Freedom Energy pitches community-choice aggregation; council requests performance and retention data

Representatives from Freedom Energy Logistics and Colonial Power Group presented a proposal on Feb. 13 to create a Foster Community Choice Aggregation (CCA), a program that would pool residential and small-commercial customers to negotiate electricity commodity contracts on behalf of the town.

Bart Fromath of Freedom Energy said Rhode Island has allowed electric choice since 1999 and that aggregations in other New England communities have produced budget stability and lower average rates by purchasing fixed multi‑month or multi‑year contracts. Fromath described the Foster program as an "opt-out" default replacement for Rhode Island Energy’s last-resort service; customers could opt out at any time with changes taking effect on their next meter-read date.

Fromath said the program is self-funded (administration paid from supplier margins) and that, under the structure described, small commercial and residential rate classes would be eligible for fixed-price offers while larger commercial customers would be offered market-based rates. He said consolidated billing through Rhode Island Energy is used so residents would receive a single utility bill listing the aggregation rate next to the utility’s rate.

Councilors and residents raised several concerns. Some council members said elderly residents and others who are not digitally connected may not notice or know how to opt out; they asked how the program would notify residents and what physical mail or outreach would be provided. Fromath said statute requires an opt-out mailing to every resident and explained there are additional avenues to opt out, but councilors asked for proof-of-performance—retention rates and historic savings—from communities already using CCA. A resident, Lynn Rider of Brooklyn Road, asked whether being in an aggregation would affect outage restoration priority; presenters said distribution, outages and service calls remain the utility’s responsibility and that an aggregation affects only commodity supply.

Fromath said performance can vary with market conditions and declined to guarantee savings; he said in calmer market years a typical expected saving might be 10–15% versus utility rates, while in a volatile year a community that locked a long-term rate earlier could outperform the utility significantly. He pledged to provide statistics on retention, historic savings and examples from other communities if the council requested them.

Councilors asked whether implementing an aggregation would require council action to adopt an aggregation plan; Fromath confirmed council approval would be required to enact an opt-out aggregation and that the town could decline to proceed after the plan is prepared. The council asked the presenters to provide retention/savings data and other documentation before placing the matter on a future agenda for possible vote.