Community Choice Aggegation, Coming Soon To Amherst, Will Democratize Town’s Energy Supply

Fifty-four people attended the June 6 public Zoom meeting to explain and answer questions about Valley Green Energy’s application to the state Department of Public Utilities to create joint Community Choice Aggregation (CCA) among Amherst, Pelham, and Northampton for the purpose of obtaining electricity.  The meeting was recorded and is posted here.

Amherst Sustainability Coordinator Stephanie Ciccarello moderated the meeting which included a presentation by Marlana Patton and Paul Gromer from Mass Power Choice, the consultant firm hired in 2022 to shepherd the program through state regulators and then act as the broker to obtain energy for the three towns. The company will also conduct education and outreach programs, and make sure the energy suppliers abide by their contract.

Amherst Town Manager Paul Bockelman explained that the CCA program will enable the three municipalities to decide where to purchase their electricity, maximizing green energy choices. Bob Agoglio, Chair of the Pelham Select Board, said this type of program would be unattainable for a community of 1100 without larger partners, and “it couldn’t be more timely with electricity rates fluctuating wildly in recent months.” He added that “We are more aware of the source of our energy in order to make it greener.” Northampton Mayor Mary-Louise Sciarra said CCA has long been a priority for Northampton. The city started looking into it in 2012 and spearheaded the formation of the three-town CCA working group in 2018 that was the forerunner of the current Valley Green Energy Working Group.

Patton explained that Valley Green Energy was created by the communities for the communities. However, it needs regulatory approval by the state before it can launch. Part of the application process is to obtain public comment by June 30. Over 170 communities in Massachusetts are served by CCAs, which were first approved in 1997. The Valley Green Energy CCA will act as a joint purchasing program to obtain more electricity from clean, renewable sources; offer competitive, stable prices through longer term contracts (savings cannot be guaranteed;, and offer consumer protection with contracts developed by the three towns as opposed to the usual contracts from electric companies. Massachusetts programs are “opt out” programs, meaning anyone who receives service from Eversource or National Grid in the three towns will be automatically enrolled, but people can end their participation in the program at any time without penalty.

Valley Green Energy will not replace Eversource and National Grid, except in their roles as energy suppliers. Those companies will continue to deliver electrical service to homes, maintain the delivery system and issue bills, but the communities will choose the supplier. 

As it stands now, residents have three choices for purchasing electricity. They can buy electricity through the provider (National Grid or Eversource). This is basic service and includes the minimum amount of green energy required by the state “renewable portfolio standard”. Another option is to sign an individual contract with a commercial supplier. The third option, CCA, is that the city or town signs a contract with a supplier and can determine the cost and amount of renewable energy in the contract. 

The Valley Green Energy CCA contract, as proposed, will offer four choices. The standard or default option offers more than the minimum amount of renewable energy required by the state. A second option is 100% green energy, which costs more. A third, also more expensive option, is the Local Option. With it customers receive a higher percentage of renewable energy from projects located in the Valley Green Energy area. Finally, the budget choice has the minimum green energy required by the state. The electric companies still get paid for delivering the energy, so CCAs are neutral as far as their impact on their bottom line. The bills look the same, and customers only receive one bill.

The regulatory approval process could take about a year.  Customers of the electric companies will receive notice of the program’s launch a month ahead of time. Those with contracts with private suppliers will not be automatically enrolled, but can choose to switch to the CCA. Residents with solar panels will continue to receive SMART payments for the solar energy, and those who participate in community solar can continue to do so, while also participating in the CCA.

Answers To Audience Questions
Patton and Gromer responded to questions from the audience. Ciccarello did not identify the questioners. Gromer said that Newton Power Choice, also administered by Mass Power Choice, has the highest proportion of renewable energy in the state. It currently receives 84% of its energy from renewable sources. He estimated that demand for renewable energy from CCA programs encourages the development of new sources by 10% per year. He said it may be possible for other towns to join Valley Green Energy in the future, but Amherst, Pelham, and Northampton are the only towns listed in the initial application.

In response to questions about the availability of lower prices for low-income residents, Patton said that low-income discounts would remain in place under Valley Green Energy.

She said that the CCA only affects energy purchased from the grid. People with rooftop solar panels that are paired with battery storage would purchase less through the program.

Gromer emphasized that not all renewable energy is clean. For instance, trash burning is renewable, but produces greenhouse gasses. Mass Power Choice makes sure to maximize clean energy choices. He did cite the need for more transmission lines to handle the increased renewable energy.

The public is encouraged to consult Mass Power Choice’s website for more information about Valley Green Energy. Comments to the Department of Public Utilities should be submitted to Ciccarello at ciccarellos@amherstma.gov by June 30.