Electricity Aggregation: The Basics
Municipal electricity aggregation is a form of group purchasing in which a town selects an electricity supplier on behalf of its residents and businesses. An alternative to volatile electricity pricing, municipal electricity aggregations are typically designed to deliver:
COMPETITIVE PRICING / COST SAVINGS – The Town negotiates a competitive electricity supply price with the goal of beating the electric utility’s Basic Service rate (however, because Basic Service prices change all the time, long-term savings cannot be guaranteed).
PRICE STABILITY – The aggregation establishes a contract with an electricity supplier for a predictable price over a fixed period of time.
GREENER POWER COST EFFECTIVELY – The Town can choose to include more renewable energy in the program than the utility delivers through Basic Service, including from local renewable energy sources.
CHOICE AND TRANSPARENCY – The competitive procurement process will ensure a vetted, transparent alternative to utility Basic Service. There are no hidden costs, and program terms are public.
How Participation Works
Any electric customer on utility Basic Service within the geographic boundaries of the city or town launching the aggregation will be automatically enrolled in the program when it launches. Any electricity customer that already has an agreement with an electricity supplier will not be automatically enrolled, but may choose to join.
Any electric customer that does not wish to participate in the program may opt out, or leave, at any time with no penalty.
What will appear on the electric bill
After the program starts, the Supplier Services part of each program participant’s bill will indicate that electricity is being supplied by the electricity supplier selected by the Town.
Additionally, the program rate will appear for electricity supply costs instead of the utility’s Basic Service rate.
What will not change after enrollment
- Participants will continue to receive one bill from the electric utility.
- Participants will continue to call the electric utility if the electricity goes out.
- Anyone eligible for a low-income delivery rate or fuel assistance will continue to receive those benefits.
- Net metering credits will continue to appear on the utility bill and will be calculated based on the utility’s Basic Service price.
Don’t want to participate?
Customers may choose not to participate in a municipal electricity aggregation. This is known as opting out. Participants may opt out of the program before launch and at any time after launch with no fee or penalty. Information about how to opt out is typically made available starting approximately 30 days before program launch. Customers may opt out online using the form provided within their community’s site section on MassPowerChoice.com. (Visit the home page for a list of our communities.)