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 Eversource uses to calculate the Supply charges on your electric 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 have a contract with an electricity supplier)
In a traditional model, Eversource provides two services to you as an electricity customer, and your electric bill includes charges for both of these services:
|Eversource’s primary role is to deliver your electricity. Their responsibilities also include maintaining the delivery infrastructure (the poles and wires) and addressing power outages. They charge you for these services in the Delivery portion of your electric bill.
|Eversource can also provide a second service, which is to supply your electricity. This means they purchase electricity on your behalf and charge you for the amount you use in the Supply portion of your electric bill. When Eversource supplies your electricity, their Basic Service price is used to calculate the Supply portion of your bill. Basic Service prices change seasonally. When you first open your electricity account, you are placed on Eversource’s Basic Service.
With Ludlow Power Choice
In an electricity aggregation like Ludlow Power Choice, you remain an Eversource customer. They continue to deliver your electricity, and you continue to call them when the power goes out. They also continue to send your electric bill, and you continue to send bill payments to them.
However, Eversource no longer supplies (buys) your electricity. As a result, you no longer have Eversource’s Basic Service price for the Supply portion of your electric bill.
Instead, the Town of Ludlow uses the group buying power of the community to sign a contract with an electricity supplier and establish an electricity Supply price for the community. Eversource then uses a Ludlow Power Choice price instead of their own Basic Service price to calculate the Supply portion of your bill. Ludlow Power Choice prices will be fixed, long-term prices that do not change seasonally.
Through the program, the Town can also choose to buy more electricity from renewable sources than is required by state law. Ludlow plans buys more electricity from renewable sources than is required by state law for two of the program options.
What remains the same
Otherwise, your primary relationship for electricity will remain with Eversource. This means:
- You will continue to receive one bill from Eversource. This is the only electric bill you will receive as a participant in Ludlow Power Choice.
- You will continue to call Eversource if your power goes out. Eversource will continue to deliver your electricity, restore electricity service after a power outage, and maintain the poles and wires.
- If you have solar panels on your property or participate in a community solar program, you will continue to receive solar credits and/or solar incentive payments, and participating in Ludlow Power Choice will not change how they are calculated.
- If you are eligible for a low-income discount or fuel assistance, you will continue to receive that benefit.
Enrolling in Ludlow Power Choice
Ludlow Power Choice will use an automatic enrollment model, which is in accordance with state law. At program launch, all customers with Eversource’s Basic Service will be eligible for automatic enrollment. After program launch, new electricity customers in Ludlow will be eligible for automatic enrollment in Ludlow Power Choice within a few months of opening their electricity account. Before being automatically enrolled, you will receive a notification in the mail from the Town of Ludlow with information about the program.
Participation is not required. You may opt out before being automatically enrolled or any time after enrollment, with no penalty. If you choose to opt out, Eversource will remain your electricity supplier, and they will use their own Basic Service price to calculate the Supply portion of your electric bill.