It is the intent of the City of Watervliet to establish a Community
Choice Aggregation (CCA) Program to aggregate the energy supply needs
of residents and small comercial 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 article is
two-fold: to establish a CCA Program in the City of Watervliet and
to adopt certain provisions relating to the creation and implementation
of the CCA Program.
The NYSPSC Order Authorizing CCAs expressly empowers cities, towns and vlilages 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 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 (NOTE: Except Assistance
Program Participants (APPs), 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 Aggrements 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
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
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.
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 this term throughout this chapter indicates
the City of Watervliet, 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 Watervliet 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 NYSPSC Order Authorizing CCAs.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the City of Watervliet, 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 City of Watervliet's 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 natural
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.