Eversource Explains High Energy Bills to Plymouth Officials
Utility representatives cite increased delivery rates and supply costs while outlining efforts to provide relief
PLYMOUTH - April 15 - Eversource representatives explain to the Plymouth Select Board that high energy bills this winter resulted from a "double whammy" of increased delivery rates and supply costs, while outlining efforts to provide bill assistance and reduce future costs.
Ronit Goldstein, Manager of Community Relations for Eversource, and Doug Horton, Vice President of Rates, appeared before the Plymouth Select Board to discuss the components of gas bills and what drove higher costs this winter.
"We understand the angst and the frustration that was felt this past winter," Goldstein says. "We know that looking at the components of the bill may not help to pay the bill, but our hope is that having a better understanding of what makes up the bill and understanding how folks can go and get assistance may alleviate the situation."
Goldstein explains that gas bills have two main components: supply and delivery. The supply side represents the cost of the gas itself, which Eversource purchases and passes through to customers without markup.
"The price that we pay is the price that you pay," Goldstein says. "Eversource procures the gas on behalf of the customers, and the bill is just a pass-through. There's no profit on the supply."
The delivery side, which makes up more than half of many customers' bills, includes several components: a customer charge, distribution charge, revenue decoupling, and distribution adjustment. The distribution adjustment, which is the largest component, includes costs for safety measures and public policy initiatives like energy efficiency programs through Mass Save.
According to Goldstein, two factors contributed to higher bills this winter. First, Eversource received approval from the Massachusetts Department of Public Utilities for a rate adjustment on the delivery side starting November 1. Second, increased competition for natural gas in New England drove up supply costs, requiring another rate adjustment in February.
"What happened is what I'll just call in simple terms a double whammy," Goldstein says. "You had the delivery rate go up, so it was different than last year. And then starting in February, the supply rate was even higher."
Select Board member Charlie Bletzer expressed frustration about the high costs.
"My last three bills were $1,100, $1,100, $1,200, and I just got this bill was $600 between the two, and I jumped for joy. And that used to be what I paid last winter, and now I'm paying this in the spring," Bletzer says.
Horton explains that Eversource's profit margin is "less than 10% of the total bill" and is reflected in the customer charge and distribution charge. He emphasizes that the utility model requires Eversource to attract capital investment to maintain and improve infrastructure.
"We spend significantly more on the system each year than we collect through our rates from our customers," Horton says. "We have to be able to access capital from both debt lenders and equity investors."
In response to high bills, Eversource has implemented several measures, including:
- Filing for a 10% delivery rate reduction in March and April bills (to be collected in summer months when usage is lower)
- Working with the Department of Public Utilities to reduce the overall budget of energy efficiency programs by $500 million
- Providing a $50 credit on all electric bills from funds collected for projects that did not come to fruition
Goldstein also mentions that Eversource is considering redesigning its bills to make them easier for customers to understand.
Plymouth Police Chief Dana Flynn presents to the Select Board about a ballot question that would remove the police department from civil service, arguing the change would improve recruitment and retention by allowing more flexibility in hiring and promotions.
The ballot question, scheduled for May 17, asks "Shall the town of Plymouth revoke its acceptance of chapter 31 general laws, the civil service law for all positions of the police department."
Flynn explains that leaving civil service is part of a plan to address ongoing staffing shortages. The department is currently six officers short, with five projected retirements by the end of the calendar year.
"With the steep decline in recent years of persons joining the police profession, I think it's imperative the town act now in its own best interest to hire the best that we can," Flynn says.
According to Flynn, 35 Massachusetts police agencies have recently left civil service, including neighboring Carver. Only 106 municipal police departments remain in the system.
The current civil service process requires the department to hire from a statewide list generated by an annual exam. The most recent list for Plymouth had only 43 names, with just 21 expressing interest in becoming Plymouth police officers. After background checks and interviews, only 10 received conditional offers of employment.
"The last civil service list that we utilized to hire the 10 candidate student officers only had 43 names on it," Flynn says. "The list was exhausted last September, and the next civil service list will not be ready for use until sometime in July."
Marc Higgins, president of the Superior Officers Association, and Kyle Kreitzer, president of the Patrol Union, both support leaving civil service.
"The amount of officers that we are getting on the police department is very little," Higgins says. "We're not getting the, we're getting great candidates that are coming to the police department, but the quantity is not there."
Kreitzer adds that Plymouth's growing population makes staffing shortages particularly challenging.
"Plymouth is unique because our population is increasing so rapidly," Kreitzer says. "So our call volume is now getting distributed to a lower amount of officers."
Benefits of leaving civil service would include:
- Greater flexibility in hiring and promotional processes
- Ability to set higher eligibility guidelines, such as requiring an associate's degree
- Opportunity to recruit from colleges and non-civil service departments
- Faster hiring of lateral transfers from other departments
The town plans to hold informational sessions about the ballot question, including a "This Week in Plymouth" live session on Friday where residents can ask questions directly to the chief and other officials.
In Other Business:
- The board approved the Edward W. Santos Community Service Garden at the Plymouth Public Library
- The board approved an International City of Peace Proclamation
- Town Manager Derek Brindisi provided updates on several construction projects, including renovations to the old Harbormaster building and sidewalk improvements on Town Wharf Way
- Plymouth Beach will implement a pilot program using pay stations instead of booth attendants this summer