Relates to municipal energy aggregation programs

Summary of provisions

Section One - Provides definitions.

Section Two - Provides that a municipality may, by resolution, establish an energy aggregation program or participate with one or more municipalities through an inter-municipal agreement to coordinate efforts to procure electric and/or gas supply on behalf of its residents. This section also establishes the required contents of the inter-municipal agreement, including the designation of a program administrator to request and compile data from the distribution utility or utilities delivering electric and/or gas to residents whose municipalities are participating in an aggregation program.

Section Three - Requires the program administrator to provide a copy of the agreement to the distribution utilities and submit a formal request for bulk usage information. Distribution utilities would be required to supply the bulk usage information within sixty days of such request. The Public Service Commission (PSC) would be directed to determine a reasonable cost to be charged to the aggregators for the provision of bulk usage information.

Section Four - Authorizes the program administrator to request bids from Energy Service Companies ("ESCOs") for the provision of gas and/or electric supply. Any contract for supply would be limited to 30 months and include a provision that the ESCO or ESCOs selected provide gas and/or electric rates for first six-month sub-period that would be less than those offered distribution utility for the previous 12 month period. Additionally, any ESCO selected would be required to provide participating customers with the fixed monthly rate for the any subsequent six-month period no later than two months before such subsequent gas and/or electric rates take effect. ESCOs would be prohibited from levying any cancellation charge and required to provide a website for participating customers to view the monthly rates. Energy Aggregators would authorized to select the ESCO that will offer the best service, or could elect to reject all bids and re-advertise.

Section Five - Requires the aggregator to obtain from the distribution utility a list of customers affected by the contract with the ESCO, and directs the municipal aggregator must provide notice to those customers. Such required notice would be required to include instructions for how to opt-out within the sixty-day opt-out period. After the sixty-day period, residents which do not opt-out would be

automatically enrolled to receive gas and/or electric supply, but would be authorized to opt-out at any future point with no penalty. Additionally, the distribution utility would be required provide a list to the aggregator of the number of residents that elected to opt-out and opt-in, and those customers' information. The administrator would be authorized to submit that information to the ESCO or ESCOs selected.

Section Six - Provides for the requirements of a distribution utility in providing information to a program administrator.

Section Seven - Provides requirements for the ESCO or ESCOs providing supply under an energy aggregation contract, including the responsibility to provide the program administrator with fixed monthly per kWh and/or per Btu rates for electric and/or gas supply for each upcoming six month sub period. Additionally, ESCOs would be prohibited from issuing any separate charge, fee or bill for aggregation program services to an aggregator, resident, participating customer or program administrator in order to recover its expenses. All costs would be required to be reflected in the ESCO or ESCOs supply rates.

Section Eight - Requires the program administrator to mail to each participating customer a notice providing the fixed monthly per kWh and per Btu rates for the upcoming six-month sub-period and other information comparing the price of gas and or delivery charges of the distribution utility for the previous six month period. Additionally, any written communication from an ESCO, program administrator or aggregator to a participating customer would be required to meet certain standards for clarity and ease of understanding.

Section Nine - Provides for a PSC audit, within 365 days of commencement of the contract, to ensure that cost benchmarks have been reached. If the PSC determines they have not been reached, the contract shall be terminated immediately.

Section Ten - Requires the PSC to submit, within thirty months of establishment of a contract, a report to the Executive, Senate and Assembly detailing the performance of the aggregation contract.

Section Eleven - states that the Energy Services Company Bill of Rights is applicable to participating customers.

Section Twelve - this act shall take effect immediately; and shall expire and be deemed repealed 5 years after such date.

Justification

The Northern Westchester Energy Action Consortium (NWEAC) and Southern Westchester Energy Action Consortium (SWEAC) are comprised of municipalities which have joined together to collaborate to reduce reliance on fossil fuels, save money for residents and businesses, increase energy efficiency, enable renewable energy generation, increase economic activity, and align local efforts with county, state, and federal initiatives.

The creation of the community choice aggregation pilot program arose out NWEAC and SWEAC's efforts to further these important goals, most notably the desire to save residents and businesses money. Community choice aggregation programs allow a large number of residents to pool

together and shop around at different ESCOs and obtain the best price. Pooling together will increase their purchasing power, potentially resulting in a better price, similar to the idea of buying in bulk. Community choice aggregation programs are already authorized in six states: California, Ohio, Massachusetts, Rhode Island, Illinois, and New Jersey.

Legislative history

New Legislation.

Fiscal implications

None to the State.

Effective date

This act shall take effect immediately; and shall expire and be deemed repealed 5 years after such date.