[HISTORY: Adopted by the Town Board of the Town of Somers 7-9-2015 by L.L. No. 2-2015. Amendments noted where applicable.]
A.
It is the policy of both the Town of Somers and the State of New
York to reduce costs and provide cost certainty for the purpose of
economic development, to promote deeper penetration of energy efficiency
and renewable energy resources such as wind and solar, and wider deployment
of distributed energy resources as well as to examine the retail energy
markets and increase participation of and benefits for residential
and small commercial customers in those markets. Among the policies
and models that may offer benefits in New York is community choice
aggregation, which allows local governments to determine the default
supplier of electricity and natural gas on behalf of its residential
and small commercial customers.
B.
The purpose of this CCA Program is to allow participating local governments,
including the Town of Somers, to procure energy supply service for
their residential and small commercial customers, who will have the
opportunity to opt out of the procurement, while maintaining transmission
and distribution service from the existing distribution utility. This
chapter establishes a program that will allow the Town of Somers to
put out for bid the total amount of natural gas and/or electricity
being purchased by local residential and small commercial customers.
Bundled customers will have the opportunity to have more control to
lower their overall energy costs, to spur clean energy innovation
and investment, to improve customer choice and value, and to protect
the environment; thereby, fulfilling the purposes of this chapter
and fulfilling an important public purpose.
C.
The Town of Somers is authorized to implement this Community Choice
Aggregation (Energy) Program pursuant to § 10, Subdivision
1(ii)a(12), of the New York Municipal Home Rule Law; and State of
New York Public Service Commission Case No. 14-M-0564, Petition of
Sustainable Westchester for Expedited Approval for the Implementation
of a Pilot Community Choice Aggregation Program within the County
of Westchester, Order Granting Petition in Part (issued February 26,
2015) as may be amended, including subsequent orders of the Public
Service Commission issued in connection with or related to Case No.
14-M-0564 (collectively, the "order"). "Order" shall also mean orders
of the Public Service Commission related to State of New York Public
Service Commission Case No. 14-M-0224, Proceeding on Motion of the
Commission to Enable Community Choice Aggregation Programs (issued
December 15, 2104) to the extent that orders related to Case No. 14-M-0224
enable actions by the Town of Somers not otherwise permitted pursuant
to orders related to Case 14-M-0564; provided, however, that in the
event of any conflict between orders from Case No. 14-M-0564 and orders
from Case No 14-M-0224, orders from Case No 14-M-0564 shall govern
the CCA Program.
D.
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law of the Town of Somers."
For purposes of this chapter, and unless otherwise expressly
stated or unless the context otherwise requires, the terms in this
chapter shall have the meanings employed in the State of New York
Public Service Commission's Uniform Business Practices or, if
not so defined there, as indicated below:
Residential and small commercial customers of electricity
or natural gas ("fuels") who are purchasing the fuels from the distribution
utility.
A municipal energy procurement program, which replaces the
incumbent utility as the default supplier for all bundled customers
within the Town of Somers.
Owner or controller of the means of distribution of the natural
gas or electricity that is regulated by the Public Service Commission.
New York State Public Service Commission.
Nonresidential customers as permitted by the order.
Energy service companies (ESCOs) that procure electric power
and natural gas for bundled customers in connection with this chapter
or, alternatively, generators of electricity and natural gas or other
entities who procure and resell electricity or natural gas.
A not-for-profit organization comprised of member municipalities
in Westchester County, New York.
A.
A Community Choice Aggregation (Energy) Program is hereby established
by the Town of Somers, whereby the Town of Somers shall work together
with Sustainable Westchester to implement the CCA Program to the full
extent permitted by the order, as set forth more fully herein. The
Town of Somers' role under the CCA Program involves the aggregating
of the electric and/or natural gas supply of its residents and the
entering into a contract with one or more suppliers for supply and
services. Under the CCA Program, the operation and ownership of the
utility service shall remain with the distribution utility.
B.
The Town of Somers' purchase of energy supply through a CCA
Program constitutes neither the purchase of a public utility system,
nor the furnishing of utility service. The Town of Somers will not
take over any part of the electric or gas transmission or distribution
system and will not furnish any type of utility service, but will
instead negotiate with suppliers on behalf of participating residential
and small commercial customers.
C.
In order to implement the CCA Program, the Town will adopt one or
more resolutions that outline the process of and conditions for participation
in the CCA Program, including but not limited to signing a contract
for a compliant bid with one or more suppliers, all as consistent
with this chapter and the order.
D.
The Public Service Commission supervises retail markets and participants
in these markets through legislative and regulatory authority and
the Uniform Business Practices, which includes rules relating to the
eligibility of participating ESCOs, the operation by which ESCOs provide
energy services, and the terms on which customers may be enrolled
with ESCOs.
A.
As permitted by the order, the Town of Somers may request from the
distribution utilities aggregated customer information by fuel type
and service classification on a rolling basis.
B.
Sustainable Westchester, on behalf of the Town of Somers, shall issue
one or more requests for proposals to suppliers to provide energy
to participants and may then award a contract in accordance with the
CCA Program.
C.
Sustainable Westchester or the Town of Somers, if the Town of Somers
so chooses, will then request individual customer data from the distribution
utility in accordance with the CCA Program.
D.
Sustainable Westchester or the Town of Somers, if the Town of Somers
so chooses, and the selected supplier will then notify bundled customers
of the contract terms and their opportunity to opt out of the CCA
Program.
E.
In accordance with and for purposes of the order, the existing distribution
utility, New York State Electric and Gas Corporation, will provide
to Sustainable Westchester aggregate and customer-specific data (including
usage data, capacity tag obligations, account numbers, and service
addresses) of all bundled customers in the Town of Somers not currently
enrolled with an ESCO.
F.
Sustainable Westchester and the Town of Somers will protect customer
information as required by law, subject to the order and the limitations
of the New York State Freedom of Information Law.
A.
The Town of Somers or in conjunction with the ESCO will notify its
residential and small commercial customers, by letter notice, of the
Town of Somers' decision to establish the CCA Program, of the
contract terms with an ESCO, and of the opportunity to opt out of
the CCA Program.
B.
The letter notice will be sent to each customer at the address provided
by the distribution utility and explain the CCA Program and the material
provisions of the ESCO contract, identify the methods by which the
customer can opt out of the CCA Program, and provide information on
how the customer can access additional information about the CCA Program.
C.
The opt-out period shall be twenty (20) days.
D.
CCA Program bundled customers, upon enrollment, will receive a welcome
letter that will explain the customers' options for canceling
the enrollment if they believe they were enrolled incorrectly or otherwise
decide to withdraw from the CCA Program in favor of another supplier.
The welcome letter also will explain that residential customers are
entitled to the added protection of the mandated three-day rescission
period as detailed in Section 5(B)(3) of the Uniform Business Practices.
A.
Sustainable Westchester shall be responsible for filing an annual
report with the Public Service Commission, which identifies the number
of customers enrolled in the CCA Program by municipality and customer
class, the number of customers who returned to utility service or
service with another supplier during the reporting period, and the
average cost of commodity supply by month for the reporting period.
