Background on municipal aggregation

Information on steps to create a municipal aggregation, and the municipal aggregation guidelines.

Overview

Municipal aggregation is the process by which a municipality (meaning a town or city) purchases electricity in bulk from a competitive supplier on behalf of the residents and businesses within the community. 

In a municipal aggregation:

1. A municipality will competitively procure electric supply on behalf of participating customers.
2. A municipality may join with other municipalities to competitively procure electric supply.
3. Customer participation is voluntary.  The municipality will provide customers an opportunity to opt-out of participating in a municipal aggregation program.  Customers who do not opt out will be automatically enrolled in the aggregation program, but may opt out at any time after that.
4. The electric company will continue to provide electric transmission and distribution service to participating customers.

How does a municipality create a municipal aggregation program?

A municipality must:

1. Vote to initiate the municipal aggregation program.
2. Prepare a municipal aggregation plan in consultation with the Department of Energy Resources (DOER), often in partnership with a consultant.
3. Allow an opportunity for resident review of the municipal aggregation plan.
4. Submit a municipal aggregation plan to the Department of Public Utilities (DPU) for review and approval.

Municipal aggregation guidelines

On July 9, 2024, the DPU approved municipal aggregation guidelines (Guidelines). D.P.U. 23-67-A.  These Guidelines set forth:

1. the information to be included by a municipality in its municipal aggregation plan;
2. the information that a municipality must provide on an ongoing basis about the operation of its municipal aggregation program;
3. the requirements that apply to electric companies related to facilitating the successful operation of municipal aggregation programs; and
4. the DPU’s review of municipal aggregation plans.

The Guidelines ensure that constituents and interested stakeholders have access to useful program‑related information presented in an understandable way.  Municipalities will report on program performance during the previous year, including: 

1. product information related to rate component, renewable energy content, and participation;
2. a description of the services provided through each rate component; 
3. a description of the voluntary renewable certificates to be retired for each renewable energy category; and 
4. procurement of supply.

The transparency resulting from these reporting requirements, and the resulting increase in public scrutiny, is appropriate and necessary given the discretion that the Guidelines provide the municipalities.

As municipalities develop their plans, they must take into consideration the DOER Recommended Best Practices for Advancing Clean Energy in Municipal Aggregation Programs.  As noted by the DPU, this is “a good example of how agencies can work together to advance the Commonwealth’s clean energy goals.”  D.P.U. 23-67-A at 21.

Last updated:	July 16, 2025