Electric Aggregation

Local and county governments can purchase electric power on behalf of their constituents through a process called municipal electric aggregation. Community Choice Aggregation allows municipalities and counties to aggregate the buying power of individual customers within a defined jurisdiction in order to secure alternative energy supply contracts. Aggregated systems allow communities to negotiate services and prices directly with producers rather than receive “default” service from the local electric utility. This allows municipalities to lock in prices over an extended period of time, which typically generates long-term cost savings.

All municipal aggregation in Massachusetts must meet the following guidelines:

  • The contract price must be lower than the basic service supply price currently paid by customers, and
  • All customers must be able to opt-out of the aggregation at any time.

There are a number of requirements that local governments must meet in order to become a municipal aggregator, including the development of an aggregation plan with assistance from the Massachusetts Department of Energy Resources, and plan certification by the Massachusetts Department of Telecommunications and Energy.

If you would like information on how to establish a Municipal Electric Aggregation, contact the Massachusetts Department of Energy Resources.

Resources

Department of Energy Resources, Guide to Municipal Electric Aggregation in Massachusetts

Cape Light Compact (CLC) and the CLC presentation on Collaborative Energy Efforts at the 2012 Massachusetts Regionalization Toolkit Conference

Hampshire Power, Municipal Aggregation

Examples of Electric Aggregation

Cape Light Compact is an inter-governmental organization consisting of the 21 towns and two counties on Cape Cod and Martha’s Vineyard. Administered by Barnstable County, the Compact provides an option for purchase of power supply and an option for energy efficiency and conservation programs. For more information, contact Cape Light at info@capelightcompact.org

Hampshire Power is an aggregation program through the Hampshire Council of Governments. The program currently serves about 90 customers, most of them cities, towns, and districts, as well as a number of small businesses and non-profits and one state agency. For more information contact Geoffrey Rogers at 413-584-1300 x153.

MunEnergy is an aggregation program administered by the Massachusetts Municipal Association. More than 120 cities and towns currently participate in the MunEnergy Program. Constellation NewEnergy is the endorsed energy supplier for the MunEnergy program. For more information, see http://www.mma.org/about-mma-mainmenu-62/munenergy