[HISTORY: Adopted by the Town Board of the Town of Montour 7-11-2017 by L.L. No. 1-2017. Amendments noted where applicable.]
It is the intent of the Town of Montour to establish a Community
Choice Aggregation ("CCA") Program to aggregate the energy supply
needs of residents (and small commercial customers), and to negotiate
and enter into, or authorize its agent to negotiate and enter into,
energy supply agreements ("ESAs") with energy service companies ("ESCOs")
on behalf of eligible citizens to obtain stable, lower-cost energy
prices, as well as environmental benefits and/or a community-based
solution to meeting our collective energy needs. The purpose of this
chapter is two-fold: to establish a CCA Program in the Town of Montour
and to adopt certain provisions relating to the creation and implementation
of the CCA Program.
A.
New
York State's energy industry is in the midst of a significant
transition; a shift away from the old top-down, utility-centered model
toward a cleaner, more affordable, more resilient system in which
consumers and communities will have a substantial role to play. The
state's ongoing Reforming the Energy Vision ("REV") initiative
emphasizes the importance of reliability and grid-resilience, distributed
energy resources, increased renewable generation, and greater opportunity
for citizens to take an active role in helping the state reach its
energy goals and in making more informed energy choices in their homes,
businesses and communities.
B.
As
part of this REV initiative, the New York State Public Service Commission
("NYSPSC"), on April 21, 2016, adopted an order authorizing cities,
towns and villages within the state to create community choice aggregation
programs, by themselves or in concert with other municipalities (hereinafter
"NYSPSC Order Authorizing CCAs"), and/or to retain a CCA Administrator
to implement the program and negotiate ESAs.
C.
CCA
programs allow communities to take control of their energy supply
through an open, transparent and competitive electric and/or gas supply
procurement process driven by the consumers themselves.
D.
A
successful CCA program offers citizens cost savings, more stable energy
prices, deterrence of deceptive marketing practices by unscrupulous
ESCOs, fair contracts negotiated directly with energy suppliers, and/or
the opportunity to pursue goals and initiatives important to the community,
such as reliability, grid resiliency, supporting renewable energy
generation, cutting greenhouse gas emissions, protecting the state's
natural resources, and improving energy efficiency.
E.
The
Town of Montour has explored the CCA policy and background, and believes
it would provide numerous benefits in this community, enhancing the
public welfare and making energy more affordable and costs more predictable
for our residents.
F.
Therefore,
the Town of Montour authorizes the creation of an opt-out CCA Program
pursuant to rules of the NYSPSC in this community for the provision
of (electric and/or natural gas) supply service, as well as other
high priority energy-related value-added services as may be determined
to meet the community's goals.
The NYSPSC Order Authorizing CCAs expressly empowers cities,
towns and villages in this state to create CCA programs. Further,
the New York Municipal Home Rule Law, Article 2, § 10, authorizes
a municipality to adopt general laws relating to its property, affairs
and government, the protection and enhancement of its physical and
visual environment, the protection and well-being of persons within
the municipality, and for other authorized purposes.
As used in this chapter, the following terms shall have the
meanings indicated:
Customers' accounts in those utility service classes
eligible for inclusion in the CCA Program on an opt-out basis, as
set forth in the NTSPSC Order Authorizing CCAs, Appendix C, or as
otherwise specified by the Commission. Generally, these classes of
customers include those receiving residential electric or gas supply
service, including those in multifamily housing certain types of institutions
and some small commercial customers covered by small general service
class designations. Automatically eligible customers shall not include
customers' accounts that have already been enrolled in service
through an ESCO, enrolled in utility programs which require them to
take supply service from their current utility, or that have a block
on their utility account at the time of CCA formation (NOTE: Except
customers participating in the Affordability Assistance Program ("APP"),
who may have blocks on their accounts with their existing utility,
but who are still eligible to participate.); those customers'
accounts shall be eligible to participate on an opt-in basis, if they
so desire.
An agent of the municipality charged with overseeing creation,
implementation and operation of a CCA Program, as well as competitively
procuring and negotiating energy supply agreements with ESCOs. The
CCA Administrator shall be retained by the municipality via a separate
CCA administration agreement, adopted by resolution of the municipality's
governing board.
A program authorized by the New York State Public Service
Commission (NTSPSC) to aggregate residential and commercial electric
and/or natural gas supply and/or energy related value-added products
and services within a given municipality, and/or among multiple municipalities,
in order to leverage that energy demand to negotiate favorable energy
supply agreements directly with ESCOs. Customers within a CCA Program
would no longer purchase their energy supply directly from their utility.
However, the utility would continue to deliver energy to these customers,
to charge for that delivery, and will retain its transmission and
distribution network. The energy supply portion of a customer's
energy service is provided by an ESCO or ESCOs, pursuant to an energy
supply agreement competitively procured and negotiated for the CCA
Program at large, then delivered to customers via the local utility.
All automatically eligible customers plus those utility customers
eligible for inclusion in the CCA Program on an opt-in basis, as set
forth in the NYSPSC Order Authorizing CCAs or otherwise authorized
by the Commission. Those customers eligible to participate in the
CCA Program on an opt-in basis currently include: those customers
already enrolled in service through an ESCO at the time of CCA formation,
customers in large commercial, institutional, or industrial utility
service classes that cannot be automatically enrolled in the CCA on
an opt-out basis, and all other customers not considered automatically
eligible customers. References to the broader class of eligible customers
shall signify the entire pool of customers participating in the aggregation,
either because they have been automatically enrolled on an opt-out
basis, or because they have affirmatively opted in.
A third-party energy supplier eligible to sell electricity,
natural gas and/or energy-related value-added services to customers
in New York State, utilizing the transmission and distribution systems
of existing utilities. ESCOs are regulated by the New York State Department
of Public Service and the New York State Public Service Commission,
and must comply with the New York State Public Service Law.
A third-party energy supplier eligible to sell electricity,
natural gas and/or energy-related value-added products and services
to customers in New York State, utilizing the transmission and distribution
systems of existing utilities. ESCOs eligible to participate in MEGA's
CCA programs must be licensed by the New York State Department of
Public Service and the New York State Public Service Commission, be
authorized by the local utility to provide supply within its territory,
and must comply with the New York State Public Service Law.
An agreement between an energy customer and an energy services
company (ESCO) to provide electricity or gas service to the customer
for a fixed or variable price. For purposes of this chapter, the CCA
Administrator would conduct a competitive procurement on behalf of
all eligible customers, and would enter into an energy service agreement(s)
with an ESCO to provide power to all such customers in the community.
An agreement providing details of terms and pricing for electricity
or natural gas supply service to eligible customers from and energy
services company (ESCO).
Reference to these terms throughout this chapter indicate
the Town of Montour, unless otherwise noted.
This term refers to traditional electric and/or natural gas
utilities regulated by the New York State Department of Public Service
and the New York State Public Service Commission and permitted to
provide electric and/or gas supply, transmission and distribution
services to all customers within their designated service territory.
For purposes of this chapter, the term "utility" will refer to NYSEG.
The Town of Montour hereby establishes a CCA Program for aggregation
of (electric and/or natural gas) supply to serve all eligible customers
in its jurisdiction. This program shall be available to all residents
of the Town of Montour who reside outside the limits of the Village
of Montour Falls. All automatically eligible customers shall be included
in the CCA Program on an opt-out basis, and shall be afforded the
opportunity to opt-out of the CCA Program, within a specified period,
at no cost. All customers who are not automatically eligible to be
included in the CCA Program on an opt-out basis shall be permitted
to affirmatively opt into the program in accordance with the terms
of the ESA and/or the NYSPSC Order Authorizing CCAs.
A.
Implementation
Plan.
(1)
The Town of Montour, with support from its CCA Administrator, will
create and follow a CCA Implementation Plan which shall outline the
details of how the CCA Program will be created and operated, including
how public outreach and education will occur, what rules will apply
to the program, how the procurement process will be implemented, how
energy contracts will be selected and how responsibilities will be
divided amongst CCA Administrator, municipality, and eligible customers.
(2)
In accordance with the NYSPSC Order Authorizing CCAs, the CCA Implementation
Plan will be reviewed and approved by the Public Service Commission.
Such review may involve NYSPSC approval of a generic CCA Implementation
Plan, with the understanding that community-specific appendices would
be submitted later and would outline appropriately tailored local
education and outreach efforts. (Alternatively, a community-specific
CCA Implementation Plan could be created solely for the Town of Montour).
(3)
Where a generic CCA Implementation Plan will be used, the Town of
Montour and the CCA Administrator will make community-specific revisions
to the Plan's appendices to ensure the Plan is properly tailored
to the needs of the Town of Montour's residents. Therefore, prior
to or in conjunction with the enactment of this chapter, and thereafter
from time to time, the Town of with support from the CCA Administrator
will create and update a CCA Program Opt-Out Letter, as well as an
Education and Outreach Plan, as provided in the Implementation Plan
Appendix for this community.
(4)
The Town of Montour Opt-Out Letter and Education and Outreach Plan
shall conform to those requirements for public outreach, education,
and opt-out procedures set forth in the NYSPSC Order Authorizing CCAs,
and in any other applicable laws or regulations, and shall ensure
that the Town of Montour and its CCA Administrator engage in a robust
effort to educate and inform the community about the CCA Program and
their options for participating or opting out.
(5)
Opt-out letters will be provided to all automatically eligible customers
no less than 30 days prior to the time at which those customers would
be automatically enrolled in the CCA Program. The letters will be
printed on the Town of Montour letterhead, in official Town of Montour
envelopes. The logo of the CCA Administrator and selected ESCO may
also be included on these letters, so long as it is clear that the
letter is official correspondence from the Town of Montour.
B.
Public
outreach and education.
(1)
The Town of Montour, together with its CCA Administrator, will provide
public notices, presentations, information sheets, and other forms
of outreach, as outlined in the Appendix of the Implementation Plan,
to ensure residents are informed about the CCA Program and their options
for participating or opting out.
(2)
Once the CCA Program is operating, the Town of Montour and its CCA
Administrator will continue to engage in public outreach to keep CCA
customers informed about any changes to the CCA Program; opportunities
for new products or services available through the CCA Program, such
as renewable energy buying options; important terms and durations
of ESAs; information about the selected ESCOs; and any other matters
related to the CCA Program.
C.
Customers
moving into or out of the community after CCA adoption. Residents
(and small commercial customers) who establish utility accounts in
this community after the effective date of this chapter shall be afforded
the opportunity to join the CCA Program within a reasonable time after
their utility account is established, in accordance with contractual
agreements between the CCA Administrator any ESCO(s) providing service
to the program.
D.
Customer
data protection. The Town of Montour, or its CCA Administrator, will
create and follow a Customer Data Protection Plan which ensures that
any confidential or sensitive personal customer information provided
by the utility to the Town of Montour, its CCA Administrator, and/or
the selected ESCO(s), will be given all privacy protections required
by law and regulation, and protected from unauthorized release or
use to the greatest extent possible. This Customer Data Protection
Plan will ensure that the CCA Program and any selected ESCO(s) handle
all confidential or sensitive customer data in keeping those customer
data protections already afforded by NYSEG prior to the enactment
of this chapter. This Plan will also ensure that CCA customer data,
such as contact information, is not used for inappropriate purposes,
such as solicitation of business unrelated to the CCA Program, its
goals and objectives.
A.
CCA
Administration Agreement. The Town of Montour will enter into a CCA
Administration Agreement with its CCA Administrator. Such agreement
will set forth the various rights and responsibilities of the parties,
and will govern the manner in which the CCA Program is run. This Agreement
shall also authorize the CCA Administrator to act as the Town of Montour's
agent for the purpose of procuring energy supply or other energy related
value-added services for CCA Program eligible customers.
B.
Customer
service, complaints. The CCA Administrator will provide the Town of
Montour with clear up-to-date contact information for customer questions,
concerns or complaints. The CCA Administrator shall, from time to
time, and/or at the request of the Town of Montour Town Board, report
to the Town of Montour regarding customer service matters.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the Town of Montour, supported by any CCA
Administrator that may be under contract, to ensure the CCA Program
is operated in compliance with all applicable provisions of the New
York State Public Service Law, regulations of the New York State Public
Service Commission and/or the New York State Department of Public
Service, the Uniform Business Practices (to the extent applicable),
the NYSPSC Order Authorizing CCAs and any other relevant laws or regulations.
This provision applies regardless of whether a CCA Administrator is
retained to organize and implement the Town of Montour's CCA
Program. This shall include, but not be limited to, compliance with
any reporting requirements related to the CCA Program.
A.
The
Town of Montour will, from time to time, review the CCA Program and
its progress to determine how the program is faring, confirm it is
affording benefits to the community, and provide information to the
public thereon.
B.
As
the expiration of its ESA(s) approaches, or in the event an ESCO provides
notice of its intention to terminate an ESA (where authorized by the
terms of that ESA), the Town of Montour may consider whether it wishes
to discontinue the CCA Program. Dissolution of the CCA Program will
require:
(1)
Enactment
of a local law amending or repealing this chapter;
(2)
Lawful
termination of ESAs in accordance with their terms;
(3)
Lawful
termination of the CCA Administration Agreement, in accordance with
its terms; and
(4)
At least
60 days' notice to customers that their energy services will
be automatically returned to NYSEG, an effective date upon which such
a change would occur, and information on what other options may be
available to those customers, if applicable.
In the event the New York State Public Service Commission, the
State Legislature, or other state agency, enacts laws or regulations
regarding the operation of CCAs which are in conflict with this chapter,
the state provisions shall govern.
Nothing in this chapter shall be read to create liability on
the part of the Town of Montour related to the provision of electric
and/or natural gas service to customers. The ESCO selected to provide
such service will be ultimately responsible for compliance with all
applicable laws, rules and regulations governing retail energy services,
and will assume any liability stemming from the provision of such
service to retail customers, including any potential liability associated
with the service itself, customer data and information, and any other
matters which would traditionally fall under the purview of a merchant
utility providing the same service to customers prior to the formation
of the CCA. This chapter is meant merely to facilitate the creation
of an aggregation program in this community. The Town of Montour will
not assume the role of ESCO or utility in the sale of deliver of energy
services.
Each provision of this chapter is severable from the others,
so that if any provisions is held to be illegal or invalid for any
reason whatsoever, such illegal or invalid provision shall be severed
from this chapter, which shall nonetheless remain in full force and
effect.
