[HISTORY: Adopted by the Town Board of the Town of Guilderland 12-17-2019 by L.L. No.
12-2019. Amendments noted where applicable.]
It is the intent of the Town of Guilderland (Town) to establish
a Community Choice Aggregation (CCA) Program to aggregate the energy
supply needs of residents and eligible small business owners and to
negotiate and enter into energy supply agreements (ESA) with energy
service companies (ESCO) on behalf of eligible residents to obtain
stable, lower-cost energy prices and environmental benefits to meet
the Town's collective energy needs.
A.
New York State's energy industry is in the midst of a significant
transition from a utility-centered model toward a cleaner, more affordable,
more resilient system in which consumers and communities will have
a substantial role. The state's ongoing Reforming the Energy
Vision (REV) initiative emphasizes reliability and grid resilience,
distributed energy resources, increased renewable generation, and
greater opportunity for residents 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, in an order dated April 21, 2016,
the New York State Public Service Commission (NYSPSC) authorized cities,
towns and villages within the state to create community choice aggregation
programs, by themselves or with other municipalities (hereinafter
"NYSPSC order"), and/or retain a CCA Administrator to implement the
program and negotiate ESAs.
C.
The CCA Program will allow Town residents to take control of energy
supply through an open, transparent and competitive electric and natural
gas procurement process.
D.
The CCA Program will offer residents potential cost savings, more
stable energy prices, deterrence of deceptive marketing practices
by unscrupulous ESCOs, fair contracts negotiated directly with energy
suppliers, and the opportunity to pursue goals and initiatives important
to Town residents, 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 has explored the CCA policy and background and believes
that it would provide benefits to residents, enhance public welfare,
and make energy more affordable and costs more predictable for residents.
F.
The Town Board of the Town of Guilderland authorizes the creation
of an opt-out CCA Program pursuant to the NYSPSC order for electric
and/or natural gas supply service and other energy-related value-added
services that meet the Town's goals.
The NYSPSC order empowers the Town to create a CCA Program.
New York State Municipal Home Rule Law, Article 2, § 10,
authorizes the Town 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 Town, and for other authorized purposes.
As used in this chapter, the following terms shall have the
meanings indicated:
Customers' accounts in utility service classes eligible
for inclusion in the CCA Program on an opt-out basis, as set forth
in the NYSPSC order, Appendix C, or as specified by the Commission.
These classes of customers include those receiving residential electric
supply services, including in multifamily housing, certain types of
institutions, and small commercial customers covered by "small general
service" class designations. Automatically eligible customers shall
not include customers' accounts that have 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; those customers'
accounts shall be eligible to participate on an opt-in basis, if they
so desire.
The agent of the Town charged with overseeing creation, implementation
and operation of a CCA Program, and competitively procuring and negotiating
energy supply agreements with ESCOs. The CCA Administrator shall be
retained by the Town through a separate CCA administration agreement,
adopted by resolution of the Town Board.
A program authorized by the New York State Public Service
Commission (NYSPSC) to aggregate residential electric and/or natural
gas supply, and/or energy-related value-added products and services
within the Town, and/or among multiple municipalities, 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. 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 utility.
All automatically eligible customers and those utility customers
eligible for inclusion in the CCA Program on an opt-in basis, as set
forth in the NYSPSC order or otherwise authorized by the Commission.
Customers eligible to participate in the CCA Program on an opt-in
basis currently include 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
and/or natural gas and/or energy-related value-added services to customers
in New York State utilizing transmission and distribution systems
of existing utilities. ESCOs are regulated by the New York State Department
of Public Service and New York State Public Service Commission, and
must comply with the New York State Public Service Law.
An agreement between customers and an energy services company
(ESCO) for electrical or natural gas service 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 Town.
The Town of Guilderland.
Traditional 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 natural 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 Town establishes a CCA Program for aggregation of electric
and/or natural gas supply to serve eligible customers in its jurisdiction.
This program shall be available to all residents of the Town of Guilderland
who reside outside the jurisdictional limits of the Village of Altamont.
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.
A.
Implementation plan.
(1)
The Town, with support from its CCA Administrator, will create and
follow a CCA implementation plan which outlines 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
the CCA Administrator, municipality, and eligible customers.
(2)
In accordance with the NYSPSC order, 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 Town-specific appendixes would be
submitted later and would outline appropriately tailored local education
and outreach efforts.
(3)
Where a generic CCA implementation plan will be used, the Town and
the CCA Administrator will make Town-specific revisions to the plan's
appendixes to ensure that the plan is properly tailored to the needs
of residents. Prior to or with the enactment of this chapter, and
as needed, the Town, with support from the CCA Administrator, will
update a CCA Program opt-out letter and an education and outreach
plan, as provided in the Town's implementation plan appendix.
(4)
The Town's opt-out letter and education and outreach plan shall
conform to public outreach, education, and opt-out requirements in
the NYSPSC order, and applicable laws or regulations, and shall ensure
that the Town and its CCA Administrator engage in a robust effort
to educate and inform Town residents about the CCA Program and 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 letterhead in official Town 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.
B.
Public outreach and education.
(1)
The Town, 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 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 eligible small business owners who establish utility
accounts in the Town 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 CCA Program.
D.
Customer data protection. The Town or its CCA Administrator will
create and follow a customer data protection plan which ensures that
confidential or sensitive personal customer information provided by
the utility to the Town, CCA Administrator, and/or the selected ESCO(s)
will be given all privacy protections required by law 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. This plan will
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 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'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 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 Board, report to the Town
regarding customer service matters.
In accordance with the NYSPSC order, it shall be the responsibility
of the Town, supported by any CCA Administrator, to ensure the CCA
Program is operated in compliance with 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 and other relevant laws or regulations. This provision
applies regardless of whether a CCA Administrator is retained to organize
and implement the Town's CCA Program. This shall include, but
not be limited to, compliance with any reporting requirements related
to the CCA Program.
A.
The Town will review the progress of the CCA Program to determine
how the program is faring, confirm it is affording benefits to residents,
and provide information to the public.
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 may consider whether 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 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
New York State Legislature, or 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 related to the provision of electric 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
to facilitate the creation of an aggregation program in the Town.
The Town 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 upon the filing with the Secretary
of State.
