Yarmouth Energy Committee
Cape Light Compact Update
February 7, 2017
Cape Light Compact
• Award-winning municipal energy services organization
operated by the 21 towns and 2 counties on Cape Cod and
Martha's Vineyard
• Mission: serve customers through delivery of
– competitive electricity supply and green power options
– effective consumer advocacy
– proven energy efficiency
programs – more than
$800 million in savings to region
through 2015
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Power Supply
• Background on Restructuring
– In 1997, Massachusetts de-regulated the electric industry, allowing for
competitive electric suppliers to enter the market
– Customers on Cape Cod and Martha’s Vineyard still receive a bill from
Eversource, but are able to select which supplier they wish to purchase
electricity from
– 2 Parts to Electric Bill
• Delivery Charges – Eversource charges
for maintenance of poles, wires, energy
efficiency charges. No other option for
consumers.
• Supply Charges – Customer may select
who they purchase electric supply from.
– Cape Light Compact is automatically
the power supplier on 2nd part
of electric bill for new electric
accounts.
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Power Supply – Green Aggregation
Starting in 2017:
• Power supply program is 100%
Renewable, and affordable
• 100% of customers’ electricity usage is
matched with Renewable Energy Certificates (RECs)
• EarthEra™ Trust- unique added value
– All NextEra Energy Services contracted supplier fees are being
deposited into the Trust (administered through a 3rd party) that
is guaranteed to be dedicated to the development of new
renewable energy projects.
– Revenue from sale of RECs (which make the Compact’s
customer load 100% renewable) deposited in this trust.
– Will amount to approx. $3 million added to Trust per year
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Photo Credit: NextEra Energy
Resources
Power Supply Pricing
Term
Cape Light Compact*
cents per kWh
Eversource
Residential
Jan 2017 –
June 2017
9.930
10.318 (Jan –June)
Commercial
Dec 2016 –
June 2017
9.700
10.033 (Jan – June)
Industrial
Dec 2016 –
March 2017
9.800
10.144 (Jan – March)
* Includes an adder of $0.001 for the Compact’s Operating Fund
• No contracts
• No termination fees
• May opt-out at any time
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Consumer Advocacy
• $25 M returned to Cape & Vineyard customers from
the sale of Canal Generating Plant
• Compact challenged aspects of NSTAR’s cost recovery
proposal which would have increased distribution
charges to all residential customers.
• Participating in the recently-filed Eversource rate
case in front of the Department of Public Utilities
(DPU)
• Participating in Eversource Grid Modernization Plan
in front of the DPU
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Smart Grid: What Are We Talking
About?
• The consumer is at the center of a new optimized power system
• Transformation of the electric system will have a big impact on our
future – foundational investments
• The “SmartGrid” or Grid Modernization will add digital intelligence
to electricity delivery and supply
• New sensors, switches, computer programs and meters
• Opportunity for power flow to and from customers (“prosumers”)
rather than just from a generating plant to consumers
• Laying the groundwork for future deployment of energy efficiency
programs and DERs
• Increasing reliability and resiliency
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Grid Modernization – Why this is
Important:
• Power Outages: What level of system reliability do
consumers need or expect, and how much are they
willing to pay?
• Savings: What opportunity will Cape and Vineyard
consumers have to utilize “smart meters” and optional
time varying rates?
• Who Pays For What: Will we pay for improvements that
happen in the Boston area? How will costs be allocated
across ratepayers?
• Local Energy Generation: Should the region continue to
advocate for robust expansion of self-generation and
renewable energy?
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Overview of Compact Energy
Efficiency Programs
Residential
Low-Income
Commercial & Industrial
Non Low-Income (61% + state median
income)
Up to 60% state median
income
Businesses – including nonprofits, churches, etc.
Multi-Family – 5+ units on
property
Fuel Assistance recipients
Industrial
Customers who receive
other low-income benefits
Municipal
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Costs and Benefits 2007-2018
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
$0
In 2015, for every $1 invested
yielded an average of $4.32 in
benefits to consumer
Costs
Total Benefits
Joint Powers Statute – Next Step
for the Compact
• An Act Modernizing Municipal Finance and Government enacted by
the MA Legislature as Chapter 218 of the Acts of 2016
– Allows governmental units to enter into joint powers agreements (JPA) for
joint exercise of powers and duties within a region
– At least two governmental units needed to form a JPA
– BOS authorize the JPA
– Joint Powers Entity (JPE) is a separate public entity and can:
•
•
•
•
receive grants
receive and expend funds
hire employees
execute contracts and other instruments necessary for he exercise its mission
– JPE offers express liability protection for its members
– Financial Controls: financial audit, and reporting requirements to member
towns and the MA Department of Revenue
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Why form a Joint Powers Entity (JPE)?
• Compact’s current Intergovernmental Agreement expires in 2022
• In 2016, Barnstable County notified the Compact that it no longer wished
to provide administrative and fiscal services to the Compact under the
Compact’s current organizational structure
• Compact and the County executed a Termination and Transition
Agreement in December 2016
• Goal is for the Compact’s member towns to transition from the existing
Intergovernmental Agreement to a Joint Powers Entity through a Joint
Powers Agreement
• JPE will provide the Compact with the organizational structure to continue
to deliver its core mission through DPU approved plans and oversight
– Energy Efficiency Services
– Power Supply Option
– Consumer Advocacy
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
Next Steps for a JPE
•
Compact legal counsel prepared a draft Joint Powers Agreement (JPA)
•
JPA was reviewed by majority of Compact member towns’ counsels are their suggested
changes were incorporated
•
Final draft of JPA is ready for discussion and execution by Cape and Vineyard Boards of
Selectmen
•
Once the JPA is executed by two towns, the JPE will need to:
–
–
–
–
•
Identify Treasurer and Business Officer – likely the fiscal agent
Execute a contract for services with fiscal agent
Seek guidance from the Department of Public Utility regarding what, if any, notification/filing is
needed for the Compact to be fully operational as the JPE
Seek guidance from the Department of Revenue regarding their reporting requirements
Transition will be over a period of time such that Compact members will be informed of
the ultimate end date to consider joining the JPE
–
–
Compact and the JPA could both exist until expiration of existing Intergovernmental Agreement in
2022
Compact Governing Board has indicated a goal of January 31, 2018
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG
JPE Alternatives
• If a Compact member town does not wish to join the JPE, a
town may:
– In order to continue operating as a municipal aggregator, the town
would need to petition the DPU in accordance with state law for
approval of its own aggregation plan and for approval of its own
energy efficiency plan
– If the town does not petition the DPU for approval to be a municipal
aggregator, the town would not be able to administer energy
efficiency programs or provide a power supply offer – these services
would be provided by the distribution company, Eversource
CONTACT US AT 800-797-6699 OR WWW.CAPELIGHTCOMPACT.ORG