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Energy News

Energy Aggregation Isn’t Just for Businesses — Schools Benefit Too

Local governments are always looking to manage property and school taxes. Public education is an expense spread across the entire community, and finding savings in that expense directly benefits residents.

Just as homeowners deal with electric bills that can deliver real sticker shock, school districts face the same challenge.

A 2002 fact sheet from the U.S. Dept. of Energy found that K-12 schools nationwide were spending more than $6 billion annually on energy. In many school districts, the fact sheet states, energy costs were second only to salaries in district expenses.

Efforts to reduce energy costs for schools often focus on additional investments, such as facility upgrades or efficiency improvements. But what if there was another option to reduce costs –– an option on who supplies electricity to schools to secure a better price?

In the business community, companies often create aggregation programs to secure bulk purchasing power, better pricing, and more tailored energy products. This approach helps businesses better meet goals, specifically on cost with better price certainty.

Business Aggregation for Massachusetts Retailers

One example of this is the Retailers Association of Massachusetts (RAM) Fixed Rate Electricity Supply Program. RAM partners with a broker and an electric supplier to secure fixed-rate electric supply pricing for program participants, such as independent stores and restaurants. 

The program is designed to protect businesses against unexpected price fluctuations commonly experienced in the electricity market, enabling members to confidently budget their annual electricity costs and achieve savings compared to utility rates.

New Jersey school districts applied the same model in hopes of achieving the same results.

More Than 25 Years of Savings for New Jersey School Districts

In 1999, three major New Jersey education organizations joined together for ACES: the Alliance for Competitive Energy Services.

The New Jersey School Boards Association, New Jersey Association of School Business Organization, and NJ Association of School Administrators joined forces to capitalize on New Jersey’s energy market structure and offer a statewide program for all school districts to benefit from aggregate power purchases. 

After experiencing great success procuring electricity at cheaper prices, the Alliance began an aggregate program for natural gas procurement. 

Within a decade, the Alliance said ACES saved New Jersey school districts more than $250 million on energy bills.

Retail Aggregation Brings Results

The key benefit of business aggregation is that it provides entities with the economic benefits of bulk purchasing, such as reduced energy pricing and access to options otherwise only available to massive energy users.

Without a competitive market structure, schools and other public entities cannot leverage collective buying power — limiting cost savings and access to innovative energy solutions.

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Energy News

Lawmakers Working to Address Rising Electric Rates Re-Introduce Bills to Break up the Utility Monopoly

Customers held captive by utility companies are demanding alternative solutions as electric rates increase

JEFFERSON CITY (Jan. 20, 2026) –– Sen. Nick Schroer (St. Charles County), Rep. Tricia Byrnes (St. Charles County) and Rep. Don Mayhew (Miller and Pulaski Counties) re-introduced legislation aimed at ending Missouri’s monopoly utility model. The bills create electricity options for residents and businesses, providing consumers more power over their electric bills. The Retail Energy Advancement League (REAL), a national advocacy organization dedicated to the expansion and modernization of American retail energy markets, applauds Schroer, Mayhew and Byrnes for their legislation.

“Missouri residents and businesses are in search of better options as they continue to be overwhelmed by their monthly electric bills,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Competition has proven successful in other states with better price performance, reliability and the variety of products and contract options available to commercial and residential customers. Sen. Schroer and Reps. Mayhew and Byrnes are taking action to address a problem facing all Missourians with a solution that can help move the state forward.”

The bills, Senate Bill 1411, House Bill 2233, and House Bill 2207 create a free-market alternative to a vertically integrated energy structure. Both bills require the electric utilities to compete with electricity generators and suppliers to build power plants and sell electricity. All electric users will benefit from having more options to power their homes and businesses.

Sen. Nick Schroer, SB 1411 sponsor

“As Americans, we have the freedom to shop for just about anything in this country, but in Missouri we don’t have the right to shop for our own electricity,” said bill sponsor Sen. Nick Schroer. “Missourians are trapped, held captive by a monopoly utility structure and the financial risks these investor-owned utilities place on the backs of their customers. This must change. Missourians deserve the right to hold utility companies accountable by having the ability to choose who supplies their electricity and what that energy product is, forcing all suppliers to compete for the business of consumers.”

Rep. Don Mayhew, HB 2233 sponsor

“My constituents keep adjusting their thermostats as utility companies continue to drive up electric bills,” said bill sponsor Rep. Don Mayhew. “Utilities can now bill for billion-dollar power plants before a shovel ever hits the ground — printing themselves sky-high guaranteed profits — while families are left wondering if they can even afford to keep the lights on. This legislation is long overdue and is needed to give Missourians real energy choices and hold utilities accountable in a consumer-first market.”

Rep. Tricia Byrnes, HB 2233 sponsor

“I continue to hear the outcry from my constituents about how expensive electricity is as they struggle with the fear of price gouging in a monopoly energy market,” said bill sponsor Rep. Tricia Byrnes. “My colleagues Sen. Schroer and Rep. Mayhew gained traction last year with legislation to break up the monopoly market and give consumers energy choices. By introducing House Bill 2233, I’m helping to carry that momentum forward to help give consumers a stronger voice –– and options –– to hold utility companies more accountable.”

Large energy users and industry organizations have previously testified in strong support of the legislation to help reduce the cost of electricity and ensure energy reliability. A representative of the auto manufacturer Ford Motor Company, which employs more than 9,000 workers at its Claycomo, Missouri plant, pointed to the successes of Ford plants in other states that have introduced competitive energy options.

Testimony from Tony Reinhart, director of government relations for Ford Motor Company

“Our utility rates have become one of our largest cost challenges with no real ability to offset those increasing costs. … Missouri doesn’t normally look to Illinois for good public policy. But Illinois got it right where they have unbundled generation, transmission and distribution services in a fair and equitable manner, providing us the ability to purchase power on the open market and better manage our costs.”

BACKGROUND ON MISSOURI ENERGY MARKET
  • Missouri ranks 5th worst among all states in price percentage change from 2008-2023, with an increase of 61% during that time
  • Residential electric rates increased by 20% from 2020-2023, according to Consumers Council of Missouri
  • Missouri is a net importer of electricity
    • The state consumes 8x more energy than its utility companies produce
    • Missouri utility companies have only built or updated ~2,000 megawatts (MW) of power generation from 2008-2023
  • With the construction work in progress (CWIP) law, utilities can plan to build muli-million dollar power plants to increase generation and bill customers for those costs before construction even begins
  • The Missouri Public Service Commission unanimously approved new rates for large electric users like data centers even after concerns were raised about increases to residential electric bills
MISSOURIANS ARE SPEAKING OUT

Missouri residents statewide are voicing opposition to the utility monopoly model and the need for choices.

“Unleash the free market that encourages companies to be innovative, compete for their customers’ business, provide return on investment, and offer respectful customer service. Had there been electric company competition, maybe Ameren wouldn’t have been so heavy.” -Mary Ann B., St. Peters

“Ameren has gone up nearly 40%. They want us to pay for future infrastructure, while banking OUR MONEY gaining THEM INTEREST!” -Lori W., Wentzville

“I hate the fact that I do not have a choice in who my utility company is. The only one available in my county is Ameren, and my average bill is $400 a month, with up to $900 during the summer months. This is a marked increase over even last year. How is anyone supposed to afford this?” -Rebecca S., Moberly

“Energy costs are much too high. Every time Evergy requests an increase in electric rates they always get what they ask for.” -Kristine S., Belton

“Evergy is monopolizing the entire two-state area. They overcharge and tack on all kinds of different fees. People deserve to have a choice on who their energy provider is.” -Melanie J., Kansas City

“It’s awful and killing our town. We have lost so many businesses this year because they can’t afford to operate under Liberty Utilities.” -Jacquelynn R., Bolivar

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Energy News

New Legislation Targets Large Energy Users, Relieves Electric Grid Strain

Bill will protect ratepayers from new generation costs by decreasing energy demand pressure on Indiana utility companies

INDIANAPOLIS, IN (Jan. 14, 2026) – New legislation was introduced today to strengthen Indiana’s energy market by giving major employers new options to manage electricity costs — while protecting residential and small business ratepayers from growing energy demands. The bill, Senate Bill 272 introduced by Sen. Stacey Donato, allows commercial and industrial companies to purchase electricity supply from an energy market rather than being limited to a single utility option, helping employers better navigate rising and volatile energy costs.

“Indiana’s economic future depends on having reliable, affordable electricity,” said the bill’s sponsor, Sen. Stacey Donato. “This legislation gives our largest employers the flexibility to procure their own electricity and manage those costs. This is a balanced approach that protects consumers, attracts privately funded power generation, and helps ensure our state has the power it needs for the future.”

The Retail Energy Advancement League (REAL), a national organization advocating for energy market expansion and consumer choices, applauds Sen. Donato for championing legislation that will provide commercial and industrial businesses with a choice in their power supply.

“The concept is simple: allow large energy users to have direct access to an energy marketplace to meet their electricity needs the same way utility companies do,” said Chris Ercoli, president and CEO of the Retail Energy Advancement League. “Allowing large energy users to access competitive electricity supply is a practical solution that can reduce their cost pressures, encourage new power generation from independent power producers, and ease the strain on utility systems — benefiting all ratepayers in the long run. We applaud Sen. Donato for her comprehensive approach to help support Indiana’s energy needs.”

Electricity remains one of the top operating expenses for many manufacturers and industrial employers. When those costs rise unpredictably, it threatens jobs, wages, and future investment in Indiana communities.

Energy-intensive businesses are particularly sensitive to electricity prices. States such as Michigan and Kentucky already allow large energy users to purchase electricity supply from an energy market — providing significant cost savings and giving those states a competitive edge in attracting and retaining major employers.

HOW RATEPAYERS CAN BENEFIT

In Michigan, 10 percent of a utility’s customer load is permitted to procure their own electricity. That cap has been fully subscribed since 2008, with more than 5,000 commercial and industrial customers served by a third party supplier. As of 2023, there’s an additional 5,000 customers in the queue waiting to participate in the program. This program has reduced the amount of power generation the utility needed to build and maintain by 2,798 MW –– the equivalent of four natural gas plants that could have cost all ratepayers $3.2 billion for the utilities to build. 

In 2023, the commercial customers that purchased from a competitive supplier saved more than $150 million compared to the utility’s commercial rate in Michigan, according to data from the U.S. Energy Information Administration. 

WHAT SENATE BILL 272 DOES

Under current Indiana policy, most customers receive electricity supply exclusively from their designated utility, concentrating growing demand on utilities and driving costly new generation investments that are ultimately passed on to ratepayers –– customers.

Senate Bill 272 allows large energy users — including manufacturers, steel producers, and technology companies — to purchase electricity supply directly from a competitive provider while continuing to pay utilities for transmission and distribution. Residential and small business customers would continue to receive service as they do today. 

As energy demand grows and older power plants retire, utility obligation to build new generation is increasing, at significant cost. Allowing large energy users to procure their own electricity helps utilities meet that obligation with private capital, which protects ratepayers and  strengthens grid reliability.

Senate Bill 272 represents a commonsense step toward a more resilient energy future for Indiana — one that shifts the cost of meeting new energy demand from all ratepayers to the companies that want and need new energy.