The proposed structure for the Cambridge Community Electricity program (CCE) for the period 2024-2025

Small business

Savings are proportionate with electricity usage (e.g., large business accounts use 75,000 kWh per month vs. 358 kWh for median residences) Cambridge’s current standard price 10.2 ¢/kWh vs. Eversource’s basic service prices: ̶

Jan-June 2023 25.6 ¢/kWh

̶

Jul-Dec 2023 16.1 ¢/kWh

CCE offers additional benefits including City consumer protection, a fixed predictable price and the option to receive 100% renewable electricity ~150 ~39,000 # Accounts Avg. kWh ~5,000 ~75,000 ~350 ~2,200 5 ~80% of Cambridge electricity accounts are enrolled in CCE; notably, low- income households are disproportionately under-enrolled 84%

Non-Low Income

3,228 7,779 Total 44,807 Low-Income

Small Business

Large Business

584 56,398 35% 16% 36% 20% 64% 65% 25% 80% CCE Non-CCE Disproportionately low participation from low-income households due to predatory competitive suppliers Cambridge electricity accounts # accounts and % of total 6 Predatory competitive suppliers target low-income households and give them higher electricity bills Unlike utilities, which need to get their rates approved by the state, competitive suppliers can charge whatever they want Average competitive supply customers pay $200 more annually than they otherwise would “Even if they offer a lower price to start with, they jack up their price later down the line”

The Attorney General’s Office

has found that lower-income residents and communities of color are disproportionately harmed by this market Source: “Why a plan to drive down electric prices in Mass. led to higher bills. Miriam Wasser. WBUR. May 2023. 7 Basic energy prices have gone up significantly since we last went to bid We are going to bid early based on consultants’ recommendation, prices expected to continue to rise 8 We propose creating a 50% renewable default supply, with the option to opt-down to basic 25% or opt-up to 100% green

Existing Default

Contract

Recent Indicative Market Prices

% Renewable 22% total 25% total 50% total 100% total Delivery + Basic electricity (includes State’s required RECs) $35.70 + Voluntary RECs (additional RECs purchased by CCE) $3.40 $10.40 = Total Cost $96.90 $110.20 $113.60 $120.60 $ increase from current contract $13.30 $16.70 $23.70 % increase from current contract 14% 17% 24% Based on average kWh usage for a residential customer; actual usage can vary significantly Illustrative average residential costs based on indicative pricing ($/month, rounded)

NOTE: RECs refer to Massachusetts Class 1 Renewable Energy Credits

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