What are the Benefits of Community Power?

Some key benefits

• Local Control - Helps Nelson meet its unique energy goals.

• Increased Renewable Energy - Enables Nelson to procure more clean energy if that is our priority.

• Cost Effective - Gives Nelson access to competitive energy markets; we can often negotiate lower and more stable electricity prices than the utility rate.

• Promotes Equity - Community power allows residents of all income levels to enjoy the benefits of renewable energy. You will not need to buy solar panels or even own your own home. You will only need to pay your electric bill.

• Resilience and Innovation - Through community power, Nelson has the opportunity to establish a reserve fund to finance projects such as batteries for residents and businesses to use during power outages, and energy efficiency renovations in low/moderate income homes

What changes with Community Power?

What's new is that Nelson can buy energy at wholesale based on our town's goals and priorities.

What stays the same is that the utility (Eversource typically) will still maintain the poles and wires.

Will our town become a utility?

No. Eversource, our utility, will continue to manage and own all of our poles and wires. Eversource will also respond in case of storms and emergencies, and handle billing. Only the supply cost on your electric bill will change if you choose Nelson Community Power.

Will Nelson Community Power affect service from Eversource or their profit?

No. Eversource's profit comes from electricity transmission and distribution. It makes money on the infrastructure and services that provide power and serve you in an emergency. Eversource's profits and services will remain unchanged.

Are there any costs to the Town?

Moving forward with the investigation of community power aggregation will not cost the town. No taxpayer funds are needed. If the Nelson Selectboard votes to approve community power aggregation through the Cheshire County Plan, the cost to operate will be recovered through electricity sales.

Anyone choosing to "opt-out" can do so and keep his/her current plan. Our goal is for those "opting in" to be guaranteed to have an equal or lower electricity cost to the Eversource default rate at inception. Every effort will be made to keep electricity costs below Eversource’s rate, given the buying power of a larger group.  

Why should we have "opt-out" rather than "opt-in"?

Whether Nelson chooses an "opt-out" vs. an "opt-in" program is still to be determined, but more than likely it will be "opt-out." Choosing to stay and not "opt-out" will increase participation, which in turn will result in better “buying power,” lower overall costs in the long run, and more options for the Town. Everyone in Town will be carefully advised of their right to opt out, and the process will be simple. And Eversource, as the default supplier, already operates itself on an “opt-out” basis!

Will everyone in Nelson be required to participate?

The answer is no. Each individual customer will be able to opt-out of the Cheshire Community Power Aggregation Program. That said, we hope all Nelson electricity customers will see the benefits of community power aggregation and join.  

What are the benefits of going with Cheshire Community Power vs. having our own Nelson Community Power?

The main benefits of joining Cheshire Community Power are that there will be less administrative burden on our Town and perhaps more buying power by being part of a larger group. By participating in the “Default Electricity Service Option” where the entire town has Cheshire Community Power (CCP) as its default service — rather than individual Nelson residents joining CCP on their own — Nelson will have a representative at the County level and thus have a voice at the table when decisions about Cheshire Community Power are made. 

Furthermore, It appears that many Nelson residents are either uninformed about alternatives to Eversource as their electricity supplier or have heard negative outcomes from switching. Putting the town on the County default service should overcome confusion, inertia, skepticism, and lack of knowledge about the option to change electricity supplier.

What are the steps to form the Nelson Community Power Program? This Question is now moot because the Nelson Selectboard voted for Nelson to join Cheshire Community Power.

The broad steps are:

Phase 1 - Education and Approval

1. Nelson Select Board appoints the Nelson Community Power Committee. - DONE!

2. The Committee chooses a consultant, at no financial cost to the Town, to assist and guide the Committee. - THIS IS THE CURRENT PRIORITY OF THE COMMITTEE.

3. The Committee requests electricity load data from utility - DONE!

4. The Committee gathers input from Nelson residents and develops a Community Power Aggregation Plan - IN PROGRESS; PLAN IN DRAFT FORM.

5. The Nelson Community Power Aggregation Plan is presented to the Select Board, and if approved by the Select Board added to the Warrant to be voted on at Town Meeting. - ON HOLD AS WE AWAIT APPROVAL of the Cheshire County Electric Aggregation Plan by the PUC.

6. If adopted by the Town, the Plan is submitted to the New Hampshire Public Utilities Commission for approval and the Utility is notified.

Phase 2 - Education and Launch

1. Select a consultant who helps Nelson go out to bid to procure an electricity supply that meets the Town's goals.

2. Mailers are sent to customers to educate them about the new program and also allow them to decide if they will join or not.

3. The Nelson Community Power Aggregation Program is launched!

Phase 3 - Maintenance (Done with Consultant)

1. Customer support

2. Monitor electricity supplier

3. Education

4. Future planning

Who are the Consultants?

Cheshire County  can choose either an Energy Broker or the Community Power Coalition of New Hampshire. More information is on the Learn page of this website.

Is this too complicated for a small town?

The Town must enter into contracts for its electricity supply, just as its residents do. To a small extent, this plan will make the effort a little less complicated (by doing it altogether). Under this plan, we may be assisted by an agent/broker in negotiating the contracts and administering the program. There will be little or no additional duties for the Selectboard, which in any event will have the input and guidance of the Nelson Community Power Committee. And, as more towns join in these efforts, the complexity will be even further reduced by collaboration.

How will the Reserve Fund be administered?

Funds will be earmarked as a financial cushion to protect against spikes in electricity costs over time, enabling us to maintain affordable rates over the long term. Funds can also be used for local investments in energy generation or conservation. Decisions will be made by the Select Board, with input from the Nelson Community Power Committee and after the public has had a right to be heard.

Will this interfere with my use of solar panels?

No. Actually, community power aggregation will enhance that use. While details are still being discussed in the Public Utilities Commission (PUC) and the NH Department of Energy (DOE), this plan will offer net metering credits that are no worse, and potentially much better, than are now available from Eversource. It is also possible that we could build in net metering advantages based on demand/ time of use, increasing the value of locally-generated energy.  

This seems too good to be true. What gives?

Community choice aggregation programs across the region and the country have shown, over years of operation, that they can deliver positive results. Savings cannot be guaranteed, but past demonstrated savings support renewable energy dramatically. At the same time, individual electric customers are offered the choices they desire to have the best combination of cost savings and renewable energy up to 100%. Nelson Community Power has the potential to have benefits such as stable rates, consumer protections, outreach for energy efficiency programs, and local energy planning to support future cost-lowering and increasing resiliency in the face of climate change.