S T A T E O F N E W Y O R K
________________________________________________________________________
7087
I N S E N A T E
April 25, 2014
___________
Introduced by Sen. PARKER -- read twice and ordered printed, and when
printed to be committed to the Committee on Energy and Telecommuni-
cations
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 custom-
ers within municipal jurisdictional boundaries
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Definitions. The following terms, when used in this act,
2 shall have the following meanings:
3 1. "Customer" shall mean a customer of record who received residential
4 or non-residential electric and/or gas supply services from a distrib-
5 ution utility at the time of a local resolution by his or her munici-
6 pality to participate in a municipally administered community-wide ener-
7 gy aggregation program, provided that such customer did not receive
8 electric and gas supply services from an energy services company and/or
9 a publicly-owned utility.
10 2. "Distribution utility" or "distribution utilities" shall mean any
11 investor-owned utility in the state of New York.
12 3. "Participating customer" shall mean a customer who receives elec-
13 tric and/or gas supply services through a municipally administered
14 community-wide energy aggregation program, including residential and
15 commercial, and municipal customers.
16 4. "Community choice aggregation," "program," or "community energy
17 aggregation program" shall mean an inter-municipal agreement or a munic-
18 ipal resolution for the purpose of coordinating or initiating efforts by
19 a municipality or by community choice aggregators to request bids for
20 and potentially select an ESCO or ESCOs to provide electric and/or gas
21 supply services to participating residential, commercial and government
22 customers.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14127-01-4
S. 7087 2
1 5. "Municipal governing board" is single municipal board for local
2 programs limited within municipal jurisdictional boundaries, or an
3 inter-municipal agreement entered into by resolution of two or more
4 municipal boards aggregating load on a regional basis.
5 6. "Energy services company" or "ESCO" shall have the same meaning as
6 such term is used in subdivision 5 of section 44 of the public service
7 law.
8 7. "Municipality" or "municipalities" shall mean a city, town or
9 village located in the state of New York.
10 8. "Community choice aggregator" or "energy aggregator" shall mean a
11 municipality authorized pursuant to a local resolution to participate in
12 an inter-municipal agreement establishing a municipal energy aggregation
13 program to offer energy services to residential, commercial and munici-
14 pal customers located within the energy aggregator's jurisdictional
15 boundaries.
16 9. "Program administrator" shall mean a community choice aggregator
17 that is designated pursuant to a local municipal governing board resol-
18 ution or an inter-municipal agreement, or an employee or a contractor
19 designated by a community choice aggregator to fulfill the responsibil-
20 ities of: (i) requesting and compiling historical usage data of distrib-
21 ution utility customers as required under this act, (ii) submitting a
22 request for bids for energy supply services from ESCOs authorized to
23 supply electric and/or gas in New York state, and (iii) carrying out the
24 administration of the contract and implementation of aggregated
25 services.
26 10. "Department: shall mean the New York state department of public
27 service.
28 S 2. Community choice aggregation programs. 1. A municipality may,
29 after adopting a resolution approved by a majority of its governing
30 board, participate in a community choice aggregation program through an
31 inter-municipal agreement with one or more municipalities in order to
32 coordinate efforts, or through its own community choice aggregation
33 program to procure electric and/or gas supply services, and municipal
34 programs to develop energy efficiency and renewable energy installa-
35 tions, gas efficiency and renewable heating technologies on behalf of
36 its participating customers.
37 Such community choice aggregation program must provide for the desig-
38 nation of a program administrator to facilitate the operations of a
39 community choice aggregation program, including but not limited to the
40 receipt of customer historical usage data information from distribution
41 utilities pursuant to section three of this act and any communications
42 necessary with potential ESCOs that would provide electric and/or gas
43 supply services for such program, and otherwise entering into contracts
44 with other energy efficiency and renewable energy developers, including
45 gas efficiency and renewable heating technologies, provider power and/or
46 capacity to the community choice aggregation program.
47 2. A community choice aggregator shall be responsible for responding
48 to inquiries regarding the particular community choice aggregation
49 program in which it is a participant. Such community choice aggregator
50 shall provide contact information, including but not limited to a mail-
51 ing address, telephone number, e-mail address and fax number at which it
52 may be contacted in all notices to participating customers.
53 3. In establishing a contract for electric and/or gas services with an
54 ESCO, a program administrator shall comply with article 7 of the public
55 officers law.
S. 7087 3
1 S 3. Establishment of community choice aggregation program. 1. The
2 program administrator designated pursuant to an inter-municipal agree-
3 ment or municipal resolution establishing a community-wide aggregation
4 program shall provide a copy of such agreement to the distribution util-
5 ities and submit a formal request for usage information provided for
6 under subdivision two of this section.
7 2. In order to augment energy efficiency and renewable energy
8 programs, and within 60 days of the establishment of a community choice
9 aggregation program or of an inter-municipal agreement establishing an
10 aggregation program and the formal request, distribution utilities
11 shall, at a reasonable cost as determined by the commission within 120
12 days of the effective date of this act, provide to the program adminis-
13 trator the following utility information regarding customers receiving
14 gas and/or electric supply services from such distribution utilities who
15 are eligible to receive service from the community choice aggregator:
16 (a) aggregate monthly usage (kWh) by rate schedule: energy consumption
17 (kWh) for the most recent 60 months of completed information for each
18 customer class for a given period of time for each municipality included
19 in the data request;
20 (b) customer-specific information from the current billing periods as
21 well as prior 60 months consisting of the following billing information:
22 meter number, service agreement number, name on agreement, service
23 address with zip code, mailing address with zip code, telephone number,
24 monthly kWh usage, monthly maximum demand where available, Baseline
25 Zone, low income residential participation (Home Energy Assistance
26 Program or HEAP), End Use Code (Heat Source), Service Voltage, Medical
27 Baseline, Meter Cycle, Bill Cycle, Level Payment Plan and other plans,
28 HP Load and Number of Units, monthly rate schedule for all accounts
29 within the community choice aggregator's territory;
30 (c) system wide residential and non-residential load shapes by New
31 York Load Zones and New York Control Area designations for the most
32 recent five years for which the distribution utility has completed
33 information;
34 (d) standard system average load profiles by rate class also referred
35 to as Dynamic Load Profiles & Static Load Profiles posted to the
36 distribution utility's website;
37 (e) quarterly or monthly aggregated participation data for energy
38 efficiency programs already tracked in New York State Energy Research
39 and Development Authority reports, as available;
40 (f) aggregate monthly usage (kWh) by zip code within a city code;
41 (g) customer-specific information consisting of: service agreement
42 number, monthly interval meter data where available, and rate schedule
43 for all accounts within the community choice aggregator's territory;
44 (h) number of service agreements in each rate schedule within a munic-
45 ipal energy aggregation's territory or proposed territory;
46 (i) mapping of customer rate schedule to rate class;
47 (j) estimated annual generation revenues by community choice
48 aggregator's territory;
49 (k) estimation of peak coincident and non-coincident demands;
50 (l) data fitting community choice aggregator's annual usage to New
51 York Control Area load shapes; estimation of peak coincident and non-
52 coincident demands;
53 (m) total annual kWh loads of bundled customers and customers already
54 receiving ESCO service, firstly on a monthly basis and secondly on a
55 rate schedule basis within the community choice aggregator's territory;
S. 7087 4
1 (n) aggregated residential, small commercial, large commercial and
2 government annual kWh usage for the past three years in a format by tier
3 for each rate schedule, and for Time of Use (TOU) rates or other meter-
4 specific rates, providing further separation by summer/winter peak,
5 partial peak, and off peak periods and summer/winter period;
6 (o) annual proportional share of system benefit charge energy effi-
7 ciency funds for a community choice aggregator's proposed territory;
8 (p) system benefit charge customer payment by city code;
9 (q) all electricity usage data at the most granular interval recorded
10 by the distribution utility;
11 (r) all monthly unbundled rate components and charges for each custom-
12 er;
13 (s) natural gas consumption and billing data for all customers located
14 within the territorial boundaries of the community choice aggregator,
15 similar in extent and specification to what is being requested on the
16 electricity side (i.e. customer data, consumption data at the most gran-
17 ular interval available, monthly bills within unbundled charges, and all
18 data necessary to calculate those charges);
19 (t) clarification and datasets used to associate gas meters with elec-
20 tric meters at the building level and customer level;
21 (u) all energy efficiency program data for all customers (by account
22 number, service ID number, street address, etc), listing account
23 contacts and all recorded activity and information, including but not
24 limited to on-site or online audits, benchmarking, retro-commissioning,
25 and energy use analyses and efficiency recommendations, and paperwork
26 filed by customers or contractors, and financing information such as on
27 bill financing amounts and repayment status, as available, as well as
28 any associated data sets such as building information on tenant/owner
29 occupancy, square footage and year built, as well as rebate code and
30 measure tables, as available;
31 (v) demand response program participation and all relevant metrics
32 recorded for these programs;
33 (w) the type of interconnect agreement and all relevant metrics asso-
34 ciated with customers that have already interconnected distributed
35 generation to the distribution utility's distribution grid;
36 (x) distribution grid data that could impact the siting of distributed
37 generation or demand-side assets, in a GIS format including shape-files
38 and any associated datasets;
39 (y) the number of customers, by class including indication of those
40 that are currently provided electric and/or gas supply service from an
41 ESCO, that are not served by a publicly-owned utility;
42 (z) the aggregate gas and electric usage of eligible customers, by
43 class served, for the 12-month period preceding the request; the system
44 peak hour or hours that determines capacity buying requirements, and to
45 the degree that it is available the aggregated load factor by class
46 served for the 12-month period preceding the request; and
47 (aa) to the degree that it is available, reasonable efforts to provide
48 more detailed historic information relating to energy usage character-
49 istics of customers, including but not limited to information by rate
50 class on meter type, the number of smart meters deployed, kWh usage and
51 peak demand information classification, meter reading cycle information,
52 load profile designating information, the number of customers enrolled
53 in budget billing plans, loss factor information, net-metering informa-
54 tion and any other information deemed useful by the community choice
55 aggregation program administrator to successfully solicit bids for and
56 implement the aggregation program.
S. 7087 5
1 S 4. Selection of ESCO providers. 1. Upon receipt of utility bulk
2 information required under section three of this act, the program admin-
3 istrator is authorized to advertise for the request of bids from ESCOs
4 for the provision of services for a community choice aggregation
5 program. Any request for bids shall specify that a contract for aggre-
6 gation program services must:
7 (a) include price benchmarks, which shall provide for:
8 (i) monthly per kWh rates for electric supply services for each appli-
9 cable class of customers that are before the 12-month average monthly
10 price supply services provided by distribution utilities or lower than
11 the distribution utility's rate at the time of a request for bids as
12 provided for in this section, except insofar as customers voluntarily
13 pay higher rates to pay for and receive ownership benefits from energy
14 efficiency retrofits and/or renewable distributed generation;
15 (ii) monthly per Btu rates for gas supply services for each applicable
16 class of customers that are below the 12-month average monthly price of
17 supply services provided by distribution utilities or lower than the
18 distribution utility's rate at the time of a request for bids as
19 provided for in this section, except insofar as customers voluntarily
20 pay higher rates to pay for and receive ownership benefits from energy
21 efficiency retrofits and/or renewable distributed generation;
22 (b) provide that the ESCO will not levy any form of cancellation
23 charge to participating customers who, after receiving electric and/or
24 gas supply services from the ESCO, choose to receive such supply
25 services from their respective distribution utility;
26 (c) provide that the community choice aggregator municipal board may
27 levy a cancellation charge to participating customers only insofar as
28 such charges cover obligations to repay investment in renewable energy
29 and energy efficiency installations serving participating customers;
30 (d) provide for a website for participating customers to view the
31 monthly rates charged for electric and/or gas supply and any related
32 renewable energy and/or energy efficiency services and products being
33 offered by the community choice aggregation program administrator; and
34 (e) provide that any costs associated with preparation for or imple-
35 mentation of this program or contract shall be reflected in the bench-
36 mark per kWh and per Btu bid price.
37 2. (a) After a review of bids submitted for energy supply services,
38 community choice aggregator are authorized to select the ESCO or ESCOs
39 that will offer the best service, price, environmental, greenhouse gas
40 reductions, and local employment and local business benefits and other
41 factors considered, provided that the per kWh supply rate for electric-
42 ity and per Btu rate for gas supply services at the initiation of
43 service is lower than the distribution utility's average monthly rate
44 for supply services for the prior 12-month period, or lower than the
45 distribution utility's rate at the time of a request for bids as
46 provided for in this section and meet the requirements of subdivision
47 one of this section, provided that community choice aggregator, may at
48 their discretion, reject all bids or offers and re-advertise for new
49 bids or offers in a manner provided by this act.
50 (b) In making a selection, community choice aggregator shall (i)
51 select one ESCO for the provision of electric supply services; and (ii)
52 select one ESCO for the provision of gas supply services, provided
53 however that the community choice aggregators may select an ESCO to
54 provide both electric and gas supply service, provided further that
55 community choice aggregators may not select any ESCO that has been
56 deemed ineligible to provide energy services by the department.
S. 7087 6
1 (c) in making a selection, community choice aggregators may contract
2 with any number of contractors to design, build, operate, and/or main-
3 tain renewable energy facilities and energy efficiency measures that
4 provide power or capacity to the community choice aggregation program.
5 3. After selection of an ESCO or ESCOs, the community choice aggrega-
6 tors are authorized to set rates and to enter into a contract for supply
7 services by a local law of the local governing board. Such contract
8 shall include:
9 (a) provisions prohibiting the ESCO or ESCOs from denying service to
10 any customer receiving service from his or her distribution utility at
11 the commencement of such contract;
12 (b) monthly per kWh rates for electric supply services for each appli-
13 cable class of customers that is below the average monthly rate of
14 supply services provided by distribution utilities in the previous
15 12-month period or lower than the distribution utility's rate at the
16 time of a request for bids as provided for in this section, with
17 approval of any changes requiring a resolution of the community choice
18 aggregator's municipal board;
19 (c) monthly per Btu rates for gas supply services for each applicable
20 class of customers that is below the average monthly rate of supply
21 services provided by distribution utilities in the previous 12-month
22 period or lower than the distribution utility's rate at the time of a
23 request for bids as provided for in this section with approval of any
24 changes requiring a resolution of the community choice aggregator's
25 municipal board;
26 (d) provisions requiring the ESCO or ESCOs to provide electric and/or
27 gas supply rates lower than the distribution utility's electric and/or
28 gas supply rates pursuant to paragraphs (b) and (c) of this subdivision
29 for the duration of the contract, provided that a violation of this
30 provision shall subject such ESCO to refund participating customers at
31 the time of termination of a contract pursuant to section six of this
32 act, subject to a determination by resolution of the community choice
33 aggregator's municipal board;
34 (e) provisions prohibiting a community choice aggregator from opting
35 out of the contract during the term of such contract;
36 (f) provisions for the community choice aggregation municipal board to
37 decide whether to terminate a contract for services if an ESCO fails to
38 meet the price benchmarks pursuant to this act with the ESCO having
39 exclusive responsibility for all re-entry fees charged to a participat-
40 ing customer by distribution utilities for the resumption of supply
41 services;
42 (g) provisions indemnifying community choice aggregators from all
43 liabilities, damages and costs associated with the non-performance of an
44 ESCO operating under a contract for services;
45 (h) a requirement that the ESCO provide a performance bond if required
46 by the community choice aggregator; and
47 (i) any other requirement that the community choice aggregators deem
48 necessary for the adequate and reliable supply of electric and/or gas
49 supply services to participating customers.
50 S 5. Notice of community choice aggregation contract required. 1. Upon
51 the completion of the contract for services provided for under subdivi-
52 sion three of section four of this act, the program administrator shall
53 obtain from distribution utilities at a reasonable cost as determined by
54 the commission within 60 days of the effective date of this act their
55 lists of customers that may be affected by such contract and provide the
56 community choice aggregators with such information, including the trans-
S. 7087 7
1 fer of all data on each meter for all eligible accounts within the
2 community choice aggregator jurisdictional boundaries for the past 5
3 years. The community choice aggregator shall then notify such customers
4 as to the provisions of such contract, including but not limited to
5 price benchmarks.
6 2. Distribution utilities must make all reasonable preparations to
7 release customers who do not choose to opt-out pursuant to subdivision
8 three of this section from receiving electric and/or gas supply
9 services, provided that all customers shall continue to receive delivery
10 services from such utilities.
11 3. Upon completion of a contract provided for under subdivision three
12 of section four of this act, community choice aggregators must mail a
13 notice to each eligible customer not currently receiving supply services
14 from a publicly-owned utility, which shall include:
15 (a) that the customer's municipal board has chosen to participate in a
16 community choice aggregation contract;
17 (b) for customers not currently served by an ESCO, that unless he/she
18 elects to opt-out within 60 days of the postmarked notice, such opt-out
19 customers will become a participating customer and will receive electric
20 and/or gas supply services through a community choice aggregation
21 contract;
22 (c) for customers not currently served by an ESCO, instructions
23 detailing how a customer may submit an opt-out response, provided that
24 such procedures shall permit the customer to opt-out at no cost within
25 sixty days by returning a reply mail form to the program administrator,
26 as determined by the community choice aggregation municipal board;
27 (d) for customers not currently served by an ESCO, that each customer
28 who does not elect to opt-out within the prescribed period may elect to
29 opt-out of such contract at any time, but may be subject to exit fees by
30 the community choice aggregator municipal board;
31 (e) for customers already served by an ESCO, that each customer wish-
32 ing to switch to service with the community choice aggregator may do so
33 by opting-in to the program within sixty days of the postmarked notice
34 to become a participating customer and receive electric and/or gas
35 supply services through the community choice aggregation contract;
36 (f) for customers already receiving ESCO service that elect to opt-in
37 to the program, instructions detailing how a customer may submit an
38 opt-in response, by returning a reply mail form to the program adminis-
39 trator, as determined by the community choice aggregation municipal
40 board; and
41 (g) that in the case of a participating customer the distribution
42 utility is no longer responsible for supply rates charged to such
43 customer and that all complaints about supply service under the aggre-
44 gation contract shall be the responsibility of the program administrator
45 and ESCO or ESCOs, according to the community choice aggregation
46 contract.
47 4. Immediately following the 60-day opt-out period provided for in
48 paragraph (b) of subdivision three of this section, a community choice
49 aggregator shall provide the program administrator with the following
50 information:
51 (a) the number of customers that received electric and/or gas supply
52 services from such distribution utility who are participating customers
53 by rate class; and
54 (b) the name, address, and account number of each participating
55 customer.
S. 7087 8
1 5. The program administrator, upon receipt of information required
2 under subdivision four of this section, shall submit such information
3 and the information provided for under subdivision two of section three
4 of this act to the ESCO or ESCOs. Such ESCOs shall commence supply
5 services to participating customers.
6 S 6. Public service commission review. 1. Within 365 days of the
7 commencement of gas and/or electric supply services under an aggregation
8 contract, the commission, after consultation with the department shall
9 commence an audit to ensure such ESCO or ESCOs selected have achieved
10 benchmarks established pursuant to paragraph (b) of subdivision one of
11 section four of this act.
12 2. (a) If the commission determines that the ESCO or ESCOs providing
13 gas and/or electric gas supply services has failed to achieve such
14 benchmarks as established in subdivision three of section four of this
15 act, the contract for services established pursuant to subdivision three
16 of section four of this act shall be subject to termination by resol-
17 ution of the community choice aggregator's governing board.
18 (b) Within 30 days of the termination of a contract for services by
19 the community choice aggregator's municipal board, the ESCO shall issue
20 payment to each participating customer for any supply rates above those
21 specified in the contract, including the cost of any applicable re-entry
22 fees charged to a customer for resumption of supply services.
23 (c) The commission shall ensure that all customers eligible for
24 resumption of electric and/or gas supply service from their respective
25 distribution utility receive such services regardless of the actual
26 timing of the payment provided for under paragraph (b) of this subdivi-
27 sion.
28 3. An ESCO shall not levy any charge to a community choice aggregator
29 to cover expenses related to the termination of a contract.
30 S 7. Report. Within 30 months of the establishment of a supply
31 services contract for services or upon the termination of such contract,
32 the commission shall submit a report to the executive, the temporary
33 president of the senate, the speaker of the assembly, the chairs of the
34 senate energy and telecommunications committee and the assembly energy
35 committee detailing the performance of any aggregation contract. Such
36 report shall include the following information:
37 1. the number of participating customers served;
38 2. the ability of the ESCO or ESCOs selected under an aggregation
39 program to provide adequate supply services;
40 3. the actual supply rates charged under a contract for services;
41 4. the amount, if any, of participating customers whose residential or
42 non-residential service was disconnected; and
43 5. any other information the public service commission deems neces-
44 sary.
45 S 8. Energy services company bill of rights applicable to participat-
46 ing customers. For purposes of this act the term "customer" as defined
47 in paragraph (c) of subdivision 1 of section 349-d of the general busi-
48 ness law, shall include participating customers.
49 S 9. This act shall take effect immediately.