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 charges on 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 Spencer Electric Choice

(Unless you already have a contract with an electricity supplier)

Typically, National Grid provides two services to you as an electricity customer, and your electric bill includes charges for both of these services:

Electricity delivery

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 electric bill.

Electricity supply

National Grid 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 Services portion of your electric bill. When National Grid supplies your electricity, their Basic Service price is used to calculate the Supply Services portion of your bill. Basic Service prices change seasonally. When you first open your electricity account, you are placed on National Grid’s Basic Service.

The diagram below shows National Grid both delivering and supplying electricity.

With Spencer Electric Choice

In an electricity aggregation like Spencer Electric Choice, you remain a National Grid 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, National Grid no longer supplies (buys) your electricity. As a result, you no longer have National Grid’s Basic Service price for the Supply Services portion of your electric bill.

Instead, the Town of Spencer 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. National Grid then uses a Spencer Electric Choice price instead of their own Basic Service price to calculate the Supply Services portion of your bill. Spencer Electric 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. Spencer is planning to include one option that provides 100% renewable electricity.

What changes on your bill

If you participate, you will see two changes on your electric bill beginning the month after you are enrolled:

  1. Spencer’s electricity supplier will be listed on your National Grid bill as your electricity supplier.
  2. National Grid will use a Spencer Electric Choice price to calculate the Supply Services portion of your electric bill instead of their Basic Service price.

What does not change on your bill

Otherwise, your primary relationship for electricity will remain with National Grid. This means:

  • You will continue to receive one bill from National Grid. This is the only electric bill you will receive as a participant in Spencer Electric Choice.
  • You will continue to call National Grid if your power goes out. National Grid 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 Spencer Electric Choice will not change how they are calculated.
  • If you are eligible for a low-income discount, you will continue to receive that discount.

View an example National Grid bill

Enrolling in Spencer Electric Choice

Spencer Electric Choice uses an automatic enrollment model, which is in accordance with state law. At program launch, all customers with National Grid’s Basic Service will be eligible for automatic enrollment. After program launch, new electricity customers in Spencer will be eligible for automatic enrollment in Spencer Electric 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 Spencer 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, National Grid will remain your electricity supplier, and they will use their own Basic Service price to calculate the Supply Services portion of your electric bill.