You may not have noticed, but the electricity industry in Massachusetts underwent a major change on March 1st. The correct term is "restructuring". Even though Cambridge customers will still receive a bill from COM/Electric (Cambridge Electric Light Company) some restructuring differences have already occurred and will continue over the months and years ahead.

The first tangible change that customers will notice involves the cost of electricity. On March 1st the 10% "STANDARD OFFER" kicked in. This means that all electricity customers in Massachusetts will receive a 10% across the board reduction in their electric bills, first seen in their April bills. In September of 1999 another 5% reduction should occur.

The new law also enhances all current consumer protections, continues the low-income discount programs, increases energy efficiency programs and requires all competitive power suppliers to be licensed by the state.

The basic intent of the complex law is to introduce competition into the electric industry and provide consumers with choices and lower prices while assuring continued reliable service. Over the course of the next few years consumers might choose a competitive power supplier to try to maximize their savings. The chosen supplier will provide the electricity they need to the local distribution company (COMElectric).

Many residential or small business electricity customers may not want to face the potentially confusing process of choosing an electricity supplier, unless the savings will greatly increase beyond the Standard Offer. (No supplier company has emerged as yet that can beat the current 10% Standard Offer discount.)

The legislation allows for the creation of "aggregators" or buying clubs to be established so that the bulk buying power from the combined electricity used by all the members of this group can lower their costs. A municipality could become an aggregator on behalf of its residents; or the grouping could be focused on membership in an organization such as AARP, a union, a church, automobile association, etc.

The City of Cambridge is studying the impact of the new law on the City and will evaluate what role it might play on behalf of the Cambridge residential and business community.

COMElectric is trying to educate the public about this new law and its impact for its customers. Read your bill stuffers carefully!

A consumer hotline has been established by the state to answer questions. A "Consumer Guide to Understanding Changes in the Electric Industry in Massachusetts" is available upon request.

The Salvation Army office in Central Square processes the low-income discount applications. If one’s income is below $13,808 you may qualify. Add $4,760 to that amount for each additional household member to determine eligibility.

Inquiries could also be made to the Consumers’ Council about this new law:

STATE HOTLINE: 1-888-758-4469

SALVATION ARMY: 617-547-3400

CONSUMERS’ COUNCIL: 617-349-6150

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