[HISTORY: Adopted by the Common Council of the City of Albany 3-2-2020 by L.L. No. 2-2020. Amendments noted where applicable.]
It is the intent of the City of Albany 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 Albany
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 supply 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 City of Albany 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 City of Albany authorizes the creation of a CCA Program
that will include an opt-out option for customers in this community
for the provision of electric supply service pursuant to the rules
of the NYSPSC, as well as other high priority energy-related value-added
services as may be determined to meet the community's goals.
Customers can opt out without penalty or fees.
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 supply service,
including those in multi-family 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.
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 City of Albany via a separate
CCA administration agreement and shall work together with the Community
Choice Aggregation Oversight 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.
Reference to the board that will oversee the implementation
of the CCA Program, the CCA Administrator, CCA agreements, among other
duties as outlined by this chapter.
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 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 work with the Community Choice Aggregation Oversight
Board to 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 City of Albany unless otherwise noted.
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 the purposes of this
chapter, the term "utility" will refer to the national grid.
The City of Albany 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, without penalty and at no cost at any
time, with the understanding that after enrollment in the Program,
the effective date of the opt-out will need to allow for reasonable
administrative processing timeframes. 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 in to the Program in accordance
with the terms of the ESA and/or the NYSPSC Order Authorizing CCAs.
There is hereby created a City of Albany Community Choice Aggregation
Oversight Board (hereinafter referred to as the "CCA Oversight Board")
for the purposes of overseeing the CCA Program and general implementation.
The CCA Oversight Board shall:
A.
Review and approve the selection of the CCA Administrator, the implementation
plan, the education and outreach plan, selection of the ESCO, any
and all contracts and supplemental changes to any contracts and plans
as provided in this chapter.
B.
Receive timely notices of all proposed actions, plans, changes, and
updates relating to the CCA Program.
C.
Together with the CCA Administrator create and follow a Customer
Data Protection Plan.
D.
Meet at a minimum of quarterly to receive an update on the CCA from
the CCA Administrator and report back to the Common Council and the
Mayor.
E.
Perform general oversight of the CCA Program and public outreach
of the CCA Program and the CCA Administrator.
F.
The Board must submit a report six months after the initial implementation
of the Program and thereafter annually to the Common Council and Mayor.
A.
The membership of the CCA Oversight Board shall consist of five members
comprised of: two members of the Common Council selected by the President
Pro Tem, the Chair of the Sustainability Advisory Committee or his
or her designee, the Chief Planning Official or his or her designee,
and a Mayoral appointee who is a resident of the City of Albany.
B.
The Chairperson of this Board shall be chosen amongst the membership
by a majority vote.
A.
Implementation plan.
(1)
The City of Albany CCA Oversight Board 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 be 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 City of
Albany CCA Oversight Board 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 City of Albany's residents. Therefore,
prior to or in conjunction with the enactment of this chapter, and
thereafter from time to time, the City of Albany CCA Oversight Board,
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 City of Albany 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 any other applicable laws or regulations, and shall ensure that
the City of Albany 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 the City of Albany letterhead, in official City of Albany
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 City of Albany.
B.
Public outreach and education.
(1)
The City of Albany, the CCA Oversight Board, 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 City of Albany, CCA Oversight
Board together with the 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.
Customers moving into or out of the community after CCA adoption.
Residents and small commercial customers who establish utility accounts
in this community after the effective date of this chapter shall be
afforded the opportunity to opt out of 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. Customers can opt out without penalty
or fee cost at any time, with the understanding that after enrollment
in the Program, the effective date of the opt-out will need to allow
for reasonable administrative processing timeframes.
D.
Customer data protection.
(1)
The CCA Administrator together with the CCA Oversight Board 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 City of Albany, CCA Oversight Board, together
with 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
utility prior to the enactment of this chapter.
(2)
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.
CCA administration agreement. The City of Albany will enter into
a CCA administration agreement with its CCA Administrator. Such an
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 City of Albany's agent for the purpose of procuring
energy supply or other energy-related value-added services for CCA
Program eligible customers. The CCA Oversight Board shall have oversight,
review, and approval authority of the contract and any changes thereafter.
B.
Customer service; complaints. The CCA Administrator will provide
the City of Albany CCA Oversight Board with clear, up-to-date contact
information for customer questions, concerns or complaints. The CCA
Administrator and CCA Oversight Board shall, from time to time, and/or
at the request of the City of Albany's Mayor or Common Council,
submit a report regarding customer service matters.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the City of Albany, 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 Albany's CCA Program.
This shall include, but not be limited to, compliance with any reporting
requirements related to the CCA Program.
A.
The City of Albany 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.
The initial term of the ESCO contract will be a minimum of 12 months
and a maximum of 36 months. The CCA Administrator shall be responsible
for recommending to the Mayor and the CCA Oversight Board the specific
terms and conditions for the initial ESCO contract and any subsequent
contracts based upon the proposals received and the best interests
of the City's eligible customers and consistency with the goals
of the Program. Such recommendations shall be transmitted to the Common
Council at the same time they are transmitted to the Mayor's
office and CCA Oversight Board. The CCA Oversight Board shall have
review and approval authority of the contract.
C.
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 City of Albany Common Council 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 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 City of Albany 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 City of Albany 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.
