HADLEY — A group purchasing program for electricity, designed to increase renewable energy use while also providing electricity supply options that help residents and businesses manage their costs, will be extended another three years.

Hadley officials announced this week that Hadley Community Electricity Aggregation, launched in 2019, will have new prices in effect from the first readings on Dec. 3, 2024, which will extend through December 2027. Current participants served by Constellation Energy will soon be served by Direct Energy, but will automatically remain in the program and receive the new pricing.

John O’Rourke, local representative for Good Energy, L.P. of New York City, the aggregation consultant, told the Select Board Wednesday that the average resident has saved about $1,000 over the past five years through the program, which buys electricity at a discounted, bulk rate.

“Savings are not guaranteed, but certainly we look forward to success in all our aggregations, and we’ve done fairly well here in Hadley,” O’Rourke said.

Hadley Basic rates are rising from 10.47 cents per kilowatt hour to 12.82 cents per kilowatt hour, which meets state-mandated renewable energy requirements of having 62% renewable sources. That is compared to 14.023 cents per kilowatt hour for Eversource Basic rates through January 2025, when the rates will be adjusted for the winter.

Hadley 100% Green rates will go down from 14.364 cents per kilowatt hour to 14.13 cents per kilowatt hour. That option uses electricity from entirely renewable sources.

Those who want to switch options should continue to contact the current electricity supplier, Constellation, at 833-942-3019, or submit a request at HadleyCEA.com, where options can be adjusted at any time.

The town’s current electricity contract has offered fixed prices and stability since November 2021. The Hadley Community Electricity Aggregation prices only apply to the supply portion of electric bills, with Eversource continuing to set the charges on the delivery side, as well as handling repairing outages and fixing damaged utility poles in town, and managing billing for customers.

Scott Merzbach can be reached at smerzbach@gazettenet.com.