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Community Choice for Local Control —
What, Why, How

Through a public referendum or city council vote, citizens in a municipality may choose to form a "public aggregator," which will purchase electricity on behalf of all consumers within a municipality's jurisdiction. Several municipalities can pool their resources and create an even larger buying group.

Why aggregate?

Simple economics dictates that large buyers of electricity will get the best rates. Through Community Choice, or public aggregation, consumers can form a large buying group, empowered through their local government, to get lower rates for electricity and also help protect the environment by exerting control over energy source decisions.

Why aggregate through
cities and towns?

Local governments are existing public institutions over which consumers have control and whose role is to provide services to its citizens over the long term in a cost-effective manner. Municipalities originally brought electricity to their citizens before utilities existed by issuing electricity franchises to successful bidders. Continuing that traditional role will be helpful to consumers as the power supply industry continues to evolve. Public aggregators are publicly accountable through elections, open meeting laws, fair bidding laws, and conflict of interest laws.

Does my community
have the expertise?

Local government already supplies numerous services for their citizenry such as: solid waste pick-up, maintenance of public ways, municipal water and sewer, ambulance, schools, police protection, fire protection, and the like. Local government also has the resources to acquire the same kind of experts that the utilities depend upon.

How does Community Choice
help the environment?

By concentrating buying power in a publicly accountable, local municipality, consumers can require that a power supplier provides "green electricity" (electricity from wind, solar, or other renewable electricity sources) in their power supply mix. Further, the experts hired through Community Choice can make sure that it is genuinely "green" electricity. The cost of the renewable electricity will be lower if shared by all citizens of a community than if bought individually.

In Massachusetts, where Community Choice was enacted in 1997, municipalities are able to recover the money utilities normally collect from ratepayers for energy efficiency programs. Public aggregators save millions of dollars in utilities' program operating fees, and are thus able to shape programs more suited for their citizens. If your state or utility charges ratepayers for operating energy efficiency programs, recommend to state legislators that they write this provision into your state's restructuring act.

Who will maintain the
poles and wires?

The existing or incumbent electric utility will continue to own and maintain the poles and wires. It may also continue to read meters and do the billing. The municipality acting as a public aggregator negotiates the terms and provisions of a power supply contract on behalf of its citizens. It does not purchase the poles and wires, nor does it own the source or sources of electric power.

The importance of an
"opt-out" provision

An "opt-out" provision preserves consumers' free choice of energy provider. Without it, Community Choice programs would be required to sign up each individual consumer, The opt-out provision enables the city or town to form the aggregating unit without spending a great deal of money for expensive advertising campaigns to compete with private companies with big marketing budgets behind them.

The opt-out provision gives Community Choice municipalities significant purchasing power, enabling them to negotiate the best electricity rates for their residents and businesses.

What you can do

Contact your town officials and your state legislators to see if they are aware of the benefits of Community Choice. Ask them to consider supporting Community Choice legislation in your state.


Source: Cape and Islands
Self-Reliance fact sheet

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