Massachusetts General Law c. 164, § 134 authorizes municipalities to aggregate the electrical load of customers within their borders to procure competitive supply of electricity.
What is Municipal Aggregation?
Municipal aggregation is the process by which a municipality purchases electricity in bulk from competitive suppliers on behalf of the residents and businesses within the community.
In a municipal aggregation:
- A municipality will procure competitive electric supply on behalf of participating customers;
- A municipality may join with other municipalities to procure competitive supply;
- Customer participation is voluntary; customers will be provided an opportunity to opt-out of participating in a municipal aggregation program; and
- Distribution companies will continue to provide electric transmission and distribution service to participating customers.
What is the process for a Municipality to create a Municipal Aggregation Program?
- A municipality must vote to initiate the municipal aggregation program.
- A municipality, often in partnership with a consultant, will prepare a municipal aggregation plan in consultation with the Department of Energy Resources.
- A municipality must allow an opportunity for citizen review of the municipal aggregation plan.
- The municipality must submit a municipal aggregation plan to the Department of Public Utilities for review and approval
- Department of Energy Resources' Municipal Aggregation Guide : A guide for local municipal and county governments that are interested in offering an opportunity for residents to join a community choice aggregation also known as a municipal aggregation. The guide includes links to other information about buying power in a competitive market.
- Get the Facts on Municipal Aggregation Webinar file size 57MB: (April 9, 2014) A webinar by the Department of Public Utilities and the Department of Energy Resources that provides information about municipal aggregations, including the process for establishing a municipal aggregation, the elements of a municipal aggregation plan, and resources available to municipalities for developing a plan. See Presentation Slides of the webinar.