Acting sustainability director outlines Providence's community choice aggregation supplier process and recommends NextEra Energy

Kevin Croft, acting director of sustainability, told the Board of Contract and Supply on Oct. 6 that Providence's community choice aggregation (CCA) electricity-supply program is designed to provide an alternative to the default utility and to secure lower rates and increased renewable content for participating residents and businesses.

"My name is Kevin Croft. I'm the acting director of sustainability," Croft said when asked to state his name and title for the record. He described the program as "an electricity supply program for Providence that Providence residents can take advantage of and businesses" and said Providence participates in the program along with six other municipalities that jointly procure supply through an energy manager.

Explaining why the city is proceeding now, Croft said the current supplier term is roughly halfway through a five-year contract and that the city must select a supplier in advance so the vendor can lock in purchases that will serve Providence when the contract term renews later. "We're ... entering into agreement with NextEra or continue to work with NextEra after the next 5 year return to the product," he said (as transcribed).

Croft described the program's purpose: "to provide an alternative and competitive supply program to what the utility offers... we've been able to do that for the first, 5 or 6 rate terms, compared to the utilities electricity rate. So slightly cheaper for our residents, typically. But we're also adding in a little bit more renewable energy into our supply." Board members asked follow-up questions about the benefits and potential impacts; Croft reiterated that evaluation is performed by an energy manager working with the participating accounts and an evaluation committee that considers qualifications and portfolio information before pricing.

Why it matters: a supplier selection for the CCA affects electricity supply mix and rates for residents and businesses that opt into the program. Croft said the energy manager analyzed two bidders and that the apparent recommendation was to continue working with NextEra Energy, pending the formal procurement steps that each municipality must follow.

Next steps: the procurement and contract documents will be handled through the standard procurement channels and the city will return the matter to the agenda as required by procurement timing and contract start dates.