ORANGE — The Selectboard is moving the town toward buying electricity collectively, to save consumers money.
The board has voted to sign an agreement with a consulting company regarding a plan to cluster electricity consumers to get competitive pricing for power supplies.
Orange developed an electricity customer aggregation plan in compliance with state law, and its proposal must be approved by the state, according to Marlborough-based Colonial Power Group, Inc. CPG says the plan’s purpose is to bring together the buying power of about 3,500 consumers and buy their power on the open market.
Kathy Reinig, the board’s chairwoman, explained state approval of the plan would create a Community Choice Power Supply Program in Orange. According to CPG, the program would provide “professional representation on behalf of consumers in state proceedings and in regional or local forums to protect consumer interests in an evolving marketplace.”
The program is designed to offer competitive choice to eligible consumers. The town only represents consumer interests to set the terms for service and does not buy and resell power.
“Through a competitive bid and negotiation process, the town develops a contract with a competitive supplier.
Town Administrator Diana Schindler said electric aggregation became appealing a couple of years ago, when “electricity prices were really skyrocketing, and there seemed to be a lot of instability in the electric supply market.” She said residents’ electricity will be bundled for more purchasing power and CPG will solicit competitive bids.
Under the plan, eligible consumers would be able to opt out of the program and select basic service or power supply from any other supplier they want at any time before or after enrolling in the town’s program. No eligible consumer would be required to get service under the town’s contract. However, based on enrollment figures from past community aggregations, CPG expects 97 percent of the eligible consumers will participate.
The program, the way the aggregation plan is written, could be aborted by contract termination or expiration without any extension, renewal, or subsequent contract being negotiated, or via decision of the Selectboard and town administrator to disband the program. Participating consumers getting service under the town’s program would be notified 90 days before termination.
Schindler said residents would be automatically enrolled in the program if they do not opt out. She said she expects the aggregation plan to be posted online and to be available at the town clerk’s office by Monday.