“Sunderland Resident then responded with a company called Dominion that apparently bargains.
Dominion states it’s rates are ten percent lower than current rates in the region.
It seems WMECO has a bit of a monopoly.
WMECO prices are established through bidding – a common practice.
This is why one’s rate might not actually be $8.53.
A 2007 article in The Republican summarized how the Mass. Attorney General was inquiring about WMECO’s earnings. In the 2008 analysis by Attorney General Martha Coakley’s office, “In fact, a rate case may lead to increased rates and a shift of costs between certain classes of ratepayers in WMECo’s service territory, which may mean that certain ratepayers are paying more.” It a said such a case based on rates would be “unlikely to dramatically lower rates.”
The epilogue of the analysis states:
After the completion of this report, on May 19, 2008, WMECo fi led with the Department for
approval of its most recent default service solicitation in which residential customers will see a 6.5-
8.1% increase in their total bills. Large commercial and industrial customers on default service
will see 26-30% increase in their total bill. However, approximately 83% of large commercial and
industrial customers in WMECo’s service territory use a competitive supplier and are not impacted
by this increase. Review of default service fi lings by the Attorney General and the Department is
limited, focusing primarily on compliance with procurement practices.
While the focus of this report is on increases associated with “delivery charges” in 2007, the most
signifi cant driver of overall increases in electricity rates over the past fi ve years for WMECo’s, and
all other customers in Massachusetts, is in the energy generation portion of the bill. Typically,
these changes occur every three months for commercial and industrial customers on default service
and every six months for default service residential customers. For those customers that rely on
the company for its energy supply or default service (most residential and small commercial and
industrial customers), notice of such increases are just as important, if not more, than effective
communication regarding delivery charge increases because of their magnitude and frequency.
In connection with its May 19, 2008 fi ling, the Company has informed the Attorney General’s
Offi ce that it intends to notify its customers of this increase through public outreach including
a press release as well as individual customer service calls to the large commercial and industrial
customers subject to the rate increase. Such efforts to notify customers of signifi cant rate increases
should be considered a best practice by all the Commonwealth’s distribution companies.
That’s it for me; all I have time for today. Hope that helped at least a little.