Brian White, Municipal Program Director
Looking back, 2022 was arguably one of the most turbulent calendar years the energy world has seen. The ability to purchase natural gas or electricity through third-party suppliers in Massachusetts began in March 1998. Over the years, offers changed as energy forwards traded with little predictability, but this year showed how volatile energy pricing can be.
When COVID-19 struck the nation, most businesses hesitated to do anything, even though the energy markets plummeted. However, municipalities in MA operate differently than private businesses as they stay in business, providing critical services to cities and towns. Freedom Energy’s municipal clients in Massachusetts recognized this, and their proactive efforts produced over $23mil in savings in 2022! In addition, over 20 municipal clients executed new gas or electric agreements at least 12 months before their start date, taking advantage of excellent market conditions. This is critical to sustaining energy costs, and Freedom Energy provides timely future start options throughout the existing term for consideration.
Massachusetts utility rates reached all-time highs in 2022, and supplier offers moved in synch. Understanding the budget impact is critical in determining the best time to execute. The following graph illustrates natural gas offers with a December 2022 start date over 16 months presented to a Freedom Energy client. The client expressed interest in a new 24-month term, as they were convinced the market would come down, and continued to wait for results that never came. Waiting, regardless of how long clients have until the start date, is fine as long as bids are tracked to ensure this will not occur.
Working with Freedom Energy allows municipal clients to experience the following benefits:
- Enrollment reports
- Savings analysis
- Special contract terms and conditions (extended payment terms, Add/delete clause for new accounts)
- Market intelligence
- Ongoing management
- End of year memo’s (including year-over-year results)
- Budget forecasts
- Suggestions/improvements for the following year(s)
In addition, our team can help municipal clients explore renewable options available to them. Freedom Energy has several community solar projects that need off-takers, we’re evaluating battery storage solutions with some clients, and our muni group has expanded to maintain our high level of service. So even if clients are looking for a second opinion, it costs nothing to explore your options with us.