[HISTORY: Adopted by the City Council of the City of Saratoga 2-4-2020 by L.L. No. 1-2020. Amendments noted where applicable.]
It is the intent of the City of Saratoga Springs 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 City of Saratoga
Springs and to adopt certain provisions relating to the creation and
implementation of the CCA program.
A.Â
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.Â
As part of this REV initiative, the New York State Public Service
Commission (NYPSC), 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 "NYPSC Order Authorizing CCAs"), and/or to retain a CCA
Administrator to implement the program and negotiate ESAs.
C.Â
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.Â
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.Â
The City of Saratoga Springs 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.Â
Therefore, the City of Saratoga Springs authorizes the creation of
an opt-out CCA program pursuant to rules of the NYPSC 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 NYPSC 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 NYPSC Order Authorizing CCAs, Appendix C, or as otherwise
specified by the Commission. Generally, these classes of customers
include those receiving residential 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 (except Assistance Program participants,
customers enrolled in utility low-income assistance programs who may
have blocks on their accounts with their existing utility, but who
may still be 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 (NYSPSC) 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 NYPSC 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.
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.
Reference to these terms throughout this chapter indicate
the City of Saratoga Springs, 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 "National
Grid."
The City of Saratoga Springs hereby establishes a CCA program
for aggregation of electric and/or natural gas supply to serve all
eligible customers in its jurisdiction. 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 NYPSC Order Authorizing CCAs.
A.Â
Part A. Implementation plan.
(1)Â
The City of Saratoga Springs, 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)Â
In accordance with the NYPSC 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.
(3)Â
Where a generic CCA implementation plan will be used, the City of
Saratoga Springs and the CCA Administrator will make community-specific
revisions to ensure the plan is properly tailored to the needs of
the City of Saratoga Springs' residents. Therefore, prior to
or in conjunction with the enactment of this chapter, and thereafter
from time to time, the City of Saratoga Springs, 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)Â
The City of Saratoga Springs 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 City of Saratoga Springs 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)Â
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 City of Saratoga Springs letterhead, in official City
of Saratoga Springs 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 City
of Saratoga Springs.
B.Â
Part B. Public outreach and education.
(1)Â
The City of Saratoga Springs, 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)Â
Once the CCA program is operating, the City of Saratoga Springs 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.Â
Part 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 account is established, in accordance with contractual
agreements between the CCA Administrator and any ESCO(s) providing
service to the program.
D.Â
Part D. Customer data protection.
(1)Â
The City of Saratoga Springs, 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 City of Saratoga Springs, 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 the utility prior to the enactment
of this chapter.
(2)Â
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.Â
Part A. CCA administration agreement. The City of Saratoga Springs
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 City of Saratoga Springs' agent for the purpose
of procuring energy supply or other energy-related value-added services
for CCA program eligible customers.
B.Â
Part B. Customer service, complaints. The CCA Administrator will
provide the City of Saratoga Springs with clear, up-to-date information
for customer questions, concerns or complaints. The CCA Administrator
shall, from time to time, and/or at the request of the Saratoga Springs
City Council, report to the City of Saratoga Springs regarding customer
service matters.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the City of Saratoga Springs, 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 NYPSC 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 City of Saratoga Springs'
CCA program. This shall include, but not be limited to, compliance
with any reporting requirements related to the CCA program.
A.Â
The City of Saratoga Springs 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.Â
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 City of Saratoga Springs may consider
whether it wishes to discontinue the CCA program. Dissolution of the
CCA program will require:
(1)Â
Enactment of a local law amending or repealing this chapter;
(2)Â
Lawful termination of ESAs in accordance with their terms;
(3)Â
Lawful termination of the CCA administration agreement, in accordance
with its terms; and
(4)Â
At least 60 days' notice to customers that their energy services
will be automatically returned to the utility, 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 City related to the provision of electric and/or 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 City will not assume the role of ESCO
or utility in the sale or delivery of energy services.
Each provision of this chapter is severable from the others,
so that if any provision 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.
This chapter shall take effect immediately upon filing in the
office of the Secretary of State of the State of New York, in accordance
with § 27 of the Municipal Home Rule Law.