Electric/Colonial

ALL Haverhill electricity customers were automatically enrolled in the Colonial Power aggregation program 2 years ago, which the company required. But anyone can opt out of the aggregation program via the Colonial Power website - or by calling them at 866-485-5858 Ext 1.

If you are not sure if you are in the program, you can visit Colonial Power Group-National Grid to learn how to find the answer on your bill. Most residents and electrical users were AUTOMATICALLY ENROLLED in the city's aggregation program - unless you opted-out and/or signed up for an alternative plan with another third party provider. Please use the link above for help finding the right way to review your bill or contact your provider to assist you in determining your status.

WE ENCOURAGE ANYONE WITH OUTSTANDING QUESTIONS OR CONCERNS ABOUT THEIR STATUS TO CALL COLONIAL POWER AT (866) 485-5858 Ext. 1

Haverhill | Colonial Power Group Quarterly Report

Press Release 2/2026

ISO-NEW ENGLAND INITIATIVE REQUIRES RATE CHANGE
IN HAVERHILL’S COMMUNITY CHOICE ELECTRICITY PROGRAM 

HAVERHILL, MA – An ISO-New England (ISO-NE) initiative has resulted in the need for a rate adjustment in Haverhill’s Community Choice Power Supply Program.

As the result of a regulatory event, the City of Haverhill’s current aggregation rate will increase by $0.01627 per kWh effective with the March 2026 meter reads. The new rate (increasing from $0.15101 per kWh to $0.16728 per kWh) will be fixed through the remainder of the term, ending November 2026. For comparison purposes, National Grid’s Basic Service rates are fixed from February 1 through July 31, 2026 -- Residential at $0.15372 per kWh and Commercial at $0.14493 per kWh.

What is a regulatory event and how can it result in a rate adjustment?  A regulatory event is an action taken or change enacted by a regulatory authority that results in a direct, material increase or decrease in costs during the term of an electric power supply contract.

ð ISO-NE Day-Ahead Ancillary Services Initiative (DASI or DAAS) – DASI introduces a co-optimized day-ahead market that simultaneously considers energy and ancillary services, replacing the previous Forward Reserve Market. This approach ensures that resources providing essential services like operating reserves are adequately compensated and obligated to perform when needed, thereby improving system reliability. By implementing DASI, ISO-NE aims to provide targeted compensation and establish clear financial obligations and incentives for flexible resources, which are crucial for maintaining grid reliability amid the increasing integration of renewable energy sources. The Federal Energy Regulatory Commission (FERC) approved DASI, recognizing that it would significantly improve operating reserve resource readiness, efficiency, and day-ahead price formation in ISO-NE. [See https://www.iso-ne.com/participate/support/participant-readiness-outlook/day-ahead-ancillary-services-initiative.]

ð In other words, DASI lessens the need for fast start generation assets and diminishes loads settled on the real time market over time. This new market structure operates on the day-ahead market, so costs are more variable. Most notably, DASI includes a new component to the ancillary market. This new component was designed to bridge the gap between supplier bids and expected demand. This cost is set on the real-time market, which means increased costs for consumers during times of uncertainty (e.g. heat wave, cold snap)

ð This regulatory event results in an increase in the City’s aggregation rate (effective with the March 2026 meter reads) pursuant to a provision in the Electric Service Agreement (ESA).

Why is the aggregation rate changing if the City signed a fixed price contract?  DASI was implemented in March 2025 and, given the newness of the program, costs were unhedgeable and had to be estimated based on guidance from ISO-NE.

ð Original Projections vs Actual Costs – The Cost Impact Analysis that ISO-NE filed with FERC estimated DASI costs at $120 to $150 million/year or $1 to $1.25/MWh which were approved as just and reasonable and not unduly discriminatory or preferential. However, actual costs have far exceeded initial expectations with December 2025 coming in at ~$17/MWh and January 2026 at ~$48/MWh. The recent cold snap complicated matters further and resulted in two years of expected costs being incurred in only two days – January 26 and January 27.

ð Per the ESA, the City’s aggregation rate included a cost estimate of $7.24/MWh (or $0.00724/kWh) for DASI, which was more than sufficient at the time given ISO-NE’s projections, with a fully reconcilable provision once actual costs were known. This rate adjustment is a direct result of the pass-through costs that far exceeded initial estimates.

What is the impact of the rate adjustment?  Given average usage of 600 kWh per month, the City’s new aggregation rate represents an increase of $9.76 per month versus the current rate.

All electricity suppliers operating in Massachusetts, including National Grid, are subject to the new market structure and the associated increase in cost (i.e. all ratepayers will be impacted). Winter Basic Service rates (effective August 1, 2026 through January 31, 2027) are expected to be elevated as a result of DASI.

The City relaunched its electricity program in November 2020. From inception through September 2025, the program has saved residents and small businesses over $19.5 million in electricity costs as compared to National Grid Basic Service.

For questions about the City’s rate adjustment or your options, please visit colonialpowergroup.com/haverhill or call Colonial Power Group at (866) 485-5858 ext. 1. You may OPT-OUT or OPT-IN at any time in the future with NO CHARGE.

ABOUT COLONIAL POWER GROUP: Based in Marlborough, Mass., Colonial Power Group is the leading aggregation-consulting firm in Massachusetts. Colonial Power has been working with local governments since 2002 in the design, implementation and management of municipal aggregation programs

Important Update: Rate Increase Notification

As the result of a regulatory event, the City of Haverhill’s current aggregation rate will increase by $0.01627 per kWh effective with the March 2026 meter reads. The new rate (increasing from $0.15101 per kWh to $0.16728 per kWh) will be fixed through the remainder of the term, ending November 2026.

For comparison purposes, National Grid’s Basic Service rates are fixed from February 1 through July 31, 2026 -- Residential at $0.15372 per kWh and Commercial at $0.14493 per kWh.

WHAT IS A REGULATORY EVENT AND HOW CAN IT RESULT IN A RATE ADJUSTMENT?  A regulatory event is an action taken or change enacted by a regulatory authority that results in a direct, material increase or decrease in costs during the term of an electric power supply contract.

ð  ISO-NE Day-Ahead Ancillary Services Initiative (DASI or DAAS) – DASI introduces a co-optimized day-ahead market that simultaneously considers energy and ancillary services, replacing the previous Forward Reserve Market. This approach ensures that resources providing essential services like operating reserves are adequately compensated and obligated to perform when needed, thereby improving system reliability. By implementing DASI, ISO-NE aims to provide targeted compensation and establish clear financial obligations and incentives for flexible resources, which are crucial for maintaining grid reliability amid the increasing integration of renewable energy sources. The Federal Energy Regulatory Commission (FERC) approved DASI, recognizing that it would significantly improve operating reserve resource readiness, efficiency, and day-ahead price formation in ISO-NE. [See https://www.iso-ne.com/participate/support/participant-readiness-outlook/day-ahead-ancillary-services-initiative.]

ð  In other words, DASI lessens the need for fast start generation assets and diminishes loads settled on the real time market over time. This new market structure operates on the day-ahead market, so costs are more variable. Most notably, DASI includes a new component to the ancillary market. This new component was designed to bridge the gap between supplier bids and expected demand. This cost is set on the real-time market, which means increased costs for consumers during times of uncertainty (e.g. heat wave, cold snap).

ð  This regulatory event results in an increase in the City’s aggregation rate (effective with the March 2026 meter reads) pursuant to a provision in the Electric Service Agreement (ESA).

WHY IS THE AGGREGATION RATE CHANGING IF THE CITY SIGNED A FIXED PRICE CONTRACT?  DASI was implemented in March 2025 and, given the newness of the program, costs were unhedgeable and had to be estimated based on guidance from ISO-NE.

ð  Original Projections vs Actual Costs – The Cost Impact Analysis that ISO-NE filed with FERC estimated DASI costs at $120 to $150 million/year or $1 to $1.25/MWh which were approved as just and reasonable and not unduly discriminatory or preferential. However, actual costs have far exceeded initial expectations with December 2025 coming in at ~$17/MWh and January 2026 at ~$48/MWh. The recent cold snap complicated matters further and resulted in two years of expected costs being incurred in only two days – January 26 and January 27.

ð  Per the ESA, the City’s aggregation rate included a cost estimate of $7.24/MWh (or $0.00724/kWh) for DASI, which was more than sufficient at the time given ISO-NE’s projections, with a fully reconcilable provision once actual costs were known. This rate adjustment is a direct result of the pass-through costs that far exceeded initial estimates.

WHAT IS THE IMPACT OF THE RATE ADJUSTMENT?  Given average usage of 600 kWh per month, the City’s new aggregation rate represents an increase of $9.76 per month versus the current rate.

All electricity suppliers operating in Massachusetts, including National Grid, are subject to the new market structure and the associated increase in cost (i.e. all ratepayers will be impacted). Winter Basic Service rates (effective August 1, 2026 through January 31, 2027) are expected to be elevated as a result of DASI.

The City relaunched its electricity program in November 2020. From inception through September 2025, the program has saved residents and small businesses over $19.5 million in electricity costs as compared to National Grid Basic Service.

For questions about the City’s rate adjustment or your options, please visit colonialpowergroup.com/haverhill or call Colonial Power Group at (866) 485-5858 ext. 1. You may OPT-OUT or OPT-IN at any time in the future with NO CHARGE.

AMENDING AGREEMENT

to

ELECTRIC SERVICE AGREEMENT 

THIS AMENDING AGREEMENT No. 2 ("Amendment") with a reference date of February 3, 2026 ("Effective Date"), is entered into by and between the City of Haverhill ("Aggregator") and First Point Power, LLC ("Competitive Supplier").

WHEREAS:

A. The Aggregator and Competitive Supplier are both parties to an Electric Service Agreement dated May 23, 2023, and an Amending Agreement No. 1 with a reference date of July 25, 2025, together with any appendices thereto (collectively, the "ESA"). Capitalized terms used herein and not defined shall have the same meaning ascribed to them in the ESA.

B. The Parties agree that, pursuant to Section 6 of Price and Term Appendix No. 1 to the ESA, ISO New England's manner of implementing its Day-Ahead Ancillary Services Initiative ("DASI") is expected to cause Competitive Supplier to incur cumulative DASI Costs that exceed the cumulative revenues received by Competitive Supplier from the DASI Costs Recovery Fee of $0.00724 through the Delivery Term.

C. Pursuant to Section 6 of Price and Term Appendix No. 1 to the ESA, the Parties have agreed to amend Price and Term Appendix No. 1 to increase Program Retail Prices accordingly.

D. As a strategy to address DASI Costs in a manner that reasonably (i) compensates Competitive Supplier for its cost of performance, and (ii) seeks to minimize further disruption to the Program, the Aggregator and Competitive Supplier have agreed to amend Price and Term Appendix No. 1 to the ESA as set out below.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Aggregator and the Competitive Supplier agree as follows (all section references herein are in reference to the ESA):

1. Sections 1 and 2(a) of Price and Term Appendix No. 1 shall be deleted in their entirety and replaced with the following:
   1. Retail Price by Rate Classification: The Retail Prices as set out in the tables below shall be fixed for the entire length of the Delivery Term

STANDARD PRODUCT [All Eligible Consumers will be enrolled in the standard Product unless they opt-out.]

2. Terms for System Supply Service

(a) Delivery Term:

For Period 1, the Retail Price applies to service commencing with the Participating Consumers' first meter read dates for the month of November 2023 (the "Delivery Term Start Month") (billed in arrears, therefore the December 2023 billing statements) and terminating with the Participating Consumers' first meter read dates for the month of August 2025 (final bill, therefore the August 2025 billing statements).

For Period 2, the Retail Price applies to service commencing with the Participating Consumers' first meter read dates for the month of August 2025 (billed in arrears, therefore the August 2025 billing statements) and terminating with the Participating Consumers' first meter read dates for the month of March 2026 (final bill, therefore the March 2026 billing statements)

For Period 3, the Retail Price applies to service commencing with the Participating Consumers' first meter read dates for the month of March 2026 (billed in arrears, therefore the April 2026 billing statements) and terminating with the Participating Consumers' first meter read dates for the month of November 2026 (the "Delivery Term End Month") (final bill, therefore the November 2026 billing statements)

2.  Section 5 of Price and Term Appendix No. 1 shall be deleted in its entirety and replaced with the following:

             5. All-Requirements Power Supply

                 For the purposes of clarity, all Retail Prices set out in Section 1 of this Price and Term Appendix                       include all costs incurred by Competitive Supplier in relation to DASI Costs.

3.   Section 6 of Price and Term Appendix No. 1 shall be deleted in its entirety and replaced with the                 following:

             6. {Reserved}

4.   This Amendment contains the entire understanding of the Parties with respect to the amendment contained herein. All other provisions of the ESA remain in full force and effect.

5.  This Amendment may be executed in counterparts without the necessity that both Parties execute the same counterpart, each of which will be deemed an original, but which together will constitute one and the same agreement. The exchange of copies of this Amendment by email or facsimile will constitute effected execution and delivery of this Amendment and may be used in lieu of the original for all purposes. Signatures of representatives of the Parties transmitted by email or facsimile will be deemed to be original signatures for all purposes.

IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Amendment on their behalf, which will be effective upon signature of the Parties. If the Parties sign on different dates, then it will be effective on the later date of the signature: