[HISTORY: Adopted by the Town Board of the Town of Clarkstown 9-10-2019 by L.L. No. 13-2019. Amendments noted where applicable.]
A local law creating a new chapter of the Clarkstown Town Code
entitled "Community Choice Aggregation (Energy) Program."
A.Â
It is the policy of both the Town of Clarkstown ("Town") and State
of New York to reduce costs and provide price certainty for the purpose
of consumer protection and economic development, to expand access
and opportunities for customers in retail energy markets, as well
as to promote the sustainability and resilience of energy systems
through the proliferation of renewable energy, energy efficiency,
and distributed energy resources ("OER"). Among the initiatives that
may advance these objectives is community choice aggregation ("CCA"),
a policy that empowers local governments to select the source of electricity
and/or natural gas supply on behalf of its residents and small businesses,
reflecting local resources, priorities, and challenges. Energy delivery
shall remain the responsibility of the distribution utility.
B.Â
This chapter establishes the authority for the Town, in connection
with the implementation of a CCA program, to acquire utility data;
to select, through competitive solicitation, one or more energy supplier(s)
on behalf of participating customers within the Town; and to maximize
value for participating customers through enhanced services related
to distributed energy resources. The Town may choose to collaborate
with other local governments to form an intermunicipal CCA program.
By establishing a CCA program, participating customers may have the
opportunity to lower and stabilize their energy costs, to spur local
clean energy innovation and investment, and to reduce their environmental
impact; thereby fulfilling the purposes of this chapter and fulfilling
a public purpose.
C.Â
The Town is authorized to implement this community choice aggregation
program pursuant to § 10(1)(ii)(a)(12) of the New York Municipal
Home Rule Law; and consistent with 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 April 21,
2016), as may be amended, including subsequent orders of the Public
Service Commission issued in connection with or related to Case No.
14-M-0224.
D.Â
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law" of the Town of Clarkstown.
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:
Aggregated and anonymized information including the number
of customers 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 through a third-party CCA Administrator duly authorized
to put out for bid the total amount of electricity and/or natural
gas being purchased by participating customers. CCA Administrator
is responsible for program organization, administration, procurement,
and communications, unless otherwise specified.
Customer-specific information, personal data and utility
data for all consumers in the Town eligible for opt-out treatment
based on the terms of PSC CCA Order and 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
that obligates each party to meet, collectively: i) 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 default customer with respect to the CCA Administrator
or its representative's processing of confidential utility information;
ii) the distribution utility's internal requirements and procedures
relating to the protection of information that identifies or can be
used to identify individual default customer with respect to the CCA
Administrator or its representative's processing of confidential
utility information; and iii) the PSC CCA Order and PSC rules, regulations
and guidelines relating to confidential data.
A consumer of electricity and/or natural gas services within
opt-out eligible service classes (as delineated in the PSC CCA Order)
who receives supply service from the distribution utility as of the
date that the supply contract goes into effect, or a consumer within
these service classes who subsequently becomes eligible to become
a participating customer in the CCA program, including a consumer
who has terminated a supply contract with an ESCO; a consumer who
has removed a freeze or block on the consumer's account; a consumer
who has voluntarily suspended service pursuant to a special rate;
or a consumer who becomes a new resident of the Town after the supply
contract goes into effect. None of the following are considered a
default customer and will not be enrolled on an opt-out basis: a consumer
within opt-out eligible service classes who receives supply service
from an ESCO as of the date that the supply contract goes into effect;
a consumer who has placed a freeze or block on the consumer's
account; and a consumer for whom enrollment in the CCA program would
interfere with a choice the consumer had already made to take service
pursuant to a special rate. For the avoidance of doubt, a default
customer must reside or be otherwise located at one or more locations
within the geographic boundaries of the Town, as such boundaries exist
as of the date the supply contract goes into effect.
Supply service provided by the distribution utility to customers
who are not currently receiving service from an energy service company
(ESCO). Default customers within the Town that receive default service,
and have not opted out will be enrolled in the program as of the effective
date.
Local renewable energy projects, shared renewables like community
solar, energy efficiency, demand response, energy management, energy
storage, micro grid projects and other innovative Reforming the Energy
Vision (REV) initiatives that optimize system benefits, target and
address load pockets/profile within the CCA's zone, and reduce
cost of service for participating customers.
Owner or controller of the means of distribution of the natural
gas or electricity that is regulated by the Public Service Commission.
An entity duly authorized to conduct business in the State
of New York as an ESCO.
Customers of electricity that become default customers after
the effective date of the ESA, including those that opt in or move
into Town.
Default customers enrolled in the program, either because
they are customers who receive default service from the distribution
utility as of the effective date and have not opted out, or are new
customers.
The PSC's Order Authorizing Framework for Community
Choice Aggregation Opt-Out Program, issued on April 21, 2016 in Case
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 default
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.Â
A community choice aggregation (energy) program is hereby established
by the Town, whereby the Town may implement a CCA program to the full
extent permitted by the PSC CCA Order, as set forth more fully herein.
B.Â
The Town may enter into contracts with one or more suppliers for
energy supply and other services on behalf of default customers.
C.Â
The Town may enter into agreements and contracts with other municipalities,
nonprofits, consultants, and/or other third parties to: i) develop
and implement the CCA program; ii) act as CCA Administrator; and/or
iii) develop offers of opt-in distributed energy resources (DER) products
and services to participating customers, including opportunities to
participate in local renewable energy projects, shared solar, energy
efficiency, micro grids, 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.Â
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 on behalf of participating customers.
A.Â
All default customers shall be enrolled on an opt-out basis. Default
customers will have the right to opt out before the supply contract
goes into effect, or disenroll any time thereafter with no penalty.
Default customers who do not opt out before the supply contract goes
into effect will be enrolled automatically.
B.Â
All non-default customers within the Town, regardless of service
class, shall be eligible to participate in the CCA program on an opt-in
basis.
C.Â
The CCA Administrator 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, this chapter, and the
PSC CCA Order.
A.Â
The CCA Administrator shall cause the mailing of a program notification
letter, printed on municipal letterhead, to default customers at least
30 days prior to customer enrollment. The letter shall include information
on the CCA program and the supply contract signed with the selected
supplier(s), including specific details on rates, services, contract
term, and methods for opting out of the CCA program. The letter shall
explain that default customers who do not opt out will be enrolled
in the CCA program under the supply contract terms and that information
on those customers, including energy usage data, will be provided
to the ESCO.
B.Â
After the initial thirty-day opt-out period, all participating customers
shall have the option to disenroll from the CCA program at any time
without penalty.
A.Â
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 default customers
who did not opt-out once the initial opt-out period has closed.
B.Â
Customer-specific data shall be protected in a manner compliant with,
collectively: i) 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 or its representative's processing of
confidential utility information; ii) 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 or its representative's processing of
confidential utility information; and iii) the PSC CCA Order and PSC
rules, regulations and guidelines relating to confidential data.
C.Â
The Town must enter into a data security agreement with the distribution
utility for the purpose of protecting customer data.
The CCA Administrator may collect, or cause to be collected,
funds from customer payments to pay for administrative costs associated
with running the CCA program.
A.Â
The CCA Administrator shall prepare and file with the Town Board
of an annual report by March 31 of each year concerning the operations
of the CCA program for the previous calendar year.
B.Â
Each annual report shall include, at a minimum, the following: number
of participating customers served; number of participating customers
cancelling; number of complaints received; commodity prices paid;
value-added services provided during the previous calendar year (e.g.,
installation of DER or other clean energy services); and administrative
costs collected. The first annual report shall also include the number
of customers who opted out in response to the initial opt-out letter
or letters.
C.Â
If a supply contract will expire less than one year following the
filing of an annual report, the report shall describe current plans
for soliciting a new supply contract, negotiating an extension, or
terminating the CCA program.
The invalidity or unenforceability of any section, subsection,
paragraph, sentence, clause, provision, or phrase of the aforementioned
sections, as declared by the valid judgment of any court of competent
jurisdiction to be unconstitutional, shall not affect the validity
or enforceability of any other section, subsection, paragraph, sentence,
clause, provision, or phrase, which shall remain in full force and
effect.
This chapter shall be effective immediately upon filing with
the Secretary of State.
