NORTHBOROUGH – The town is now accepting public comment on an electric aggregation program.
Northborough’s program is called Northborough Power Choice. Electric aggregation is a group electricity purchasing program for the town’s residents and businesses, according to the program’s website.
“It’s also a transparent municipal alternative to all the electricity marketing that we all get in the mail, over the phone and for some of us even sometimes at our door,” said MassPowerChoice’s Marlana Patton, who is the town’s aggregation consultant, during the Feb. 12 Select Board meeting.
Town Meeting approved electric aggregation in 2016. In a memo to the Select Board last year, town staff shared that after that Town Meeting vote, several communities that had agreements in place with suppliers faced challenges. The third-party suppliers struggled to remain solvent after their signed contracts with municipalities, reneging on their agreements.
Northborough opted not to move forward with aggregation. Conversations regarding pursuing aggregation resumed last year.
Patton said there are several benefits for customers, including competitive and stable electricity supply prices. The program also may result in savings compared to National Grid’s prices.
All electricity customers who are enrolled in National Grid’s basic service will be automatically enrolled when Northborough Power Choice launches. Residents will receive notification via mail bearing the town’s seal prior to enrollment. Residents are not required to participate in the program. Patton said residents will be able to opt out prior to enrollment or at any time without a penalty or fee.
According to Patton, the Department of Public Utilities (DPU) regulates aggregation programs. The town has developed documents that must be submitted to the DPU for approval before the program could be launched.
However, before the documents can be submitted to the department, they must be available for comment by the public for 30 days, kicking off with the Select Board meeting.
Different options
Within the program, there will be different options with different prices. According to the presentation, there will be a default option, which will be the cheapest option with the minimum amount of electricity from renewable sources. There will also be a Northborough Green option that will have 100% of the electricity from renewable sources.
Select Board Chair Mitch Cohen proposed adding a third option.
“What I know some towns do is they have three options of the cheapest, 100% renewable and then somewhere in the middle,” said Cohen.
Other towns have set the default rate at that middle rate, and users could then switch to another option, depending if their primary concern is saving money or using renewable energy, he said.
Patton told the board that the decision is typically not made until the municipality made its way through the regulatory process and received its prices.
Mike Tietjen questioned why the default option wouldn’t be the cheapest option. Resident Dick Swee voiced concern that adding a third option would complicate it.
“The focus is to get cheap electricity costs, and the hope is that it’s generated in the best way,” Swee said. “My concern is by adding more complication, we’re going to make this thing go out even further. It’s already gone out years.”
He said it may result in three options, and the lowest option would be higher than it would have been if there was a focus on cheaper electricity.
Cohen responded that cost is a driving factor – whether it’s the lowest possible cost no matter what or lowest cost that allowed more renewable energy. It varied family to family, he said.
Cohen added that making these changes wouldn’t slow the town down.
The Select Board moved forward with offering three options with the default being the cheapest in the presentation materials, subject to public comment.
For more information on the program and information on how to comment, visit https://www.town.northborough.ma.us/administration/pages/northborough-power-choice. Comments will be accepted until March 13.
