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Boston, MA Releases RFQ To Implement Opt-out Municipal Aggregation

August 28, 2018

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Reporting by Paul Ring • ring@energychoicematters.com

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The City of Boston on August 27 issued a Request for Qualifications (RFQ) for submissions from consulting firms to assist the City’s development, implementation, and administration, of a municipal electricity aggregation program.

The City’s 2017 potential aggregate electric load equaled approximately 1.7 million MWh, excluding existing competitive supply customers. The RFQ states there are approximately 191,000 residential, 24,000 small commercial, and 7,000 large commercial customers currently receiving Eversource basic service.

See the RFQ here

The RFQ states, "The City desires to contract for Program electricity supply at rates ($/kWh) lower than the rates that are reasonably projected to be charged by Eversource for default service. Consultants should assume that the favorability of Program rates will be considered over the entire length of the aggregation contract. To provide commodity pricing that is both favorable and stable, the term of commodity supply contracts may vary in duration from Eversource’s electricity supply contracts. The times when the Program procures electricity to serve Program Participants may not be scheduled to be completed at regular intervals. The Consultant will work with the City and its advisor or broker to develop a strategy for electricity purchases."

The RFQ states the goals of the muni aggregation are:

• Electricity cost stability: providing electricity cost stability, as compared with the semi-annual variations in price per kilowatt hour (kWh) that characterize the default electricity rates offered by Eversource, the City’s local distribution company.

• Program and electricity cost minimization: minimizing the cost of Program administration and commodity purchases for all Program Participants.

• Support of renewable energy and sustainability goals: providing Program Participants with an option to purchase renewably-sourced electricity, which will advance the City’s sustainability goals by displacing fossil fuel electrical generation and reducing greenhouse gas (GHG) emissions. This can occur through direct investment in renewable energy projects, the purchase of market-based instruments such as renewable energy certificates (RECs), or other strategies. Options for Program Participants to receive electricity produced by renewable sources of generation may result in 'additionality' -- that is, the construction of new renewable energy projects. The City is interested in proposals or strategies that will evidence such additionality. Whenever possible, depending on cost, such quantities of renewable power and/or RECs shall be above and beyond what is required by the Commonwealth of Massachusetts Renewable Portfolio Standard (RPS).

• Highly effective communications and customer service: that addresses the demographics of and needs specific to Boston residents.

The City noted that it is required to follow the steps toward a municipal aggregation as laid out by the Massachusetts Department of Energy Resources (DOER), working in consultation with DOER and the selected consultant to prepare a plan and provide an opportunity for citizen review. In addition, the City will convene a community advisory committee which will inform the proposed plan and guide implementation. Once the program is approved by the Massachusetts Department of Public Utilities, the City will be able to begin implementation of the program.

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