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Article 42 Town Wide Electric Aggregation
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BE IT THEREFORE RESOLVED that the Town of Sudbury hereby: Publicly declares its intent to become an aggregator of electric power on behalf of its residential and business electric customers and to reestablish such plan if its operation is suspended; and To negotiate and enter into such contracts for power supply pursuant to the plan or services for such plan, with the understanding that if a power supply contract is executed, individual consumers would retain the option not to participate in the aggregation plan and, instead, to choose any electricity alternatives they desire and, further, to take such other action relative hereto as may be appropriate and necessary.” Submitted by: Energy Committee Supported by: Board of Selectman
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Article 42 Town Wide Electric Aggregation In 1997, Massachusetts passed the Electric Restructuring Act which deregulated the electricity market and allowed municipalities to purchase power from suppliers other than distributers (like Eversource or National Grid) Many cities and towns have taken advantage of this for Municipal and School districts and, in recent years, for Residential and Businesses Sudbury has contracted for its municipal power competitively for the more than 10 years with significant savings. LSRHS has also done likewise for the past 6 years. The Sudbury Energy Committee believes that municipal aggregation can bring the benefits of a competitive market and the advantage of collective buying power to Sudbury residents and businesses to reduce the cost for electricity. Town Wide Electric Aggregation
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Article 42 Town Wide Electric Aggregation Allows Sudbury residents & small businesses to act in their own best interests No change in electric monthly billing from Eversource Eversource continues to provide all delivery/distribution services Ability to opt out at any time – no cost, no risk Ability to choose “Green” electrical supply option(s) at somewhat higher cost Supplier rates will remain stable over the period of the contract negotiated – can be long term Town can suspend program if beneficial rates cannot be secured in the future – then re-establish it when they can be Savings will depend on the prevailing Eversource rates in existence at any particular time – could be $50 - $300 per residence annually. Key Parameters of the Program
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Article 42 Town Wide Electric Aggregation Savings is from the cost of Energy Supply
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Town Wide Electric Aggregation Process Article 42 Town Wide Electric Aggregation
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Current Towns with Aggregation Ashby Ashland CAPE Clarksburg Dalton Florida Hampshire County Lanesborough Lancaster Lenox Lowell Lunenburg Marlborough Natick New Marlborough Newburyport North Adams Sheffield Tyringham West Stockbridge Williamstown Winchendon
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Article 42 Town Wide Electric Aggregation Customized Product Design Lancaster:Incorporated S-RECs from town-owned solar farm into energy supplier contract Lowell:3-year rate, 100% offset by NE hydro RECs Marlborough:1-year rate to smooth out winter volatility Dec. 2014 – Dec. 2015 12.86¢ per kWh Natick:2-year rate Jan. 2015 – Jan. 2017 Standard Option 13.31¢ per kWh Greener Option 14.86¢ per kWh
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Article 42 Town Wide Electric Aggregation What are the Next Steps? 1.Town Meeting Authorization Using established legal language recommended by MA DPU 2.Retain Consultant Town Manager and chosen aggregator sign consulting contract 3.Board of Selectmen Approve Aggregation Plan Developed in conjunction with the Energy Committee 4.Department of Energy Resources Reviews Plan Plan Filed with MA DPU for Approval
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Thank You Article 42 Town Wide Electric Aggregation
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