Municipal Aggregation

TOWN OF AUBURN EXECUTES CONTRACT FOR MUNICIPAL AGGREGATION

The Town of Auburn is pleased to announce that Dynegy has been chosen again as the supplier for the Community Choice Power Supply Program (“Program”). Dynegy, based in Houston, Texas, is a competitive supplier of power, renewable energy and energy management products and services for homes and businesses in Massachusetts, Ohio and Illinois. The contract will provide participating Auburn residents and businesses with a fixed electricity supply rate of 17.860 cents ($0.17860) per Kilowatt Hour (kWh) for 5 months starting in June 2022. The renewable energy content of the supplied energy meets Massachusetts renewable energy requirements, which means 51% of the electricity is offset with Renewable Energy Certificates (REC’s) derived from clan energy resources located in the New England region.

IMPORTANT UPDATE FROM THE TOWN OF AUBURN

The Town of Auburn has participated in Community Choice Power Supply Program (a.k.a. Municipal Aggregation) since 2015. Since Program inception, The Town has been able to secure electric rates that are significantly less than National Grid’s Basic Service Rate. But, due to the timing of the expiration of the most recent contract, the Town had to solicit bids for a new contract in a volatile market. The market was already elevated this past fall/winter.   Initially, it was due to a winter premium which generally lowers in the Spring.  However, due to the Russia-Ukraine conflict, as well as national and international economic conditions, the market has remained very high. NGrid purchased 50% of their 2022 summer load last September 2021 and the remaining 50% in March 2022, whereas the Town needed to buy 100% of its load before its 3-year contract expired (for a June start) in an extremely high, volatile market this spring. Thus, the Town’s rate for the 5 month period from June to November is higher than NGrid’s Basic Service Rate.  The Town will be soliciting new rates regularly until November 2022 in an attempt to secure more favorable rates for the next contract period. While we cannot predict the future, over the coming months we will continue to work with our municipal aggregation consultant, Colonial Power, to secure a steady long-term rate. While some customers may want to opt-out of the Town’s program to take advantage of NGrid’s lower Basic Service Rate for the next 5 months, we hope most will stay with the program as it has yielded significant savings over the life of the program and has yielded stable, long-term rates that are lower than NGrid Basic Service Rates. However, future savings cannot be guaranteed because NGrid’s Basic Service Rates change twice a year or more, depending on rate class.

OPT INTO MUNICIPAL AGGREGATION

Please remember that this is an optional program! Town residents and businesses who were enrolled in the Community Choice program under the last contract (June 2019-June 2022) will remain enrolled and do not need to take any action. Those residents and business will receive a postcard in the mail (PDF) that contains details about the new fixed supply price and its contract duration. 

Customers who had previously opted-out of the program will not be automatically enrolled. NGrid Basic Service customers that do wish to participate can opt-in to the program at any time! To opt-in/opt-out, please have your NGrid bill handy and visit colonialpowergroup.com/auburn OR call Dynegy at (866) 220-5696. 

You may OPT-OUT or OPT-IN at any time in the future with NO CHARGE. 

Residents and businesses with any questions are encouraged to call Colonial Power at 508-485-5858, or the Town's Energy Manager at (508) 832-7700 x 1224.

CUSTOMERS UNDER CONTRACT WITH ANOTHER SUPPLIER

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.

To sign up manually, have your NGrid account number ready and contact Colonial Power Group at 508-485-5858 or click HERE for more information.

ABOUT 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. 

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. However, savings cannot be guaranteed.

PROCESS

In Spring 2022, Town Officials began meeting with Colonial Power Group while they solicited energy pricing in the most volatile market in recent years. Colonial was soliciting pricing first weekly, then daily, with the goal of getting Auburn residents the most favorable rate possible. Over the course of 5 weeks, the Town and Colonial were in near-constant contact regarding the rates. In late May, we were able to catch a dip in the market and execute a contract for the fixed rate of $0.17860 per kWh for all rate classes for 5 months. The Town intends to continue to solicit bids in order to find a long-term stable aggregation rate. 

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 and 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. The Town Manager concurred with the recommendation of the Committee and recommended Colonial Power to the Selectmen.

(Updated Jul 1, 2022)