"Daisy" Power Charges Trigger One-Cent Electricity Rate Hike for Pembroke Residents
Key Points
- Municipal electricity rates will rise to $0.15187 per kWh due to regional grid service charges
- Preliminary $85.9 million FY27 budget faces a $461,000 shortfall and rising healthcare costs
- Select Board approves transfer of precious metals license for 125 Church Street to George Hanous Jewelers
- Special and Annual Town Meeting warrants finalized with 16 total articles approved
- Town Manager reports industrial accident at Public Safety building site and regional salt shortage
Pembroke residents will soon see higher electric bills following a unanimous Select Board vote to amend the town’s municipal aggregation contract. Mark Capidona of Colonial Power informed the board that unforeseen "Day-Ahead Ancillary Services" (Daisy) charges from ISO New England have skyrocketed far beyond regional projections. The costs that happened on January 26th and 27th were more than ISO New England had planned for all of 2025 and 2026,
Capidona said. They gave guidance of about $100 million; it’s come in over a billion dollars so far.
The amendment raises the town's rate by one penny to $0.15187 per kilowatt-hour, an increase of approximately $7 per month for the average household.
The rate hike sparked concerns regarding the reliability of long-term energy contracts. Member S. Keegan questioned the necessity of the increase despite the town’s current agreement. My only concern is we had a three-year contract and with the pass-through, suddenly it’s going up. How is this going to help my ratepayers in the future?
Keegan asked. Capidona admitted the pass-through provision proved to be a terrible idea
in hindsight and pledged to seek fixed pricing in future contracts to avoid similar volatility. Member D. Trabucco sought to confirm if the issue was localized, asking, Since this is an ISO New England charge, is it safe to assume that anyone within the ISO New England power grid is going to have a similar hit?
Capidona confirmed the "Daisy" program has a design flaw that is currently being challenged at the federal level.
Motion Made by D. Trabucco to allow Town Manager B. Chenard to sign the amended contract. Motion Passed (5-0-0).
Financial pressures continued to dominate the joint session with the Advisory Committee as Town Manager Bill Chenard presented a preliminary $85.9 million budget for Fiscal Year 2027. While Chenard is not currently recommending an operating override for municipal services, he warned that the town is managing a $461,000 shortfall and grappling with massive projected spikes in healthcare. We were on track 100% not to be asking for an operating override for municipal operations,
Chenard said. However, we got news that healthcare rates had the potential to increase between 14% and 25%. We are pushing to bring this down to 10%.
Revenue challenges are also mounting as winter weather stalled local development. New growth for next year is anticipated to be lower than hoped because the winter weather put projects on hold,
Chenard explained. Advisory Committee Chair Linda inquired about the school funding obligations, asking, The budget you're presenting has already factored in the maintenance of effort for the schools?
Chenard confirmed that the figures align with agreements made with the Superintendent. Vice Chair J. Brown raised concerns about the immediate costs of the recent storms, asking, Do you have an estimate for what we spent already on snow and ice?
Chenard noted the town has already exceeded its snow budget and is currently facing a regional salt shortage, though supplies remain adequate for immediate safety.
The board also approved a business transition at 125 Church Street. Robert Thomas, district manager for George Hanous Jewelers, appeared to request the transfer of the precious metals dealer license from Southshore Diamond Exchange. I would like to get the license hopefully approved and get started and be a good business partner with the town of Pembroke,
Thomas said. Chair T. Marino welcomed the new business partner to the community before the board moved to approve the transfer.
Motion Made by R. Flynn to grant the precious metal license transfer application of George Hanous Jewelers of Mass Inc. Motion Passed (5-0-0).
Legislative matters saw the board re-authorizing House Bill 4817, which seeks an additional "off-premises" liquor license for the town. Chenard noted the bill required a second vote because a previous applicant had withdrawn, necessitating slightly different language for the legislature to move forward.
Motion Made by R. Flynn to approve House Bill 4817. Motion Passed (5-0-0).
The board moved to finalize the warrants for the upcoming Annual and Special Town Meetings, approving 16 articles for the annual session. These include overrides for the Southshore Technical regional school district and a new kennel bylaw that shifts fee-setting authority to the Select Board. To facilitate a water main connection between Taylor Street in Pembroke and High Street in Duxbury, the board also approved a conflict waiver for KP Law, which represents both towns.
Motion Made by R. Flynn to allow KP Law to provide a legal opinion and waive the conflict regarding the water connection. Motion Passed (5-0-0).
Motion Made by S. Keegan to include the recommended articles in the Special Town Meeting warrant. Motion Passed (5-0-0).
Motion Made by S. Keegan to include the 16 articles in the Annual Town Meeting warrant. Motion Passed (5-0-0).
In his final report, Chenard informed the board of an industrial accident at the Public Safety building construction site where a steelworker fell and broke both heels. The worker is expected to recover, and the incident is being reviewed by OSHA. Chenard also clarified that the Board of Health agent is now the designated authority for enforcing the town's plastic bag ban.