[HISTORY: Adopted by the Common Council of the City of Kingston 9-22-2021 by L.L. No. 3-2021, approved 9-22-2021. Amendments noted where applicable.]
A.Â
It is the policy of both the City of Kingston and the State of New
York to reduce costs and provide cost certainty for the purpose of
sustainable economic development, to dramatically reduce greenhouse
gas emissions associated with our community's power, heating,
transportation and waste, to promote wider deployment 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 foremost policies and models that may
offer benefits in Kingston and New York generally 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.Â
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
City of Kingston, alone or with other local governments in the Mid-Hudson
region, to work together through a shared purchasing model to put
out for bid the total amount of electricity and/or natural gas 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 in new technologies
that reduce the need for pipeline gas and grid power, to improve customer
choice and value, to protect the environment, and to assist all customers
who wish to voluntarily invest in onsite, on-block and in-neighborhood
energy systems; thereby, fulfilling the purposes of this chapter and
fulfilling an important and urgent public purpose.
C.Â
The City of Kingston is authorized to implement this CCA program
pursuant to Section 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 (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 City of Kingston.
D.Â
This chapter shall be known and may be cited as the Community Choice
Aggregation (Energy) Program Law of the City of Kingston.
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.
The City Council of the City of Kingston, New York, or a
third party selected by the City which shall be duly authorized to
put out for bid the total amount of electricity being purchased by
participating consumers and the distributed energy resources that
will be incorporated into the CCA program. The CCA Administrator shall
be responsible for CCA program organization, public outreach, administration,
procurement and communications, 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 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 City
of Kingston 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 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 City of Kingston that receive
default service, and have not opted out, will be enrolled in the program
as of the effective date.
Local renewable energy projects and energy efficiency measures,
shared renewables like community solar and neighborhood energy cooperatives,
renewable heat and hot water systems, energy management, energy storage,
microgrid projects, geothermal heat loop projects, electric vehicles,
local renewable hydrogen fuel cells, 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.
Central Hudson Gas and Electric Corporation, or any successor
thereto.
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 City of Kingston, 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 City of Kingston, 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 City of Kingston.
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.
(1) ESCOs that procure electric power and natural gas for
eligible consumers in connection with this chapter, (2) developers
of distributed energy resources, or other entities who procure and
resell electricity or natural gas.
A.Â
A community choice aggregation (energy) program is hereby established
by the City of Kingston, whereby the City of Kingston may implement
a CCA program to the full extent permitted by the PSC CCA Order, as
set forth more fully herein.
B.Â
The City of Kingston 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.Â
The City of Kingston may enter into agreements and contracts with
other municipalities, nonprofits, 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,
designed to minimize carbon emissions, target and address load pockets/profile
within the CCA zone, and reduce costs for CCA customers.
D.Â
The operation and ownership of the utility service shall remain with
the distribution utility. The City of Kingston's participation
in a CCA program constitutes neither the purchase of a public utility
system, nor the furnishing of utility service. The City of Kingston
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.Â
All consumers within the City of Kingston, including residential
and nonresidential, regardless of size, shall be eligible to participate
in the CCA program, provided, however, that participation in DER projects
will depend on DER project availability.
B.Â
All participating consumers that are members of Central Hudson Electric
SC 1 Residential Service, SC 2 General Service and Gas SC 1 Residence
Rate, SC 2 Commercial and Industrial Rate 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 electricity consumers may be enrolled on an
opt-in basis, alongside all other Central Hudson service classifications,
including (1) for electricity service, SC3 Large Power Primary Service,
SC5 Area Lighting Service, SC6 Residential Time-of-Use Service, SC8
Public Street and Highway Lighting, SC9 Traffic Signal Service, SC10
Buyback Service, SC13 Large Power Substation and Transmission Service,
and SC14 Standby Service; and (2), for gas service, SC 6 Firm Transportation
Rate - Core, SC8 Interruptible Rate, SC9 Interruptible Transportation
Rate, SC10 Capacity Brokering, SC11 Firm Transportation - Core, SC12
Aggregated Firm Transportation Rate - Residence SC13 Aggregated Firm
Transportation Rate - Commercial and Industrial, SC15 Distributed
Generation - Commercial and Industrial, and SC16 Distributed Generation
- Residence. The City of Kingston will include all of its electricity
and natural gas accounts to participate as an opt-in customer in the
CCA program at the earliest possible date.
C.Â
New consumers shall be enrolled on an opt-out basis.
A.Â
An opt-out letter, printed on municipal 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 and/or DER provider(s),
including specific details on rates, fees, services, contract terms,
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 CCA program under the contract terms and that information on
those consumers, including energy usage data and Assistance Program
Participant (APP) status, will be provided to the ESCO and/or the
DER provider(s). The opt-out letter shall also explain that the CCA
Administrator will be authorized to enroll participating consumers
in DER projects and communicate such enrollment to the distribution
utility under relevant PSC-approved rules and tariffs so that participating
consumers may receive applicable billing credits from the distribution
utility.
B.Â
All consumers shall have the option to opt-out of the CCA program.
Per the Public Service Commission's CCA Framework Order, customers
will be permitted to cancel CCA service any time before the end of
the third billing cycle of the new contract period without penalty
or other charges.
C.Â
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 by
the CCA Administrator, 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.Â
The City of Kingston 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.Â
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 City of Kingston 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 City of Kingston 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.Â
The City of Kingston must enter into a data security agreement with
the distribution utility for the purpose of protecting customer data.
A.Â
A CCA Advisory Group is hereby established to develop and review
CCA-related proposals and act as the City of Kingston's agent
in awarding said proposals.
B.Â
Membership to the CCA Advisory Group shall be made by the appointment
of the Mayor of the City of Kingston, and may include representation
of the following City of Kingston officials or their designees:
(1)Â
Environmental Education and Sustainability Coordinator;
(2)Â
Planning Director;
(3)Â
Comptroller;
(4)Â
Director of Communications and Community Engagement;
(5)Â
Director of the Water Department;
(6)Â
Corporation Counsel;
(7)Â
Director of the Office of Community Development;
(8)Â
Superintendent of Public Works;
(9)Â
Director of Building Safety and Zoning; and
(10)Â
Purchasing Agent.
The City of Kingston may collect, or cause to be collected,
funds from customer payments to pay for administrative costs associated
with running the CCA program.
A.Â
Annual reports shall be filed by the CCA Advisory Group or City staff
with the City Council of the City of Kingston by March 31 of each
year and cover the previous calendar year.
B.Â
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.Â
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 chapter shall be effective immediately upon passage.
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.
