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Energy pact will result in savings

December 4, 2011

CUMBERLAND — The Town Council has authorized Mayor Daniel J. McKee to enter into a three-year energy contract with Direct Energy, which is offering Cumberland and other cities and towns participating in the Rhode Island League of Cities and Towns' municipal energy aggregation program far cheaper electricity prices than they are now paying under an existing contract.
The league's current contract with Nextra Energy expires Dec. 31. Connecticut-based Direct Energy has been selected to supply electricity under the league's aggregation initiative.
Direct Energy, a subsidiary of Centricia, was awarded the contract through an open, competitive bid process and will be the League's new energy supplier for the next three years, beginning Jan. 1. The company will serve League members, providing electricity to municipal buildings and facilities, including more than 50 accounts in Cumberland.
The new contract prices are 6.48 cents to 6.80 cents per kilowatt hour depending on the term of the contract as opposed to the 9.46 cents the town pays now. Cumberland will pay the 6.80 cent rate because it chose to go with a three-year contract agreement.
The Rhode Island Energy Aggregation Program (REAP) is a consortium of 36 cities and towns - including Cumberland - which are organized under the auspices of the League for the purpose of purchasing electricity and other energy related services from energy power suppliers at the lowest possible prices and with the highest quality of service.
Since its inception in July 1999, REAP has saved its 36 member cities and towns over $18 million in their costs for electricity and has become the most successful municipal energy aggregation program in the nation.
The Rhode Island League of Cities and Towns is a private, non-partisan membership association of local governments that creates and implements services and programs which benefit cities and towns.

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