(800) 669-5556

Blog

Checklist: What Everyone Should Know About Municipal Aggregation

What price is the supplier offering and how does it compare with the utility’s price?
While it is a basic question, it is the key question for consumers: Will I save money with municipal aggregation? Ask community leaders to be clear about the price being offered and match it up with your utility’s price. (Also, make sure to ask if there’s a monthly fee attached to the plan.)

What if I want to leave the alternative supplier?
See if you can get out of a deal without having to pay an exit fee. Also, find out if the alternative supplier promises to meet or beat the utility’s price over the course of the contract, as some have.

What happens when my community’s power contract ends?
After your municipality’s agreement with an alternative supplier runs its course, will you automatically return to your utility’s rates, or will you become a customer of the alternative supplier your community contracted with? Check with your community leaders to find out.

Will my community purchase Renewable Energy Certificates (RECs) to invest in “green” energy?
Many alternative power suppliers offer “green” plans, which ensure that a certain percentage of the power consumed will be put back onto the grid by renewable energy sources, like wind and solar power. This is a legitimate choice, but you should ask if your community is offering a green plan and if it will cost you extra. Just remember, even if you purchase “green energy” from an alternative power supplier, it doesn’t mean the actual electricity you consume is from a renewable energy source—it just means that clean energy was added somewhere to the power grid.

Are consultants advising my municipality on community aggregation, and if so, what fee(s) are they charging?
Many communities obtain a consultant to seek out and negotiate power prices on behalf of residents. These consultants charge fees—taxpayer dollars—for their services. Make sure your municipality’s consulting fees, if any, won’t eat up your electric bill savings.

Does my community plan to accept fees from the alternative supplier it chooses?
Some communities take fees from alternative suppliers. If your community is considering such a move, ask local leaders how that impacts the price offered and what they plan to do with the extra money.

Post a comment

%d bloggers like this: