How aggregation works
Municipal electricity aggregation is a form of group electricity purchasing. Electricity aggregation replaces your electricity supplier, and it changes the price that Eversource uses to calculate the supply services charge piece of your electricity bill. In addition, aggregation can increase the amount of renewable energy in your electricity supply, as it does in Newton. But electricity aggregation does not replace Eversource as your electric utility.
Here’s how it works:
Without Newton Power Choice
(Unless you already have a contract with an electricity supplier)
Typically, Eversource provides two services to you as an electricity customer, and your electricity bill includes charges for both of these services:
|Eversource’s primary role is as an electricity delivery company. They deliver electricity to you, maintain the poles and wires, and address power outages. They charge you for these services on the delivery charges on your Eversource electricity bill.|
|For most people, Eversource also provides a second service, which is as an electricity supplier. They purchase electricity on your behalf and charge you on the supply charges of your Everseource electricity bill for the amount you use. When Eversource is your electricity supplier, you have Eversource’s Basic Service. When you first open your electricity account, you are placed on Eversource’s Basic Service.|
The diagram below shows Eversource both delivering and supplying electricity.
Eversource’s fixed Basic Service prices change seasonally, every 6 months for residential and commercial customers and every 3 months for industrial customers, and future prices are not known.
With Newton Power Choice
In an electricity aggregation like Newton Power Choice, Eversource continues to deliver your electricity and you continue to call them when the power goes out, but you no longer have Eversource’s Basic Service for the supply portion of your electricity bill. Instead, the City of Newton uses the bulk purchasing power of the community to negotiate a contract with an electricity supplier on behalf of residents and businesses and to determine the price of the community’s electricity supply and whether any additional renewable electricity is included. If you participate in the Newton Power Choice, Eversource uses the Newton Power Choice price to calculate the supply charges on your electricity bill instead of their own Basic Service price.
The Newton Power Choice price is a fixed long-term price that does not change seasonally.