Municipal Aggregation, also known as Community Choice Aggregation, is a form of energy purchasing in which a city or town arranges the electricity supply for its citizens and an innovative way for Massachusetts communities to generate new revenue for energy initiatives.
Aggregation benefits include:
- Competitive energy supply rates
- Cleaner renewable energy supply
- Use of local energy sources
- Funding for municipal energy efforts
Aggregation is possible in 6 states that have passed utility deregulation legislation: Massachusetts, New Jersey, Illinois, Ohio, California, and Rhode Island. (How does utility deregulation work?)
How aggregation works
In a municipal aggregation, a city or town chooses the electricity supplier on behalf of all residents. Suppliers compete to provide the best price. The community can also choose how much of the electricity supplied consists of renewable or even local energy. They lock in a contract with that supplier over a period of time, and all residents receive their energy from that supplier. Because of the complexity around supplier pricing, communities will use a broker who understands that market to negotiate with suppliers and establish the contract.
Once the aggregation is implemented, Massachusetts cities and towns are allowed an added benefit. The municipality can take a piece of the savings generated by switching to a new, more cost effective supplier and apply those dollars toward municipal energy projects.
Customers will continue to receive a bill from their utility company for energy delivery. Depending on the supplier, the portion of their bill that is energy supply may either be integrated into their utility bill but indicate the new supplier, or it may appear on a separate bill that is sent directly from the supplier.
Opt out any time
Municipal residents can choose to opt out of the aggregation at any time. If they do so, they will be switched automatically back to basic service from the utility at no charge.
No interruption in customer service
The utility will continue to provide customer service and repairs for power outages, downed power lines, and other maintenance issues. Customers continue to contact the utility as before.