Town of Auburn Executes Contract for Municipal Aggregation
The Town of Auburn is pleased to announce that Constellation Energy Power Choice, Inc. ("Constellation"), has been chosen as the supplier for the Community Choice Power Supply Program (“Program”). Constellation, based in Houston, Texas, is a leading competitive supplier of power, natural gas, renewable energy and energy management products and services for homes and businesses across the continental United States. The contract will provide Auburn residents and businesses with a fixed electricity supply rate of 9.522 cents ($0.09522) per Kilowatt Hour (kWh) for 12 months starting in December 2015. This rate is 100% renewable, which that the electricity is being supplied through national wind Renewable Energy Credits (RECs) from farms throughout the continental U.S. Residents
participating in Auburn’s Municipal Aggregation Program will now benefit from a rate that is 27.4% lower than National Grid’s (NGrid) winter rate of 13.129 cents ($0.13129) per kWh.
Please remember that this is an opt-out program! Eligible town residents and businesses who are current NGrid basic rate customers will be automatically enrolled in this municipal aggregation program with Constellation starting in December 2015. Those residents and business will receive a letter in the mail that contains details about the new fixed supply price and its contract duration.
The Program rates will be reflected in the Supplier Services section of your January 2016 National Grid bill. The letters will also provide eligible residents and businesses with instructions to opt-out of the service by completing a postage-paid reply card and mailing it back to Colonial Power within 30 days of receipt. Residents and businesses with any questions are encouraged to call Colonial Power at 508.485.5858.
Those customers who are under contract with another supplier will not be automatically enrolled in this municipal aggregation program. Those customers may opt into municipal aggregation at any time at no charge, although there may be penalties, fees or fines to cancel a contract with the supplier. Please talk with your contracted supplier before taking any action to avoid penalties, fees or fines.
What is Municipal Aggregation?
Residents in Auburn and communities across the State are faced with escalating electric costs which increase household expenses and put a burden on homeowners, families, low-income populations and seniors. Commercial customers are challenged by high electricity costs which are consistently highlighted as a barrier to economic growth in central Massachusetts. Residents and businesses in Auburn and other communities in the Commonwealth have felt the impact of skyrocketing electricity supply costs over the past two winters.
The Town of Auburn’s Municipal Aggregation Plan is designed to address this uncertainty in electricity costs by combining the purchasing power of its residential and commercial customers and by competitively bidding that load on the open market. By combining this purchasing power, the Community Choice Municipal Aggregation Plan enables customers to achieve stability in their electric rates and control their electric costs through the competitive fixed rate of 9.522 cents per kWh for the 12-month term of the contract with Constellation.
The Town of Auburn has been working with its municipal energy consultant, Colonial Power Group, Inc. since April of 2015 when they were chosen by the Board of Selectmen after a competitive process. The Wind Turbine & Alternative Energy Committee had held interviews for 3 municipal aggregation consultant candidates over the course of 2014 before recommending Colonial Power Group to the Town Manager this past April. The Town Manager concurred with the recommendation of the Committee and recommended Colonial Power to the Selectmen.
In May, the Town submitted its Community Choice Municipal Aggregation Plan to the state for review. Following approval by the Department of Energy Resources (DOER) this summer and a public hearing held by the Massachusetts Department of Public Utilities (DPU) in August, DPU gave final approval to Auburn’s Community Choice Municipal Aggregation Plan on September 17th, 2015.
The Town would like to thank State Senator Michael Moore and State Representative Paul Frost for their support and recommendations of this plan to the DPU. The Town also thanks the Wind Turbine & Alternative Energy Committee, the Auburn Board of Selectmen, and the Town’s Planning Division, Town Counsel, and Colonial Power Group for their efforts with this energy initiative.