Aggregation

Background

Aggregation occurs when an entity brings together retail electric or natural gas customers into buying groups. The purpose is to increase each consumer’s purchasing power. Large electricity or natural gas users are the most attractive customers in a competitive marketplace. By aggregating, groups of smaller users gain the opportunity to benefit from utility restructuring.

Local governments may be best suited to implement aggregation. Aggregation at the municipal level can combine the best of local control and competitive markets by allowing individual low-consumption customers to band together for more purchasing power.

Aggregation: Policy

Planning, participation, and protection

In this policy: FederalState

Federal and state policymakers should permit local entities to participate in planning for appropriate energy supply arrangements, including aggregation, if it will benefit their constituencies. Where local entities have implemented such plans, consumers must still have the ability to opt out and choose their own supplier.

Federal and state policymakers should ensure that all aggregators abide by state consumer protection statutes.