Understanding Cape Light Compact

If you live on Cape Cod and have even the slightest interest in saving money on your energy bills, you’re not going to get too far down that road without coming across the work of Cape Light Compact (known to its many friends here on the Cape simply as “the Compact”.)

For almost 30 years, the Compact has been at the heart of Cape Cod’s energy market, negotiating electricity supply rates, conducting home and business energy audits and advocating for 200,000 customers in 21 towns across Barnstable and Dukes counties. 

In this article we’ll look at how Cape Light Compact has emerged as a pivotal player in the region’s electricity market, shaping energy efficiency efforts, promoting renewable energy, and creating a more sustainable future for Cape Cod residents.

The History Cape Light Compact

Founded in 1997, Cape Light Compact is a joint municipal power services organization that serves Cape Cod and Martha’s Vineyard. It was established in the wake of the 1997 Massachusetts Restructuring Act, which deregulated the electricity industry and allowed towns and cities across the state to establish municipal aggregators to help manage their energy costs.

Given Cape Cod’s historically high electricity costs, the idea of pooling together every town’s combined purchasing power in order to negotiate more competitive rates was particularly attractive. 

Twelve of the Cape’s fifteen towns joined initially, with the other three jumping on board in 1998. That same year, all six towns on Mathat’s Vineyard joined, as well, making up the 21 towns that belong today.

Key Functions of Cape Light Compact

Cape Light Compact plays five critical roles in the electricity market, including:

Aggregation and Supply Procurement

This means that Cape Light Compact leverages the collective buying power of its many members to negotiate better electricity rates. These lower rates, available to both residential and commercial customers, are a major benefit for many in the community. 

It is the default supplier of electricity, which means that any electricity account that is opened on Cape Cod or Martha’s Vineyard is supplied by electricity that is negotiated by Cape Cod Compact.

But that does not mean that homes and businesses are required to use that supplier. Each individual account is entitled to choose their own third-party electricity supplier, some of whom offer cheaper rates than Cape Light Compact.

Since 2017, the supplier that Cape Light Compact has been using is NextEra Energy Services.

Energy Efficiency Programs

Cape Light Compact is the local sponsor of Mass Save. The purpose of transferring this program to the Compact was to ensure that the millions of dollars that Cape and Vineyard electric customers pay on their bills each year would actually be spent here, rather than elsewhere in the state.

They offer a suite of services to help you identify and implement practical, money-saving changes in your home or business.

• Free Home Energy Assessments**: Through a partnership with Mass Save, you can have an energy expert evaluate your home for areas of energy loss.
• Rebates and Incentives:** From energy-efficient appliances to insulation upgrades, you can access various financial incentives to make your home more eco-friendly..
• Residential New Construction Guidance**: Cape Light Compact provides expert advice and resources to incorporate energy efficiency measures from the ground up.

Renewable Energy Initiatives

The Cape Light Compact is committed to promoting the development of renewable energy sources on Cape Cod and Martha’s Vineyard. The organization has supported the development of several renewable energy projects, including wind and solar installations, and has partnered with local organizations to promote the use of renewable energy.

Cape and Vineyard Electric Cooperative (CVEC)

In 2007, the Cape Light Compact played a key role in establishing the Cape and Vineyard Electric Cooperative (CVEC), a consumer-owned cooperative that provides electricity to its members on Cape Cod and Martha’s Vineyard. CVEC is dedicated to delivering reliable, affordable, and sustainable energy to its members, while promoting the development of renewable energy sources.

CVEC’s Renewable Energy Achievements

CVEC has achieved significant success in promoting renewable energy on Cape Cod and Martha’s Vineyard. The organization has:

• Developed 28 Megawatts of Solar Capacity: CVEC has developed 28 megawatts of solar capacity in its member towns, making it one of the largest solar developers in the region.
• Contracted for 12 Megawatts of Additional Solar Capacity: CVEC has contracted for an additional 12 megawatts of solar PV capacity, further expanding its renewable energy portfolio.
• Supported the Development of Wind Energy: CVEC has supported the development of wind energy projects on Cape Cod and Martha’s Vineyard, including the installation of wind turbines in several member towns

Education and Outreach

Cape Light Compact places great emphasis on community education regarding energy conservation. With workshops, events, and online resources, the Compact aims to raise awareness about:

• Energy-saving practices.
• The financial benefits of energy efficiency.
• Available rebates and incentives.

By engaging the public, the Compact fosters a culture of energy responsibility and empowers citizens to take action.

Advocacy and Collaboration

Cape Light Compact collaborates with local, state, and federal entities to advocate for policies that benefit the community’s energy landscape. This includes:

• Engaging with the Massachusetts Department of Public Utilities on energy policy.
• Working with other organizations to share best practices and research opportunities.

By advocating for sustainable energy policies, CLC further enhances its role as a leader in the Cape Cod electricity market.

Impact on Local Economy and Community

The influence of Cape Light Compact extends beyond energy savings and supply stability. The organization contributes positively to the local economy in numerous ways:

• Job Creation: The Compact’s energy efficiency programs stimulate local job growth within the energy sector by hiring local contractors for energy audits, installation of energy-saving devices, and renewable energy projects.
  
• Financial Savings: Through energy efficiency and aggregation initiatives, Cape Light Compact has saved residents and businesses millions of dollars on their electricity bills annually. These savings circulate back into the local economy, promoting increased spending on other goods and services.
  
• Community Resilience: By investing in renewable energy, CLC fosters resilience against fluctuating energy prices and uncertainties in fossil fuel markets. This empowers the local community to adapt to changing energy dynamics and work towards long-term sustainability.

Challenges and Future Directions

While Cape Light Compact has made significant strides in improving the electricity market in Cape Cod and Martha’s Vineyard, it faces several challenges:

• Climate Change Impacts: Rising sea levels and severe weather patterns threaten the infrastructure and reliability of energy delivery. the Compact must continually adapt its strategies to address these environmental challenges.
  
• Funding and Resource Allocation: As demand for energy efficiency and renewable energy programs grows, Cape Light Compact will need to secure adequate funding to support its initiatives while balancing the needs of its diverse communities.
  
• Technological Advancements: The rapid pace of innovation in energy technology presents both opportunities and challenges. The Compact must remain informed on emerging technologies and integrate them into its programs to maintain relevance and effectiveness.

Final Thoughts on Cape Light Compact

It’s hard to argue the fact that Cape Light Compact plays a crucial role in the Cape’s electricity market. By providing vital programs, fostering education, and advocating for favorable energy policies, the Compact enhances the quality of life for residents, protects the environment for future generations, and strengthens the local economy. 

As Cape Cod navigates the evolving energy landscape, Cape Light Compact will undoubtedly continue to play an instrumental role in shaping a sustainable energy future for the region.