What is Community Choice Aggregation?

Community Choice Aggregation (CCA) is a state-regulated program that addresses a growing demand by Massachusetts electricity consumers to purchase renewable energy at competitive prices. Also known as Municipal Aggregation, the program authorizes a municipality to negotiate prices and terms with competing electricity suppliers on behalf of the community. One hundred seventy-five Massachusetts towns and cities already participate in this program today. Lawrence should, too.

CCA offers the following potential benefits to consumers:

Through CCA, Lawrence would be able to purchase energy with a higher renewable content than required by the Massachusetts Renewable Portfolio Standard, in keeping with the city's values as a designated Massachusetts Green Community.

The program would give consumers greater control over the price and content of their electricity supply by offering one or more alternatives to National Grid Basic Service. It would also allow customers to resume National Grid Basic Service at any time, with no penalty or fee. For all customers, National Grid would continue to be the distributor and billing agent.

Massachusetts General Law, M.G.L. c. 164 sec. 134, outlines CCA rules. To implement CCA in Lawrence, the city must take the following steps:

  1. Authorization by City Council to develop an aggregation plan
  2. Selection of an energy broker to help design the plan
  3. Development of the plan by city government and broker
  4. Approval of the plan by City Council
  5. Submission of the plan to MA DOER/DPU for review and approval

Disclaimer
A goal of the aggregation program is to produce savings for customers, but savings cannot be guaranteed compared to the utility’s Basic Service rate, which changes every six months for Residential and Small Business customers and every three months for Large Business customers. The aggregation program seeks to provide price stability and average savings over the full term of the program, but because future Basic Service rates are not known, there is no guarantee of savings.