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Burlington's electricity savings program has delivered real results over its initial two-year contract: $2.6 million in projected savings for residents and businesses by the time the contract expires in October 2026, according to Town Analyst Sam Hockenbury. Now town officials are navigating a much more turbulent energy market as they work to negotiate a new deal.

The Select Board voted at their June 8, 2026, meeting to authorize Town Administrator John Danizio to sign a new municipal aggregation contract — up to three years in length — whenever energy market conditions make it advantageous to do so.

What the program has accomplished

When the town enrolled most Burlington residents in the Constellation NewEnergy aggregation program in fall 2024, the locked-in supply rate was $0.13229 per kilowatt-hour. That rate has held steady while Eversource's rates have fluctuated — reaching as high as $0.17+ per kWh this past winter.

Hockenbury, who has guided the program from the start, told the board the final savings figures won't be complete until data from early 2026 comes in, but his projections show the program saving households roughly $250 each over the two-year period on the supply portion of their electricity bills. Commercial businesses saved around $800 on average; the town's four industrial users saved an average of $21,500 each.

"It was great savings, huge success," Hockenbury said. "The only downside is that we picked a two-year contract term and in hindsight, I would go back in time and tell you all to do a three year term."

Why the next contract is harder

The energy market heading into the next contract cycle looks very different from 2024. Hockenbury says projections point to a 20 to 25% increase in supply pricing compared to the current contract — a jump from roughly 13 cents per kWh to around 16 cents according to current estimates.

The good news: That's still expected to beat Eversource, whose announced rate for August 1 through January 31 is $0.1733 per kWh. But the margin of savings will be noticeably smaller, and bills will go up regardless. Higher rates aren't the only factor — usage is expected to climb, too. Earlier that evening, Eversource representatives presenting plans for a new Burlington substation told the board that residential energy consumption is expected to double or even triple over the next decade, driven by electric vehicles, heat pumps, and greater numbers of devices overall.

"The program will still work as designed, where you save relative to Eversource, but your bills are going to be going up this winter," Hockenbury said.

The volatility is driven by broader energy market forces — supply constraints, infrastructure uncertainty, and geopolitical factors that make pricing unpredictable week to week. That's why the town wants flexibility to act quickly if conditions improve.

One year, two years, or three?

The board also weighed in on how long a new contract should be. Hockenbury laid out the tradeoffs plainly: a one-year deal bets that prices will come down and the town can get a better rate next year; a three-year deal bets this is the best the market will offer for a while.

His recommendation leaned toward one year. "Our goal is to still always beat Eversource," he said, "and we don't want to end up being high and locked in too high and then have to tell people get out of the program."

Select Board member Mike Espejo agreed, and the board authorized Danizio to sign for a term up to three years — giving him room to respond to market conditions while setting a preference for keeping the commitment shorter if pricing warrants it.

"Whatever we do, it's going to be a gamble," said board member Nick Priest. "I think giving [Danizio] the authority with the hopes that we can save the residents a few pennies — which do amount to actual real dollars over time — is the right call."

The board expects an update at its June 22 meeting on where negotiations stand.

What this means for your bill

Burlington residents currently enrolled in the aggregation program don't need to do anything right now. The current rate remains in effect through October. When a new contract is signed, the town is required to notify residents by mail with information and an opt-out option before any change takes effect.

As always, residents can opt out of municipal aggregation at any time at no cost. Questions about your energy bill can be directed to Town Hall – You can call them at 781-270-1600.

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