[HISTORY: Adopted by the City Council of the City of Newburgh
as indicated in article histories. Amendments noted where applicable.]
[Adopted 3-8-2021 by L.L. No. 2-2021]
A.
It is the policy of both the City of Newburgh and the State of New
York to reduce costs and provide price certainty for the purpose of
consumer protection and economic development, to expand access and
opportunities for consumers in retail energy markets, as well as to
promote the sustainability and resilience of energy systems through
the proliferation of renewable energy, energy efficiency, and distributed
energy resources ("DER," as defined in this article). Among the initiatives
that may advance these objectives in New York is community choice
aggregation (CCA), which is a policy that empowers local governments
to determine the source of electricity and/or natural gas supply on
behalf of its residents and small businesses, reflecting local resources,
priorities, and challenges. Energy delivery remains the responsibility
of the distribution utility.
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
article establishes the authority for the City of Newburgh, in connection
with the implementation of a CCA program, to acquire utility data,
to select, through a competitive solicitation, energy supplier(s)
on behalf of default consumers within the jurisdictional boundaries
of the City of Newburgh, and to maximize value for participating consumers
through enhanced services related to DER. The City of Newburgh may
choose to collaborate with other local governments to form an intermunicipal
program. As a result, consumers will have the opportunity to lower
and stabilize their energy costs, to spur local clean energy innovation
and investment, and to reduce their environmental impact thereby fulfilling
the purposes of this article and fulfilling an important public purpose.
C.
The City of Newburgh is authorized to implement this community choice
aggregation program pursuant to § 10(1)(ii)(a)(12) of the
New York State Municipal Home Rule Law; and consistent with 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 municipality.
D.
This article shall be known and may be cited as the "Community Choice
Aggregation Energy Program Law of the City of Newburgh."
For purposes of this article, and unless otherwise expressly
stated or unless the context otherwise requires, the terms in this
article 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.
The City of Newburgh or third-party CCA administrator duly
authorized by the City of Newburgh to request aggregated and customer-specific
data, competitively solicit suppliers for the aggregated demand for
electricity and/or natural gas on behalf of default consumers, and
to offer participating consumers additional opportunities to participate
or enroll in programs or projects related to distributed energy resources.
The CCA administrator is responsible for program organization, administration,
procurement, communications, and for meeting all requirements for
program implementation specified in the PSC CCA order, unless otherwise
specified.
Customer-specific information, personal data and utility
data for all consumers in the municipality 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.
Customers of electricity and/or natural gas within opt-out
eligible service classes, as defined in the PSC CCA order, who receive
supply service from the distribution utility as of the date the supply
contract goes into effect, or consumers within these service classes
that subsequently become eligible to participate in the program, including
those that have terminated a supply contract with an ESCO, removed
a freeze or block on their account, have voluntarily suspended service
pursuant to a special rate, or are new residents to the City of Newburgh.
Consumers within opt-out eligible service classes, as of the date
the supply contract goes into effect, taking service from an ESCO,
those that have placed a freeze or block on their account, and those
for whom enrollment in the CCA program would interfere with a choice
they have already made to take service pursuant to a special rate
are not considered default customers and will not be enrolled on an
opt-out basis. All default customers must reside or be otherwise located
at one or more locations within the geographic boundaries of the City
of Newburgh, as such boundaries exist as of the date the supply contract
goes into effect.
Supply service provided by the distribution utility to consumers
who are not currently receiving service from an energy service company
(ESCO). Default consumers within the City of Newburgh that receive
default service, and have not opted out, will be enrolled in the program
as of the effective date.
Local renewable energy projects, community-distributed generation,
such as shared solar, peak demand management, energy efficiency, demand
response, energy storage, community resilience microgrid projects,
and other innovative Reforming the Energy Vision (REV) initiatives
that further engage and/or reduce cost of service for participating
consumers, optimize system benefits, and/or address infrastructure
and demand challenges within the geography of the CCA.
Owner or controller of the means of distribution of the natural
gas or electricity in the municipality. The distribution utility also
serves as the default supplier of electricity and natural gas preceding
the establishment of a CCA program.
An entity duly authorized to conduct business in the State
of New York as an ESCO.
Default consumers who have not opted out and nondefault consumers
of any service class that have voluntarily enrolled in the program.
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
No. 14-M-0224, Proceeding on Motion of the Commission to Enable Community
Choice Aggregation Programs.
New York State Public Service Commission.
An ESCO(s) that procures electric power and natural gas for
eligible consumers in connection with this article or, alternatively,
generators of electricity and natural gas or other entities who procure
and resell electricity or natural gas.
A.
A community choice aggregation (energy) program is hereby established
by the City of Newburgh, New York, whereby the City of Newburgh may
implement a CCA program to the full extent permitted by the PSC CCA
order, as set forth more fully herein.
B.
The City of Newburgh 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 City of Newburgh may enter into agreements and contracts with
other municipalities, nonprofits, consultants, and/or other third
parties to:
(1)
Develop and implement the CCA program;
(2)
Act as CCA administrator; and/or
(3)
Develop offers of opt-in DER products and services to participating
consumers, including but not limited to opportunities to participate
in local renewable energy projects, shared solar, energy efficiency,
microgrids, storage, demand response, energy management, and other
innovative 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 City of Newburgh's participation
in a CCA program constitutes neither the purchase of a public utility
system, nor the furnishing of utility service. The City of Newburgh
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.
E.
The Public Service Commission supervises retail markets and participants
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.
A.
All default consumers shall be enrolled on an opt-out basis. Default
consumers will have the right to opt out before the supply contract
goes into effect, or disenroll any time thereafter with no penalty.
Those that do not opt out before the supply contract goes into effect
will be enrolled automatically.
B.
All nondefault consumers within the municipality, regardless of service
class, shall be eligible to participate in the CCA program on an opt-in
basis.
C.
The CCA administrator, on behalf of the City of Newburgh, shall issue
one or more requests for proposals to suppliers to provide energy
to participants and then may award a contract in accordance with the
CCA program.
A.
A program notification letter, printed on City of Newburgh letterhead,
shall be mailed to default consumers at least 30 days prior to customer
enrollment. The letter shall include the information on the CCA program
and the contract signed with the selected supplier(s), 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 the program under the contract
terms and that information on those consumers, including energy usage
data and APP status, will be provided to the ESCO.
B.
After the thirty-day opt-out period, all consumers shall have the
option to disenroll from the CCA program at any time without penalty.
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(s).
A.
The City of Newburgh, or CCA administrator on its behalf, may request
aggregated data and customer-specific data from the distribution utility.
However, a request for customer-specific data is limited to only those
eligible consumers who did not opt out after the initial opt-out period
closed.
B.
Customer-specific data shall be protected in a manner compliant with,
collectively:
(1)
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 municipality or its representative's processing of confidential
utility information;
(2)
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 municipality
or its representative's processing of confidential utility information;
and
(3)
The PSC CCA order and PSC rules, regulations and guidelines relating
to confidential data.
C.
For the purpose of protecting customer data, the City of Newburgh
must enter into an agreement with the distribution utility that obligates
each party to meet, collectively:
(1)
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 default customer or participating
consumer with respect to the CCA administrator or its representative's
processing of confidential information;
(2)
The distribution utility's internal requirements and procedures
relating to the protection of information that identifies or can be
used to identify the individual default consumer or participating
consumer with respect to the CCA administrator or its representative
processing of confidential information; and
(3)
The PSC CCA order and PSC rules, regulations and guidelines relating
to confidential data.
The City of Newburgh or CCA administrator 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 City 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 also shall 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 article shall be effective immediately upon adoption and
after filing with the Secretary of State.
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.
