West Bridgewater residents and businesses will save a combined $109,000 annually and support green energy as a result of a new municipal energy aggregation program initiated by the town, according to officials.

Authorized by state law, municipal aggregation programs allow cities and towns to contract with a power supplier to provide electricity to all their residents at a negotiated rate that is below what their utility would charge.

The contract can also provide for some of the purchased electricity to come from renewable sources.

With the help of its consultant, Marlborough-based Colonial Power Group, West Bridgewater entered into a one-year contract with NextEra Energy Services of Houston that will offer local consumers 100 percent wind energy.

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All residents and businesses currently on National Grid’s basic service will be automatically enrolled in the program unless they opt out. A notice is being sent to all consumers offering the opt-out opportunity.

Customers will continue to receive a single bill from National Grid and see no change to their service.

“We’ve seen how the spikes in the cost of electricity can be burdensome for West Bridgewater residents, and we wanted to offer the opportunity to have a more stable and lower cost energy option while also utilizing a renewable energy source which is beneficial for our environment,” Jerry Lawrence, chairman of the Board of Selectmen, said in a statement.