Municipal Aggregation Plan

In 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.

Timeline to Date

June 14, 2016: City Council Authorization

• Approved Ordinance 2016-049 by which the city declared its intent to become an aggregator of electricity
  
  

August 25, 2020:  Consultant Agreement 

• Signed a consultant agreement with Colonial Power Group (CPG)  
  
  

November 2 – December 7, 2020:  Public Review & Comment Period 

• Posted the Aggregation Plan for public review and comment. 
  
  

December 8, 2020: Aggregation Plan Approved 

• City Council voted to approve the Aggregation Plan

 
April 6, 2021: DOER Consultation 

• Conducted a meeting with the City, CPG, and the DOER to review the processes, consequences, and outcomes of municipal aggregation

 
April 23, 2021  DPU Submission & Order 

• Filed the City’s Petition with the DPU seeking approval of its Aggregation Plan 

 
July 20, 2021  DPU Submission & Order

• Conducted required public hearing 

 
April 4, 2024  DPU Submission & Order

• City identified standard and optional product offerings for compliance filing
  
  

 May 24, 2024  DPU Submission & Order

• DPU approved the Aggregation Plan, which allows the city to go out in the competitive marketplace and solicit pricing for its residents. 

The Community Choice Power Supply Program is a municipal aggregation program which allows local government to combine the purchasing power of its residents to achieve savings on electricity costs. In doing so, it creates competition among competitive suppliers which helps ensure aggressive rates. Consumers are no longer “stuck” with the cost and fluctuation of Basic Service rates because the Program offers them another option.

Following the approval of Ordinance 2016-049 by the City Council in June 2016, the City of Amesbury developed and published its Aggregation Plan (“Plan”) in compliance with Massachusetts law regarding municipal aggregation of electric consumers (M.G.L. c. 164, § 134). The City Council approved the Plan in December 2020, and a power supply agreement was executed this July to take effect October 2024.

A competitive supplier is a power supplier other than National Grid. Competitive suppliers provide power supply to consumers either through a municipal aggregation program or through a competitive supplier program. Your electricity is currently being supplied by National Grid unless you have switched to a competitive supplier program on your own. Your electric bill is divided into two parts: Delivery and Supply. The supply is no longer regulated and therefore can be provided by a competitive supplier. Delivery is still regulated and can only be provided by National Grid. National Grid will continue to deliver your power supply over the wires. However, the power running through those wires can be provided by a competitive supplier.

Programs you see advertised are competitive supplier programs in which the competitive supplier contracts directly with the individual consumer. While both programs seek to lower your electric bill, they are run very differently. Competitive supplier programs set their own terms and conditions. Once signed up, it is up to the consumer to monitor the rates. Competitive supplier programs usually have a clause in the terms and conditions that states the consumer remains in the program after the original rate and term have ended unless specific action is taken to cancel the contract. In many cases, there may be an exit fee. Municipal aggregation programs are run by cities or towns. Once signed up, it is up to the city or town to monitor the rates. Having knowledge of the electricity market, the city or town continually looks out for their citizens’ best interests. Their goals are to provide low, stable rates and possibly green options to their citizens. Municipal aggregation programs have no entrance or exit fees.

BEWARE OF OTHER ENERGY OFFERS claiming to be associated with your community or National Grid. You may receive direct mail, phone calls or even visits to your door from energy marketers for the competitive supplier programs mentioned above. These marketers are NOT associated with the Community Choice Power Supply Program or with National Grid. The Community Choice Power Supply Program will notify you of the Program ONLY through mail direct from your community (look for the city of Amesbury logo).

Amesbury has signed a contract with a competitive supplier on behalf of your community as part of their Community Choice Power Supply Program.

You will not receive a Consumer Notification Letter if National Grid has your account listed as being contracted with a competitive supplier or if you have requested National Grid put a “Supplier Block” on your account so that it is removed from all supplier marketing lists. However, there is a lag between the date the utility provides the account data and the date the Consumer Notification Letters are mailed so there may be some accounts that are categorized wrong at the time of the mailing.

You will receive the benefit of potentially lower rates on your electricity and therefore a lower electric bill. Otherwise, YOU WILL NOT NOTICE ANY CHANGE. The only difference you will see is that the name of the chosen competitive supplier will be printed under the “Supply/Generation Services Charge” section of your monthly bill. You will continue to receive one bill from National Grid. You will continue to send your payments to National Grid for processing. National Grid will continue to read meters and maintain the distribution and transmission lines. Reliability and quality of service will remain the same. Furthermore, you will continue to have all existing consumer rights and protections.

If you have received a Consumer Notification Letter AND you have not opted out AND your account is not listed with National Grid as having a “Supplier Block” (a request to have your account removed from all supplier marketing lists), you will not need to do anything to participate. You will be automatically enrolled in the Program.

Enrollment is automatic ONLY IF you have received a Consumer Notification Letter and have not opted out. Enrollment is NOT AUTOMATIC if you have not received a Consumer Notification Letter OR if National Grid has your account listed as being contracted with a competitive supplier at the time of the enrollment. Also, you will not receive a Consumer Notification Letter, and therefore will not be enrolled, if you have requested National Grid put a “Supplier Block” on your account so that it is removed from all supplier marketing lists. If that is the case, consumers may have to call National Grid to be enrolled in the Program.

Yes, as long as your community has a DPU approved aggregation working with Colonial Power Group. You may OPT-IN AT ANY TIME by filling out the online Opt-In Form at colonialpowergroup.com/amesbury OR by calling the competitive supplier chosen by your community (listed on your community's page) OR by calling Colonial Power Group at (866) 485-5858 ext. 1. To avoid delays in your enrollment, before opting in, please make sure that if you have a “Supplier Block” on your account that it is removed. Also, if you have previously contracted with your own competitive supplier, you should confirm with them that you will not incur any fees for leaving their supply.

Your enrollment will start on the meter read date stated on the Consumer Notification Letter. You will see the new rate on your bill the following month. For example, if your meter read enrollment date is January 1, your usage from January 1 - January 31 will be charged the new rate and billed on February 1. If you opt-in at any other time, enrollment may take up to two billing cycles before taking effect.

Each consumer has the right to choose his/her supplier. Enclosed in the Consumer Notification mailing is an Opt-Out Return Card. If you do not want to participate in the Community Choice Power Supply Program, you can sign and date the card, place it in the envelope provided and drop it in the mail OR fill out the Opt-Out Form at colonialpowergroup.com/amesbury OR call the competitive supplier chosen by your community (listed on your community's page) OR call Colonial Power Group at (866) 485-5858 ext. 1. You will then be removed from the list of participating consumers. The initial opt-out period is thirty (30) days from the mailing date of the Consumer Notification Letter.

Participation is designed to be as flexible as possible. You may leave the Community Choice Power Supply Program at no charge and be placed on National Grid Basic Service or choose another competitive supplier on your own. Opting out of the Community Choice Power Supply Program is easy. You may fill out the online Opt-Out Form at colonialpowergroup.com/amesbury OR call the competitive supplier chosen by your community (listed on your community's page) OR call Colonial Power Group at (866) 485-5858 ext. 1. It may take a couple of billing cycles before you are back on National Grid Basic Service. There is NO CHARGE to opt-out. Large users (100 kW or 500,000 kWh/year), if you participate initially and then choose to leave the Community Choice Power Supply Program, you may return but the competitive supplier may offer the then-current market rate for the product selected as opposed to the aggregation rate.

National Grid records should indicate that you already have a competitive supplier. If so, you will not be enrolled in the Community Choice Power Supply Program. However, there is a lag between the date the utility provides the account data and the date the Consumer Notification Letters are mailed so there may be some accounts that are categorized wrong at the time of the mailing. This is why we recommend that you opt-out if you have received a Consumer Notification Letter but have contracted with a competitive supplier.

GreenUp is a renewable energy program, through National Grid, which allows you to choose to have all or part of your electricity generated from renewable resources. GreenUp only allows for enrollment with Basic Service not competitive supply (which includes municipal aggregation). National Grid records should indicate that you already have a Green Power Supply Option. If so, you will not be enrolled in the Community Choice Power Supply Program. However, there is a lag between the date the utility provides the account data and the date the Consumer Notification Letters are mailed so there may be some accounts that are categorized wrong at the time of the mailing. This is why we recommend that you opt-out if you have received a Consumer Notification Letter but have chosen a Green Power Supply Option.

You will continue to receive those benefits from National Grid.

You will continue to be eligible for those incentives, which are sponsored by National Grid.

Any applicable taxes will be billed as part of the Program’s power supply charge. You will be responsible for identifying and requesting an exemption from the collection of taxes by providing appropriate documentation. According to Massachusetts law, in order to maintain your tax exempt status for your electric bill, you must send a copy of your tax exempt certificate directly to the competitive supplier chosen by your community. (The competitive supplier’s name is listed at colonialpowergroup.com/amesbury.)

Net metering and on-bill credits will work the same way with the Community Choice Power Supply Program. You will continue to receive your net metering or on-bill credits while benefiting from the aggregation rate on your electricity. National Grid will continue to post your net metering or on-bill credits to your electric bill at National Grid’s Basic Service rate.

By law, all electric supply products are required to include a mandatory minimum percentage of clean/renewable energy resources. The total Massachusetts Renewable Energy Requirement consists of several different state initiatives, each with different objectives and different resource types that qualify. Currently, the Massachusetts Renewable Energy Requirement equals the sum of the Clean Energy Standard (inclusive of RPS Class I), the Clean Energy Standard for existing resources (CES-E), and RPS Class II. A detailed breakdown of the different categories and the minimum requirements of each category can be found at colonialpowergroup.com/massachusetts-renewable-energy-requirement.

Basic Service rates change every six months for Residential and Small Commercial accounts and every three months for Large Commercial and Industrial accounts. 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 Community Choice Power Supply Program against National Grid Basic Service. However, such savings and future savings cannot be guaranteed.