The Massachusetts Department of Public Utilities (DPU) on July 9 approved a proposal to expedite the state’s review process for municipal aggregation plans, while also adding transparency requirements and allowing municipalities to update their plans without DPU approval.
Municipal aggregation plans enable communities to purchase electricity in bulk and can reduce ratepayer costs relative to basic utility service in Massachusetts. They also can give ratepayers options to increase the number of renewable energy certificates (RECs) over what is required by the state’s Renewable Portfolio Standard (RPS).
According to a 2023 study by the Green Energy Consumers Alliance, municipal aggregation programs with more RECs than required have reduced costs and emissions in the state. (See Green Municipal Aggregation Cuts Costs and Emissions in Mass., Study Says.)
Despite the potential benefits, the DPU has faced criticism for yearslong wait times for aggregation applications to be approved.
Municipal aggregation reforms have been a priority of the DPU under Chairperson Jamie Van Nostrand, who was appointed by Gov. Maura Healey (D) in 2023. The DPU opened a docket on municipal aggregation reform in August 2023, which included draft guidelines, and asked for stakeholder feedback (D.P.U. 23-67-A).
Public comments largely were critical of the draft guidelines, which ultimately led to the creation of a stakeholder working group that advised a group of consultants in the creation of a new proposal.
The consultants jointly submitted the resulting proposal in early June with the backing of key stakeholders including the Green Energy Consumers Alliance, the city of Boston, several state agencies and electric distribution utilities.
“While the joint petitioners did not fully agree on all issues, the joint petitioners agree that the adoption of the guidelines and accompanying documents should significantly improve the effectiveness and efficiency of the department’s review and approval of municipal aggregation plans,” read the proposal.
The DPU approved these new guidelines with only “clarifying, non-substantive edits,” writing that they will “strike an appropriate balance between administrative efficiency … and transparency.”
Under the new guidelines, the DPU will be required to respond to municipal aggregation applications within 120 days of their submission. The department has issued a standard application template intended to help facilitate an expedited review process.
The order also increases the transparency mandates for municipal aggregations, requiring disclosures related to rates, clean energy makeup and certificates, different customer classes, and accessibility.
These measures will enable “increased public scrutiny,” the DPU wrote, adding that they are an important component of allowing increased discretion to each municipality in developing and updating its aggregation.
The new rules will allow municipalities to update their plans “in a manner consistent with these proposed guidelines without department approval, provided that it allows at least 30 calendar days for public review of the revised plan,” the DPU noted.
The department wrote that the rules will enable greater flexibility for municipal aggregations “to respond to market conditions in a timely manner.”
Municipalities filing new aggregation plans also will be required to meet with the Department of Energy Resources to go over their plan and discuss best practices.
The DPU’s approval was applauded by several stakeholders who have focused on the issue.
“Reforming the commonwealth’s municipal aggregation process was a priority in the legislature this session,” said Rep. Jeff Roy (D), House Chair of the Joint Committee on Telecommunications, Utilities and Energy. “The DPU’s thoughtful and collaborative engagement with stakeholders over the past few months has resulted in updated guidelines that will allow for greater flexibility and innovation, supporting both ratepayers and the commonwealth’s clean energy transition.”
Larry Chretien, executive director of the Green Energy Consumers Alliance, said the new guidelines will “help the aggregation movement grow while [continuing] to ensure consumer protections.”
