BILL NUMBER: S2169
SPONSOR: PARKER
 
TITLE OF BILL:
An act authorizing certain municipalities to participate in a community
choice energy aggregation program by a single municipality or through an
inter-municipal agreement with two or more municipalities in order to
coordinate efforts to procure electric and/or gas supply services on
behalf of participating residents, businesses and municipal customers
within municipal jurisdictional boundaries
 
PURPOSE:
To authorize municipalities to participate in a community choice aggre-
gation program through an inter-municipal agreement with one or more
municipalities to coordinate efforts to procure electric and/or gas
supply services and to Install energy efficiency measures and develop
local renewable energy facilities on behalf of participating residents,
businesses and municipal customers within municipal jurisdictional boun-
daries.
 
SUMMARY OF PROVISIONS:
Section 1 provides definitions.
Section 2 provides that a municipality may, by resolution, participate
in a community choice energy aggregation program through an inter-muni-
cipal agreement with one or more municipalities to coordinate efforts to
procure electric and/or gas supply services and to install energy effi-
ciency measures and develop local renewable energy facilities on behalf
of customers. It also sets forth the required contents of the inter-mun-
icipal agreement.
Section 3 requires the program administrator to provide a copy of the
agreement to the distribution utilities and submit a formal request for
customer usage and billing information, and customer data pertaining to
energy efficiency program participation and renewable energy use. It
also requires the utilities to supply required information to the admin-
istrator within 120 days.
Section 4 authorizes the community choice aggregation to advertise for
the request for bids from Energy Service Companies ("ESCOs") for the
provision of services for the program. The solicitation must include
price benchmarks, provide that ESCOs will not levy any cancellation
charges, and provide for a website for participating customers to view
the monthly rates charged, and to view any related services and products
being offered by the community choice aggregation program administrator.
Community choice aggregators are authorized to select the ESCO that will
offer the best service, or can elect to reject all bids and re-adver-
tise. This section also authorizes the community choice aggregation to
enter into a contract with the chosen ESCO or ESCOs and outlines the
requirements of such contract.
Section 5 requires the community choice aggregator to obtain from the
distribution utility a list of customers affected by the contract with
the ESCO, and the community choice aggregator must provide notice to
those customers. The notice must include instructions for how to opt-out
within the sixty-day opt-out period. Provision is also made for custom-
ers already served by an ESCO to opt-in to a community choice aggre-
gation program. After the sixty-day period, the utility must provide a
list to the community choice aggregator of the number of customers that
elected to opt-out and opt-in, and those customers' information. The
administrator must then submit that information to the ESCO(s) with
which it contract(s).
Section 6 provides for a Public Service Commission (PSC) audit, within
365 days of commencement of the contract, to ensure that cost benchmarks
have been reached. If the PSC determines they have not been reached, the
contract shall be subject to termination by resolution of the community
choice aggregator's governing board.
Section 7 requires the PSC to submit, within 30 months of establishment
of a contract, a report to the Executive, Senate and Assembly detailing
the performance of the aggregation contract.
Section 8 states that the Energy Services Company Bill of Rights is
applicable to participating customers.
Section 9 provides the effective date.
 
JUSTIFICATION:
Citizens for Local Power is an Ulster County-based organization that
works with municipalities, elected officials, labor, and citizens to
foster engagement in energy issues and regulatory proceedings that
affect them, as well as to promote energy demand reduction and expanded
renewable energy use at the community level. CLP is facilitating the
formation of a Municipal Energy Consortium (based initially in Ulster
County) to reduce energy costs for residents, businesses, and munici-
palities, to enhance community resilience, and to foster the transition
to a clean energy economy in the mid-Hudson region.
The creation of the community choice aggregation (CCA) program arose out
of CLP's efforts to further these important goals, including the desire
to save residents and businesses money. CCA programs allow a large
number of residents to pool together and shop around at different ESCOs
and obtain the best price. Pooling together will increase purchasing
power, potentially resulting in a better price, similar to the idea of
buying in bulk. CCA is an effective tool for empowering communities to
choose their energy supplier, and also enables communities to choose
clean energy suppliers, realize greenhouse gas reduction benefits, and
finance local generation assets to boost economic development in the
region.
CCA programs are already authorized in six states: California, Ohio,
Massachusetts, Rhode Island, Illinois, and New Jersey. This bill is
designed such that all municipalities in New York may benefit from this
invaluable tool to provide lower cost energy, and to promote energy
efficiency and renewable energy use consistent with State and Regional
objectives. Local Power Inc., which founded Community Choice Aggregation
two decades ago and initiated CCA enabling legislation for the States of
Massachusetts and California, drafted this b ill at the request of Citi-
zens for Local Power.
 
FISCAL IMPLICATIONS:
None
 
HISTORY:
2023/24: S4303- REFERRED TO ENERGY AND TELECOMMUNICATIONS
2021/22 S2961 - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2019/20 S3604 - REFERRED TO ENERGY AND TELECOMMUNICATIONS
2017/18 S3094 - Referred to Energy and Telecommunications
2015-16: S.1408 - Referred to Energy and Telecommunications
2013-14: S.7087 - Referred to Energy and Telecommunications
 
EFFECTIVE DATE:
Immediately