Definitions
The list below includes terms frequently used when discussing aggregation, electricity, and renewable energy.
Basic Service
You receive National Grid’s Basic Service if you do not buy your electricity supply from a competitive electricity supplier. National Grid purchases your electricity for you and uses its Basic Service price to calculate the Supply Services portion of your electric bill. National Grid’s Basic Service prices change every six months for residential and small business customers and every three months for large business customers. If you contract with a competitive electricity supplier on your own, or you participate in an electricity aggregation, such as Beverly Community Electric, National Grid will no longer be your electricity supplier, so you will no longer have Basic Service.
Clean electricity
Clean electricity is electricity that is generated by a renewable energy resource, such as solar or wind. It is also known as green electricity or renewable electricity.
Electricity delivery (sometimes referred to simply as delivery, and also as distribution)
This term refers to the service of delivering electricity to you through poles and wires, and also to the maintenance of that electricity-delivery infrastructure. Electricity delivery charges appear on the Delivery Services portion of your National Grid electric bill. Electricity delivery charges do not include the cost of the electricity itself. Those charges appear on the Supply Services portion of your National Grid electric bill.
Electricity supplier
An electricity supplier is a company that buys electricity on your behalf. The price that your electricity supplier charges appears in the Supply Services portion of your National Grid electric bill. In Massachusetts, you can choose who your electricity supplier is:
- Your electric utility, National Grid, can serve as your supplier. In that case, you have National Grid’s Basic Service, and National Grid buys electricity for you and uses their own Basic Service price to calculate the supply part of your electric bill.
- You can select an electricity supplier on your own. In that case, National Grid only delivers electricity to you, and they use the price provided by your electricity supplier to calculate the supply portion of your electric bill.
- Your municipal government can establish an electricity aggregation and select an electricity supplier for you, as with Beverly Community Electric. In this case, National Grid only delivers electricity to you, and they use a Beverly Community Electric price to calculate the Supply Services portion of your electric bill.
Electricity supply (sometimes referred to simply as supply)
This term refers to the electricity that you use. Electricity supply charges appear on the Supply Services portion of your National Grid electric bill. Electricity supply charges are calculated by multiplying the amount of electricity you use (in kilowatt hours) by a price. Electricity supply charges do not include charges for the delivery of the electricity or for the maintenance of electricity-related infrastructure. Those charges appear on the Delivery Services portion of your National Grid electric bill.
Green electricity
Green electricity is electricity that is generated by a renewable energy resource, such as solar or wind. It is an informal name for electricity generated from renewable sources.
MA Class I RECs
MA Class I RECs are renewable energy certificates (RECs) from renewable energy projects that began commercial operation after 1997, generate electricity using any of the following technologies, and meet all other program eligibility criteria:
- Solar photovoltaic
- Solar thermal electric
- Wind energy
- Small hydropower
- Landfill methane and anaerobic digester gas
- Marine or hydrokinetic energy
- Geothermal energy
- Eligible biomass fuel
Purchasing MA Class I RECs helps to create demand for more renewable energy on the New England grid. By purchasing more MA Class I RECs than is required by state law, you can help to drive the development of new renewable energy projects in our region.
Renewable electricity
Renewable electricity is electricity generated by sources that can be renewed as opposed to sources that can be used only once, such as fossil fuels. Under Massachusetts state law, a variety of resources qualify as renewable. The main sources of renewable electricity are solar, wind, and small hydroelectric projects. Renewable electricity is sometimes referred to informally to as green electricity or clean electricity.
Renewable Energy Certificates (RECs)
RECs are a method of keeping track of renewable electricity. One REC is minted for every 1 megawatt-hour of electricity generated by a renewable energy project. RECs are tracked in a central database known as the NEPOOL GIS (generation information system). Electricity customers who wish to be able to say they are purchasing renewable electricity from the grid can pay for RECs in addition to paying for the electricity they use. Purchasing RECs gives an electricity customer the right to say they have used the electricity generated by renewable energy systems. Once a REC is purchased, it is then retired so that no one else can purchase it and lay claim to having used the same renewable electricity.
Renewable Portfolio Standard (RPS)
The RPS is a minimum amount of renewable energy that is required by law in the electricity sold in a state by the utilities and other electricity suppliers. Massachusetts has an RPS, as do many other states. An RPS specifies both the amount and type of renewable energy that must be included. Because of the Massachusetts RPS, all electricity sold in the state includes a minimum amount of renewable electricity. Massachusetts also has an APS, an Alternative Portfolio Standard, which requires that all electricity include a minimum amount generated by alternative energy sources, which are typically highly efficient but not renewable. Read more on the Massachusetts DOER website.
Opt up
To opt up is to change from Beverly Standard to Beverly 100% Clean.
Opt out
To opt out of Beverly Community Choice is to leave the program and instead receive your electricity supply from a competitive supplier or through National Grid’s Basic Service. You have the right to participate in the program for as long as you like, and to opt out at any time with no penalty or fee.
Utility
In Massachusetts, an electric utility is an electricity delivery, or distribution, company. Electric utilities do not generate electricity, but instead purchase it on your behalf, if you are not already using a competitive supplier. They are responsible for delivering electricity to your home or business. You have no choice in your electric utility as they have geographic monopolies. In Beverly, our electric utility is National Grid.