[HISTORY: Adopted by the Town Board of the Town of Ithaca 8-22-2022 by L.L. No. 15-2022. Amendments noted where applicable.]
A.
The Town of Ithaca has long demonstrated its commitment to sustainability
and community-wide greenhouse gas reduction from energy use, transportation,
land use and waste management. The primary goal of the Green New Deal
resolution, passed unanimously by the Town Board in March of 2020,
is to achieve an equitable transition to carbon neutrality Town-wide
by 2030. The resolution calls for meeting the electricity needs of
Town government operations with 100% regionally sourced renewable
electricity and reducing emissions by 50% from the Town fleet of vehicles
by 2025.
B.
To meet reduction targets for greenhouse gas emissions, the Town
will seek reductions for all addressable carbon emissions associated
with the community, including electricity use in buildings, heating
of buildings, energy for transportation, and solid and sewer waste
exports.
C.
To achieve the Town's 2030 goal, it may choose to accelerate
the deployment of distributed energy resources (DER) such as photovoltaic
panels and energy storage systems, as well as to examine the retail
energy markets and increase participation of eligible consumers in
those markets.
D.
Community choice aggregation has the potential to enable greenhouse
gas reductions from electricity use in existing buildings while at
the same time guaranteeing affordability and minimizing risk associated
with price volatility to eligible consumers.
E.
Among the foremost policies and models to increase access to affordable
community-wide energy transition in the state of New York is community
choice aggregation (CCA), which allows local governments to determine
the supplier(s) of electricity on behalf of eligible consumers, and
provide a significant opportunity to diversify electricity supply
based on DER.
F.
The purpose of CCA is to allow participating local governments to
procure electricity and gas supply service for eligible consumers,
while maintaining transmission and distribution service from the existing
distribution utility.
G.
The purpose of the Town of Ithaca's CCA program is to administer
the energy service in a manner that expands access to solar and other
local renewables and energy efficiency technologies by offering optional
enrollment of eligible consumers in voluntary investments in DER,
with access to financial mechanisms, including the financial mechanism
developed under the City of Ithaca's Energy Efficiency Retrofitting
and Thermal Load Electrification program, approved by that City's
Common Council.
H.
This chapter establishes a program (CCA program) that will allow
the Town of Ithaca, in conjunction with the City of Ithaca, as well
as any other local governments in Tompkins County, which may elect
to join the CCA program at a later date, to work together using a
shared purchasing model to put out for bid the total amount of electricity
and natural gas being purchased by eligible consumers within the jurisdictional
boundaries of participating municipalities. The CCA program will offer
service to every eligible consumer in its service territory, including
municipal accounts, and will investigate opportunities to divert municipal
sewage and solid waste exports as potential feedstock sources of hydrogen
for use by DERs.
I.
The Town of Ithaca 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, to the extent that
orders related to Case No. 14-M-0224 enable actions by the Town of
Ithaca.
J.
This chapter shall be known and may be cited as the "Community Choice
Aggregation (Energy) Program Law" of the Town of Ithaca.
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:
Greenhouse gas emissions from electricity, heating, cooling,
hot water, transportation vehicles, sewer waste and solid waste.
Aggregated and anonymized information, including the number
of eligible 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 or volumetric consumption for gas by month for the past
12 months by service class.
Low- and medium-income residents so designated by the Tompkins
County Department of Social Services.
The default retail electricity and/or natural gas product
received by all customers who do not opt out of the CCA program.
A third party designated by the Town of Ithaca which shall
be duly authorized to put out for bid the total amount of electricity
and natural gas being purchased by eligible consumers and the DERs
that will be incorporated into the CCA program. The CCA administrator
shall be responsible for CCA program organization, public outreach,
data, administration, procurement and communications.
A group formed by building owners and residents who are eligible
consumers to invest mutually in onsite DERs.
Energy account-specific information, personal data and utility
data for all eligible consumers in the municipality eligible for opt-out
enrollment 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.
An agreement between the distribution utility and the Town
of Ithaca that obligates each party to meet, collectively:
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's or its representative's processing
of confidential utility information;
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's or its representative's processing of
confidential utility information; and
The PSC CCA Order and PSC rules, regulations and guidelines
relating to confidential data.
Supply service provided by the distribution utility to eligible
consumers who are not currently receiving service from an energy service
company (ESCO). Eligible consumers eligible for opt-out enrollment
within the Town of Ithaca that receive default service, and have not
opted out, will be enrolled in the program. Eligible consumers eligible
for opt-in enrollment will be enrolled in the program according to
its scheduled energy supply contract renewals.
Local renewable energy projects and energy efficiency measures,
shared renewables like community solar and shares and cooperatives,
renewable heat and hot water systems, energy management, energy storage,
microgrid projects, geothermal heat loop projects, electric vehicles
and charging systems, local renewable hydrogen fuel cells, and other
innovative Reforming the Energy Vision (REV) initiatives that optimize
system benefits, target and address load pockets/profile within the
CCA program's zone, and reduce cost of service for customers.
New York State Electric and Gas Corporation (NYSEG), or any
successor thereto.
Consumers of electricity and/or natural gas 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 geographic boundaries
of the CCA program, except those consumers currently receiving default
service that have requested not to have their account information
shared by the distribution utility. All eligible consumers must reside
or be otherwise located within the geographic boundaries of the CCA
program, as such boundaries exist on the effective date of the energy
supply agreement, where they will be offered basic service through
several enrollment mechanisms based on Public Service Commission rules,
including opt-out and opt-in depending on account size and type, and
also be offered additional services requiring an affirmative choice
to invest in a local DER project.
The City of Ithaca's program along with financial partners
to determine potential energy efficiency improvements on residential
and commercial buildings and provide financing for voluntary loans
and leasing programs available to eligible consumers in the City of
Ithaca, as well as in the Town of Ithaca, to pay for efficiency and
electrification projects, with an emphasis on serving disadvantaged
communities.
A shares or cooperative loan repayment account voluntarily
subscribed by a CCA customer and administered and/or supervised by
the CCA administrator.
An entity duly authorized to conduct business in the State
of New York as an ESCO.
An agreement between an energy consumer 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 consumers and would enter into such agreement(s) with
an ESCO to provide power to all such eligible consumers in the community
that elect to receive service.
Ownership benefits, financial and/or physical, from participating
in voluntary investments in local DER.
Electricity and gas accounts that serve municipal government-related
operations.
Consumers of electricity that become eligible consumers after
the effective date of the energy supply agreement, including those
that opt in or move into the Town of Ithaca.
An affirmative decision of an eligible consumer, in addition
to not opting out of the CCA program as per Public Service Commission
rules, to select a premium rate in order to voluntarily invest in
a local DER project in the form of shares.
An affirmative decision of an eligible consumer, in addition
to not opting out of the CCA program as per Public Service Commission
rules, to select a premium rate in order to voluntarily invest in
a local DER project in the form of cooperatives.
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 or are new
consumers.
A designated local nonprofit organization responsible for
educating energy users about participation in the CCA program, and
about participation in the program's voluntary investment opportunities,
as well as supporting the organization of cooperatives by neighbors.
This group will typically secure participation from local governments
and engage in preliminary outreach and education around CCA.
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."
New York State Public Service Commission.
Units of ownership by a customer in local DERs, whether in
a nearby building through individual enrollment in a designated CCA
shares premium rate and energy loan, or on site through a cooperative
enrollment in a designated CCA cooperative premium rate and energy
loan account.
A.
A community choice aggregation (energy) program is hereby established
by the Town of Ithaca, whereby the Town of Ithaca may implement a
CCA program to the full extent permitted by the PSC CCA Order and
this chapter, as set forth more fully herein.
B.
The Town of Ithaca may act as aggregator for the sale of electric
supply, gas supply, or both to eligible consumers, and may enter into
contracts with one or more suppliers for energy supply and other services
on behalf of eligible consumers.
C.
The Town of Ithaca may select a third party as CCA administrator
for such purpose to the full extent permitted by the order, as set
forth more fully herein, and shall include a process for other municipalities
in Tompkins County to join the CCA program.
D.
The Town of Ithaca may enter into an intermunicipal agreement with
the City of Ithaca and other municipalities in Tompkins County, and
potentially municipalities in adjoining counties who join the CCA
program, for the purpose of sharing administrative resources to support
eligible consumers' access to the City's solar access, building
electrification and decarbonization program resources, and shall include
a process for other municipalities in Tompkins County to offer their
eligible CCA customers such resources to join the CCA program.
E.
As detailed in the PSC CCA Order, the PSC will need to approve an
implementation plan before the CCA program can begin operations. The
implementation plan shall be prepared for the CCA administrator and
approved by the Town before it is submitted to the PSC for approval.
The implementation plan shall describe the program and its goals,
plans for value-added services, and DER voluntary investment options
that will be included in requests for proposals (RFPs) and/or power
purchase agreements, contracts and/or bids, a public outreach plan,
and drafts of written communications with its residents, including
opt-out letters. The plan must also include, when applicable, information
on APP guaranteed savings program and community distributed generation
program implementation.
F.
The CCA administrator, may act as energy loan account administrator
to engage, prequalify, list, and track the performance of the loan
accounts of eligible consumers who elect to voluntarily invest in
DERs.
G.
The CCA administrator may directly administer opt-out notification
communications to eligible consumers, and may offer two additional
options:
H.
The CCA administrator may offer a premium product to any eligible
consumer to purchase shares in DERs or to join with neighbors to form
a cooperative to directly own and operate DERs.
I.
The CCA administrator may create a system of credits or direct payments
to compensate each participant for such equity and may transfer collected
premium payments into the customer's energy loan account to facilitate
funding, including through the City of Ithaca's Energy Efficiency
Retrofitting and Thermal Load Electrification Program or other sources.
J.
The CCA administrator may designate one or more program organizers
to assist in the education and engagement of eligible consumers and
municipalities in Tompkins County to participate in the CCA program.
K.
The Town of Ithaca may designate all Town-owned properties and rights-of-way
available, where allowed by law, for accommodation and connection
of DERs, including microgrids, electric vehicle chargers, and geothermal
microdistricts, and authorizes the Department of Public Works to develop
protocols for DER access.
L.
The Town of Ithaca may make up to 49% of equity in any municipally
sited DERs available for voluntary share investments by eligible consumers.
M.
The operation and ownership of the utility service shall remain with
the distribution utility. The Town of Ithaca's participation
in a CCA program constitutes neither the purchase of a public utility
system, nor the furnishing of utility service. The CCA program shall
not take over any part of the electric or gas transmission or distribution
system and will not furnish any type of utility service but will instead
negotiate with suppliers on behalf of eligible consumers.
A.
All consumers within the Town of Ithaca, including residential and
nonresidential, regardless of size, shall be eligible to participate
in the CCA program's basic service, provided that different methods
of enrollment are required to be used for different NYSEG customer
classifications.
B.
All participating consumers that are members of New York State Electric
and Gas (NYSEG) SC 1 Residential Service, SC 6 General Service and
Gas SC 1 Residential Service, SC 2 General Service shall be enrolled
on an opt-out basis, except for consumers: i) that are already taking
service from an ESCO; ii) that have placed a freeze or block on their
account; 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,
alongside all other NYSEG service classifications, including: i) for
electricity service, SC2 General Service with Demand Metering, SC3
Primary Service 25 KW or more, SC5 Outdoor Lighting Service, SC7 Large
General Service with Time-of-Use Metering, SC8 Residential - Day Night
Service, SC9 General Service - Day Night Service, SC10 Cogeneration
or Small Power Production/Sale of Energy to the Corporation, SC11
Standby Service, SC12 Residential Service with Time-of-Use Metering,
SC13 Competitive Alternative Industrial Service and SC14 Large Economic
Development Service; and ii) for gas service, SC3 Interruptible Sales
Service, SC4 Natural Gas Motor Vehicles, SC5 Seasonal Gas Cooling
Service, SC6 Standby Sales Service, SC10 Non-Residential Distributed
Generation Firm Sales Service, SC11 Residential Distributed Generation
Firm Sales Service. The Town of Ithaca may include all of its electricity
and natural gas accounts to participate as an opt-in customer in the
CCA program at the earliest possible date, or for any smaller accounts
eligible for opt-out enrollment, may participate through the opt-out
process.
C.
New consumers whose electric and/or gas NYSEG meters are eligible
for opt-out enrollment, including SC1 Residential Service 1 and SC6
General Services 6, shall be enrolled in basic service on an opt-out
basis. New consumers whose meters are eligible for opt-in service
shall be offered service and enrolled on an opt-in basis.
D.
The Town of Ithaca, through its CCA administrator, will actively
seek to offer service, on an opt-out basis, to low-to-moderate-income
(LMI) residents who are assistance program participants (APPs) and
are enrolled in products that comply with requirements for ESCO service
to APPs at the time of enrollment. The CCA administrator will consult
with local and state social services program administrators in considering
whether and how to include APPs, specifically where social services
organizations receive and pay the resident's energy bill.
E.
All customers of the CCA program shall be eligible to participate
in shares and cooperatives, provided that ability to participate shall
depend upon the availability of DER projects and financing.
F.
The CCA administrator, on behalf of the Town of Ithaca, shall issue
one or more requests for proposals to suppliers to provide energy
and related services to participants and may then award a contract,
in accordance with the CCA program, and after consultation with and
authorization by the involved municipalities as per an intermunicipal
agreement.
G.
The CCA administrator will request individual customer data for the
accounts of eligible consumers located within the jurisdictional boundaries
of the Town of Ithaca from the distribution utility in accordance
with the CCA program.
H.
The CCA administrator and the selected energy supplier will notify
eligible consumers of the contract terms and their opportunity to
opt out of the CCA program.
I.
In accordance with and for purposes of the order, the existing distribution
utility, New York State Electric and Gas Corporation, will provide
to the CCA administrator aggregate and customer-specific data (including
usage data, capacity tag obligations, account numbers, and service
addresses) of all eligible customers in the Town of Ithaca not currently
enrolled with an ESCO.
A.
An opt-out letter, printed on municipal letterhead, shall be mailed
to eligible consumers at least 30 days prior to eligible consumer
enrollment. The opt-out letter shall include information both on the
CCA program and the contracts signed with the selected ESCO and/or
DER provider(s), including specific details on rates, fees, services,
contract terms, cancellation fee, and methods for opting out of the
CCA program. The letter shall explain that eligible consumers that
do not opt out will be enrolled in the CCA program under the contract
terms and that information on those eligible consumers, including
energy usage data and assistance program participant (APP) status,
will be provided to the ESCO and/or the DER providers. The opt-out
letter shall also explain that the CCA administrator will be authorized
to enroll customers in DER projects through an opt-up and opt-with
process as defined in this chapter, communicate such enrollment to
the distribution utility under relevant PSC-approved rules and tariffs
so that customers signing up to participate in investment may receive
applicable billing and credits from the distribution utility, and
communicate opt-up and opt-with enrollment information to the CCA
administrator for energy loan account processing and management.
B.
All eligible consumers shall have the option to opt out of the CCA
program. Per the Public Service Commission's CCA Framework Order,
customers will be permitted to cancel CCA program service any time
before the end of the third billing cycle of a new contract period
without penalty or other charges.
C.
Termination fees shall not be charged to customers that cancel their
CCA program service as a result of moving out of the service territory
of the CCA program.
Eligible consumers with electric and/or gas accounts that are
eligible for opt-in enrollment may be offered service on an opt-in
basis, based on capacity and opportunity, according to the supply
contract renewal schedule of the CCA program.
Customers shall be provided customer service by the CCA administrator,
including a toll-free telephone number available during normal business
hours (9:00 a.m. to 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 supplier, as well as a secure
customer-specific online account, scheduled direct mail, and messages
inserted into Town of Ithaca scheduled direct mail and public notices.
A.
Town of Ithaca departments and other CCA program member municipalities
involved in supporting the CCA program and energy loan shares service
and cooperative service will share energy data and other data with
its CCA administrator to tailor DER products to eligible customers,
facilitate customer engagement, program administration, operation,
billing and collection.
B.
The Town of Ithaca may request aggregated data and customer-specific
data from the distribution utility; provided, however, that this 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.
C.
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 with respect to the CCA administrator's
and Town of Ithaca'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 with respect to the Town of Ithaca 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.
D.
The Town of Ithaca will enter into a data security agreement with
the distribution utility for the purpose of protecting customer data.
The Town of Ithaca may collect, or cause to be collected, funds
from customer payments to pay the designated CCA administrator for
administrative costs associated with running the CCA program. These
fees will be included in any agreement signed with CCA administrator
and an ESCO.
The Town of Ithaca may collect, or cause to be collected, funds
from customer payments to pay for administrative costs associated
with running a DER loan account service.
A.
Annual reports shall be prepared by the CCA administrator and filed
with the Town Board of the Town of Ithaca by March 31 of each year
and cover the previous calendar year.
B.
Annual reports shall include, at a minimum: number of customers served;
number of customers canceling during the year; number of complaints
received; commodity prices paid; value-added services provided during
the year (e.g., installation of DER or other clean energy services);
and administrative costs collected. Information shall be broken down
by municipality, where applicable. The first report shall also include
the number of customers who opted out in response to the initial opt-out
letter or letters.
C.
If a CCA program energy supply agreement 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.
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, 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.
This chapter shall take effect immediately upon its filing with
the New York State Secretary of State.
