It is the intent of the City of Saratoga Springs to establish
a community choice aggregation (CCA) program to aggregate the energy
supply needs of residents and 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 City of Saratoga
Springs and to adopt certain provisions relating to the creation and
implementation of the CCA program.
The NYPSC 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:
AUTOMATICALLY ELIGIBLE CUSTOMERS
Customers' accounts in those utility service classes
eligible for inclusion in the CCA program on an opt-out basis, as
set forth in the NYPSC Order Authorizing CCAs, Appendix C, or as otherwise
specified by the Commission. Generally, these classes of customers
include those receiving residential 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 (except Assistance Program participants,
customers enrolled in utility low-income assistance programs who may
have blocks on their accounts with their existing utility, but who
may still be eligible to participate); those customers' accounts
shall be eligible to participate on an opt-in basis, if they so desire.
CCA ADMINISTRATOR
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.
COMMUNITY CHOICE AGGREGATION (CCA)/CCA PROGRAM
A program authorized by the New York State Public Service
Commission (NYSPSC) to aggregate residential and commercial electric
and/or natural gas 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.
ELIGIBLE CUSTOMERS
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 NYPSC 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.
ENERGY SERVICES COMPANY (ESCO)
A third-party energy supplier eligible to sell electricity,
natural gas 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.
ENERGY SUPPLY AGREEMENT (ESA)
An agreement between an energy customer and an energy services
company (ESCO) to provide electricity or gas 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.
MUNICIPALITY
Reference to these terms throughout this chapter indicate
the City of Saratoga Springs, unless otherwise noted.
UTILITY
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 and/or gas supply, transmission and distribution
services to all customers within their designated service territory.
For purposes of this chapter, the term "utility" will refer to "National
Grid."
The City of Saratoga Springs hereby establishes a CCA program
for aggregation of electric and/or natural gas 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 NYPSC Order Authorizing CCAs.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the City of Saratoga Springs, 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 NYPSC 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 City of Saratoga Springs'
CCA program. This shall include, but not be limited to, compliance
with any reporting requirements related to the CCA program.
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 City related to the provision of electric and/or gas
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 City 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 immediately upon filing in the
office of the Secretary of State of the State of New York, in accordance
with § 27 of the Municipal Home Rule Law.