The Agawam City Council approved its Community Choice Power Supply Program Aggregation Plan as a next step to implementing an energy aggregation program in town. The state’s DPU will now review the plan for possible approval.
Photo credit: Agawam Media
AGAWAM — The town of Agawam took the next steps in a process that in the end will bring savings to residents’ and businesses’ energy bills.
On Sept. 2, the Agawam City Council approved its Community Choice Power Supply Program Aggregation Plan following a monthlong public review period.
The plan will now head to the state’s Department of Public Utilities for approval, and then the town will embark on educational initiatives to help inform residents about how this plan will affect their bills in the future.
The end goal is to implement a community choice power supply aggregation program that will serve as an alternative to standard supply rates offered by Eversource.
“As representatives of this town, it’s our job to do all we can, especially in these tough times, to make life as easy as we can,” said City Councilor Anthony Russo, who was a proponent of energy aggregation in Agawam when the council explored it two years ago. “And this is one of those ways we can do it.”
Eversource has been under a lot of scrutiny for its energy rate increases last winter.
In Agawam, the council approved a resolution last fall that asked DPU and Eversource to prioritize outreach to local Eversource ratepayers about programs and services that can help them during the winter season. The resolution was in response to the natural gas rate spike approved by the Department of Public Utilities last fall.
Now, the town is hoping energy aggregation becomes a tangible way to combat the challenging standard rates administered by Eversource.
According to previous Reminder Publishing reporting, energy aggregation essentially allows Agawam to negotiate a discounted per-kilowatt electrical rate with the power company. City Councilor Tom Hendrickson, another one of the initial proponents of exploring this plan two years ago, stated in 2023 that more than 100 municipalities in Massachusetts have adopted this program.
“This allows the town to procure the supply for energy on behalf of residents, rather than have individual people go out and try to negotiate in a market [that] they often don’t understand,” Hendrickson said at the time.
Passing the plan on Sept. 2 is the next step in the process of implementing energy aggregation in Agawam. According to the resolution, the plan was developed in consultation with Colonial Power Group from Marlborough and residents had a month to review it and comment on it.
The plan is in compliance with Massachusetts law regarding public aggregation of electric consumers, and contains information on the structure, operations, services, funding and policies of the town’s plan.
“The purpose of the plan is to represent consumer interests in competitive markets for electricity,” the plan says. “The town seeks to take greater control of its energy options, including enhancing the ability to pursue price savings, price stability and the renewable energy content.”
Councilors spent the majority of the discussion explaining what energy aggregation means for residents and businesses in Agawam. Others ensured residents that this will benefit them and the town.
City Councilor Dino Mercadante noted that ratepayers will automatically opt into this program, but they will have the ability to opt out if they wish to return to paying their standard rates. Hendrickson shared that the opt-out process comes at zero cost, and people can opt out at any time through a mechanism “as simple as a phone call.”
“We’ve had a lot of people complain about their electric bills over these last couple of years, and this should be something where at least now they can have another source for their energy at a discounted rate,” Mercadante said of the aggregation program.
City Councilor Edward Borgatti said municipal energy aggregation programs are “very popular” and have saved towns and residents a lot of money, including in Southwick.
“This is a great program for the town,” Borgatti said.
City Councilor Peter Smus reminded people that the energy aggregation program would lower the supply cost portion of ratepayers’ bills. Eversource will still be the deliverer.
Councilors also noted that the transition to this aggregation program will be smooth, as everything will still go through people’s Eversource bill when the program is eventually implemented.
City Councilor George Bitzas called the program a “no-brainer” for the town, saying it will save residents and businesses money.
City Council President Rosemary Sandlin said the town will present educational materials, such as public service announcements, to residents about the energy aggregation program once the plan is approved at the state level.
“We’re not going to do any PSAs until the plan is approved [at the state level],” Sandlin said. “This is just the next step in the process.”
