[HISTORY: Adopted by the Council of the City of Schenectady 10-15-2019 by L.L. No. 2-2019. Amendments noted where applicable.]
A.Â
It is the policy of both the City of Schenectady ("Municipality")
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 eligible consumers in those markets. Among the
policies and models that may offer benefits in New York is Community
Choice Aggregation ("CCA"), which allows local governments to determine
the default supplier of electricity and natural gas on behalf of eligible
consumers.
B.Â
The purpose of CCA is to allow participating local governments to
procure energy supply service for eligible consumers, 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 ("CCA Program") that will allow the
Municipality and other local governments to work together through
a shared purchasing model to put out for bid the total amount of electricity
being purchased by eligible consumers within the jurisdictional boundaries
of participating municipalities. 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 an important public purpose.
C.Â
The Municipality is authorized to implement this CCA Program pursuant
to § 10(1)(ii)(a)(12) of the New York Municipal Home Rule
Law; and 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 (PSC) issued in
connection with or related to Case No. 14-M-0224, to the extent that
orders related to Case No. 14-M-0224 enable actions by the Municipality.
D.Â
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law" of the Municipality.
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 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
by month for the past 12 months by service class.
The City of Schenectady or third party CCA Administrator
duly authorized to put out for bid the total amount of being purchased
by participating consumers. 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 municipality 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 municipality
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 eligible consumer 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 eligible consumer 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.
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 municipality 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, microgrid 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 consumers.
Owner or controller of the means of distribution of electricity
that is regulated by the Public Service Commission.
Eligible customers of electricity who receive default service
from the distribution utility as of the effective date, or new consumers
that subsequently become eligible to participate in the program, at
one or more locations within the geographic boundaries of the municipality,
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 municipality, as such boundaries exist on the effective
date of the 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 the ESA, including those that opt in or move
into municipality.
Eligible consumers enrolled in the program, either because
they are consumers who receive default service from the distribution
utility as of the effective date and have not opted out, or are new
consumers.
The group responsible for initiating and organizing the CCA.
This group will typically secure buy-in from local governments and
engage in preliminary outreach and education around CCA. The program
organizer may be a nonprofit organization, local government, 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
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 for eligible consumers
in connection with this chapter or, alternatively, generators of electricity
or other entities who procure and resell electricity.
A.Â
A Community Choice Aggregation (Energy) Program is hereby established
by the municipality, whereby the municipality may implement a CCA
Program to the full extent permitted by the PSC CCA Order, as set
forth more fully herein.
B.Â
The municipality may act as aggregator or broker for the sale of
electric supply to eligible consumers and may enter into contracts
with one or more suppliers for energy supply and other services on
behalf of eligible consumers.
C.Â
The municipality may enter into agreements and contracts with other
municipalities, non-profits, 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 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.Â
The operation and ownership of the utility service shall remain with
the distribution utility. The municipality's participation in
a CCA Program constitutes neither the purchase of a public utility
system, nor the furnishing of utility service. The municipality shall
not take over any part of the electric transmission or distribution
system and will not furnish any type of utility service, but will
instead negotiate with suppliers on behalf of participating consumers.
A.Â
All consumers within the municipality, including residential and
nonresidential, regardless of size, shall be eligible to participate
in the CCA Program.
B.Â
All consumers that are members of SC 1 Residential and Farm Service
and SC 2 Small General Service shall be enrolled on an opt-out basis
except for consumers i) that are already taking service from an ESCO,
ii) that have placed a freeze or block on their account, or iii) 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.
C.Â
New consumers shall be enrolled on an opt-out basis.
A.Â
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 including specific details
on rates, 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 ESCO service under the contract
terms and that information on those consumers, including energy usage
data and APP status, will be provided to the ESCO.
B.Â
All consumers shall have the option to opt-out of the CCA Program
at any time without penalty.
C.Â
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. to 5:00 p.m. Eastern time, Monday through Friday) to resolve
concerns, answer questions, and transact business with respect to
the service received from the supplier.
A.Â
The municipality 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 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 municipality 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 municipality 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 municipality must enter into a data security agreement with the
distribution utility for the purpose of protecting customer data.
A.Â
A CCA Advisory Group is hereby established to develop and review
CCA-related proposals, act as the municipality's agent in awarding
said proposals, and forward information regarding such awards to the
City Council for ratification.
B.Â
Membership to the CCA Advisory Group shall be set at the discretion
of the Mayor.
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.Â
Annual reports shall be filed with the City Council of the municipality
by March 31 of each year and cover the previous calendar year.
B.Â
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.Â
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.
This chapter shall be effective immediately upon passage.
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.