[HISTORY: Adopted by the Town Council of the Town of Fallsburg 7-26-2021 by L.L. No. 15-2021. Amendments noted where applicable.]
A. 
It is the intent of the Town of Fallsburg ("Town") to establish a Community Choice Aggregation ("CCA") Program with a focus on opt-out community distributed generation ("CDG") to increase community participation in renewable energy projects and enable residents and small commercial enterprises to easily access renewable energy supply. The Town supports the environmental and social benefits of this community-based solution to meeting our collective energy needs. The purpose of this chapter is twofold: to establish a CCA Program in the Town and to adopt certain provisions relating to the creation and implementation of the CCA Program.
B. 
It is the policy of both the Town 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 CCA, which allows local governments to determine the default supplier of electricity on behalf of eligible consumers.
C. 
The purpose of CCA is to allow the Town 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 to implement a purchasing model to put out for bid the total amount of electricity being purchased by eligible consumers within the Town. 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, thereby fulfilling the purposes of this chapter and fulfilling an important public purpose.
D. 
The Town is authorized to implement this CCA 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 (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 ("CCA Order"), to the extent that orders related to Case No. 14-M-0224 enable actions by the Town. The CCA Order further permits the Town to retain a CCA Administrator to implement the program.
E. 
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. In recent years, the Commission has authorized CCA Administrators to incorporate CDG projects, such as small community solar facilities, into CCA Programs to further encourage development of community-scale renewables which have direct benefits to residents.
F. 
The Town has explored CCA and believes it would provide numerous benefits in this community, enhancing the public welfare, making renewable energy more accessible to all, and lowering the cost of electricity for its residents.
G. 
Therefore, the Town authorizes the creation of an opt-out CCA Program pursuant to rules of the Commission for purposes of implementing opt-out CDG, as well as to meet other high priority energy-related value-added services as may be determined to meet the community's goals.
H. 
This chapter shall be known and may be cited as the "Community Choice Aggregation (Energy) Program Law" of the Town.
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 DATA
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 by month for the past 12 months by service class.
CCA ADMINISTRATOR
Shall be duly authorized to put out bids for and select qualified CDG sponsors to supply CDG credits for participating consumers. The CCA Administrator is responsible for program organization, administration, procurement, and communications, unless otherwise specified. The CCA Administrator is responsible for ensuring and tracking compliance with Public Service Commission requirements applicable to CCA and CDG Programs, including reporting requirements. The Town may retain a CCA Administrator to oversee and operate its CCA Program consistent with the Commission's rules and with this chapter, as well as any CCA administration agreement executed between the Town and the CCA Administrator.
COMMUNITY DISTRIBUTED GENERATION (CDG)
Refers to small, community-based renewable generation projects up to five megawatts (MW) in size, to which residential and commercial customers can subscribe to obtain credits on their electricity bill. These credits are used to reduce the overall cost of a customer's electricity service. Solar CDG projects are sometimes called "community solar" projects.
CUSTOMER-SPECIFIC DATA
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.
DATA SECURITY AGREEMENT
An agreement between the distribution utility and the Town 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.
DEFAULT SERVICE
Supply service provided by the distribution utility to consumers who are not currently receiving CDG or remote net metering credits through other sources. Eligible consumers within the Town that receive default service, and have not opted out, will be enrolled in the program as of the effective date.
DISTRIBUTED ENERGY RESOURCES (DER)
Local renewable energy projects, shared renewables like community solar/CDG, 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.
DISTRIBUTION UTILITY
Owner or controller of the means of distribution of the electricity that is regulated by the Public Service Commission.
ELIGIBLE CONSUMERS
Eligible customers of electricity 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 Town, except those consumers who receive default service and have requested not to have their account information shared by the distribution utility. Customers who are not receiving default service from the distribution utility, but who wish to voluntarily opt in to the CCA Program are also eligible consumers.
NEW CONSUMERS
Consumers of electricity that become eligible consumers after the effective date of the ESA, including those that opt in or move into Town.
PARTICIPATING CONSUMERS
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, because they are eligible consumers who voluntarily opted into the program, or are new consumers.
PSC CCA ORDER
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," and as amended by the Commission.
PUBLIC SERVICE COMMISSION or PSC
New York State Public Service Commission, which regulates the generation, distribution and sale of public utility services in New York State.
SUPPLIERS
CDG project owners/sponsors selected by the CCA Administrator to provide credits to customers on their utility bills. In the event the Town's CCA Program is expanded to include value-added services such as traditional supply from an energy services company ("ESCO"), the term "supplier" may also refer to ESCOs that procure electric power for eligible consumers in connection with this chapter or, alternatively, generators of electricity, or other entities who procure and resell electricity.
A. 
A CCA Program is hereby established by the Town, whereby the Town shall implement, or cooperate with the Administrator to implement, a CCA Program to the full extent permitted by the PSC CCA Order and any related regulations, orders, or guidelines, and this chapter.
B. 
The Town or its CCA Administrator may act as aggregator or broker for the participation in CDG projects and/or the sale of electric supply to eligible consumers and may enter into contracts with one or more suppliers for CDG enrollment, energy supply and other services on behalf of eligible consumers.
C. 
The Town 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 other opt-in DER products and services to participating consumers, including opportunities to participate in energy efficiency, microgrids, storage, demand response, energy management, and other innovative 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 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 Town, in cooperation with and/or through the Administrator, shall adopt the following policies and agreements: i) a CCA 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 with the Commission in accordance with the Order before the CCA Program may commence.
A. 
All consumers within the Town, including residential and nonresidential, regardless of size (except to the extent limited by the CCA Order), shall be eligible to participate in the CCA Program.
B. 
All eligible consumers shall be enrolled on an opt-out basis except for consumers i) that are already participating in a CDG project, ii) that have placed a freeze or block on their account with their distribution utility, 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. If these consumers are to be enrolled on an opt-out basis, the Administrator shall mail them an opt-out letter.
D. 
The initial opt-out period when the CCA is established must be at least 30 days. When a new consumer becomes eligible, that new consumer must be given at least 30 days from the date of notification of eligibility to opt out.
E. 
For low-income consumers whose energy bills are paid by a social services organization, the social services organization may opt out on the consumer's behalf. However, the consumer shall be notified of the option to opt out and shall be provided additional information by the CCA Administrator at that consumer's request.
A. 
The CCA Administrator, on behalf of the Town, shall issue one or more requests for proposals to CDG sponsors to serve CCA participants and may then award a contract in accordance with the CCA Program. To the extent the CCA Administrator has established relationships with CDG projects within the appropriate geographic and load zone areas which have sufficient capacity to accommodate additional eligible customers in the Town, the CCA Administrator may include eligible customers in that CDG project without issuing a new RFP.
B. 
The terms of the supplier contracts ("CCA contract") shall comply with the PSC Order. The CCA Administrator shall be responsible for serving any notices required to the Town and/or CCA Program participants prior to execution of contract(s) for supply.
A. 
The Administrator shall provide information and education to potential CCA customers over no less than a two-month period. At a minimum, the CCA Administrator shall provide a website explaining the CCA Program in plain language and shall hold at least two informational meetings or presentations, during Town Board work sessions meetings or otherwise, to enable interested Town residents to ask questions and seek additional information about the CCA Program.
B. 
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 suppliers, 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, will be provided to the CCA Administrator and/or CDG sponsor(s).
C. 
All consumers shall have the option to opt out of the CCA Program at any time without penalty.
D. 
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. through 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 CCA Administrator and/or CDG sponsor. At the Town's request, the CCA Administrator shall provide information regarding available customer service opportunities, including but not limited to reports related to customer service inquiries, complaints, and the resolution of those complaints.
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:
(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 Town 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 Town 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. 
The Town must enter into a data security agreement with the distribution utility for the purpose of protecting customer data.
D. 
The Town, the Administrator, and the contracted CDG sponsor will protect customer information as required by law, subject to the Order applicable data security agreement(s), and the limitations of the New York State Freedom of Information Law.[1]
[1]
Editor's Note: See Public Officers Law § 84 et seq.
The Town and/or CCA Administrator may collect, or cause to be collected, funds from customer payments to pay for reasonable administrative costs associated with running the CCA Program.
A. 
Annual reports shall be filed with the Town Board 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., energy efficiency or microgrids); 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 chapter shall be effective immediately upon filing in the office of the New York State 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.