Aggregation is when a group of customers join together to form a single, larger customers that buys energy for its members. A large buying group may be able to get a better price for the group members than you can get on your own

Some state laws allow for communities –such as townships, cities and counties – to form the aggregated buying groups on behalf of their citizens. The governmental aggregator chooses an outside supplier for all of the customer-members in its group. Aggregations can be formed to buy natural gas, electricity or both. This program also known as “Municipal Aggregation”, “Governmental Aggregation”, “Electricity Aggregation” and “Community Aggregation”.

The key benefit to Government Energy Aggregation is the ability for residential and non-residential account holders to save money on their electric/gas bills. Based on current market conditions, individual accounts can potentially save 5% -20% off of their entire bills depending on how much the rate they sign.

The states of Massachusetts, New York, Ohio, California, New Jersey, Rhode Island and Illinois which allows cities and counties to aggregate the buying power of individual customers within a defined jurisdiction in order to secure alternative energy supply contracts on a community – wide basis, but allowing consumers not wishing to participate to “opt out”.

The steps for the Government Energy aggregation program as follow:

  1. The municipality/government discuss, meeting’s and approve to proceed and construct the opportunity of Energy Aggregation program with Broadway Energy
  2. The municipality/government approves the program through Broadway Energy.
  3. The municipality/government working together with Broadway Energy than seeks bids from properly licensed ESCO (Energy Supplier Company)
  4. The winning supplier (ESCO) gets selected, than the ESCO/supplier will send notices detailing the program to all eligible residential account holders. The letter will indicate the new new rate vs the Utility “price to compare” and for the length of the agreement.
  5. Residential account holder can participate and sign the newly negotiated lower rate from their Municipal or if they do not wish to participate, then they can send an “Opt out” letter. There is no penalty to do so.

Through a public referendum, residents in your community voted to allow elected officials to contract for a competitive supplier on behalf of the community.

An opt out mean those who do not want to participate in this Government Energy Aggregation program. Anyone can choose not to be enrolled as a customers with the community’s competitive supplier by returning the op-out form which is included in a letter that is mailed to all eligible customers –by the due date.

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