Use this search box to find articles that have run in our newspapers over the last several years.
Date: 12/1/2022
CHESTER — With power supply costs rising and green energy mandates on the horizon, Chester Municipal Electric Light Department (CMELD) needs to make some changes, Special Town Meeting voters were told on Nov. 28.
Voters have three options, said Andrew Myers, chair of the town Energy Committee: seek grants to make CMELD more competitive, sell it to Eversource, or do nothing. He said the committee does not recommend doing nothing.
“That would be a big change for us,” he said, referring to selling the 100-year-old town-owned utility. “We need to do it carefully and thoughtfully. There are advantages on both sides,” but “we can’t do nothing.”
Myers’ committee, which was formed by a vote at the Annual Town Meeting in June, includes members Nick Chiusano, Bob Daley, Rich Holzman and Ed Sourdiffe. He said they have been meeting regularly and now need feedback from residents to continue.
Myers said towns all over the state are implementing energy committees, to look at increasing costs, such as home heating oil, gas and diesel, and ways that they can shift to renewable energy.
In Chester, 5 percent of residents in 30 households receive electricity through Eversource; the rest, 700 households, through CMELD. It is the second-smallest municipal electric utility in the state, out of 40; the smallest serves a portion of Russell.
In 2018, the state mandated that utilities must procure a certain percentage of their power from clean energy sources, beginning at 16 percent in 2018, and increasing 2 percent annually to 80 percent in 2050. For CMELD, potential investments would be in solar expansion, residential solar incentives, wind power and battery storage technology, which Myers said is improving.
Myers said the town has received $130,000 in Green Communities funds, and invested $88,000 in solar panels on the town garage and fire station that he said are saving 25 to 30 percent in electricity on those buildings. At present, the town is insulating Town Hall with the remainder of the grant. They also converted Fire Station 2 to a new 1,000-gallon propane tank and received the first delivery through American Rescue Plan Act (ARPA) funds.
Myers said the advantages of a municipally owned electric company include contributions back to the town through payments in lieu of taxes (PILOT). CMELD does not charge Chester for street lights, which cost $7,000. CMELD also purchased the garage last year that it shares with the Highway Department. He said PILOT payments are approximately 2 percent of revenue.
Library Trustee Mary Ann Pease said CMELD also does not charge the library for electricity, which should be added to the PILOT costs.
Another advantage to local ownership is low rates, Myers said. The 2021-22 residential rate for CMELD was $56.23 per 250 kilowatt-hours, which is high for a municipal utility but compares favorably to the $68.45 rate for Eversource.
“The smaller electric companies have the highest rates,” Myers said, though municipal utilities’ rates remain consistently lower than Eversource’s. But he said CMELD anticipates that due to rising costs, the energy portion of its bill will double next year.
Renewable power sources such as solar expansion and wind towers are expensive projects, and CMELD is not as competitive as Eversource in residential solar. CMELD pays 4.8 cents per kilowatt-hour for solar net energy, versus Eversource, which pays 29.6 cents.
Building Inspector Jason Forgue, who serves six area towns as an inspector, said the number of solar permits being granted is significant in every town except Chester. All of Chester’s abutting towns are served by Eversource.
Eversource would have other advantages for the town, Myers said. Residents could participate in MassSave, which offers energy audits, rebates and incentives for energy efficiencies in residences, such as the installation of air and ground source heat pumps.
The town would also receive $50,000 to $60,000 per year from taxes on the company’s poles, lines, and other equipment.
Myers said the next steps for the Energy Committee are setting goals to reduce energy usage and looking to apply for grants. The weatherization of Town Hall will conclude the initial Green Communities grant, and allow them to apply for another, and there are also U.S. Department of Agriculture rural grants. He said the committee will be researching grants.
Myers said the committee would need a consensus of the town to begin a discussion with Eversource. The ultimate decision would be a town vote.
Moderator Barbara Huntoon asked whether the town could get a representative of CMELD and Eversource to speak to residents. Myers said it was a great idea, and could be scheduled after Jan. 1.
“I agree that we need to get all of the information and have the town make the decision,” said Select Board Chair John Baldasaro. He said it would have to go through a vote at two annual Town Meetings, so it would take a minimum of two years to make any changes.