In 1997, the State of Massachusetts became the first state to pass municipal electric aggregation legislation, a type of program designed to save consumers money on their electricity bills. In fact, in 1997, the Commonwealth formed the Cape Light Compact, the first municipal electric aggregation program in the country. Six other states have since followed. The programs go by different names in different states, but the bulk-purchasing principles upon which they operate are largely the same. By aggregating, or grouping, a large number of electric accounts together, economies of scale are created, enabling participating municipalities to achieve greater savings for consumers than could normally have been achieved by the individual customer.
The City of Gloucester will soon be launching the Gloucester Community Electricity Aggregation program for residents and businesses in the third quarter of 2017. The primary goals of the program are to provide annual savings and rate stability for participating consumers. However, the program will also offer participants exciting renewable energy options from which to choose. The program was approved by the City Council and the Massachusetts Department of Public Utilities.