Committee backs change to municipal aggregation order to prioritize rates lower than National Grid

The Marlborough City Finance Committee voted 5-0 on March 3 to recommend an amendment to the municipal aggregation order (referenced in the meeting as order 19107578b) that removes a strict requirement that aggregation rates “on a yearly average be lower than the National Grid basic service rate” and replaces it with language directing the municipal aggregation committee to “focus on obtaining rates that are lower than National Grid.”

City Council President Aussing presented the proposed wording change, telling the committee the revision responds to market changes and to how the Department of Public Utilities altered National Grid buying dates. Aussing said longer supply contracts of 24 to 36 months provide participants “stability and predictability” even if there is no guarantee the municipal rate will always be below National Grid’s biannual rate.

Aussing reviewed the program’s history and reported comparative savings: under the original program from 2007 to 2019 the city saved about $4.2 million; after the 2019 order change that allowed longer contracts, the city saved about $32.3 million in a period of less than four years. He also said Colonial Power, the program contractor, manages aggregation for 93 municipalities with contract lengths that vary from seven to 36 months.

Aussing explained current contract performance for Marlborough: the city’s First Point Power fixed supply contract of $0.1415 per kilowatt‑hour ran from January 2024 to October 2024; National Grid’s winter 2024 rate was about $0.18 per kilowatt‑hour, and the city’s current supply rate for the summer 2025 season was reported as roughly $0.1401 compared with a National Grid rate of $0.1406 — “we're just slightly under what National Grid rate,” Aussing said.

Aussing and other councilors told the committee that participants rarely leave municipal aggregation when National Grid’s rate temporarily falls lower because switching back and forth is administratively burdensome and the typical monthly savings when rates diverge are small. Councilor Brown moved to approve the wording change and the motion was seconded; the committee voted 5 to 0 in favor.

The amendment directs the municipal aggregation committee to pursue contracts that seek rates lower than National Grid while prioritizing multi‑month contract lengths for price stability. The committee did not establish additional opt‑out timing changes; speakers said residents can opt out and that Colonial Power posts opt‑out information on its website.