Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Aggregation topic
No spam. Unsubscribe anytime.
Lawrence leaders briefed on municipal aggregation plan offering lower electricity rate
Summary
City consultants told the Lawrence City Council the new Lawrence Energy Choice municipal aggregation will automatically enroll residential electric accounts at 13.2¢/kWh starting with May meter reads unless residents opt out; the program runs for an initial 30 months and keeps utility services and discounts unchanged.
Lawrence City officials heard a presentation Tuesday on Lawrence Energy Choice, the city’s new municipal aggregation program that will automatically enroll most residential electricity customers at a fixed supply rate starting with May 2025 meter reads. The city’s energy consultant and broker said the program sets a 30‑month hedge at 13.2¢ per kilowatt‑hour to protect customers from higher basic service rates charged by National Grid.
The program was introduced by Anil Laukka, adviser to the mayor, and described in detail by Marc Capitona of Colonial Power Group, the city’s consultant. Capitona said the city procured supply through Colonial Power and that First Point Power will serve as the electricity supplier; National Grid will continue to deliver service and respond to outages. “No one in Lawrence needs to pay more than 13.2¢ a kilowatt hour,” Capitona said. “This program is an opt‑out municipal aggregation. You’ll automatically be enrolled unless you decide to opt out.”
Why it matters: Municipal aggregation uses the city’s buying power to lock a supplier price for participating customers. Advocates say it can reduce volatility and save money compared with the default utility basic service price during a multi‑year contract. Opponents or cautious members of the public often worry about switching rules, solar customers, and whether third‑party supplier contracts include early‑exit fees.
Details provided to the council and public
- Enrollment and timing: Residents with an electricity meter who receive the city mailing will be automatically enrolled for the May meter reads (billing will show up in June). Customers who do not wish to participate can return a postage‑paid opt‑out card or opt out online. Capitona said there is no penalty or fee to leave or re‑enter the city program.
- Price and term: The initial contract sets supply at 13.2¢/kWh for 30 months. Colonial Power described National Grid’s then‑current basic service as about 14.672¢/kWh and said market rates have historically ranged from about 7¢ to 33¢. Capitona said the city will re‑procure when the contract nears its end and that customers in the program will be moved automatically to the next supplier unless they opt out.
- Interaction with solar and utility discounts: The presenters said customers who have rooftop solar, budget billing, low‑income discounts or Mass Save programs will continue to receive those utility services. Capitolina (Colonial Power) explained how netting and credits work under the different billing constructs: National Grid continues to handle net metering credits at the basic service rate while the aggregation sets customer supply charges.
- Third‑party suppliers: The mailing and postcards also target customers already on third‑party supply. Colonial Power recommended those customers review their current supplier contracts and call the supplier’s 1‑800 number (required on National Grid bills) to confirm whether there is an early‑exit fee. Customers on third‑party supply will not be switched automatically; they can choose to join the municipal program later.
Council questions and next steps
Council members asked for more educational materials in English and Spanish and direct contact information for city staff and Colonial Power for constituent questions. Vice President Infante and others requested copies of the mailing and the postcard for councilors; the consultant agreed to provide electronic copies. A councilor asked how the program handles solar credits; Colonial Power said the process is seamless, explaining the difference between the rate paid when customers export power and the aggregation supply charge.
No council vote was required Tuesday; the item was presented for information and to respond to constituent questions after mailings went out. Capitolina said residents with questions may call Colonial Power Group at 866‑485‑58581 or visit colonialpowergroup.com and the city’s website for FAQs and bilingual materials.
The council and Colonial Power agreed to additional community outreach including radio spots, library sessions and targeted FAQs for councilors to distribute to constituents.
Ending
Colonial Power said the program will begin appearing on bills as “First Point Lawrence Ag” for participating customers; the council indicated it will continue to publicize outreach and requested copies of all mailings and the consultant’s contact information for distribution to residents and city staff.
