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Is Your Municipal Energy Plan Working For You?

There are currently over 100 Municipal Aggregation Programs active in the Commonwealth of Massachusetts.  Chances are you have been AUTOMATICALLY ENROLLED into these programs regardless of whether it is the best option for your business or not. To find out how your town’s plan compares to our rates follow the link below.

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Radical Solutions is a believer in aggregation as a strategy, but not for all rate payers.  For residential rate payers, municipal programs can mean access to rates better than what they would see on their own.  Unifying multiple small energy users within similar load zones, rate classes, and underlying utilities can drive value.  When you combine that with open competition and a formal bidding process, consumers win.

What happens when your municipal aggregate pool crosses multiple rate classes or load zones? What happens when you combine residential load profiles with business and industrial load profiles under the same municipal plan?  

Many times the municipal aggregation only benefits residential energy users with less desirable load profiles. Benefits are often diluted for the commercial and industrial rate payers as they are subsidizing the municipal program rate for higher cost users. The value of bringing similarly situated consumers together to drive down costs is suddenly erased when one group is forced to offset higher costs of another group as outlined above.

Whether you are an Eversource or National Grid rate payer, commercial supply rates are almost always lower than residential supply rates.  When these two groups are aggregated together, what you see is lower rates for residential rate payers, and more often than not, higher rates for commercial rate payers.

Many business owners probably don’t even realize they are included in these plans as they are considered ‘opt-out’ plans.  This means, unless you responded to that notice in the mail years ago, you were AUTOMATICALLY enrolled in these programs.  Many businesses have probably paid more than they needed to for electricity. 

Want to see what you can do about it? Tap the link below.