The recent coverage of municipal energy aggregation programs in Massachusetts has sparked a debate about their effectiveness and economic impact. The article in the Globe highlights concerns regarding participation in Boston’s Community Choice Electricity program but overlooks the significant benefits that these initiatives have provided for local residents.
Several municipalities, including Somerville, have successfully implemented Community Choice Electricity programs that allow for bulk electricity buying. These programs not only promote cleaner energy but also offer financial incentives for residents. According to data, Somerville’s program has demonstrated long-term price stability, a crucial factor that differentiates it from conventional utility offerings.
This stability is exemplified by Somerville’s rates, which are locked in for a period of 37 months, while Eversource’s rates change every six months. During the winter season of 2022-23, when energy prices soared above 25 cents per kilowatt-hour for utility basic rates, Somerville’s program successfully shielded its ratepayers from these spikes.
Moreover, the advantage of aggregation programs extends beyond mere cost savings. They support investments in renewable energy and create job opportunities, particularly benefiting renters who may otherwise lack access to greener energy options. Since its inception, Somerville’s basic electricity rate has remained competitive, being lower than Eversource’s basic rate for 16 out of 17 cycles and the default rate for 15 out of 17 cycles.
Since July 2017, these savings have accumulated significantly, amounting to a total of $26 million for 29,000 annual participants compared to Eversource rates. In light of these proven benefits, Somerville’s Mayor, Katjana Ballantyne, has collaborated with fellow municipal leaders to advocate for state-level measures to eliminate predatory practices from third-party electric suppliers.
In response to the initial article’s claims about the Boston Community Choice Electricity program, Jeremy Koo, Assistant Director of Clean Energy at the Metropolitan Area Planning Council, has pointed out the flaws in its assumptions. The article suggests that BCCE’s charges exceed those of Eversource, but Koo argues that this representation is misleading.
Data submitted to the Department of Public Utilities reveals that BCCE customers have, on average, saved about $800 since the program launched in 2021. Additionally, the article’s assumptions regarding average energy usage among Boston residents were overstated, as the actual consumption levels are significantly lower than reported, affecting the projected savings.
Out of the 81 municipalities serviced by Eversource and National Grid, 61 have adopted aggregation programs, signaling a growing movement toward collective energy purchasing. Koo acknowledges that while there are improvements needed in communication and automatic enrollment for low-income customers, the success of aggregation programs in Greater Boston highlights their viability as a means to save money and encourage renewable energy use.
As Massachusetts continues to navigate the challenges posed by rising energy costs, these municipal aggregation programs serve as a powerful tool for safeguarding both consumers and the environment.
image source from：bostonglobe
