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Marlborough officials say municipal aggregation supply charge will rise after ISO‑NE costs spike
Summary
Council filed a Municipal Aggregation Committee update saying ISO New England’s Day‑Ahead Ancillary Services Initiative has driven unexpectedly large regional costs; the committee said the new supply rate for aggregation participants will be 14.9 cents per kWh (appearing on April bills after March reads), still slightly below National Grid’s basic service rate.
Council received and placed on file a late communication from the Municipal Aggregation Committee explaining that ISO New England’s Day‑Ahead Ancillary Services Initiative (referred to in the letter as "Daisy") has generated much larger costs than originally projected, and those costs are being passed through to ratepayers.
Council Naven summarized the message: participants in Marlborough’s aggregation program have saved an estimated $37 million to date, but the new ancillary‑services costs require a higher supply charge. The committee and its contractor, Colonial Power, built a charge into a new contract signed with First Point Power; that charge will appear with March meter reads and on April bills. In the communication the new supply rate is stated in the transcript as "0.149 cents per kilowatt hour" versus National Grid’s basic service rate of "0.153 cents per kilowatt hour." Interpreting the intent of those figures, the committee described the new rate as still slightly lower than National Grid’s basic service rate.
Council accepted and placed the communication on file and asked the Municipal Aggregation Committee and staff to continue monitoring ISO‑NE developments and to keep the council and residents informed. Councilors noted ISO‑NE has acknowledged problems with the program and that further changes could follow.
