[Adopted by the Board of Trustees of the Village of Pelham 11-3-2015 by L.L. No. 1-2015. Amendments noted where applicable.]
A.Â
It is the policy of both the Village of Pelham and the State of New
York to provide cost certainty which is lower than certain historical
averages, for the purpose of economic development, and to promote
deeper penetration of energy efficiency and renewable energy resources,
such as wind and solar. Among the policies and models that might 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.Â
The purpose of the Sustainable Westchester Community Choice Aggregation
Program is to allow participating local governments, including the
Village of Pelham, 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 local distribution company. This chapter
establishes a program that will allow the Village of Pelham to put
out for bid the total amount of energy being purchased by default
customers. Default customers will have cost certainty because the
energy price per kWh or Ccf, as appropriate, will be fixed for three
years and will be less than the average price per kWh or Ccf, as appropriate,
charged by the local distribution company during the preceding 12
months. Further, Sustainable Westchester will offer an opportunity
to purchase electricity from renewable energy sources as part of an
aggregation program (on an option basis), thereby fulfilling the purposes
of this chapter and fulfilling an important public purpose.
C.Â
The Village of Pelham 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 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 Public Service Commission Case No. 14-M-0224,
Proceeding on Motion of the Commission to Enable Community Choice
Aggregation Programs (issued December 15, 2014) to the extent that
orders related to Case No. 14-M-0224 enable actions by the Village
of Pelham 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.Â
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law of the Village of Pelham."
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 as indicated below; other terms in
this chapter shall have the meanings employed in the Public Service
Commission's Uniform Business Practices:
A municipal energy procurement program which replaces the
default supplier of Energy from the local distribution company to
the default supplier for default customers.
Residential and small commercial customers in the Village
of Pelham who purchase energy from the default supplier.
A supplier which is chosen by Sustainable Westchester pursuant
to the order and in accordance with this chapter to be the supplier
to default customers under the CCA Program.
Natural gas and/or electricity.
The owner or controller of the means of distribution of the
energy that is regulated by the Public Service Commission, currently
Consolidated Edison Company of New York.
The New York State Public Service Commission.
Nonresidential customers, as permitted by the order.
Independent power producers, other generators of electricity,
producers of natural gas, the default supplier, the local distribution
company, or any other energy service companies (ESCOs) that procure
and resell electricity or natural gas to residential and small commercial
customers.
A not-for-profit organization composed of member municipalities
in Westchester County, New York.
A.Â
A Community Choice Aggregation (Energy) Program is hereby established
by the Village of Pelham, whereby the Village of Pelham 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 Village of Pelham's role under the CCA Program involves
the aggregation of the electric and/or natural gas supply of its residents
and entering into a contract with the default supplier. Under the
CCA Program, the operation and ownership of the utility service shall
remain with the local distribution company. Further, the local distribution
company retains its obligation to provide service of last resort in
the event the default supplier does not perform.
B.Â
The Village of Pelham's purchase of energy supply through the
CCA Program constitutes neither the purchase of a public utility system
nor the furnishing of utility service. The Village of Pelham 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 the default supplier on behalf of the default
customers.
C.Â
In order to implement the CCA Program, the Village of Pelham 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 default suppliers,
all as consistent with this chapter and the order.
D.Â
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, including the default supplier.
A.Â
As permitted by the order, the Village of Pelham may request from
the local distribution company aggregated customer information by
fuel type and service classification on a rolling basis.
B.Â
Sustainable Westchester, on behalf of the Village of Pelham, or the
Village of Pelham, if the Village of Pelham so chooses, 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 to the default supplier.
C.Â
Sustainable Westchester or the Village of Pelham, if the Village
of Pelham so chooses, will then request individual customer data from
the local distribution company in accordance with the CCA Program.
D.Â
Sustainable Westchester or the Village of Pelham, if the Village
of Pelham so chooses, and the default supplier will then notify default
customers of the contract terms and their opportunity to opt out of
the CCA Program.
E.Â
In accordance with and for purposes of the order, the local distribution
company will provide Sustainable Westchester and/or the Village of
Pelham with aggregate and customer-specific data (including usage
data, capacity tag obligations, account numbers, and service addresses)
of all default customers (customers not currently enrolled with an
ESCO).
F.Â
Sustainable Westchester and the Village of Pelham 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.Â
The Village of Pelham, in conjunction with the default supplier,
will notify its residential and small commercial customers, by letter
notice, of the Village of Pelham's decision to establish the
CCA Program, of the contract terms with the default supplier, and
of the opportunity to opt out of the CCA Program.
B.Â
The letter notice, which will explain the CCA Program and the material
provisions of the default supplier contract, will identify the methods
by which customers can opt out of the CCA Program and will provide
information on how customers can access additional information about
the CCA Program, will be sent to each customer at the address provided
by the local distribution company.
C.Â
The initial opt-out period shall be 20 days. Residential and small
commercial customers can switch to another supplier at a later date,
without penalty for making the switch.
D.Â
Default customers under the CCA Program will receive a welcome letter
explaining their 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 will
also explain that residential customers are entitled to the added
protection of the mandated three-business-day rescission period set
forth in Section 5(B)(3) of the Public Service Commission Uniform
Business Practices.
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.
