[HISTORY: Comes from L.L.
No. 60-2019, adopted 8-6-2019 , effective
9-20-2019.[1]]
It is the intent of the Town of Hempstead to establish a Community
Choice Aggregation ("CCA") Energy Program to aggregate the energy
supply needs of residents (and small commercial customers), and to
negotiate and enter into, or authorize its agent to negotiate and
enter into, energy supply agreements ("ESAs") with energy service
companies ("ESCOs") on behalf of eligible citizens to obtain stable,
lower-cost energy prices, as well as environmental benefits and/or
a community-based solution to meeting the Town's collective energy
needs. The purpose of this chapter is two-fold: to establish a CCA
Program in the Town of Hempstead and to adopt certain provisions relating
to the creation and implementation of the CCA Program.
A.
New York State's energy industry is in the midst of a significant
transition; a shift away from the old top-down, utility-centered model
toward a cleaner, more affordable, more resilient system in which
consumers and communities will have a substantial role to play.
B.
The state's ongoing Reforming the Energy Vision ("REV") initiative
emphasizes the importance of reliability and grid resilience, distributed
energy resources, increased renewable generation, and greater opportunity
for citizens to take an active role in helping the state reach its
energy goals and in making more informed energy choices in their homes,
businesses and communities.
C.
As part of this REV initiative, the New York State Public Service
Commission ("NYSPSC"), on April 21, 2016, adopted an order authorizing
cities, towns and villages within the state to create Community Choice
Aggregation Programs, by themselves or in concert with other municipalities
(hereinafter "NYSPSC order authorizing CCAs"), and/or to retain a
CCA Administrator to implement the program and negotiate ESAs.
D.
CCA Programs allow communities to take control of their energy supply
through an open, transparent and competitive electric and/or gas supply
procurement process driven by the consumers themselves.
E.
A successful CCA Program offers citizens cost savings, more stable
energy prices, deterrence of deceptive marketing practices by unscrupulous
ESCOs, fair contracts negotiated directly with energy suppliers, and/or
the opportunity to pursue goals and initiatives important to the community,
such as reliability, grid resiliency, supporting renewable energy
generation, cutting greenhouse gas emissions, protecting the state's
natural resources, and improving energy efficiency.
F.
The Town Board of the Town of Hempstead has explored the CCA policy
and background, and believes it would provide numerous benefits in
this community, enhancing the public welfare and making energy more
affordable and costs more predictable for our residents.
G.
Therefore, the Town Board of the Town of Hempstead authorizes the
creation of an opt-out CCA Program pursuant to rules of the NYSPSC
in this community for the provision of electric and/or natural gas
supply service, as well as other high-priority, energy-related, value-added
services as may be determined to meet the community's goals.
The NYSPSC order authorizing CCAs expressly empowers cities,
towns and villages in this state to create CCA Promgrams. Further,
the New York Municipal Home Rule Law, Article 2, Section 10, authorizes
a municipality to adopt general laws relating to its property, affairs
and government, the protection and enhancement of its physical and
visual environment, the protection and well-being of persons within
the municipality, and for other authorized purposes.
As used in this chapter, the following terms shall have the
meanings indicated:
Customers' accounts in those utility service classes
eligible for inclusion in the CCA Program on an opt-out basis, as
set forth in the NYSPSC order authorizing CCAs, Appendix C, or as
otherwise specified by the Commission. Generally, these classes of
customers include those receiving residential electric or gas supply
service, including those in multifamily housing, certain types of
institutions, and some small commercial customers covered by "small
general service" class designations. Automatically eligible customers
shall not include customers' accounts that have already been
enrolled in service through an ESCO, enrolled in utility programs
which require them to take supply service from their current utility,
or that have a block on their utility account at the time of CCA formation
[NOTE: Except customers participating in the Affordability Assistance
Program ("AAP"), who may have blocks on their accounts with their
existing utility, but who are still eligible to participate.]; those
customers' accounts shall be eligible to participate on an opt-in
basis, if they so desire.
An agent of the Town charged with overseeing creation, implementation
and operation of a CCA Program, as well as competitively procuring
and negotiating energy supply agreements with ESCOs. The CCA Administrator
shall be retained by the Town via a separate CCA administration agreement,
adopted by resolution of the Town Board.
A program authorized by the New York State Public Service
Commission (NYSPSC) to aggregate residential and commercial electric
and/or natural gas supply and/or energy-related, value-added products
and services within a given municipality, and/or among multiple municipalities,
in order to leverage that energy demand to negotiate favorable energy
supply agreements directly with ESCOs. Customers within a CCA Program
would no longer purchase their energy supply directly from their utility.
However, the utility would continue to deliver energy to these customers,
to charge for that delivery, and will retain its transmission and
distribution network. The energy supply portion of a customer's
energy service is provided by an ESCO or ESCOs, pursuant to an energy
supply agreement competitively procured and negotiated for the CCA
Program at large, then delivered to customers via the local utility.
All automatically eligible customers plus those utility customers
eligible for inclusion in the CCA Program on an opt-in basis, as set
forth in the NYSPSC order authorizing CCAs or otherwise authorized
by the Commission. Those customers eligible to participate in the
CCA Program on an opt-in basis currently include those customers already
enrolled in service through an ESCO at the time of CCA formation,
customers in large commercial, institutional, or industrial utility
service classes that cannot be automatically enrolled in the CCA on
an opt-out basis, and all other customers not considered automatically
eligible customers. References to the broader class of eligible customers
shall signify the entire pool of customers participating in the aggregation,
either because they have been automatically enrolled on an opt-out
basis, or because they have affirmatively opted in.
A third-party energy supplier eligible to sell electricity,
natural gas and/or energy-related, value-added services to customers
in New York State, utilizing the transmission and distribution systems
of existing utilities. ESCOs are regulated by the New York State Department
of Public Service and the New York State Public Service Commission,
and must comply with the New York State Public Service Law.
An agreement between an energy customer and an energy services
company (ESCO) to provide electricity or gas service to the customer
for a fixed or variable price. For purposes of this chapter, the CCA
Administrator would conduct a competitive procurement on behalf of
all eligible customers, and would enter into an energy service agreement(s)
with an ESCO to provide power to all such customers in the community.
Reference to these terms throughout this chapter indicates
the Town of Hempstead.
This term refers to traditional electric and/or natural gas
utilities regulated by the New York State Department of Public Service
and the New York State Public Service Commission and permitted to
provide electric and/or gas supply, transmission and distribution
services to all customers within their designated service territory.
For purposes of this chapter, the term "utility" will refer to KEYSPAN/National
Grid and/or PSEG Long Island, or their successors.
The Town Board of the Town of Hempstead hereby establishes a
CCA Program for aggregation of electric and/or natural gas supply
to serve all eligible customers in its jurisdiction (this program
shall be available to all residents of the unincorporated area of
the Town of Hempstead). All automatically eligible customers shall
be included in the CCA Program on an opt-out basis, and shall be afforded
the opportunity to opt-out of the CCA Program, within a specified
period, at no cost. All customers who are not automatically eligible
to be included in the CCA Program on an opt-out basis shall be permitted
to affirmatively opt into the program in accordance with the terms
of the ESA and/or the NYSPSC order authorizing CCAs.
A.
Implementation plan.
(1)
The Town Board of the Town of Hempstead, with support from its CCA
Administrator, will create and follow a CCA implementation plan which
shall outline the details of how the CCA Program will be created and
operated, including how public outreach and education will occur,
what rules will apply to the program, how the procurement process
will be implemented, how energy contracts will be selected, and how
responsibilities will be divided amongst CCA Administrator, the Town,
and eligible customers.
(2)
In accordance with the NYSPSC order authorizing CCAs, the CCA implementation
plan will be reviewed and approved by the Public Service Commission.
Such review may involve NYSPSC approval of a generic CCA implementation
plan, with the understanding that community-specific appendixes would
be submitted later and would outline appropriately tailored local
education and outreach efforts.
(3)
Where a generic CCA implementation plan will be used, the Town Board
of the Town of Hempstead and the CCA Administrator will make community-specific
revisions to the plan's appendixes to ensure the plan is properly
tailored to the needs of the Town's residents. Therefore, prior
to or in conjunction with the enactment of this chapter, and thereafter
from time to time, the Town Board of the Town of Hempstead, with support
from the CCA Administrator, will create and update a CCA Program opt-out
letter, as well as an education and outreach plan, as provided in
the implementation plan appendix for this community.
(4)
The Town of Hempstead opt-out letter, education and outreach plan
shall conform to those requirements for public outreach, education,
and opt-out procedures set forth in the NYSPSC order authorizing CCAs,
and in any other applicable laws or regulations, and shall ensure
that the Town Board of the Town of Hempstead and its CCA Administrator
engage in a robust effort to educate and inform the community about
the CCA Program and their options for participating or opting out.
(5)
Opt-out letters will be provided to all automatically eligible customers
no less than 30 days prior to the time at which those customers would
he automatically enrolled in the CCA Program. The letters will be
printed on Town of Hempstead letterhead, in official Town envelopes.
The logo of the CCA Administrator and selected ESCO may also be included
on these letters, so long as it is clear that the letter is official
correspondence from the Town of Hempstead. The opt-out letter must
be provided in the individual customer's native language to the
extent that such information is available from the utility or in municipal
records.
(6)
The opt-out letter shall include information on the CCA Program and
the contract signed with the selected ESCO, including specific details
on rates, services, contract term, cancellation fee, and methods for
opting out of the CCA Program. The letter shall explain that consumers
that do not opt out will be enrolled in ESCO service under the contract
terms, and that information on those consumers, including energy usage
data, will be provided to the ESCO.
(7)
All consumers shall have the option to opt out of the CCA Program
at any time without penalty.
(8)
Termination fees shall not be charged to consumers that cancel their
CCA service as a result of moving out of the premises served.
B.
Public outreach and education; data protection requirements.
(1)
The Town, together with its CCA Administrator, will provide public
notices, presentations, information sheets, and other forms of outreach,
as outlined in the appendix of the implementation plan, to ensure
residents are informed about the CCA Program and their options for
participating or opting out.
(2)
Once the CCA Program is operating, the Town and its CCA Administrator
will continue to engage in public outreach to keep CCA customers informed
about any changes to the CCA Program; opportunities for new products
or services available through the CCA Program, such as renewable energy
buying options; important terms and durations of ESAs; information
about the selected ESCOs; and any other matters related to the CCA
Program.
C.
Customers moving into or out of the community after CCA adoption.
Residents (and small commercial customers) who establish utility accounts
in this community after the effective date of this chapter shall be
afforded the opportunity to join the CCA Program within a reasonable
time after their utility account is established, in accordance with
contractual agreements between the CCA Administrator and ESCO(s) providing
service to the program.
D.
Customer data protection. The Town Board of the Town of Hempstead,
or its CCA Administrator, will create and follow a customer data protection
plan which ensures that any confidential or sensitive personal customer
information provided by the utility to the Town, its CCA Administrator,
and/or the selected ESCO(s) will be given all privacy protections
required by law and regulation, and protected from unauthorized release
or use to the greatest extent possible. This customer data protection
plan will ensure that the CCA Program and any selected ESCO(s) handle
all confidential or sensitive customer data in keeping those customer
data protections already afforded by KEYSPAN/National Grid and/or
PSEG Long Island, or their successors, prior to the enactment of this
chapter. This plan will also ensure that CCA customer data, such as
contact information, is not used for inappropriate purposes, such
as solicitation of business unrelated to the CCA Program, its goals
and objectives.
A.
CCA administration agreement. The Town Board of the Town of Hempstead
will enter into a CCA administration agreement with its CCA Administrator.
Such agreement will set forth the various rights and responsibilities
of the parties, and will govern the manner in which the CCA Program
is run. This agreement shall also authorize the CCA Administrator
to act as the Town's agent for the purpose of procuring energy
supply or other energy-related, value-added services for CCA Program-eligible
customers.
B.
Customer service; complaints. The CCA Administrator will provide
the Town with clear, up-to-date contact information for customer questions,
concerns or complaints. The CCA Administrator shall, from time to
time, and/or at the request of the Town Board of the Town of Hempstead,
report to the Town regarding customer service matters.
C.
Reporting. Annual reports shall be filed with the Town Clerk by March
31 of each year and cover the previous calendar year. Annual reports
shall include, at a minimum; number of consumers served; number of
consumers cancelling during the year; number of complaints received;
commodity prices paid; value-added services provided during the year
(e.g., installation of DER or other clean energy services); and administrative
costs collected. The first report shall also include the number of
consumers who opted out in response to the initial opt-out letter
or letters.
D.
If a CCA supply contract will expire less than one year following
the filing of the annual report, the report must identify current
plans for soliciting a new contract, negotiating an extension, or
ending the CCA program.
Participating consumers shall be provided customer service,
including a toll-free telephone number available during normal business
hours (9:00 a.m. to 5:00 p.m. Eastern Time, Monday through Friday)
to resolve concerns, answer questions, and transact business with
respect to the service received from the ESCO.
A.
A CCA Advisory Group is hereby established to develop and review
CCA-related proposals, act as the Town's agent in recommending
an award of said proposals, and forward information regarding such
awards to the Town Board of the Town of Hempstead for consideration
and potential ratification.
B.
Membership to the CCA Advisory Group shall include the Town Comptroller,
the Town Attorney, the Chief of Staff, the Town Board Chief of Staff
and a representative from the Minority Caucus, or the designee of
each.
The CCA Administrator may collect, or cause to be collected,
funds from customer payments, through the supply charge, to pay for
administrative costs associated with running the CCA Program.
In accordance with the NYSPSC order authorizing CCAs, it shall
be the responsibility of the Town, supported by any CCA Administrator
that may be under contract, to ensure the CCA Program is operated
in compliance with all applicable provisions of the New York State
Public Service Law, regulations of the New York State Public Service
Commission and/or the New York State Department of Public Service,
the Uniform Business Practices (to the extent applicable), the NYSPSC
order authorizing CCAs and any other relevant laws or regulations.
This provision applies regardless of whether a CCA Administrator is
retained to organize and implement the Town CCA Program. This shall
include, but not be limited to, compliance with any reporting requirements
related to the CCA Program.
A.
The Town Board of the Town of Hempstead will annually review the
CCA Program and its progress to determine how the program is faring,
confirm it is affording benefits to the community, and provide information
to the public thereon.
B.
As the expiration of its ESA(s) approaches, or in the event an ESCO
provides notice of its intention to terminate an ESA (where authorized
by the terms of that ESA), the Town Board of the Town of Hempstead
may consider whether it wishes to discontinue the CCA Program.
C.
Dissolution of the CCA Program will require:
(1)
Enactment of a local law amending or repealing this chapter;
(2)
Lawful termination of ESAs in accordance with their terms;
(3)
Lawful termination of the CCA administration agreement, in accordance
with its terms; and
(4)
At least 60 days' notice to customers that their energy services
will be automatically returned to KEYSPAN/National Grid and/or PSEG
Long Island, or their successors, an effective date upon which such
a change would occur, and information on what other options may be
available to those customers, if applicable.
In the event the New York State Public Service Commission, the
State Legislature, or other state agency enacts laws or regulations
regarding the operation of CCAs which are in conflict with this chapter,
the state provisions shall govern.
Nothing in this chapter shall be read to create liability on
the part of Town related to the provision of electric and/or natural
gas service to customers. The ESCO selected to provide such service
will be ultimately responsible for compliance with all applicable
laws, rules and regulations governing retail energy services, and
will assume any liability stemming from the provision of such service
to retail customers, including any potential liability associated
with the service itself, customer data and information, and any other
matters which would traditionally fall under the purview of a merchant
utility providing the same service to customers prior to the formation
of the CCA. This chapter is meant merely to facilitate the creation
of an aggregation program in this community. The Town will not assume
the role of ESCO or utility in the sale or delivery of energy services.
Notwithstanding any provision to the contrary, the Town may
enter into one or more intermunicipal agreements with other municipalities
to operate a joint CCA Program. Any such agreement must be approved
by the Town Board.
If any clause, sentence, paragraph, subdivision, section or
part of this chapter or the application thereof, to any person, individual,
corporation, firm, partnership, entity or circumstance, shall be adjudged
by any court of competent jurisdiction to be invalid or unconstitutional
such order or judgment shall not affect, impair, or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, subdivision, section or part of this chapter
or in its application to the person, individual, corporation, firm,
partnership, entity, or circumstance, directly involved in the controversy
in which such judgment or order shall be rendered.
