[HISTORY: Adopted by the Town Board of the Town of Marlborough 11-27-2017 by L.L. No. 8-2017. Amendments noted where applicable.]
A.
As noted by this state's Public Service Commission (PSC) in
Case No. 14-M-0224, decided April 20, 2016, it is the policy of the
State of New York to reduce costs and to provide cost certainty to
promote economic development; to promote deeper penetration of energy
efficiency and renewable energy resources, such as hydroelectric,
wind and solar; to promote wider deployment of distributed energy
resources; and to examine the retail energy markets and increase participation
of and benefits for eligible consumers in those markets. Among the
policies and models that may serve these policies in New York is community
choice aggregation (CCA), as defined in PSC Case No. 14-M-0224, which
allows local governments, including towns, villages and cities, to
determine the default supplier of electricity and/or natural gas on
behalf of eligible consumers.
B.
The purpose of CCA is to allow participating local governments to
procure both energy supply service and distributed energy resources
for eligible consumers, who will retain the opportunity to opt out
of such procurement by maintaining transmission and distribution service
from the existing distribution utility. This chapter establishes authority
to establish a program (CCA program) that will allow the Town of Marlborough,
with (or without) other local governments to work together through
a shared purchasing model to put out for bid the total amount of natural
gas and/or electricity being purchased by eligible consumers within
the jurisdictional boundaries of participating municipalities, as
well as to bid out for the development of distributed energy resources
for the benefit of eligible consumers. Eligible consumers 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 important purposes.
C.
The Town of Marlborough is authorized to implement a CCA program
in the exercise of its powers pursuant to § 10, Subdivision
1(ii)a(12) of this state's Municipal Home Rule Law and the authority
bestowed upon towns in the PSC's ruling in Case No. 14-M-0224,
issued April 21, 2016. Exercise of the authority shall be consistent
with the processes and procedures set forth in Appendix D of the PSC's
aforesaid ruling, or with such other processes and procedures as the
PSC may order or may regulate, or the state legislature may determine.
As used in this chapter, the following terms shall have the
meanings indicated:
Aggregated and anonymized information, including the number
of consumers by service class, the aggregated peak demand (kW) (for
electricity) by month for the past 12 months by service class, to
the extent possible, and the aggregated energy (kWh) for electricity
or volumetric consumption for gas by month for the past 12 months
by service class.
The Town Board of the Town of Marlborough, New York, or a
third party selected by the Town Board which shall be duly authorized
to put out for bid the total amount of electricity and/or natural
gas being purchased by participating consumers and the distributed
energy resources that will be incorporated into the CCA program. The
CCA Administrator shall be responsible for CCA program organization,
administration, procurement, and communications, unless otherwise
specified.
The date on which the CCA program becomes effective within
the municipality, following implementation of all actions required
of the municipality and/or CCA Administrator to enroll participating
customers in the CCA program, said actions to be set forth in more
detail within a PSC order approving the Community Choice Aggregation
Implementation Plan described herein.
Customer-specific information, personal data and utility
data for all consumers in the municipality eligible for opt-out treatment
based on the terms of the PSC ruling in Case No. 14-M-0224 or the
CCA program design, including the customer of record's name,
mailing address, telephone number, account number, and primary language,
if available, and any customer-specific alternate billing name, address,
and phone number.
An agreement between the distribution utility and the Town
of Marlborough which obligates each party to satisfy, collectively:
All federal, state and local laws, regulations or other government
standards relating to the protection of information that identifies
or can be used to identify an individual eligible consumer with respect
to the CCA Administrator's or its representative's processing
of confidential utility information;
The distribution utility's internal requirements and procedures
relating to the protection of information that identifies or can be
used to identify individual eligible consumers with respect to the
CCA Administrator's or its representative's processing of
confidential utility information; and
The PSC ruling in Case No. 14-M-0224 or the PSC's other
orders, rules, regulations and guidelines relating to confidential
data.
Supply service provided by the distribution utility to consumers
who are not currently receiving service from an energy service company
(ESCO). Eligible consumers within the Town of Marlborough that receive
default service, and have not opted out, will be enrolled in the CCA
program as of the effective date of said program.
Local renewable energy projects, shared renewables such as
community solar, energy efficiency, demand response, energy management,
energy storage, microgrid projects and other innovative Reforming
the Energy Vision (REV) initiatives that optimize system benefits,
target and address load pockets/profiles within the CCA's zone,
and reduce cost of service for participating consumers.
Central Hudson Gas and Electric Corporation, or any successor
thereto.
Eligible customers of electricity and/or natural gas who
receive default service from the distribution utility as of the effective
date of a CCA program, or new consumers that subsequently become eligible
to participate in the program, at one or more locations within the
geographic boundaries of the Town of Marlborough, except those consumers
who receive default service and have requested not to have their account
information shared by the distribution utility. For the avoidance
of doubt, all eligible consumers must reside or be otherwise located
at one or more locations within the geographic boundaries of the Town
of Marlborough.
An agreement entered into by and between the municipality,
the CCA Administrator and a supplier concerning procurement of electricity
and/or natural gas supply or electricity and/or distribution utility
bill credits generated by a DER on behalf of the participating customers,
upon terms and conditions that are mutually agreeable to the municipality,
the CCA Administrator and the supplier; provided, however, that if
the CCA Administrator is a third party, it shall sign each ESA solely
for the purpose of furthering its administrative obligations under
the CCA program and shall not have any financial liability under any
ESA.
An entity duly authorized to conduct business in the State
of New York as an ESCO.
Consumers of electricity that become eligible consumers after
the effective date of any ESA, including those that opt in or move
into the municipality.
Eligible consumers enrolled in the program, either because
they are consumers who receive default service from the distribution
utility as of the CCA effective date and who have not opted out or
who are new consumers.
The group or entity responsible for initiating and organizing
the CCA program. The program organizer will typically secure buy-in
from local governments and engage in preliminary outreach and education
around CCA. The program organizer may be a local government, nonprofit
organization or other third party. The program organizer and the CCA
Administrator may be the same.
The PSC's Order Authorizing Framework for Community
Choice Aggregation Opt-Out Program, issued on April 21, 2016, in Case
No. 14-M-0224, "Proceeding on Motion of the Commission to Enable Community
Choice Aggregation Programs."
New York State Public Service Commission.
ESCOs that procure electric power and natural gas for eligible
consumers 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.
A Community Choice Aggregation (Energy) Program is hereby authorized
to be established by the Town of Marlborough. The Town may establish
and implement a CCA program to the full extent permitted by the PSC
CCA Order and any subsequent PSC orders approving the CCA program
Implementation Plan, as set forth more fully herein.
B.
The Town may act as aggregator or broker for the sale of electric
supply, gas supply, or both to eligible consumers and may enter into
contracts with one or more suppliers and/or DER providers for energy
supply and other services on behalf of eligible consumers.
C.
The Town may enter into agreements and contracts with other municipalities,
nonprofits, consultants, and/or other third parties to:
(1)
Develop and implement the CCA program;
(2)
Act as CCA Administrator and/or contract out the role of CCA Administrator
to a third party; and/or
(3)
Develop offers of distributed energy resources (DER) products and
services to participating consumers, including opportunities to participate
in local renewable energy projects, shared solar, energy efficiency,
microgrids, storage, demand response, energy management, and other
innovative Reforming the Energy Vision (REV) initiatives and objectives
designed to optimize system benefits, target and address load pockets/profile
within the CCA zone, and reduce costs for CCA customers.
D.
The operation and ownership of the utility service shall remain with
the distribution utility. The Town's participation in a CCA program
constitutes neither the purchase of a public utility system nor the
furnishing of utility service. The Town shall 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 and/or DER providers on behalf of participating consumers.
E.
Participating consumers will be charged a CCA program subscription fee which may include (but not necessarily be limited to): the ESCO supply charge; a DER subscription charge (if applicable); and the administration fee described in § 154-8 of this chapter. This subscription fee will appear on the participating consumers' bills from the distribution utility.
F.
The Town Board, either acting on its own or through the CCA Administrator,
is authorized to prepare and submit a Community Choice Aggregation
Implementation Plan to the New York Public Service Commission for
approval of a CCA program, as outlined in the PSC CCA Order. Such
an implementation plan will include final details of the CCA program
as outlined therein.
A.
All consumers within the Town, including residential and nonresidential,
regardless of size, shall be eligible to participate in the CCA program;
provided, however, that participation in DER projects may depend on
DER project availability and may be restricted by distribution utility
service class.
B.
All consumers who are members of Electric SC 1 Residential Service,
SC 2 General Service, and Gas SC 1 Residence Rate, SC 2 Commercial
and Industrial Rate may be enrolled on an opt-out basis except for
consumers that are already taking service from an ESCO, that have
placed a freeze or block on their account, or for whom inclusion in
the CCA program will interfere with a choice the customer has already
made to take service pursuant to a special rate. Those consumers may
be enrolled on an opt-in basis. The definitive rules with respect
to enrollment of eligible consumers will be set forth in the CCA Implementation
Plan.
C.
New consumers shall be enrolled on an opt-out basis.
A.
An opt-out letter, printed on municipal letterhead, shall be mailed
to eligible consumers at least 30 days prior to customer enrollment.
The opt-out letter shall include information on the CCA program and
the contract signed with the selected ESCO and/or DER provider(s),
including specific details on rates, fees, 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 the CCA program under the contract terms and that information on
those consumers, including energy usage data and APP status, will
be provided to the ESCO and/or the DER providers. The opt-out letter
shall also explain that the CCA Administrator will be authorized to
enroll participating consumers in DER projects and communicate such
enrollment to the distribution utility under relevant PSC-approved
rules and tariffs so that participating consumers may receive applicable
billing credits from the distribution utility.
B.
All consumers shall have the option to opt out of the CCA program
at any time without penalty.
C.
Termination fees shall not be charged to consumers that cancel their
CCA service as a result of moving out of the premises served.
Participating consumers shall be provided customer service,
including a toll-free telephone number available during normal business
hours (9:00 a.m. through 5:00 p.m. Eastern time, Monday through Friday)
to resolve concerns, answer questions, and transact business with
respect to the CCA program.
A.
The Town may request aggregated data and customer-specific data from
the distribution utility; provided, however, that the request for
customer-specific data is limited to only those eligible consumers
who did not opt out before the initial opt-out period closed.
B.
Customer-specific data shall be protected in a manner compliant with,
collectively:
(1)
All national, state and local laws, regulations or other government
standards relating to the protection of information that identifies
or can be used to identify an individual that apply with respect to
the Town's or its representative's processing of confidential
utility information;
(2)
The utility's internal requirements and procedures relating
to the protection of information that identifies or can be used to
identify an individual that apply with respect to the Town's
or its representative's processing of confidential utility information;
and
(3)
The PSC CCA Order and PSC rules, regulations and guidelines relating
to confidential data.
C.
The Town must enter into a data security agreement with the distribution
utility for the purpose of protecting customer data.
The municipality may collect, or cause to be collected, funds
from customer payments to pay for administrative costs associated
with running the CCA program.
A.
Annual reports shall be filed with the Town Board by March 31 of
each year and cover the previous calendar year.
B.
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.
C.
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.
