Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Aggregation topic
No spam. Unsubscribe anytime.
DOER highlights municipal aggregation, local RECs, and energy managers as tools to lower supply costs
Summary
DOER told municipal energy managers that municipal aggregation can secure longer contracts and lower supply prices, and recommended three aggregation strategies: fund local clean energy projects, buy Massachusetts Class I RECs, and fund shared energy managers.
In a July 1 briefing to municipal energy managers, Mike Jovino of the Massachusetts Department of Energy Resources outlined how municipal or community choice aggregations (CCAs) can offer lower and more stable generation contracts for residents while enabling locally focused clean-energy investments.
Jovino said municipal aggregations accounted for a large share of residential supply procurement (he cited roughly 52% as of last June) and noted their ability to sign longer contracts and pursue community benefits. "Aggregations are ... fairly often known to be a good idea," he said, while cautioning that aggregations and basic service each have trade-offs.
DOER recommends three main approaches for aggregations that want to support local clean energy: (1) fund a local clean energy project via an aggregation adder (a pathway that Cambridge tested but found challenging), (2) purchase Massachusetts Class I renewable energy certificates to concentrate renewable and job benefits within the state/region, and (3) fund or partially fund an energy manager whose work supports aggregation goals.
Jovino noted DOER publishes a municipal aggregation manual and offers a 30-minute consultation to municipalities starting an aggregation to review options and best practices. He said reforms to basic service procurement and municipal aggregation rules have expanded municipal flexibility, including the option to collect an adder for local projects.
Jovino also warned against third-party competitive supply contracts, citing documented customer harms and Attorney General reports of overcharging and fine-print provisions that later raise rates. He recommended municipal governments as a protective intermediary for residents when pursuing contract innovations.
The department said further guidance and the aggregation manual are available online and that DOER staff will consult with interested municipalities.
