Salem PowerChoice Sets New 3-Year Electric Rates

SALEM, MA — Salem PowerChoice, the city's municipal group electricity buying program, will switch to new three-year prices in December.

The city said that, while prices have increased, most participants are still paying less than National Grid’s current residential and commercial Basic Service rates.

The new fixed prices will run from December 2026 through December 2029. Salem officials also announced the program will stop offering its Standard option and move those customers into the Basic plan.

Under the new pricing, the Basic option will cost 15.560 cents per kilowatt-hour, and the Plus option will cost 18.130 cents per kilowatt-hour.

The city said the Basic option is lower than National Grid’s current Basic Service prices, which are fixed through Jan. 31, 2027, at 17.185 cents per kilowatt-hour for residential customers and 15.568 cents per kilowatt-hour for commercial customers.

"Salem PowerChoice, the city's electricity supply program, saves residents and businesses money on energy bills and lets them lock in multi-year rates for greater predictability," said Salem Mayor Dominick Pangallo. "With this most recent change, Salem residents on PowerChoice’s basic plan will pay 9% less than National Grid’s rate, meaning more money saved. Over the decade of PowerChoice, those savings have come to around $24 million, back into the pockets of Salem residents. Programs like PowerChoice are one way we’re working to reduce costs on Salem residents and make our community more affordable."

The Standard option is being dropped after changes in federal policy made it significantly harder to build new renewable energy infrastructure, according to the city. The city said that because of those barriers, buying an additional 20% of electricity from renewable sources is not currently having the desired impact. Customers now in Standard will be moved to Basic, which provides the minimum amount of electricity from renewable sources required by state law.

The Plus option will remain available by request for customers who want electricity that is 100% from renewable sources.

No action is required for current participants. The price change will happen automatically in December, and the new price will appear on January electric bills.

Customers can change options or leave the program at any time with no fee or penalty. The city said anyone who wants to make a change before the new prices take effect should do so no later than 14 days before their December 2026 meter read date.