Community Electricity Aggregation
February 2024 Update
On March 11th, 2024, we will being the 30-day period for public review of the aggregation plan, required by the The Department of Public Utilities (DPU). The plan will be presented to Town Council and will be available in hard-copy at Town Offices, including the Town Clerk's office and Mayor's Office.
The plan is available here for review: Weymouth Aggregation Plan
Please review the aggregation plan and submit any comments or questions in writing to Bob O'Connor during the review period or attend the public hearing at the end of the 30-day public review period to offer comments or questions orally. You can reach Bob at ROconnor@weymouth.ma.us
This public review period will be completed before the aggregation plan is submitted to the DPU for their review and approval.
Community Electricity Aggregation FAQs
What is Community Electricity Aggregation (CEA)?
Community Electricity Aggregation, known as municipal aggregation in MGL, Chapter 164, Section 134(a), is simply the formation of a buying group composed of the residents and businesses of one or more municipalities that is typically designed, developed and managed by an aggregation consultant under the guidance of municipal officials of one or more municipalities. This gives a municipality or group of municipalities much stronger buying power than any individual resident or business has when dealing with the utility distributing the electric supply.
Why can a municipality or group of municipalities aggregate the electricity load of the residents and businesses within its boundaries?
In 1997, Massachusetts passed the nation's first municipal aggregation law (MGL, Chapter 164, Section 134(a)) that gives municipalities the authority to act as "municipal aggregators” to aggregate the electricity load of the residents and businesses within their boundaries through a competitive bidding process for electric supply.
How does a municipality start the process of Community Electricity Aggregation?
As stated in the municipal aggregation law, “A town may initiate a process to aggregate electrical load upon authorization by a majority vote of town meeting or town council. A city may initiate a process to authorize aggregation by a majority vote of the city council, with the approval of the mayor, or the city manager in a Plan D or Plan E city.”
What are the primary goals of Community Electricity Aggregation?
- More competitive electricity choices;
- Longer term, stable electricity rates;
- Potentially lower electricity rates (although savings cannot be guaranteed);
- More renewable electricity in the Standard (default) and optional products generated by New England renewable energy facilities;
- Increased consumer protection against unscrupulous retail marketers of electricity.
Who can participate in the Community Electricity Aggregation?
During the required initial 30-day Customer Notification Period all Eligible Customers will receive a Customer Notification Letter approved by the Department of Public Utilities that explains the Community Electricity Aggregation. Eligible Customers primarily include Basic Service customers of the utility and do not include any customer that has already chosen a third-party electric supplier.
To participate in the Community Electricity Aggregation, Eligible Customers do not need to take any action, enrollment in the Standard (default) product is automatic. To decline participation, an opt-out card and postage paid envelope is provided for mailing to the electric supplier.
After the required initial 30-day Customer Notification Period, participants can opt-out of the Community Electricity Aggregation at any time without penalty or termination fees.
What is the cost to the municipality of developing and implementing a Community Electricity Aggregation?
There is no out of pocket cost to the municipality. The cost to design, develop, draft and submit the municipal aggregation plan; the legal expense of guiding the plan through the consultation with the Department of Energy Resources and the approval process with the Department of Public Utilities; the cost of the informational mailing to residents and businesses; the cost of the Request for Proposals (RFP) to competitive suppliers is borne by the aggregation consultant or the electric supplier. The aggregation consultant is paid at the rate of $0.001/kWh (one mill; 1/10 of a penny) by the electric supplier on the total electric usage of the aggregation.
Is there any risk to municipal officials, residents or businesses for participating in a Community Electricity Aggregation?
No. There is no financial or failure of service risk for the municipality. The municipality is not responsible for any payments to the electric supplier and there would never be an interruption of service due to participation in a Community Electricity Aggregation. Municipal officials can accept or reject any competitive supplier bid that does not fulfill their objectives for the Community Electricity Aggregation. Individual residents and businesses can opt-out of the Community Electricity Aggregation at any time without penalty or termination fees.
If municipalities participate in a Community Electricity Aggregation, who maintains the electric system infrastructure?
The maintenance and service of the electric system infrastructure (poles, lines, transformers, etc.) continues to be the responsibility of the utility that distributes electric supply to the municipality. Community Electricity Aggregation deals only with the electric supply that is distributed by the utility.
If municipalities participate in a Community Electricity Aggregation, who bills the individual residents and businesses?
Participants in a Community Electricity Aggregation continue to receive one bill from the utility. The only changes on the bill include the name of the electric supplier and the rate charged.
If municipalities participate in a Community Electricity Aggregation, is there any risk of inferior service from the utility or that electric supply would not be delivered by the utility?
No. Since electricity deregulation in the late 1990’s, utilities have divested all generation assets, are neutral concerning the electric supplier and provide a consistent level of service across all customers. Electric supply will be delivered to all customers by the utility.
Are budget billing and discount programs of the utility available to participants in a Community Electricity Aggregation?
Yes. Any budget billing and discount programs offered by the utility continue for participants in a Community Electricity Aggregation.
Can individuals with solar panels and net metering agreements or participants in community solar, participate in a Community Electricity Aggregation?
Yes. Any net metering or community solar agreements are separate and apart from participation in a Community Electricity Aggregation. Participants will continue to receive net metering credits at the Basic Service rate of the utility.
Can Community Electricity Aggregation be used to increase the amount of renewable energy offered in aggregation product options?
Yes. Municipalities can select a Standard (default) product that has additional voluntary renewable energy through the purchase of Renewable Energy Certificates (RECs) and two optional products, one (Basic) with the minimal renewable energy required by the Commonwealth and one (Plus) with 100% renewable energy.
Is there a tax deduction for the purchase of renewable energy?
Yes. When the Renewable Energy Certificates (RECs) are sourced through Green Energy Consumers Alliance, a Boston-based nonprofit organization, the cost of the RECs for the optional Plus product with 100% renewable energy that is more than the cost of the Basic product, is tax deductible.
Can tax exempt businesses participate in a with Community Electricity Aggregation?
Yes. Tax exempt businesses can maintain their tax exempt status by sending a copy of their tax exempt certificate to the electric supplier of the Community Electricity Aggregation.