Municipal Aggregation

Despite its nondescript name, municipal aggregation is a simple concept that provides real results. The city, typically with the help of a consultant, and under the guidance of the Department of Energy Resources and the Department of Public Utilities, purchases electricity from an electric supplier at a favorable rate under a contract of 1-3 years. All residents and businesses within the city receive that rate automatically, but they have the option to opt out at any time by filling out a form. Electric delivery remains the same, so there is no change to infrastructure, and in fact, your monthly bill will still come from National Grid.

Nearly half of all communities in Massachusetts have adopted municipal aggregation, and according to data put out in 2023 by the Department of Energy Resources, the annual savings for a residence is $580, and for a business, it’s over $2,200.

Chart from the Depart of Energy Resources showing the average annual savings for residential properties.

Source: https://www.mass.gov/info-details/municipal-aggregation-0#municipal-aggregation-manual (visual charts are interactive)

For those who wish to take a deep dive into how it works, here is the DOER Municipal Aggregation Manual & Best Practices Guide: https://www.mass.gov/doc/municipal-aggregation-manual-best-practices-guide/download