Government Energy Aggregation

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Government Energy Aggregation is a program that allows local governments to create a large buying group of residential and non-residential electricity accounts to seek bids for cheaper energy rates. By aggregating, or grouping, a large number of residential and non-residential accounts together, economies of scale are created.  These economies of scale set conditions for participating Municipalities to achieve greater savings during a competitive bid situation, than could generally have been obtained by the individual customer.

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

The state of Massachusetts, New York, Ohio, California, New Jersey, Rhode Island, and Illinois, allows cities and counties to aggregate the buying power of individual customers within a defined jurisdiction to secure alternative energy supply contracts on a community-wide basis. Also, the program allows the option to opt out for consumers who are not interested in participating.

The steps for the Government Energy aggregation program are as follow:

  • The municipality or government discussed and approved to proceed with the opportunity of energy aggregation program with Broadway Energy
  • The municipality or government is working together with Broadway Energy to bid from properly licensed Energy Supplier Company (ESCO)
  • The winning supplier (ESCO) gets selected, then the supplier will send program notices to all eligible residential account holders. The letter will compare the new utility rate and the length of the agreement.
  • Residential account holders can participate and sign the newly negotiated lower rate from their Municipal. If they do not wish to participate, they can Opt-Out without penalty.

Various public meetings and information sessions will take place through, and following, Bid Day.  Please check for announcements from your municipality and your local news outlets. Your municipal website will feature all materials related to the aggregation program as they become available.  

An opt-out option means that those who do not want to participate in the Government Energy Aggregation program can choose not to be enrolled as a customer with the community’s competitive supplier. Residential account holders can Opt-Out without penalty.  Opt-Out notices will be provided via mail prior to the program commencing.  Non-residential account holders must contact the winning supplier in order to participate.

States Served

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