Municipal Energy Aggregation

Why did Melrose turn to community aggregation?

• Rate hikes during the winter months put a financial burden on residents.
• Households and businesses receive many solicitations from other suppliers that are confusing. Although they appear to offer savings at first, they end up being a bad deal over time.
• Many ratepayers have trouble deciphering their electricity bill.
• Melrose considered community aggregation an effective vehicle to increase development of renewable energy in MA.

Melrose’s Community Aggregation Implementation Timeline

• May 2014: Board of Aldermen provided approval for the city to explore a community aggregation plan.
• March 2015: Melrose approved the aggregation plan.
• June 2015: Plan was reviewed by the Department of Energy Resources.
• September 29, 2015: Department of Public Utilities approved the plan.
• November 2015: The city sent letters to all eligible National Grid customers informing them of the community aggregation program, and offering the opportunity to opt out. There is a mandatory 30-day opt-out period required by Massachusetts law that closed in late December.
• January 2016: Those who chose not to opt out of the program were enrolled with the city’s selected supplier.

Consumer Education

Melrose held various public information forums throughout this process. They were held before the Department of Public Utilities approved the program, during the 30 day opt-out period, and in housing complexes with electric heat and/or vulnerable populations

Melrose Community Aggregation Program Details

• The program begins in January and ends in January of the following year.
• Consumers are automatically enrolled in community aggregation unless they choose to opt out.
• Consumers can leave the program at any time without a termination fee.
• Consumers will still receive one bill from National Grid, and make one payment to National Grid.
• Consumers can still contact National Grid for any service issues.
• Reliability and quality of service remain the same.

Melrose Supply Rates

Although community aggregation rates are not always lower than National Grid rates, they are not subject to the same price fluctuations during the colder months.