By Lee Enochs
SPRINGFIELD — The state Department of Public Utilities will allow Springfield and Southwick to buy electricity on behalf of participating residents and businesses.
The system, known as municipal aggregation, lets local governments negotiate better rates with energy suppliers, providing residents and businesses with more affordable and sustainable energy options.
“Municipal aggregation is an important tool for communities to utilize clean energy, provide ratepayers with more flexibility, and help cities and towns pursue our collective clean energy and climate goals,” Jamie Van Nostrand, the DPU chairman, said in a statement.
Municipal aggregation plans for Springfield and Southwick were filed with the DPU in June. Those plans were reviewed by the department.
Alanna Kelly, the DPU’s director of communications, said the program allows cities and towns to enter into contracts with energy providers “to procure a competitively priced supply of electricity to offer to residents and businesses within the community.”
Typically, residents and businesses get their electricity from one of the three distribution companies, including Eversource and National Grid.
Prices obtained through aggregation are usually at lower rates than the basic service rate provided to individual customers.
The approval of the plans for Springfield and Southwick is seen as a step towards achieving the state’s clean energy goals. As more municipalities across the state develop and implement municipal aggregation plans, residents and businesses will have more options and flexibility when it comes to choosing an electricity provider, officials say.
The program is voluntary for residents and businesses.
The DPU has approved 217 municipal aggregation plans since August 2000. As of January, more than 1.27 million customers were enrolled in a municipal aggregation program in Massachusetts.
The DPU has so far OK’d 35 municipal aggregation plans in 2024.