Salem PowerChoice is a municipal electricity aggregation, which is a type of group electricity buying program.
Typically, your electric utility, National Grid, provides two sets of services to you:
But in Massachusetts, consumers actually have three options for electricity supply:
Salem PowerChoice provides consumer-friendly electricity supply options, stable electricity supply prices, and the freedom to leave at any time with no fee or penalty. Learn more about program benefits.
Municipal aggregation was approved by City Council on November 20, 2014. After a period of state regulatory review and approval, Salem PowerChoice launched with January 2016 meter reads.
The City of Salem has signed a contract with First Point Power to supply electricity to Salem PowerChoice participants until December 2029. The City intends to sign a new electricity supply contract when the First Point Power contract ends. The electricity supplier and renewable energy content may change, and the price may be higher or lower than the current price. You will continue in the same program option at the new price unless you inform the program otherwise. The City will provide advance notice of any such changes, and you will be free to opt out or change your option before the changes take effect. However, if the City decides the program is not beneficial to the community, it is free to cancel the program at the end of the First Point Power supply contract and return all participants to National Grid’s Basic Service.
Municipal electricity aggregation was enabled by the Massachusetts Restructuring Act of 1997 (Chapter 164, Section 134), which allows local municipal governments to aggregate the electricity supply loads of the electricity consumers within their geographic boundaries in order to negotiate more favorable terms with an electricity supplier.
State law requires aggregations to use an automatic enrollment model. Salem did not have a choice as to whether the program would be opt-in or opt-out.
However, participation is never required. You have the option to opt out before being automatically enrolled, or you may try the program and leave later. There is never any fee or penalty to opt out, and you may do so at any time. Opt out.
In the past: Salem PowerChoice previously supported renewable energy by purchasing more electricity from renewable sources than is required by Massachusetts state law for two program options, Standard and Plus. The goal of purchasing the extra renewable energy was to build demand for more renewable energy and drive the development of new renewable energy projects to meet it.
Now: The federal government has substantially slowed the addition of new renewable energy projects by sunsetting tax credits, ending funding programs, slowing new permits, and seeking to revoke existing permits. It has become very difficult to build new renewable energy projects. As a result, for now, buying more renewable energy than is required by law will not result in the development of new renewable energy projects.
The new Salem PowerChoice structure: For that reason, beginning in calendar year 2025, Salem PowerChoice no longer purchases additional electricity from renewable sources by default. Accordingly, the program structure is changing from three options to two, with the default option including only the minimum from renewable sources that is required by state law and a 100% renewable option available by request. To put it simply, Salem PowerChoice no longer automatically includes the purchase of additional electricity from renewable sources above the state requirement because, at this time, the extra cost associated with buying additional electricity from renewable sources does not facilitate the development of new renewable energy projects. The Plus option remains available for those who wish to opt up and buy electricity that is 100% from renewable sources.
The City of Salem remains committed to supporting renewable energy. We remain committed to accelerating renewable energy development and will continue to explore new, more effective ways to support a cleaner, greener grid through this program as market conditions evolve.
If you have received a notice of automatic enrollment from the City, you do not need to take any action. Your account will be automatically enrolled after the opt-out deadline listed in the notice. View the notice of automatic enrollment.
If you have not received a notice of automatic enrollment, you may request enrollment.
Visit the Participating page for more information.
To choose the Plus option, complete the online form or call customer support at 844-483-5004. Be sure to have a National Grid electric bill with you when you fill out the form or call, as you’ll need information from your bill to make the request.
Participation is open to all metered electricity accounts in Salem.
For more details, please see the Participating page.
Yes, however, if you opt out and then wish to re-enroll in the program, you are not guaranteed the program price when you re-enroll. The electricity supplier is entitled to charge you a market price for the remainder of the current electricity supply contract, which may be higher. If the program’s electricity supplier decides to charge market pricing, you will be notified before enrollment and can decide then whether to continue with enrollment or not.
You will see two changes on your National Grid electric bill as a result of participating in Salem PowerChoice:
Additionally, the amount of electricity you receive from renewable sources will increase if you participate in the Plus option.
Otherwise, everything else will remain the same. You will continue to receive your electric bill from National Grid, you will continue to pay National Grid using whatever method you have set up with them, and you will continue to call National Grid if the power goes out.
If you have National Grid’s Budget Plan, it continues to apply to your total bill with no change.
If you are eligible for any discounts from National Grid, such as a low-income discount or fuel assistance, those discounts will be unaffected by your participation in Salem PowerChoice.
Salem PowerChoice will be integrated into your existing electric bill. You will not receive any additional bills because of participating in Salem PowerChoice.
National Grid continues to send your bill, and you continue to pay them using whatever method you have set up with them.
To see what your National Grid bill will look like, view an example bill.
The program will appear on your National Grid electric bill, and your Electricity Supply price will reflect the program option you are enrolled in. View an example bill to see where the program and price appear on your bill.
No. There will be no change in the consistency or reliability of the electricity coming into your home or business as a result of participating in Salem PowerChoice.
National Grid remains responsible for ensuring the uninterrupted delivery of electricity in Salem. Further, they have no preference whether they are your electricity supplier or you choose another supplier. National Grid does not profit from the supply portion of your bill. They make their profit from the delivery portion.
If you participate in the Plus option, it means more of the electricity that is put onto the grid on your behalf will come from renewable sources, but this does not change the overall reliability of the electricity on the grid.
Yes. If you are participating in community solar, or if you are receiving net metering credits or incentive payments for electricity produced by solar panels on your property, you will continue to receive your credits or incentive payments as a participant in Salem PowerChoice.
Further, there will be no change in how they are calculated. Their calculation is not connected to your electricity supply price.
However, you could see a benefit. If your electricity supply charge is lower because the Salem PowerChoice price is lower than National Grid’s Basic Service price, the credits or incentive payments could go further in offsetting that charge.
Please note, however, that because National Grid’s Basic Service prices change and their future prices are not known, savings compared with National Grid can never be guaranteed.
Tax-exempt accounts that wish to maintain their tax-exempt status in Salem PowerChoice must submit tax-exemption documentation to the program’s electricity supplier.
This means that tax-exemption documentation must be submitted each time the program’s electricity supplier changes.
The program’s electricity supplier is required by the State of Massachusetts to have valid tax-exemption documentation on hand for all tax-exempt accounts.
You may have submitted tax-exemption documentation to National Grid already, but National Grid does not share this documentation with the program’s electricity supplier. It is the customer’s responsibility to submit this documentation.
Program prices are available on the Prices page.
To see how much your monthly supply charge will be, use the calculator.
Maybe! According to a report by UMass Amherst, the majority of communities with aggregation programs do see some savings compared with National Grid’s Basic Service prices.
However, Salem PowerChoice offers long-term fixed prices, while National Grid’s prices change every 6 months or less. As a result, savings compared with National Grid can never be guaranteed.
If you are not happy with the program, you are always free to leave the program at any time with no fee or penalty.
If you are eligible for any discounts, including a low-income discount or fuel assistance, you will continue to receive that discount with no change.
If you have National Grid’s Budget Plan, it continues to apply to your total bill with no change.
No. The delivery portion of your electric bill is not impacted by whether or not you participate in Salem PowerChoice. These charges are regulated.
