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Carbon-Free Electric Pilot Program

Info for: ResidentialCommercialEducationCommunityContractorsEconomic Development

HG&E is excited to offer a new pilot program to help commercial and industrial customers reach 100% carbon-free electricity. While the carbon-free portion of HG&E’s overall power portfolio mix is currently among the highest in the region, there is still a need to purchase electricity from the New England Grid during certain times throughout the year in order to meet the total customer demand.

HOW IT WORKS

For commercial and industrial customers electing to purchase all of their electricity from 100% carbon-free sources, HG&E will procure the supplemental carbon-free electricity required by purchasing and retiring MA Class I or Class II Renewable Energy Certificates (RECs). These costs will be passed along to the customer on-bill through a newly created rate component associated with their electricity usage. The pilot will start January 1, 2022 and end December 31, 2022 and will be re-evaluated to determine if it will continue to be offered in the future.

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CUSTOMER BENEFITS

HG&E has set incremental targets to reach net-zero energy by 2050, but we understand some customers would like to take personal action and be carbon-free today. Program participants will receive carbon-free electricity marketing materials including: a carbon-free logo, print indicia, and webpage materials. In addition, HG&E will provide a letter at the end of the program year indicating the organization's carbon-free electric status.

  1. Must be an industrial or commercial customer within HG&E’s service territory.
  2. Must opt-in to the program and accounts must be in good standing with HG&E (6 - 12 month history of satisfactory payments).
  3. Customer account must remain in good standing or they can be removed from the program and shall owe any balances for charges related to their participation in the program.
  4. This pilot rate is in addition to customer’s existing electric service tariff charges.
  5. This program begins January 1, 2022 and ends December 31, 2022.
  6. HG&E may terminate the voluntary purchase of RECs at any time.
  7. HG&E can modify or end this program by giving 30-day written notice to all active participants.
  8. Customers can opt-out of the program at any time by providing written or verbal notice to the HG&E.

Department Carbon-Free Adjustment %: 75%*
Carbon-Free Electric Rate Adjustment (REC rate): $0.0300/kWh*
*Estimated

Calculation:

Customer Monthly Consumption*: 50,000 kWh
*For example purposes only

100% Carbon-Free Monthly Cost Formula: (All kWh * (1 - Department Carbon-Free % Adj.)) * Carbon-Free Electric Rate Adj.

Carbon-Free Monthly Cost: 50,000 kWh * (1 - 75%) * $0.0300/kWh

100% Carbon-Free Monthly Cost (added cost to normal bill): $375.00

 

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