Freedom Energy sets late-summer goal for lower-cost residential price plan
MANCHESTER - Residential and small-business customers - long awaiting competitively priced electricity alternatives - might see a change by late summer.
Gus Fromuth, managing partner of Freedom Energy Logistics, said his group recently won PUC approval to begin offering competitive power supply through Resident Power.
Resident Power is recruiting customers to sign letters of authorization committing to purchase electricity, an organized plan to deliver the benefits of a deregulated energy market that were first proposed in the 1990s.
The goal is to gather together 1 megawatt of demand, enough energy to power 1,200 to 1,500 households.
'I need a critical mass to accumulate before I go out and do my first ... supply,' he said.
Fromuth said he expects Resident Energy to supply power at a price 5 to 10 percent below Public Service of New Hampshire, based on current market prices.
'We think that we will be delivering product to our first ... customers by the end of summer,' he said.
Six adjustments to PSNH rates approved by the state Public Utilities Commission that took effect July 1 lowered overall costs for PSNH energy customers by 1.27 percent.
Charges for delivering electricity to customers have decreased, helping to offset an energy-service charge increase associated with rising fuel costs, PSNH said.
The monthly bill for a PSNH residential customer consuming 500 kilowatt-hours will decrease $1.13 , or 1.2 percent, to $89.01, the company said.
PSNH's energy charge as of July 1 is 8.89 cents per kilowatt hour. Customers who buy their energy from PSNH competitors still pay distribution, transmission, stranded costs and system benefits charges to PSNH as well as the consumption tax.
PSNH estimates that if it wins Public Utilities Commission support for a nonbypassable charge spreading certain fixed costs for its power generating plants across all customers - including those who buy their energy competitively - it could lower average bills for customers still buying their energy from PSNH by about 5 percent.
On the Net: residentpower.com