Massachusetts was the first state to pass aggregation legislation as part of the Utility Restructuring act of 1997. It also has the country’s longest running CCA, the Cape Light Compact which launched the same year.
CCA in Massachusetts is approved at the local level by municipal elected bodies. Aggregation programs must be developed in consultation with the Department of Energy Resources and approved by the MA Department of Public Utilities. As in other states, most of the states’ aggregations focus on rate savings, although there is a growing focus on the integration of clean energy and energy efficiency. Aggregations that develop an Energy Plan are able to access energy efficiency funds from System Benefits Charges.
Members of the state legislature have expressed interest in CCA as a potential renewables procurement and energy efficiency platform. The state’s ambitious Green Communities Act, top energy efficiency ranking by the ACEEE, and vigorous pursuit of rooftop solar and offshore wind development create a clean power context for Massachusetts CCAs.
State law prohibits a profit mark-up on the energy supply portion of utility services. As a result, electric utilities have little motivation to oppose CCA formation in Massachusetts. Average length of supply contracts is 2-3 years.
MASSACHUSETTS CCA FAST FACTS (updated October 2014)
- Number of municipal aggregation programs in MA: 19, which includes 39 municipalities
- Number of municipal aggregation programs awaiting approval from MDPU: 35
- Average 24 month savings from municipal aggregation: .002 -.005 cents/kwh
- State Renewable Portfolio Standard: 22% by 2020
- 2012 rate savings for Cape Light Compact’s 200,000 customers: $95M
- Amount invested in 2012 by CLC for energy efficiency in homes and businesses: $25M
- 2012 rate savings expected from the Town of Lunenberg’s CCA: 5%
- 2012 rate savings for Town of Lanesborough: 9.4%
- Year the Cape & Vineyard Electricity Cooperative (Cooperative) was formed as a sister agency to the Cape Light Compact for the stabilization of electricity rates and the development of renewable generation: 2007
- New solar projects that the Cooperative is developing on behalf of its 20 member municipalities: 36MW
Approved Municipal Aggregations (as of October, 2014):
- Cape Light Compact, D.T.E. 04-32 (Cape Light Compact’s plan was originally approved in D.T.E. 00-47 and includes the Towns of Aquinnah, Barnstable, Bourne, Brewster, Chatham, Chilmark, Dennis, Edgartown, Eastham, Falmouth, Harwich, Mashpee, Oak Bluffs, Orleans, Provincetown, Sandwich, Tisbury, Truro, West Tisbury, Wellfleet, and Yarmouth).
- City of Marlborough
- Town of Lanesborough
- Town of Lunenburg
- Town of Lancaster
- Town of Ashby
- City of Lowell
- Town on Natick
- Town of Dalton
- Town of Florida
- Town of Lenox
- Town of New Marlborough
- City of North Adams
- Town of Sheffield
- Town of Tyringham
- Town of West Stockbridge
- Town of Williamstown
- Town of Clarksburg
- Town of Greenfield