In Calendar year 2024, electric and natural gas forwards continued to be quite volatile. Like the prior two years, 2024 energy prices were all over the place, peaking in July before a three month decline through October. Then November arrived and they went right back up again.

What drove the rising costs?

Maybe the election results played a role, perhaps the development of AI data centers are partly to blame or could just be rising costs. These swings create both opportunity and indigestion for energy buyers. No one wants to lock in a new agreement at the wrong time, but it’s almost impossible to time the market with 100% accuracy.

Utility Impact

Utility rates reached an all-time high in 2023, surpassing the previous mark set in 2022. There was a ton of speculation about 2024 and much to rate payers delight, it ended up being a down year as we saw rates drop across all Massachusetts utilities.

NGRID and Eversource recently changed the timing of their purchases to spread out high winter costs by splitting up January and February, but Massachusetts rate payers still dealt with 20+ cent electricity and 80+ cent natural gas rates in 2024.

Municipal clients can use this knowledge to their advantage by executing new agreements based on market conditions instead of expiration dates.

Massachusetts Class I RECs

Another common theme is the decision to purchase additional Massachusetts Class I RECs (renewable energy credits) above state minimums. Most cities and towns have documented climate pledges to reduce carbon emissions to net zero. Although purchasing local renewable energy is a must, MA Class I RECs are expensive! Other sources of RECs are available, such as national wind, but the benefits do not go to Massachusetts. To combat this, we help municipal clients implement a laddered approach, increasing the REC percentage over time, building toward 100% by their declared date.

Municipal Communities Saved $11 Million in 2024

Despite 2024 being a down year for utility rates, our existing communities still saved over $11 million on their electric and natural gas spend.

If you’re interested in Municipal services or curious to see how our services compare to your consultant, contact Freedom Energy for a free evaluation. Freedom Energy’s Municipal Team is specialized in serving Municipal clients.

What’s the Freedom Energy Difference?

Our Municipal Clients receive:

• Enrollment Reports
• Annual Savings Analysis
• Special Contract Terms & Conditions (extended payment terms, add/delete clause, solar and energy efficiency allowances)
• Cost Comparison Memos
• Regular Market Intelligence Reports
• Ongoing Energy Management and Consultation
• End of Year memos (highlighting year-over-year results, budget forecasts, and suggestions/improvements for the following year(s)
• Freedom Energy’s By-month Muni Minute and Quarterly Newsletter

Piqued Your Interest?

We also help with resiliency solutions including energy storage (batteries), capacity tag management, state and utility rebates, and we have several Community Solar projects in need of off-takers. And if net metering credits have caused a negative balance on your invoices, we have a solution for that as well.

Even if you’re only looking for a second opinion, it costs nothing to explore your options with Freedom Energy.