Transcript Community Electricity Aggregation Public Information Session May 21, 2015 Martha Grover, Energy Efficiency Manager Office of Planning and Community Development City of Melrose.

Community Electricity Aggregation
Public Information Session
May 21, 2015
Martha Grover, Energy Efficiency Manager
Office of Planning and Community Development
City of Melrose
What is Community Electricity
Aggregation?
The process by which a municipality purchases electricity
in bulk from a competitive electricity supplier on behalf of
the residents and small businesses in the community.
• This process was laid out in 1997 under deregulation of the electric
utility industry in Massachusetts (M.G.L Chapter 164, Section 134).
• Large commercial accounts such as the City of Melrose, Melrose
Wakefield Hospital, grocery stores and corporate chains are usually
already on competitive supply contracts.
Electricity Bills 101
There are two parts to your National Grid bill:
Delivery Services
• National Grid charges a rate for delivering electricity to your home or business
that includes five price components which are approved by the Department of
Public Utilities.
• Delivery Service prices are not expected to change much in the short term and
add up to about 7 cents per kWh for residential customers.
Supply Services
• Under the Supply Services section of your bill is the cost of the actual electricity
you use each month.
• Although you have a choice of electricity suppliers, most customers are on the
default option, which is the Basic Service Fixed supply provided by National Grid.
• For residents, this is the part of your bill that increased to 16.3 cents per kWh on
November 1st. This compares to last winter’s Basic Service Fixed rate of 10 cents
per kWh. The rate usually goes down again in May for the summer.
Why consider aggregation now?
• Recent National Grid Basic Service price increases this winter and
predicted future increases due to supply and demand issues.
• As a result of rising electricity prices, more suppliers are coming to
Melrose to offer competitive supply contracts to consumers (ie
Dominion, Viridian, Direct Energy, Just Energy, Energy Plus, etc.)
• They are marketing heavily using direct mail, phone calls, door-to-
door sales, credit card promotions, airline miles, and other tactics.
• The deals are often too good to be true and the devil is in the details:
• Initial rates are good for only 3 to 6 months then go up to variable
or undisclosed rates
• High termination fees
• Promise big savings but don’t really offer any
Benefits of Aggregation
• Price stability for a term of 12, 18, 24, or 36 months
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instead of 6 month Basic Service increments
Potential savings through group purchase
Consumer protections such as no termination fees and
transparent rates
Public procurement process
Consumer education and increased awareness of
competitive electricity supply market
My favorite: The opportunity to purchase more than the
minimum 10% green power offered by National Grid Basic
Service
Is Melrose in good company?
Municipal Light Plants, Active Aggregations, Cape Light Compact
Milestones to date
5/19/14
9/8/14
Board of Aldermen approve the development of
an Aggregation Plan
Request for Proposals issued for Aggregation
Consulting Services
11/10/14
Good Energy, LLP selected by a committee
including Martha Grover, a member of the
Melrose Energy Commission, and a Melrose
resident who is also an energy broker
3/9/15
3/16/15
Melrose Plan available for public review
5/20/15
Department of Energy (DOER) review of the Melrose
Plan
Board of Aldermen approve the proposed
Aggregation Plan for submission to Department of
Public Utilities (DPU)
What comes next?
• Public comments and DOER review comments incorporated
into the Plan and filed with DPU for review and approval
• DPU review process:
 Public hearing
 Procedural conference
 Questions and comments by intervenors (DOER, Local Utilities,
Attorney General)
• DPU Approval of the Melrose Aggregation Plan
• Develop and issue an RFP for competitive supplier bids
• Accept a competitive bid and start the 30-day opt-out period
• Any Melrose ratepayer on Basic Service rate who does not opt-
out is automatically enrolled in the new plan
• Monitor and manage the program over the contract term
Melrose Aggregation Plan Elements
Aggregation Plan Principles
 Universal Access
 Reliability
 Equitable treatment of rate classes
Public Outreach and Education
 New outlets (Melrose Free Press and Melrose Weekly)
 Mayor’s Blog and City of Melrose website
 Public Information Sessions targeted at a variety of groups
 Direct Mail
 Opt-out Notification
 MMTV
 Other – suggestions?
The Product Offerings
Melrose Local Green:
• The Standard Product contains 5% additional green energy above the
current 10% Renewable Portfolio Standard (RPS) of the Commonwealth
from locally generated renewable sources
• Sources based on Renewable Energy Certificates (RECs) from the Mass
Energy Consumers Alliance.
• Mass Energy is the recognized leader in the Commonwealth in the
sourcing and distribution of Massachusetts Class 1 RECs.
• Mass Energy has unique access to Massachusetts renewable energy
projects and provides clear audit trails as it relates to additionality.
Melrose Basic: Offers the same amount of green energy as the Basic
Service supply from National Grid (10%)
Melrose Premium Local Green: Offers 100% green energy from the
purchase of Massachusetts Class 1 RECs
Opt-out Process
An opt-out notice will be mailed to every customer on Basic Service with National Grid.
The notice will be from the City of Melrose and it will be sent in an envelope clearly
marked as containing time-sensitive information related to the program.
The notice will:
 Introduce and describe the program;
 Inform customers of their right to opt-out and that they will be automatically enrolled if
they do not exercise that right;
 Explain how to opt-out; and
 Prominently state all program charges and compare the price and primary terms of
the Municipality's competitive supply to the price and terms of the Basic Service with
the Local Distribution Company;
 Will include an opt-out reply card. Customers will have 30 days from the date of the
mailing to return the reply card if they wish to opt out of the program; and
 Will be designed by Good Energy and the City and printed and mailed by the
competitive supplier, who will process the opt-out replies.
Q&A
Melrose Community Electricity Aggregation website:
http://www.melrose-cea.com/
Martha Grover
Energy Efficiency Manager
781-979-4195
[email protected]
John P. O'Rourke
413-548-0999
[email protected]