[HISTORY: Adopted by the Board of Trustees of the Village of New Hempstead 2-25-2020 by L.L. No. 2-2020. Amendments noted where applicable.]
It is the purpose of this chapter to seek to reduce the cost of natural gas and electricity to its residents.
The purpose of this CCA Program, as described to the Village of New Hempstead by the Administrator, is to allow participating local governments, including the Village of New Hempstead, to procure energy supply service for their residential and commercial customers, 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 that will allow the Village of New Hempstead, or its designated agent for that purpose, to put out for bid the total amount of natural gas and/or electricity being purchased by its residential and commercial customers. Bundled customers will have the opportunity to have more negotiating strength and consequential potential to lower their overall energy costs, and to improve customer choice and value, by providing an additional alternative source for electricity and natural gas, thereby fulfilling the purposes of this chapter and fulfilling an important public purpose.
The Village of New Hempstead is hereby authorized to participate in a community choice aggregation (energy) 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, Order Authorizing Framework for Community Choice Aggregation Opt-Out Program (issued April 21, 2016), including subsequent orders of the Public Service Commission issued in connection with or related to Case No. 14-M-0224 (collectively, the order).
This chapter shall be known and may be cited as the "Community Choice Aggregation (Energy) Program Law" of the Village of New Hempstead.
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:
- Abe Sicker, Mayor, Village of New Hempstead.
- BUNDLED CUSTOMERS
- Residential and commercial customers of electricity or natural gas ("fuels") who are purchasing the fuels from the distribution utility.
- Nonresidential customers as permitted in the order.
- COMMUNITY CHOICE AGGREGATION PROGRAM or CCA PROGRAM
- A municipal energy procurement program, which replaces the incumbent utility as the default supplier for all bundled customers within the Village of New Hempstead.
- DISTRIBUTION UTILITY
- Owner or controller of the means of distribution of the natural gas or electricity that is regulated by the Public Service Commission.
- PUBLIC SERVICE COMMISSION
- New York State Public Service Commission.
- Energy service companies (ESCOs) that produce electric power and natural gas for bundled customers in connection with this chapter or, alternatively, generators of electricity and natural gas or other entities who procure and resell electricity or natural gas.
A Community Choice Aggregation (Energy) Program is hereby established by the Village of New Hempstead, whereby the Village of New Hempstead shall cooperate with the Administrator by participating in the CCA Program to the full extent permitted by the order, as set forth more fully herein. The Village of New Hempstead's role under the CCA Program involves the aggregating of the electric and/or natural gas supply for its residents and the entering into a contract with one or more suppliers, through the Administrator, for the procurement of electricity and/or natural gas supply for its residential and commercial customers. Under the CCA Program, the operation and ownership of the utility service shall remain with the distribution utility.
The Village of New Hempstead's procurement of energy supply through a CCA Program constitutes neither the purchase of a public utility system, nor the furnishing of utility service. The Village of New Hempstead will 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 through the Administrator on behalf of participating residential and commercial customers.
In order to implement the CCA Program, the Village of New Hempstead shall adopt one or more resolutions that outline the process of and conditions for participation in the CCA Program, as consistent with this chapter and the order. The Village shall adopt the following policies and agreements consistent with the order: i) an implementation plan; ii) a data protection plan; iii) a data security agreement; and iv) a certification of local authority (collectively, the policies). The policies shall be adopted, submitted, amended, supplemented and filed in accordance with the order.
The Public Service Commission supervises retail markets and participates in these markets through legislative and regulatory authority and the Uniform Business Practices, which includes rules relating to the eligibility of participating ESCOs, the operation by which ESCOs provide energy services, and the terms on which customers may be enrolled with ESCOs.
The Administrator, on behalf of the Village of New Hempstead, shall issue one or more requests for proposals to suppliers to provide energy to participants and may then award a contract in accordance with the CCA Program.
The terms of the supplier contracts (CCA contract) shall comply with the order.
The Administrator shall provide information and education to potential CCA customers over no less than a two-month period.
The opt-out letter shall comport with the requirements set forth in the order.
The initial opt-out period shall be 30 days after notification is sent to the customer.
The Administrator may request the distribution utility's aggregated customer information on all bundled customers in the Village of New Hempstead, provided the Public Service Commission has approved the policies.
Provided the Administrator has complied with the requirements of Subsection A, the distribution utility shall transfer the aggregated customer and usage data within 20 days of a request from the Administrator in accordance with the order.
Customer-specific information may be requested for all eligible customers once the Administrator demonstrates that the requisite contracts with ESCOs have been entered into and executed. Detailed customer information may be requested for eligible customers who did not opt out once the initial opt-out period has closed.
After the Administrator has entered into a CCA contract with an ESCO, the distribution utility shall transfer customer-specific data to the Administrator within five days of a request in accordance with the order.