Community Choice Energy programs (sometimes called Community Choice Electricity or Aggregation) enable local governments to bargain for and purchase electricity on behalf of their community members, like residents and businesses. A major benefit of Community Choice Energy (CCE) is a reduced per kilowatt-hour rate for the consumer, in addition to the potential for increased reliance on renewable energy, which can substantially reduce emissions. AEC has written multiple policy briefs about implementing CCE in Massachusetts, particularly in the City of Boston.
The Commonwealth of Massachusetts authorized municipal governments to implement CCE in 1997, and Boston authorized its own CCE program on October 6, 2017. After three years of deliberations, the City announced the implementation of the program, starting February 1, 2021.
Eversource customers in the City were automatically enrolled in the CCE program on February 1, 2021, but were given the option to opt-out beforehand. In order to increase accessibility, customers can switch between three different plans whenever they want, or opt-out of CCE all together, with no fee or penalty.
The three plans are Standard, Optional Basic, and Optional Green 100. The cheapest option is Optional Basic, at approximately $0.109/kWh, and with 18percent renewable electricity. Next is Standard, which is the default package, and is approximately $0.114/kWh, but with 28percent renewable electricity. Lastly, Optional Green 100 is the most expensive, at roughly $0.148/kWh, and 100percent renewable electricity. In comparison, Eversource’s Basic rate for 2021 is $0.119/kWh, and 18 percent renewable energy. Both the Optional Basic and the Standard plans offer cheaper electricity than the Basic rate, with the Standard plan offering more renewable energy.
A local news investigation into Boston’s CCE has shown that little over five percent of Eversource customers opted out of the CCE program. Within the program, almost all customers stay with the Standard, or default, plan. Less than one percent are in both the Optional Basic and the Optional Green plans.
The City has also put equity at the front in its CCE program implementation. In order to educate the community, Boston offered written notices in multiple languages, a more discounted rate for 20,000 low-income residents, and 11 virtual webinars over the course of a few weeks. The City of Boston has implemented a CCE program that is the largest of its kind in the New England area, offering cheaper costs to consumers, and emphasizing equity and accessibility.
