By William Opalka
ALBANY, N.Y. — The New York Public Service Commission voted 3-1 Wednesday to allow municipalities statewide to make bulk purchases of electricity and natural gas, including renewable power (14-M-0224).
The Community Choice Aggregation program is part of the state’s Reforming the Energy Vision initiative to encourage the greater use of cleaner and distributed energy resources.
“The CCAs started in California and in Illinois and it was largely around aggregating supply,” NYPSC Chair Audrey Zibelman said. “I think the New York version is going to be much more about aggregating demand.”
By combining their purchasing power, communities can get the cleaner energy supplies they desire at a better price, she said. “I’m [as] excited about this element of REV as anything else we’re doing,” she added.
The commission, which started a proceeding to explore aggregation in December 2014, said CCA programs in other states have only been successful where opt-out aggregation is permitted for mass-market customers. “Opt-in aggregation has proved valuable to certain larger customer groups, but opt-out aggregation appears necessary for CCA programs to achieve the scale that will enable [energy service companies] to create meaningful benefits for mass market customers,” the commission said.
The program will be open to villages, towns and cities. Municipalities will be required to conduct a minimum two-month information and education program to potential CCA members, after which residents would have at least 30 days to respond to opt-out notifications.
Municipalities will be encouraged to design CCA programs that include integration of distributed energy resources and procurement of clean energy, both through direct procurement and opt-in programs for customers. “Since CCA programs are intended to promote greater consumer awareness and bill savings, they present a formidable opportunity to advance the state’s clean energy objectives,” the PSC said.
Municipalities that contract with energy service companies will be required to conduct open competitive processes, and contracts must “offer value to their residents through favorable pricing, significant clean energy in their energy supply portfolio or another commission-approved energy-related value-added product.”
The New York State Energy Research and Development Authority will provide technical assistance to participating communities.
Commissioner Diane Burman dissented from the order, saying she supports CCA but thought the state was moving too quickly. She said she wanted to learn first from Sustainable Westchester’s pilot program, which has not yet started. The program has 110,000 residents enrolled in 17 communities and is now mailing opt-out notices to residents.
Sustainable Westchester and a partner want to develop 10 MW of solar arrays in five locations.
“My concern is truly understanding what we’re doing in the pilot program and the lessons learned,” Burman said, adding that she feared “moving too quickly into a statewide application when we haven’t done or asked for real analysis.”