How aggregation works
Municipal electricity aggregation is a form of group electricity purchasing. An electricity aggregation program like Ludlow Power Choice replaces your electricity supplier, and it changes the price that Eversource uses to calculate the Supply charge on your electricity bill. In addition, aggregation can increase the amount of renewable energy in your electricity supply. But electricity aggregation does not replace Eversource as your electric utility.
Here’s how it works:
Without Ludlow Power Choice
(Unless you already have a private contract with an electricity supplier)
Typically, Eversource provides two services to you as an electricity customer, and your electricity bill includes charges for both of these services:
|Eversource’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 portion of your electricity bill.|
|Eversource also provides a second service, which is to be your electricity supplier. They purchase electricity on your behalf and charge you on the Supply portion of your electricity bill for the amount you use.|
When you first open your electricity account, Eversource both delivers and also supplies, or buys, your electricity.
- The Delivery portion of your bill is calculated based on regulated Delivery prices.
- The Supply portion of your bill is calculated using Eversource’s Basic Service price. Eversource’s Basic Service price changes every 6 months for residential and small business customers and every 3 months for large business customers.
The diagram below illustrates this scenario, where Eversource is both delivering and also supplying your electricity and Eversource’s Basic Service price is used to calculate your Supply charge.
With Ludlow Power Choice
If you participate in a municipal electricity aggregation program like Ludlow Power Choice, Eversource continues to deliver your electricity, but you no longer have Eversource’s Basic Service for the Supply portion of your electricity bill. Instead, the Town of Ludlow uses the group purchasing power of the community to choose an electricity supplier and to determine the price of the community’s electricity supply and whether any additional renewable electricity is included.
If you participate in Ludlow Power Choice, Eversource uses a Ludlow Power Choice price to calculate the Supply charge on your electricity bill instead of their own Basic Service price. Ludlow Power Choice will offer three pricing options: Ludlow Basic, Ludlow Standard, and Ludlow 100% Green.
Otherwise, the relationship between Eversource and electricity customers in Ludlow does not change, and your electricity flows without interruption: