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Regulator Denies Aggregator Certificate To Company Which Had Initially Sought To Introduce Opt-out Aggregation To State
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The Connecticut PURA issued a final decision denying, without prejudice, the application of GridERP Inc., a start-up, for an electric aggregator certificate
Though GridERP later filed an amended aggregation plan stating that GridERP would operate an opt-in aggregation, GridERP's original application and the license proceeding is notable because GridERP had originally applied to operate an opt-out municipal aggregation
In response to interrogatories, GridERP had cited Connecticut General Statutes § 16-245o(f)(2), and had argued that such provision allows opt-out municipal aggregation
In a subsequent interrogatory response, GridERP stated, "Although this section [§ 16-245o(f)(2)] does not explicitly reference municipal aggregation, the Corporation
interpreted § 16-245o(f)(2) as consistent with a framework in which customers enrolled through a
municipal aggregation program are still entitled to cancel or opt out of the program in accordance
with well-established consumer protection standards."
GridERP had further stated, "the permissibility of opt-out enrollment in municipal aggregation
programs has been firmly established through legislative precedent, regulatory interpretation, and
evolving statutory language."
GridERP cited a demonstration opt-out CCA contemplated by Substitute Senate Bill No. 1091 of 2005; however, such bill does not appear to have been passed and does not appear to have been enacted into law
During the proceeding the Office of Consumer Counsel had stated, "As the
Authority [PURA] noted in its Decision in Docket No. 20-05-13, the General Assembly has not passed
legislation enabling 'community choice aggregation' in Connecticut. Decision dated November
3, 2021, p.8 et seq. (stating, 'in the event CCA enabling legislation is pursued in Connecticut' and
detailing recommendations if such legislation were pursued)."
The Connecticut General Statutes do reference the ability of municipalities to conduct aggregation, but such does not grant opt-out authority, and is rather aimed at addressing the interaction of aggregator licenses from PURA and such municipalities
GridERP later filed a revised aggregation plan to operate as an opt-in aggregator
GridERP said that under this opt-in model, "Each customer will retain full discretion
to evaluate supplier proposals and, if they choose, to enter into a direct contractual relationship
with the licensed supplier of their choice."
PURA denied GridERP's application without addressing arguments concerning opt-out authority and CCA law in Connecticut.
Rather, PURA said that GridERP's application did not demonstrate, as required under PURA precedent for the receipt of an aggregator license, that aggregation customers will contract for electric generation services directly with an
electric supplier.
"As the Department has discussed many times in the past, the law
contemplates that Aggregators aggregate customers’ individual electric loads or consumption to
negotiate for better prices with Suppliers; however, once terms and prices have been negotiated,
Aggregators must step out of the process and the Suppliers and Customers must, directly and
individually, enter into their own contractual relationship," PURA said
While GridERP, as noted above, modified its plan to include an opt-in under which customers would, "enter into a direct contractual relationship," with a retail supplier, PURA said that such revision, made in response to a motion from PURA Staff for a proposed order denying the application, amounted to a material revision which was not supported in the record.
GridERP had said that a draft order from PURA had ignored that GridERP, in its revised plan, expressly stated that:
• Enrollment would be based on affirmative customer participation;
• Customers would review supplier offers;
• Customers would enter into contracts directly with licensed electric suppliers; and
• The Corporation [GridERP] would not execute, hold, or administer supply contracts, nor act as a
supplier’s agent.
In the final order, PURA further said, "The Company failed to submit
supplier contracts necessary to demonstrate a permissible pass-through relationship and
customer-agent role, a requirement the Authority has consistently enforced to protect
consumers."
PURA also generally said that GridERP's application was incomplete and that GridERP's interrogatory responses were insufficient to establish that GridERP meets the requirements for the grant of an aggregator certificate
As noted above, the denial was without prejudice, and PURA said in its order that PURA, "does not restrict the Company’s future applications at this time."
Docket 25-05-05
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February 25, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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