Press Release  DPU to Establish Streamlined Process for Review of Municipal Aggregation Plans

BOSTON — The Massachusetts Department of Public Utilities (DPU) today opened an investigation to establish municipal aggregation guidelines, with the goal of creating a more efficient and streamlined process for Massachusetts cities and towns to establish municipal aggregation programs for their residents and businesses.   

Today’s Order opens an investigation, and includes proposed guidelines, as well as a proposed template municipal aggregation plan designed to aid municipalities in developing new municipal aggregation plans. As part of its investigation, the DPU proposes an expedited review process for certain municipalities that comply with the proposed template plan and specific provisions to help expedite the DPU’s review.   

“This proceeding will allow the DPU to turn the page on its current review process and set a new pathway for municipal aggregation,” said DPU Chair James Van Nostrand. “We aim to ease the way for municipalities to develop alternative electric supply options for customers while continuing to implement high standards for customer protection.”  

The proposed guidelines provide a simplified explanation of what must be included in a municipal aggregation plan, as well as clarify the rules that municipalities must follow when operating a municipal aggregation program. Many of these rules have already been established through DPU Orders. Compiling these rules in one place will make the application process for municipalities more explicit and easier to follow, which in turn will help streamline the DPU’s review of municipal aggregation plans. The Department seeks public comments on the proposed guidelines and template plan, which the Department will take into account prior to issuing final guidelines and a final template plan. The deadline to submit comments is September 18, 2023.  

Background on Municipal Aggregation 

Municipal aggregation, first established in 1997, allows a municipality to solicit bids for and purchase electricity supply on behalf of its residents and businesses. State law requires municipalities to submit municipal aggregation plans to the DPU for review and approval. Since the DPU approved the first municipal aggregation plan in August 2000, the DPU has approved over 175 programs, including 19 since January 1, 2022. Currently, there are over 1.2 million customers enrolled in a municipal aggregation program in Massachusetts. 

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