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HOLDEN, Mass. — Pending municipalization legislation currently moving through the House of Representatives has provisions that officials say could negatively impact the Holden Municipal Light Department if passed in its current form.
The bill seeks to make it easier for municipalities to form a new municipal light department.
House Bill H.2896, "An Act Relative to the Establishment of Municipal Lighting Authorities," was recently voted favorably out of the Joint Committee on Telecommunications, Utilities and Energy, and is now pending in the House Ways and Means Committee.
Yet Town Manager Nancy Galkowski and Light Manager Jim Robinson point out that the municipalization bill could be very harmful to the HMLD's customers, along with those of the 39 other municipal light plants in the Commonwealth.
Included in the bill are potentially harmful provisions that would make municipal light departments required to meet the state mandated energy efficiency requirements and assess all customers with a $.0025 /KWH surcharge, which Robinson outline would cost HMLD customers $250,000 per year.
This provision would ignore energy efficiency programs that are tailored to meet Holden' needs and established rate structure.
Furthermore, the departments would be required to join the Renewable Energy Trust administered by the MTC, and assess all customers a $.0005/ KWH surcharge.
According to Robinson, Holden already voluntarily joined this program three years ago.
Additional impositions would require departments meet renewable energy standards and alternate energy portfolio standards, which the light manager explained "ignores the existence of supply agreements that limit portfolio flexibility," and "will increase power costs over time."
Light Departments would also have to allow third party ownership of residential renewable energy equipment, which Robinson explained "will result in opening our territories to retail choice."
"These are requirements that are already imposed on the investor owned utilities," stated Robinson. "Imposing these requirements on Holden and other MLP's will take away local decision making authority and will increase costs and rates."
In an effort to protect their interests, Light Department Managers from Holden, Princeton, Paxton and Sterling met with State Rep. Kim Ferguson.
"She understands the implications of these provisions on Holden and other public power customers in the area, is very supportive of our concerns, and has been in contact with several members of the legislature and committee staff members," Robinson added.
