Pascoag Utility District Successfully Executes Power Supply Strategy

The Pascoag Utility District, together with its energy advisor Energy New England, has successfully executed its 2012-2014 power supply strategy as approved by the Board of Utility Commissioners. The strategy included a beneficial sourcing of the Standard Offer Service component of its rates for the years 2012 through 2014.

The deal is "load following" in nature, which requires Constellation Energy, through a subsidiary, to provide PUD’s power needs which are not already supplied through its long-term contracts. Constellation will fill 100 percent of the utility’s power "gap" in 2012, 80 percent in 2013 and 75 percent in 2014. The declining percentages will allow PUD to entertain other offers it wishes to consider during those years, such as a potential Burrillville micro-hydro project, other renewable energy offers or other potential long-term power projects. Because of the low cost in natural gas markets at the present time, and because the power market in New England correlates very closely with natural gas prices, PUD was able to secure the deal for all three years at a competitive rate.

PUD projects that this transaction will save more than $500,000 on an annual basis compared to 2011 and will minimize non-efficient sales that are sometimes made back to the power grid operator ISO-New England. The program will help to keep the Standard Offer power supply portion of the PUD rate structure very competitive for the next three years.