How aggregation works
Municipal electricity aggregation is a form of group electricity purchasing. Electricity aggregation replaces your electricity supplier and it changes the price that National Grid uses to calculate the Supply Services charge of your electricity bill. In addition, aggregation can increase the amount of renewable energy in your electricity supply. But electricity aggregation does not replace National Grid as your electric utility.
Here’s how it works:
Without Foxborough Power Forward
(Unless you already have a contract with an electricity supplier)
When you first open your electricity account, National Grid provides two services to you as an electricity customer, and your electricity bill includes charges for both of these services:
|National Grid’s primary role is as an electricity delivery company. They deliver electricity to you, maintain the poles and wires, and address power outages. They charge you for these services on the Delivery Services portion of your National Grid electricity bill.|
|For new accounts, National Grid also provides a second service, which is as an electricity supplier. They purchase electricity on your behalf and charge you on the Supply Services portion of your National Grid electricity bill for the amount you use. When National Grid is your electricity supplier, you have National Grid’s Basic Service, and the price that is used to calculate your Supply Services charge is National Grid’s Basic Service price.|
The diagram below shows National Grid’s Basic Service, with National Grid supplying electricity in addition to delivering it.
National Grid’s fixed Basic Service prices change seasonally, every 6 months for residential and commercial customers and every 3 months for industrial customers, and future prices are not known.
With Foxborough Power Forward
In an electricity aggregation like Foxborough Power Forward, National Grid continues to deliver your electricity and you continue to call them when the power goes out, but you no longer have National Grid’s Basic Service for the Supply Services portion of your electricity bill. Instead, National Grid uses a Foxborough Power Forward price to calculate that portion of your bill. Through Foxborough Power Forward, the Town of Foxborough uses the bulk purchasing power of the community to negotiate a contract with an electricity supplier and to determine the price for the community’s electricity supply.
The Foxborough Power Forward price is a fixed, long-term price that does not change seasonally.