Relates to the authorization of certain municipalities to participate in a community-wide energy aggregation program

Summary of provisions

Section 1 provides definitions.

Section 2 provides that a municipality may, by resolution, participate in a community choice energy aggregation program through an inter-municipal agreement with one or more municipalities to coordinate efforts to procure electric and/or gas supply services and to install energy efficiency measures and develop local renewable energy facilities on behalf of customers. It also sets forth the required contents of the inter-municipal agreement.

Section 3 requires the program administrator to provide a copy of the agreement to the distribution utilities and submit a formal request for customer usage and billing information, and customer data pertaining to energy efficiency program participation and renewable energy use. It also requires the utilities to supply required information to the administrator within 120 days.

Section 4 authorizes the community choice aggregator to advertise for the request for bids from Energy Service Companies ("ESCOs") for the provision of services for the program. The solicitation must include price benchmarks, provide that ESCOs will not levy any cancellation charges, and provide for a website for participating customers to view the monthly rates charged, and to view any related services and products being offered by the community choice aggregation program administrator. Community choice aggregators are authorized to select the ESCO that will offer the best service, or can elect to reject all bids and re-advertise. This section also authorizes the community choice aggregator to enter into a contract with the chosen ESCO or ESCOs and outlines the requirements of such contract.

Section 5 requires the community choice aggregator to obtain from the distribution utility a list of customers affected by the contract with the ESCO, and the community choice aggregator must provide notice to those customers. The notice must include instructions for how to opt-out within the sixty-day opt-out period. Provision is also made

for customers already served by an ESCO to opt-in to a community choice aggregation program. After the sixty-day period, the utility must provide a list to the community choice aggregator of the number of customers that elected to opt-out and opt-in, and those customers' information. The administrator must then submit that information to the ESCO(s) with which it contract(s). Section 6 provides for a Public Service Commission (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 subject to termination by resolution of the community choice aggregator's governing board.

Section 7 requires the PSC to submit, within 30 months of establishment of a contract, a report to the Executive, Senate and Assembly detailing the performance of the aggregation contract.

Section 8 states that the Energy Services Company Bill of Rights is applicable to participating customers.

Section 9 provides the effective date.

Justification

Citizens for Local Power is an Ulster County-based organization that works with municipalities, elected officials, labor, and citizens to foster engagement in energy issues and regulatory proceedings that affect them, as well as to promote energy demand reduction and expanded renewable energy use at the community level. CLP is facilitating the formation of a Municipal Energy Consortium (based initially in Ulster County) to reduce energy costs for residents, businesses, and municipalities, to enhance community resiliency, and to foster the transition to a clean energy economy in the mid-Hudson region.

The creation of the community choice aggregation (CCA) program arose out of CLP's efforts to further these important goals, including the desire to save residents and businesses money. CCA 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 purchasing power, potentially resulting in a better price, similar to the idea of buying in bulk. CCA is an effective tool for empowering communities to choose their energy supplier, and also enables communities to choose clean energy suppliers, realize greenhouse gas reduction benefits, and finance local generation assets to boost economic development in the region. CCA programs are already authorized in six states: California, Ohio, Massachusetts, Rhode Island, Illinois, and New Jersey.

This bill is designed such that all municipalities in New York may benefit from this invaluable tool to provide lower cost energy, and to promote energy efficiency and renewable energy use consistent with State and Regional objectives. Local Power Inc., which founded Community Choice Aggregation two decades ago and initiated CCA enabling legislation for the States of Massachusetts and California, drafted this bill at the request of Citizens for Local Power.

Fiscal implications

None

History

This is a new bill.

Effective date

Immediate.