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 National Grid uses to calculate the Supply Services charge on your electric bill. In addition, aggregation can increase the amount of renewable energy in your electricity supply. But electricity aggregation does not replace National Grid as your electric utility.
Here’s how it works:
Without Sutton Power Choice
(Unless you already have a contract with an electricity supplier)
Typically, National Grid provides two services to you as an electricity customer, and your electric bill includes charges for both of these services:
Electricity delivery |
National Grid’s primary role is to deliver your electricity. Their responsibilities also include maintaining the delivery infrastructure (the poles and wires) and addressing power outages. They charge you for these services in the Delivery Services portion of your electric bill. |
Electricity supply |
National Grid can also provide a second service, which is to supply your electricity. This means they purchase electricity on your behalf and charge you for the amount you use in the Supply Services portion of your electric bill. When National Grid supplies your electricity, their Basic Service price is used to calculate the Supply Services portion of your bill. Basic Service prices change seasonally. When you first open your electricity account, you are placed on National Grid’s Basic Service. |
The diagram below shows National Grid both delivering and supplying electricity.
With Sutton Power Choice
In an electricity aggregation like Sutton Power Choice, you remain a National Grid customer. They continue to deliver your electricity, and you continue to call them when the power goes out. They also continue to send your electric bill, and you continue to send bill payments to them.
However, National Grid no longer supplies (buys) your electricity. As a result, you no longer have National Grid’s Basic Service price for the Supply Services portion of your electric bill.
Instead, the Town of Sutton uses the group buying power of the community to sign a contract with an electricity supplier and establish an electricity Supply price for the community. National Grid then uses a Sutton Power Choice price instead of their own Basic Service price to calculate the Supply Services portion of your bill. Sutton Power Choice prices are typically fixed, long-term prices that do not change seasonally.
Through the program, the Town can also choose to buy more electricity from renewable sources than is required by state law. For participants in the Power Choice Green option, Sutton buys 100% of your electricity from renewable sources, which is more than is required by law.