DPU Municipal Aggregation Plans Save Customers $25 Million
Summary
The Massachusetts Department of Public Utilities (DPU) announced that recently approved Municipal Aggregation Plans are projected to save enrolled electric customers approximately $25 million between December 2024 and July 2026. The DPU has streamlined its approval process, leading to faster implementation of these cost-saving plans.
What changed
The Massachusetts Department of Public Utilities (DPU) has announced that its streamlined approval process for Municipal Aggregation Plans has resulted in significant savings for consumers. Since July 2024, the DPU has approved 47 Plans, with 35 entering into supplier contracts. These plans are projected to save enrolled customers between $2.36 and $18.60 monthly, totaling approximately $25 million from December 2024 to July 2026, compared to basic service rates from investor-owned utilities. The DPU also highlighted that these plans are increasingly incorporating clean, renewable energy, often exceeding state standards.
This announcement serves as an informational update on the DPU's successful efforts to enhance regulatory efficiency and deliver tangible cost benefits to Massachusetts residents and businesses. While no new compliance actions are immediately required for regulated entities, the information underscores the agency's focus on energy affordability and renewable energy procurement. Compliance officers should note the DPU's commitment to a four-month review period for future plans, indicating a potentially faster regulatory pathway for municipal aggregation initiatives.
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Press Release
Press Release DPU-Approved Municipal Aggregation Plans Save Electric Customers Money
Recently approved Plans will save enrolled customers $25 million on their electricity bills
For immediate release: 1/20/2026
- Department of Public Utilities
- Electric Power Division
Media Contact
Alanna Kelly, Communications Director
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
BOSTON — The Massachusetts Department of Public Utilities (DPU) has made significant headway in approving Municipal Aggregation Plans (Plans), leading to millions of savings for enrolled customers. Since the DPU issued guidelines in July 2024, the agency has approved 47 Plans, 35 of which have entered into contracts with suppliers. This incredible effort demonstrates the ways in which the DPU has streamlined its processes and improved regulatory efficiency to provide real-time savings for customers.
“Municipal aggregation is a critical energy affordability tool,” said Chair Jeremy McDiarmid. “Our experience to date shows that customers who participate in their city or town’s Plan can save money on their electric bills while taking advantage of the environmental benefits produced by each Plan’s clean energy supply. I am proud of the tremendous work the Department has done to expedite the approval process and unlock greater savings.”
“It’s great to see the progress that has been made,” said Commissioner Liz Anderson. “The slate has been wiped clean and the backlog removed. Now, more cities and towns can move quickly to offer electricity supply at reasonable, competitive rates to their constituents.”
“Through reforming our review process, we have empowered more municipalities, giving them the flexibility and responsibility to procure cleaner electricity options with competitive prices,” said Commissioner Staci Rubin. “What’s more, the Plans we recently approved have supplied Massachusetts with more renewable energy, exceeding the state’s Renewable Portfolio Standard for retail energy.”
Participants enrolled in one of the 35 Municipal Aggregation Plans will see $2.36 to $18.60 in monthly savings through July 2026. Residential electric customers enrolled in these Plans will have saved roughly $25 million from December 2024 to July 2026, compared to the basic service rates offered by the investor-owned electric utilities. July 2026 is the latest month for which basic service prices are known; electric utilities procure their supply in six-month periods. Accordingly, whether customers continue to experience savings after July 2026 will not be known until basic service prices are approved for the period of August 2026 through January 2027.
The DPU’s streamlined approach has not only lowered enrolled customers’ bills but has equipped more homes and businesses with a higher percentage of clean, renewable energy, by purchasing clean energy. Many of the 35 executed Plans require the purchase of clean energy in amounts that exceed the state’s Clean and Renewable Energy Portfolio Standards.
The DPU’s current approach has improved regulatory efficiency and includes a commitment to a four-month period to review the Plans and issue an order, with many decisions occurring in less than four months. This approach allows municipalities to stand up their Municipal Aggregation Programs quickly, taking advantage of the energy market to optimize savings for their residents and local businesses.
To date, the DPU has approved 245 Municipal Aggregation Plans since the approval of the first plan in August 2000: close to 70% of the state’s municipalities can offer their residents and businesses clean and affordable electricity.
All municipalities with approved Municipal Aggregation Programs and customers who choose to switch electricity suppliers are advised to be aware of recent scams and stay informed by visiting the DPU’s page.
Background on Municipal Aggregation
Municipal aggregation was first established in 1997 following the passage of the Electric Industry Restructuring Act. Municipal aggregation, also known as community choice aggregation, allows a municipality to solicit bids for and purchase electricity supply on behalf of its residents and businesses. Massachusetts state law requires municipalities to submit municipal aggregation plans to the DPU for review and approval.
According to data from the Massachusetts Department of Energy Resources as of June 2025, 52% of residential customers, 37% of low-income customers, and 42% of small commercial and industrial customers are supplied from municipal aggregation programs.
Media Contact
Alanna Kelly, Communications Director
+
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
Department of Public Utilities
The Department of Public Utilities (DPU) oversees investor-owned electric power, natural gas, and water companies in Massachusetts. In addition, the DPU regulates the safety of bus companies, moving companies, and transportation network companies. We also oversee the safety of natural gas pipelines.
Electric Power Division
The mission of the Electric Power Division (EPD) is to ensure that the electric distribution companies in Massachusetts provide safe, secure, and reliable electric service while promoting affordability, equity, and greenhouse gas emission reductions.
In addition, EPD supports the DPU Commission’s goals to:
• protect electric ratepayers
• improve transparency, responsiveness, and public engagement
• increase the DPU’s capacity to tackle future challenges
Media Contact
Alanna Kelly, Communications Director
Phone
Call Alanna Kelly, Communications Director at 857-283-3794
Online
Email Alanna Kelly, Communications Director at alanna.kelly@mass.gov
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