Agenda Text
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Requesting the review and approval to proceed with the state's review of the draft Community Electric Aggregation Plan.
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Official Text
To the Honorable Board:
I am submitting the attached draft municipal aggregation plan for Somerville for your review and requesting your approval to proceed with submission to the Department of Public Utilities (DPU) for their review. Following your authorization to create this plan (agenda item 199625, October 8, 2015), my staff procured the services of Good Energy, Inc. to serve as the energy consultant/broker for community choice aggregation (CCA). Approval to proceed by this Board would begin the process of review by the DPU and other state agencies, including the Department of Energy Resources and the Attorney General, to finalize a plan that is advantageous to electric customers in Somerville.
The community electric aggregation plan (the Plan) was developed in accordance with M.G.L. c.164, sec. 134, which authorizes any municipality to aggregate the electrical load of interested consumers within its boundaries. Under the Plan, the City will solicit bids and contract for electric power for participating customers. Over 60 cities and towns in Massachusetts-including Lowell, Melrose, New Bedford, and Salem-already have active electricity aggregation programs that were formed in this manner.
In addition to buying the quantities of green power required by law, the City intends to secure electricity supply with additional quantities of green energy to promote sustainability and the development of renewable resources.
Guided by the CCA Taskforce of Somerville residents, the Plan proposes an aggregation program with the potential to provide benefits to Somerville, including:
The potential for longer term electric supply contracts with favorable and more stable rates for customers;
No-penalty opt-out or un-enrollment at any time for all customers;
No change in electricity distribution, billing, or energy efficiency programs from Eversouce for customers;
Additional opportunities to support sustainability and increase green energy resources; and
Advancement toward the City’s goals of net-zero carbon emissions by 2050 and a fossil fuel free Somerville.
The Plan details the organization and operation of the aggregation program in accordance with the statutory and regulatory mandates that require that the Plan to:
1. Detail the process and consequences of aggregation
2. Provide for universal access, reliability and equitable treatment of all classes of customers
3. Achieve a price for energy that either will a) not exceed the price of Basic Service currently offered by the local distribution company (LDC), or b) may exceed the price for Basic Service due to the purchase of renewable energy
4. Automatically enrolls all customers currently on basic service, but allows them to opt-out or leave the program without penalty at any time
5. Provide that participation by any retail customer shall be voluntary
6. Explain the operation of the program, including:
a) An organizational structure of the program, its operations, and its funding
b) Rate setting and other costs to participants
c) The methods for entering and terminating agreements with other entities
d) The rights and responsibilities of program participants and termination of the program
The Plan also includes a public outreach and education effort through which the City will fully inform all ratepayer classes in advance of their impending automatic enrollment, their right to opt-out without penalty at any point, all charges and fees, the LDC’s basic service rate and the goals and expected benefits of the aggregation program. The Plan will be developed in consultation with the Department of Energy Resources and made available for public review and comment. Following authorization by the Board of Alderman and the Mayor, the Plan will be submitted to the DPU for review and approval.
During the public comment period, April 14-28, 2016, the Plan will be posted on www.somervillema.gov/cca and available in hard copy at the Central Library. There will be Q&A session for the public on April 28, 2016 from 6:30-7:30 at the Central Library.
My staff is available to answer any questions you may have.
Respectfully submitted
Joseph A. Curtatone, Mayor