A “Community Choice Power Supply Plan” that proposes to negotiate lower electricity rates to Haverhill residents by pooling local consumers, goes before the Haverhill city council for a vote on Tuesday night.
Also known as an “aggregation plan,” the proposal prepared by consultant Colonial Power Group Inc., Marlborough, in consultation with the Massachusetts Department of Energy Resources (DOER), details its organizational structure, operational levels and staffing, funding, rate setting, universal access and reliability, among other topics. It also describes the process required to create and activate the plan, including approval by the Department.
“The program is designed to offer competitive choice to eligible consumers and to gain other favorable economic and non-economic terms in service contracts. The city does not buy and resell power, but represents consumer interests to set the terms for service,” according to city documents.
“Through a competitive bid and negotiation process, the city develops a contract with a competitive supplier for firm, all-requirements service. The contract runs for a fixed term. The process of contract approval contains checks and balances. Once the contract has been negotiated by the city’s agent, it must be submitted to the mayor for approval. And lastly, eligible consumers may opt-out of the program, and select Basic Service or power supply from any other competitive supplier they wish at any time before or following their enrollment in the city’s program. No eligible consumer is required to receive service under the city’s contract.”
Last week, Haverhill city councilors voted 8 to 0 to authorize the city to pursue state approvals for the city to become an aggregator with efforts by Colonial Power Group. Council Vice President Robert Scatamacchia was absent.
The Haverhill City Council meets at 7 p.m., Tuesday, in council chambers at Haverhill City Hall.