[HISTORY: Adopted by the Town Board of the Town of Oneonta 5-10-2017 by L.L. No. 4-2017. Amendments noted where applicable.]
It is the intent of the Town to establish a Community Choice
Aggregation ("CCA") Program to aggregate the energy supply needs of
residents and eligible 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 our collective energy needs. The purpose of this
chapter is two-fold: to establish a CCA program in the Town 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. 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.
B.
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.
C.
CCA programs allow communities to take control of their energy supply
through an open, transparent and competitive electric procurement
process driven by the consumers themselves.
D.
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.
E.
The Town 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.
F.
Therefore, the Town authorizes the creation of an opt-out CCA program
pursuant to rules of the NYSPSC in this community for the provision
of electric 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 programs. Further,
the New York Municipal Home Rule Law, Article 2, § 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;
those customers' accounts shall be eligible to participate on
an opt-in basis, if they so desire.
An agent of the municipality 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 municipality via a separate
CCA administration agreement, adopted by resolution of the municipality's
governing board.
A program authorized by the New York State Public Service
Commission (NYSPSC) to aggregate residential and commercial electric
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
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 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 indicate
the Town of Oneonta, unless otherwise noted.
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 supply, transmission and distribution services to
all customers within their designated service territory. For purposes
of this chapter, the term "utility" will refer to the New York State
Electric and Gas Corporation.
The Town hereby establishes a CCA program for aggregation of
electric supply to serve all eligible customers in its jurisdiction.
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.
Part A: implementation plan.
(1)
The Town, 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 implemented, how energy contracts
will be selected, and how responsibilities will be divided amongst
the CCA Administrator, municipality, 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 appendices 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 and
the CCA Administrator will make community-specific revisions to the
plan's appendices 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, 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's opt-out letter and 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 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
be automatically enrolled in the CCA program. The letters will be
printed on Town 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.
B.
Part B: public outreach and education.
(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.
Part C: customers moving into or out of the community after CCA adoption.
Residents and possible eligible 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 any ESCO(s) providing service to the program.
D.
Part D: customer data protection. The Town, 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 the utility 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.
Part A: CCA administration agreement. The Town 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.
Part 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,
report to the Town regarding customer service matters.
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 will, from time to time, 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 may consider whether it wishes
to discontinue the CCA program. 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 the utility,
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 the Town related to the provision of electric 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.
Each provision of this chapter is severable from the others,
so that if any provision is held to be illegal or invalid for any
reason whatsoever, such illegal or invalid provision shall be severed
from this chapter, which shall nonetheless remain in full force and
effect.
This chapter shall take effect upon the filing with the Secretary
of State.
