Boston, MA Files For Approval Of Opt-Out Municipal Electricity Aggregation Program

Seeks January 1, 2020 Start

Notes Risk Premiums In Default Service Rates While Aggregation Has Been Pending

Consultant Fee Disclosed

June 21, 2019

Email This Story
Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The City of Boston, Massachusetts has filed at the Massachusetts DPU for approval of a plan governing its proposed opt-out municipal aggregation program for electricity customers

In the petition, the City stated, "The City has established a planned January 1, 2020 'start date' in good faith so that the initiation of the Boston aggregation program would have a limited and predictable effect upon Eversource's procurement of basic service power for nonparticipants in the Boston aggregation, including both Boston residents and non-residents. Indeed, Eversource has asserted that the uncertainty of the start of the Boston aggregation program has been reflected in a 'risk-premium' in the bids it received for its Basic Service acquisition."

"Accordingly, the sooner that Boston is permitted to start its program, the sooner this uncertainty and related premium will be eliminated," the City said

"To this end, it is critical that the program be approved promptly and by not later than August 31, 2019 to allow for the City to reduce uncertainty and solicit the necessary power in October 2019 for a January 2020 program launch," the City said

While the approval timeline for municipal aggregations will vary with the unique plans filed by each locality (and whether revisions or supplements are necessary), the sought approval by August 31, 2019 -- less than three months after the plan's filing with the DPU -- is rather short compared to the typical timeline for DPU approval.

For example, just last week, the City of Medford received approval for an aggregation plan which had been filed at the end of October 2018

The City of Worcester (second largest city in the state) filed an aggregation plan at the DPU on March 15, and the proceeding is still pending before the DPU

A number of towns filed in November 2018 for approval of aggregation plans, and such plans remain pending at the DPU

The City of Boston has over 675,000 consumers. Based on enrollment figures from previous community aggregations, the City's consultant anticipates that 97% of the consumers will participate in the opt-out aggregation

The City said that the City's agreement with a competitive supplier will include an up-to $0.001 per kWh adder that will be paid by the supplier to the city's consultant. The up-to $0.001 per kWh adder will fund the on-going costs of the program.

A pro forma supply agreement included in the plan indicated that in addition to a standard product, the City will solicit pricing for an optional green product

The plan states that there are no fees or charges for participating aggregation consumers to opt-out or terminate service.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Compliance Manager -- Retail Supplier
• Retail Energy Operations Analyst