Municipal Aggregation Plan

On November 2nd, the City of Amesbury released a Municipal Aggregation Plan in compliance with Massachusetts law regarding public aggregation of electric consumers. The Plan has been developed in consultation with the City's aggregation implementation consultant, Colonial Power Group, Inc. (CPG) and the Massachusetts Department of Energy Resources (DOER).

So What Is Municipal Aggregation?

Diagram demonstrating Local Energy AggregationIn 1997, Massachusetts passed the Electric Restructuring Act which deregulated the electricity market. This deregulation was meant to bring competition to the electric industry and thereby push suppliers to compete for consumers with better rates and innovations. Individual consumers do not buy enough electricity to make it worthwhile for suppliers to compete for their attention. However, it is advantageous for suppliers to work with a whole community. The way to bring the whole community together is through Municipal Aggregation. Municipal Aggregation allows local governments to combine the purchasing power of its residents so that it can provide them with an alternative electricity supply. Municipal Aggregation is a valuable service that residents and small businesses look for from their local governments. It has proven to be the most effective way to help small consumers manage their electricity bills, and has received overwhelming support throughout the Commonwealth.

The purpose of the Municipal Aggregation Plan is to represent consumer interests in competitive markets for electricity. It seeks to aggregate consumers in the City to negotiate rates for power supply. It brings together the buying power of more than 16,000 consumers. Furthermore, the City seeks to take greater control of its energy options, including enhancing the ability to pursue price stability, savings opportunities and the amount of renewable energy procured. However, savings cannot be guaranteed. Participation is voluntary for each consumer. Consumers have the opportunity to decline service provided through the Plan and to choose any Competitive Supplier they wish. The City has distributed this Plan for public review prior to submitting it to the Massachusetts Department of Public Utilities (DPU).

Basic Service rates change twice a year or more, depending on rate class. As a result, the aggregation rate may not always be lower than the Basic Service rate. The goal of the aggregation is to deliver savings over the life of the Program against National Grid Basic Service. However, such savings and future savings cannot be guaranteed.

Get Involved!

Any questions pertaining to the Municipal Aggregation Plan should be directed to Angela Cleveland, Office of Community and Economic Development at 978-388-8110.