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Council asks administrator and solicitor to draft RFP for municipal energy aggregation

2916400 · January 7, 2025
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Summary

Following an informational presentation on community choice aggregation, the council voted to ask the town administrator and town solicitor to prepare a request for proposals exploring municipal aggregation options for residents.

After an informational presentation on municipal (community) choice aggregation delivered by representatives working with energy-aggregation programs, the Richmond Town Council voted to ask the town administrator and the town solicitor to draft a request for proposals (RFP) that would solicit municipal aggregation options for the town to consider.

A presenter explained that an aggregation program allows a municipality to procure electricity supply on behalf of residents on an opt-out basis; the utility (Rhode Island Energy) would continue to own and maintain distribution lines and issue a single bill, with the supplier line item reflecting the aggregation rate. The presenter explained the program is turnkey and that the vendor’s fee would be built into the supplier rate; participants could opt out any time and the program would not change distribution or existing utility services.

Councilors asked questions about opt-out procedure, whether customers already under third-party contracts would be included (they would not), and whether the town itself could participate (municipal accounts often have separate arrangements through existing programs). Several councilors also asked that the town solicit competing proposals rather than rely on a single firm. Councilor (Dan) moved to request the town administrator and the town solicitor draft an RFP for municipal aggregation options; the motion passed by roll call. Staff said the RFP process and subsequent filings will be regulated in part by the state utilities commission and that public hearings would be required as the plan advances.

The council did not commit the town to any supplier or program; it asked staff to prepare procurement documents to allow competing vendors to propose aggregation models and to return with options and public-engagement steps.