South Kingstown delays aggregation contract extension after Good Energy warns of market rule changes

The South Kingstown Town Council on Monday heard from Good Energy representatives who recommended delaying a previously discussed extension of the town's municipal electricity aggregation contract because of a regional market reform known as the Day‑Ahead Ancillary Service initiative ("DAISY"). Rafiki Ramon, a Good Energy sustainability analyst, said the company is watching how DAISY will push ancillary‑service costs into supplier pricing and advised the town to wait before signing a longer extension.

DAISY, Ramon said, was approved by the Federal Energy Regulatory Commission and implemented by ISO‑New England in March 2025; the change shifts when and how suppliers procure standby/ancillary capacity and, Good Energy says, will show up in last‑resort pricing and in program prices in mid‑2027. "We recommended the town delay the contract extension to observe these market changes," Ramon told the council.

Why it matters: Good Energy told the council the program has historically delivered savings to participating accounts — the firm cited roughly $628,000 in aggregate supply cost savings for participating communities since launch and about $489,000 directed to Rhode Island‑based renewable development — but the DAISY shift can raise short‑term rates. Council members pressed Good Energy on customer notice, opt‑out mechanics and how a wave of opt‑outs could affect supplier pricing.

Council members and residents raised affordability concerns. One council member urged clearer, multi‑channel outreach for seniors and other residents who might not see social media notices. Resident Casey Okeeda later told the council she had opted back to the utility because, after taxes and line‑item charges, her own out‑of‑pocket bill was higher while she remained enrolled.

Good Energy said customers will be able to opt out or change product options without penalty and that the supplier would work with town staff on customer notice; the firm also described producing educational materials and a sign‑on letter to ISO‑NE, which the firm asked the council to consider supporting.

Outcome and next step: Good Energy told the council it does not intend to proceed with an extension at this time and will monitor market outcomes. Council members said staff should continue to brief them and returned the decision point to a future meeting when the company has clearer market data and when state last‑resort prices are reconciled.

Provenance: Topic presented beginning SEG 666 and discussed through SEG 1488. The recommendation to delay came from Good Energy (Ramon) during the presentation portion and was affirmed in follow-up Q&A.