[HISTORY: Adopted by the Town Board of the
Town of East Hampton 11-5-2020 by L.L. No. 7-2020. Amendments noted where
applicable.]
A.
It is the policy of both the Town of East Hampton 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.
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
Town of East Hampton and other local governments to work together
through a shared purchasing model to put out for bid the total amount
of natural gas and/or 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.
C.
The Town of East Hampton is authorized to implement this CCA Program
pursuant to § 10, Subdivision 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 Town of East Hampton.
D.
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law of the Town of East Hampton."
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
or volumetric consumption for gas by month for the past 12 months
by service class.
Town of East Hampton or third party CCA Administrator duly
authorized to put out for bid the total amount of electricity and/or
natural gas being purchased by participating consumers. The 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 the 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
of East Hampton 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 an 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 Town of East Hampton 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 the natural
gas or electricity that is regulated by the Public Service Commission.
Eligible customers of electricity and/or natural gas 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 Town of East Hampton, 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 Town of East Hampton, 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 the Town of East Hampton.
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 and natural gas for eligible
consumers in connection with this chapter or, alternatively, generators
of electricity and natural gas or other entities who procure and resell
electricity or natural gas.
The Town of East Hampton.
A.
A Community Choice Aggregation (Energy) Program is hereby established
by the Town of East Hampton (the "Town"), whereby the Town may implement
a CCA Program to the full extent permitted by the Long Island Power
Authority (LIPA), according to the policies and practices of the PSC
CCA Order, as set forth more fully herein.
B.
The Town may act as aggregator or broker for the sale of electric
supply, gas supply, or both 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.
The Town may enter into agreements and contracts with other municipalities,
nonprofit, 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.
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 consumers.
A.
All consumers within the Town, including residential and nonresidential,
regardless of size, shall be eligible to participate in the CCA Program.
B.
All consumers that are members of classes identified by the utility
as inclusive of residential and nonresidential 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.
New consumers shall be enrolled on an opt-out basis.
A.
An opt-out letter, printed on Town 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.
All consumers shall have the option to opt out of the CCA Program
at any time without penalty.
C.
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.
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 eligible consumers
who did not opt out once the initial opt-out period has closed.
B.
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.
The Town must enter into a data security agreement with the distribution
utility for the purpose of protecting customer data.
A.
A CCA Advisory Group is hereby established to develop and review
CCA-related proposals, act as the Town's agent in awarding said
proposals, and forward information regarding such awards to the Town
Board for ratification.
B.
Membership to the CCA Advisory Group shall include the Town Supervisor,
one Town Board member, Town Attorney, Budget Officer of the Division
of Finance, Environmental Protection Director of Natural Resources,
Chair of the Energy Sustainability Committee, Senior Purchasing Agent,
and the Energy Director of the Suffolk County Department of Economic
Development and Planning, or the designee of each.
The Town may collect, or cause to be collected, funds from customer
payments to pay for administrative costs associated with running the
CCA Program.
A.
Annual reports shall be filed with the East Hampton Town Clerk by
March 31 of each year and cover the previous calendar year.
B.
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.
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 local law shall be effective immediately upon filing with
the Secretary of State as provided by law.
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.
