer months.

Sometimes electricity suppliers group all of the least-expensive months of the year into an offer, which allows them to provide a very low price for those months. However, when that offer ends, you are typically sitting at the beginning of expensive winter months, so your price increases and sometimes by a lot. The result is that your electricity supply price swings with the seasons.

A key goal of Chelsea Electricity Choice is to provide stable prices. To do that, Chelsea signs long-term contracts that blend the lower summer prices with higher winter prices to create prices that are stable and predictable over a long period of time. Participating in Chelsea Electricity Choice can protect you from winter price spikes and from the uncertainty that comes with a price that changes seasonally.

What if I sign up with a new supplier but it's not a good deal? Can I leave?

Many electricity suppliers require you to remain with them for a minimum period of time or receive an early termination fee of as high as $150. Whether or not you will be charged an early termination fee will depend on the terms of the contract you sign with an electricity supplier.

Can I get back into Chelsea Electricity Choice if I leave?

You are not guaranteed the program price if you leave Chelsea Electricity Choice and wish to re-enroll. The program’s electricity supplier has the right to charge a higher market price to customers that opt out and then return to the program. The program is designed for continuous enrollment and not for participants to alternate between participating and not participating.

You are always free to opt out of, or leave, the program at any time with no fee or penalty.

Someone came to my door/called me about an electricity program. Do they represent Eversource or Chelsea's program?

If you receive a personal call or visit about your electricity, that person does not represent Eversource, the City of Chelsea, or the Chelsea Electricity Choice program. Neither Eversource nor the City is knocking on doors or making individual sales phone calls.

If you feel a salesperson has fraudulently identified themself as working for Eversource or the City of Chelsea, please report it to the Department of Public Utilities Consumer Division 617-737-2836, or DPUConsumer.Complaints@ma.gov.