[HISTORY: Adopted by the Council of the City of Watervliet 3-5-2020 by L.L. No. 1-2020. Amendments noted where applicable.]
It is the intent of the City of Watervliet to establish a Community
Choice Aggregation (CCA) Program to aggregate the energy supply needs
of residents and small comercial 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 article is
two-fold: to establish a CCA Program in the City of Watervliet 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
(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.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 emmisions, protecting the state's
natural resources, and improving energy efficiency.
E.Â
The City
of Watervliet 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 Watervliet 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 vlilages 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 NYSPSC 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 Assistance
Program Participants (APPs), 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 Aggrements 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.
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.
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.
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 this term throughout this chapter indicates
the City of Watervliet, 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 Watervliet 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 NYSPSC Order Authorizing CCAs.
A.Â
Implementation
plan.
(1)Â
The
City of Watervliet, 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 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 appendixes 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 Watervliet
and the CCA Administrator will make community-specific revisions to
the Plan's appendixes to ensure the Plan is properly tailored to the
needs of the City of Watervliet's residents. Therefore, prior to or
in conjunction with the enactment of this chapter, and thereafter
from time to time, the City of Watervliet, with support from the CCA
Administrator, ill 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 Watervliet 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 Watervliet 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 Watervliet letterhead, in official City of
Watervliet 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 Watervliet.
B.Â
Public
outreach and education.
(1)Â
The
City of Watervliet, 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 Watervliet 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
Customers
moving into or out of the community after CCA adoption.
(1)Â
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 and any ESCO(s) providing
service to the Program.
D.Â
Customer
data protection.
(1)Â
The
City of Watervliet, 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 Watervliet, 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 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
CCA Administration
Agreement. The City of Watervliet 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 Watervliet's
agent for the purpose of procuring energy supply or other energy-related
value-added services for CCA Program eligible customers.
B.Â
Customer
service, complaints. The CCA Administrator will provide the City of
Watervliet 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 City of Watervliet Council,
report to the City of Watervliet regarding customer service matters.
In accordance with the NYSPSC Order Authorizing CCAs, it shall
be the responsibility of the City of Watervliet, 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 City of Watervliet's 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 Watervliet 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 Watervliet 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 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 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 City will not assume
the role of ESCO or utility in the sale or delivery of energy services.