New Hampshire Electric Cooperative’s (NHEC) Board of Directors has unanimously approved an 18% reduction to the Co-op Power portion of members’ bills effective February 1, 2021.
The change will result in an overall bill decrease of over $7 for the average residential member using 500 kilowatt-hours (kWh) per month.
NHEC typically adjusts its Co-op Power rate in November and May every year, however for the second straight year the Co-op is making an out of cycle reduction to its energy service rate. Co-op Power reflects the cost NHEC pays to purchase electricity from the New England power market on behalf of its members. The price NHEC pays for this power is directly passed through to NHEC members who do not purchase electricity from a competitive supplier.
The Co-op Power rate was set by NHEC in November 2020 for the winter period based on market forecasts. Since that time the market price of electricity has steadily decreased in New England, below what was forecast, allowing NHEC to procure electricity for its members at a lower cost than anticipated. NHEC is adjusting its Co-op Power rate outside of the normal cycle to reflect the lower than projected market costs. This immediate adjustment will provide the benefit of these lower market prices back to members as soon as possible.
Several factors have contributed to the lower than expected market prices in New England, including the mild temperatures this winter. Temperature is closely linked to the price of electricity, as it drives the demand for more energy during the cold, dark months of winter, and hot, humid summer months.
As a result of the Board of Directors’ vote, NHEC’s Co-op Power rate will drop from 7.8¢ per kWh to 6.4¢ per kWh. NHEC’s members will see the benefits from this rate reduction beginning with their February bills.
“As a member-owned cooperative, NHEC is able to react quickly to changes in the electricity market and pass those savings back to our members,” said Steve Camerino, President and CEO of NHEC. “Many of our members have been financially impacted by the COVID-19 pandemic. We hope that moving quickly to reduce rates and pass savings on to them will help ease the financial burden they may be facing during this challenging time.”
NHEC members receiving Co-op Power do not need to take any action to receive the new rate. The reduction is only available to NHEC members. NHEC does not call its members or the customers of other utilities to enroll in Co-op Power, so members of the public receiving any such call should be careful not to provide any personal or financial information.
About New Hampshire Electric Cooperative
NHEC is a member-owned electric distribution cooperative serving 85,000 homes and businesses in 118 New Hampshire communities. Headquartered in Plymouth, NH, our business is to maintain and service our 6,000 miles of energized line in order to provide our members with the highest level of service.