CCE is not Rocket Science!

At a hearing on May 30, Boston City Councilors, energy experts, and community members all pressed Alison Brizius, Boston’s Director of Climate and Environmental Planning, for answers she often could not supply. Asked by Councilor Matt O’Malley to project a timeline for implementation of Community Choice Energy (CCE)—the climate mitigation measure passed unanimously by the City Council and signed by the Mayor seven months ago—Brizius indicated that her department, Environment, Energy, and Open Space (EEOS), was still studying its options.

Significance of CCE to Climate Mitigation

The five City Councilors in attendance: O’Malley, Michelle Wu, Ed Flynn, Josh Zakim, and Michael Flaherty, and the two that sent letters of support: Tim McCarthy and Lydia Edwards, all urged EEOS to move more quickly to implement what they see as a significant step to reducing the City’s collective carbon footprint. Invited panelist Ann Berwick, formerly the Undersecretary for Energy for the Commonwealth of Massachusetts and the Chair of the Department of Public Utilities, described CCE as the most significant GHG reduction tool at a municipality’s disposalWinston Vaughn, Senior Manager for Renewable Energy at Ceres invoked Boston’s commitment to the Paris Accord and asked administrators to make good on that pledge to urgently reduce emissions. Liz Stanton, Director and Principal Economist at Applied Economics Clinic, reported on the significant environmental benefits reported by other municipal aggregations.

may 30 hearing

Historical Pricing

Brizius repeatedly spoke of the department’s need for historical pricing data from other municipal aggregations as a way to project what rates Boston might attain through CCE. The panelists urged Brizius and EEOS to stop trying to gather this historical data. Stanton declared, “Historical energy prices are in no way indicative of future pricing.” Vaughn noted that energy pricing is “extremely dynamic,” and Berwick noted that “Trying to get pricing information now will not be fruitful. No one can tell you what prices will be a year from now.”

Boston’s Size

Brizius also referred to Boston’s relatively large size in comparison to other Massachusetts municipal aggregations as an explanation for why the department has not made more progress.  Stanton offered that Boston’s size would put it at an advantage when negotiating the consultant’s fee, as well as the wholesale price of electricity. Berwick also emphasized that virtually all municipalities simply hire an energy consultant to guide the process of implementation. “This isn’t rocket science. Hire an energy consultant to get the ball rolling.”

2018-5-30 CCE Hearing

Cost of a Consultant

Brizius countered that the payment for the consultant might be exorbitant given Boston’s size. Stanton and Berwick both reassured her that all aggregation consultants work on spec—that no city funds would be paid to the consultant, whose fee is generated instead through a small “adder” to the wholesale price per kilowatt that city residents would purchase, and then only if they successfully delivered a favorable bid. Councilor Wu summed up this practice common to all other aggregations in the state: There is no risk, either to the City budget or to ratepayers, of engaging a consultant.

Moving Forward – An Advisory Committee

Councilor Michelle Wu implored Brizius to understand the importance of appointing the CCE advisory committee called for in the Council’s authorization. This committee of Councilors, EEOS staff, energy experts, and community members would resolve the remaining questions about what Boston would want a consultant to be responsible for and what parts of the implementation Boston would perform through dedicated staff. Then, “in quick order” as Wu put it, a request for proposals (RFP) from experienced aggregation consultants could be finalized.

BostonCAN agrees wholeheartedly with Wu’s priorities: Mayor Walsh needs to appoint a CCE advisory committee with the goal of EEOS choosing an aggregation consultant this summer.