Municipal electricity aggregation is a mechanism by which a city or town can bundle the electricity supply needs of residents and businesses in their community and procure the electricity in bulk, typically for a multi-year term.
Municipal aggregation is allowed under Massachusetts General Laws Chapter 164 Section 134. More than 140 cities and towns in Massachusetts already have active electricity aggregation programs, and other nearby communities are pursuing similar programs.
By default, customers receive “Basic Service” electricity supply from Eversource or National Grid. Under a municipal aggregation program like Medford CEA, all customers receiving Basic Service are automatically transitioned to the aggregation’s standard option. However, before the aggregation begins, all customers must be given the chance to stay with Basic Service, known as “opting out”. After customers are enrolled, they can still opt out of the Program at any time without penalty.
Medford CEA Implementation
On February 6, 2018, the Medford City Council authorized the creation of a community electricity aggregation program in Medford. The City then selected consultant Good Energy, L.P. to assist with all aspects of program implementation. The City developed a draft aggregation plan and subsequently solicited public input. As required by law, the plan was reviewed with the MA Department of Energy Resources and the Department of Public Utilities (DPU) for review.
Medford originally secured a supply contract to start in December 2019 (renewed in 2022). Prior to the start of the Program, Medford conducted an education and outreach program to notify eligible residents and businesses about the Program and their right to opt out of the Program before it started, including the video with Alicia Hunt, Director of Energy & Environment for the city of Medford.
The Customer Notification letter was sent to all customers who were eligible for automatic enrollment, notifying them of program options, goals and benefits, product rates and how to opt out of the Program before it began.