Municipal Aggregation FAQs
What is a municipal aggregation?
Municipal aggregations are groups of customers, or entire communities, that unite to pool, or aggregate, their energy buying power. By pooling their buying power, municipal aggregations can often save participants money on their electricity bills. ConEdison Solutions is a leader in supplying electricity to aggregated customer groups, with expertise in regulatory requirements, power purchasing and customer service to ensure an easy, seamless transition for all program participants.
With a municipal aggregation plan, ConEdison Solutions can negotiate with a broad range of generation companies to meet your community’s goals – whether you’re seeking to reduce consumers’ prices, support renewable resources (we offer wind energy plans), or do a little of both. In all cases, though, our buying power should mean lower prices for your community’s participants than if they shopped individually. And, in most cases, we include the expense of administering an aggregation plan into our pricing, which means this choice comes at no added cost.
Where are municipal aggregations available?
Municipal aggregations are available in states in which electricity deregulation is in effect, which also have passed legislation allowing community choice aggregation (CCA). Currently, programs are active in California, Illinois, Massachusetts, New Jersey, Ohio and Rhode Island.
Who supplies the electricity in a municipal aggregation?
Competitive electricity suppliers, like ConEdison Solutions, use our purchasing and forecasting expertise to procure electricity on the open market. That electricity may actually be produced by a local generation company, but aggregating your community into a buying pool means residents pay less for the electricity than they would as individual customers.
Must everyone in the community participate?
No. A higher participation rate should mean lower prices for everyone, but all customers have a choice about whether to enroll or not. In fact, those who already have opted for another electricity supplier, or whose bills are overdue, might not be eligible to participate in an aggregation.
Will we notice any difference in our electric service?
Municipal aggregation only changes how your electricity is purchased. Your local utility will still be responsible for delivering the electricity and reading your meters, and will still be the company to call if you have a problem with your bill or downed wires. The utility is not affected positively or negatively by municipal aggregations.
Who do I call if my power goes out?
If your power goes out, you would still call your local utility company. The utility still delivers your power to you and is responsible for service and reliability issues, regardless of whom your electric supplier is.
Are there different types of aggregation program?
There are two different types of aggregation programs: Opt-in and Opt-out.
Opt-in: Customers must take individual action to enroll in the program. In other words, once a municipality or community adopts an aggregation plan, customers must join it by “opting in” to participate and take advantage of the price negotiated on the municipal aggregation’s behalf.
Opt-out: Customers will be automatically enrolled in the aggregation. This can happen following a public referendum, which may be required in some states, that automatically combines the electric load for eligible participants. If customers do not want to participate, they fill out and return an opt-out notice that will be sent to all those eligible to join the municipal aggregation.
Which is better?
The kind of plan available to your community may vary based on your state’s regulations, but opt-out plans generally have higher (but not mandatory) participation and, so, result in lower prices for everyone.
How long does an aggregation program last?
The term of the program is negotiated in the bidding process between the municipality and the electricity supplier.
How do I get more information?
If you manage or represent an aggregation group, please call us at 1-800-316-8011.