State's Second Largest City Files To Implement Opt-Out Municipal Aggregation

The City of Worcester, MA, has filed at the Massachusetts DPU for authorization to implement an opt-out municipal aggregation for electricity customers.

Worcester's intent to create a municipal aggregation had been previously reported by RetailEnergyX.com

The City, in its aggregation plan, said that the program will seek to provide a standard, or default, electricity offering that includes renewable energy content from new, renewable resources within New England, that is higher than the content included in National Grid Basic Service.

The program will offer at least one option that is even greener than the standard offering, the City said

The program will provide participants with the ability to leave the program and return to National Grid basic service at any time with no penalty or fee.

All eligible basic service customers, as previously defined by the DPU, will be included in the aggregation on an opt-out basis

The City has selected MassPowerChoice, LLC as its Consultant to manage the aggregation

The administrative costs of the Program will be funded through a per kilowatt-hour Administrative Adder that will be included in the supply price and paid by the competitive supplier to the Consultant. This charge has been set for the initial term of the Consultant’s contract at $0.0009 per kilowatt-hour.

"In addition, the City may direct the competitive supplier to include in the supply price an Operational Adder of up to $0.0025 per kilowatt-hour to be payable by the competitive supplier to the City. Funds collected through the Operational Adder shall be used to support the operational costs of the Program, including, for example, 1) personnel costs associated with an Energy Manager position whose responsibilities would be to assist with the aggregation Program; 2) energy efficiency initiatives; 3) additional REC purchases and related obligations such as escrow accounts and other sureties; and 4) other forms of support for local energy projects that create benefits for Program participants. If the City chooses to implement the Operational Adder, the Program website and opt-out letter will note that the supply price includes that Adder," the City said

"The City will explore the possibility of establishing and managing an energy efficiency initiative for the participants because energy efficiency is the lowest-cost, most environmentally friendly 'energy' resource currently available," the City said

"Through a small program adder, the City would be able to fund an annual energy efficiency reimbursement program for its participants (which would supplement, not replace, the existing MassSave program)," the City said