Community choice aggregation (CCA) — also called municipal aggregation in Massachusetts — allows cities and towns to negotiate electricity supply contracts on behalf of their residents and businesses, replacing the utility’s default service rate with a competitively procured alternative. Massachusetts is one of the most active states for CCA programs, with more than 100 municipalities operating or developing aggregation programs.

For municipal officials and town energy committees, CCA is one of the most powerful tools available for managing community electricity costs and accelerating local clean energy goals. This post explains how the program works, what the procurement process involves, and what municipalities should look for in a competitive electricity supplier.

How Massachusetts Municipal Aggregation Works

Massachusetts General Laws Chapter 164 §134 authorizes municipalities to aggregate the electricity loads of their residents and businesses. The process begins with a municipal vote to adopt an aggregation plan, followed by DPU approval of the plan and a competitive procurement process to select a retail electricity supplier.

Once a CCA program is active, residents and businesses in the municipality are automatically enrolled in the CCA supply unless they opt out. The supplier delivers power to all enrolled accounts at the contracted rate — which replaces the utility default service supply rate on their bills. Delivery, transmission, and distribution charges continue to flow through the utility unchanged.

The Procurement Process

Most Massachusetts municipalities hire a consultant to develop their aggregation plan and manage the competitive solicitation. The solicitation process typically involves issuing an RFP to licensed competitive suppliers, evaluating proposals on price, product structure, and experience, and selecting a supplier for a multi-year contract.

Price is important — the CCA rate should beat or match utility default service to provide visible value to residents and businesses. But it’s not the only dimension that matters.

What Municipalities Should Look for in a CCA Supplier

  • Experience: Demonstrated CCA experience. Municipal aggregation programs involve complex enrollment management, billing coordination with the utility, and ongoing regulatory reporting. Suppliers with active CCA programs in their portfolio can move through the operational setup more efficiently and with fewer errors.
  • Green products: Renewable energy product options. Most Massachusetts CCA programs include a green energy component — Class I RECs that bring the program above the standard RPS requirement. The supplier should offer a range of renewable product structures and be able to clearly explain the environmental attributes of the RECs they’re providing.
  • Transparency: Pricing transparency. The supplier should be able to clearly explain how their bid is constructed — energy, capacity, ancillary services, RPS compliance, and margin — so the municipality understands what they’re paying for.
  • Support: Communication and reporting support. CCA programs require ongoing customer communication — opt-out notifications, rate change notices, annual reports. A good supplier provides templates and support for these communications, not just the power supply.
  • Financial stability: Financial stability. CCA contracts run for multiple years and involve significant enrolled load. The supplier should be financially stable, properly licensed by the Massachusetts DPU, and able to demonstrate their hedging and credit facilities.

The H.5151 Context

Massachusetts H.5151, which passed the House in February 2026 and is currently in the Senate, includes a municipal opt-out provision that would allow individual municipalities to prohibit competitive suppliers from executing new or renewing contracts with residential accounts in their borders. Importantly, CCA programs are explicitly exempt from this restriction. Municipalities that have concerns about the residential competitive supply market may find CCA an attractive alternative to utility default service that remains protected under current legislative proposals.

Contact Gridwealth Electric: Gridwealth Electric serves CCA programs in Massachusetts and Rhode Island. Contact us to discuss your municipality’s aggregation options: tford@gridwealth.com