S. 5500--C 2
general municipal law or a local resolution for the purpose of coordi-
nating or initiating efforts by a municipality or by municipal energy
aggregators to request bids for and potentially select an ESCO or ESCOs
to provide electric and/or gas supply to participating customers.
5. "Energy services company" or "ESCO" shall have the same meaning as
such term is used in subdivision 5 of section 44 of the public service
law.
6. "Municipality" or "municipalities" shall mean a city, town or
village located in Westchester county.
7. "Municipal energy aggregator" or "energy aggregator" shall mean a
municipality authorized pursuant to a local resolution to establish an
aggregation program or participate in an inter-municipal agreement
establishing a municipal energy aggregation program.
8. "Program administrator" shall mean an employee that is designated
pursuant to an inter-municipal agreement pursuant to article 5-G of the
general municipal law or, in the case of an aggregation program with one
energy aggregator, an employee designated by such energy aggregator to
fulfill the responsibilities of: (i) requesting and compiling historical
usage data of distribution utility customers as required under this act,
(ii) submitting a request for bids for energy supply from ESCOs author-
ized to supply electric and/or gas in New York state, and (iii) carrying
out the administration of the contract and implementation of aggregated
supply. Such responsibilities shall not be contracted or subcontracted
out to any private or not-for-profit corporation or organization.
9. "Department" shall mean the New York department of public service.
S 2. Municipal energy aggregation programs. 1. A municipality may,
after adopting a resolution approved by a majority of its governing
board, participate in a municipal energy aggregation program through an
inter-municipal agreement with one or more municipalities in order to
coordinate efforts, or through its own municipal aggregation program to
procure electric and/or gas supply on behalf of its residents. Such
municipal energy aggregation program must provide for the designation of
a program administrator to facilitate the operations of a municipal
energy aggregation program, including but not limited to the receipt of
resident historical usage data information from distribution utilities
pursuant to section three of this act and any communications necessary
with potential ESCOs that would provide electric and/or gas supply for
such program.
2. A municipal energy aggregator shall be responsible for responding
to inquiries regarding the particular municipal energy aggregation
program in which it is a participant. Such municipal energy aggregator
shall provide contact information, including but not limited to a mail-
ing address, telephone number, e-mail address and fax number at which it
may be contacted in all notices to participating customers.
3. In establishing a contract for an energy aggregation program with
an ESCO, a program administrator shall comply with article 7 of the
public officers law.
S 3. Establishment of municipal energy aggregation program. 1. The
program administrator designated pursuant to an inter-municipal agree-
ment establishing an aggregation program or a local ordinance authoriz-
ing a municipality to become an energy aggregator shall provide a copy
of such agreement to the distribution utilities and submit a formal
request for bulk usage information provided for under subdivision 2 of
this section.
2. (a) Within 60 days of the establishment of a municipal aggregation
program and after a formal request, distribution utilities shall, at a
S. 5500--C 3
reasonable cost as determined by the commission within 60 days of the
effective date of this act, provide to the program administrator the
following utility bulk information regarding residents receiving gas or
electric supply from such distribution utility:
(i) the number of residents, by class served that do not receive elec-
tric and/or gas supply from an ESCO or the power authority of the state
of New York;
(ii) the aggregate gas and electric usage of residents, by class
served, for the 12-month period preceding the request; the system peak
hour or hours that determines capacity buying requirements, and to the
degree that it is available the aggregated load factor by class served
for the 12-month period preceding the request;
(iii) the average monthly per kWh and per Btu supply rates by class
served charged by the distribution utility for the previous 12 months;
and
(iv) to the degree that it is available, reasonable efforts to provide
more detailed historic information relating to energy usage character-
istics of customers, including but not limited to information by rate
class on meter type, kWh usage and peak demand information classifica-
tion, meter reading cycle information, load profile designating informa-
tion, the number of customers enrolled in budget billing plans, loss
factor information, net metering information, individual capacity tag
information and any other information deemed useful by the program
administrator to successfully solicit bids for and implement the aggre-
gation program;
(b) In providing the utility bulk information required under this
subdivision, a distribution utility shall not provide to a program
administrator any information identifying, by name or address, any
customer of such utility or the financial information of any such
customer, including, but not limited to social security numbers, credit
card or bank account numbers.
S 4. Selection of ESCO providers. 1. Upon receipt of utility bulk
information required under section three of this act, the program admin-
istrator is authorized to advertise for the request of bids from ESCOs
for the provision of supply for an aggregation program. Any request for
bids shall specify that a contract for an aggregation program must:
(a) be limited to a period of no greater than 30 months;
(b) include price benchmarks, which shall provide for:
(i) in the case of a contract that includes electric supply, a fixed
monthly per kWh supply rate for the first 6-month sub-period that is
below the average monthly rate of supply provided by the distribution
utility in the previous 12-month period;
(ii) a commitment to provide fixed monthly per kWh supply rates for
each subsequent 6-month sub-period, and a commitment by the ESCO
selected to notify the program administrator of the kWh supply rate for
the upcoming sub-period no later than two months prior to the commence-
ment of each such sub-period pursuant to section seven of this act;
(iii) in the case of a contract that includes gas supply, a fixed
monthly per Btu supply rate for the first 6-month sub-period that is
below the average monthly price of supply provided by the distribution
utility in the previous 12-month period; and
(iv) a commitment to provide fixed monthly Btu supply rates for each
subsequent 6-month sub-period, and a commitment by the ESCO selected to
notify the program administrator of the Btu supply rate for the upcoming
sub-period no later than 2 months prior to the commencement of each such
sub-period pursuant to section seven of this act;
S. 5500--C 4
(c) provide that the ESCO will not levy any form of cancellation
charge to participating customers who, after receiving electric and/or
gas supply from the ESCO, choose to receive such supply from their
respective distribution utility;
(d) provide for a website for participating customers to view the
monthly rates charged for electric and/or gas supply; and
(e) provide that any costs associated with preparation for or imple-
mentation of this program or contract shall only be reflected in the
benchmark per kWh and/or per Btu fixed rate.
2. (a) After a review of bids submitted for energy supply, energy
aggregators are authorized to select the ESCO or ESCOs that will offer
the best service, price and any other factors, determined to be appro-
priate, provided that the per kWh rate for electric supply and per Btu
rate for gas supply for the first 6-month sub-period are below the aver-
age monthly price of supply provided by the distribution utility in the
previous 12 months and meet the requirements of subdivision 1 of this
section, provided that energy aggregators, may at their discretion,
reject all bids or offers and readvertise for new bids or offers in the
manner provided by this act.
(b) In making a selection, energy aggregators shall (i) select one
ESCO for the provision of electric supply; and (ii) select one ESCO for
the provision of gas supply, provided however that the energy aggrega-
tors may select an ESCO to provide both electric and gas supply,
provided further that energy aggregators may not select any ESCO that
has been deemed ineligible to provide energy services by the department.
3. The energy aggregator or aggregators shall document, and make
available upon request, the process used for the selection of an ESCO or
ESCOs including, but not limited to documenting all bids received and
the criteria and factors used for the selection process.
4. After selection of an ESCO or ESCOs, the energy aggregators are
authorized to enter into a contract for energy aggregation program
services of up to 30 months. Such contract shall include:
(a) provisions prohibiting the ESCO or ESCOs from denying service to:
(i) in the case of a contract that includes electric supply, any resi-
dent receiving service from his or her distribution utility at the
commencement of such contract; and
(ii) any customer of record of a distribution utility receiving resi-
dential or small non-residential services whose municipality is an ener-
gy aggregator in the aggregation program for which the ESCO or ESCOs
will provide supply;
(b)(i) a provision requiring a fixed monthly per kWh supply rate for
the first 6-month sub-period that is below the average monthly price of
supply provided by the distribution utility in the previous 12-month
period; and
(ii) a provision requiring the ESCO to provide fixed monthly per kWh
rates for each subsequent 6-month sub-period; and that no later than 2
months prior to the commencement of each 6-month sub-period, the ESCO
shall notify the program administrator of the fixed monthly per kWh rate
for such upcoming sub-period, pursuant to section seven of this act;
(c)(i) a provision requiring a fixed monthly per Btu supply rate for
the first 6-month sub-period that is below the average monthly price of
supply services provided by the distribution utility in the previous
12-month period; and
(ii) in the case of a contract that includes gas supply, a provision
requiring the ESCO to provide fixed monthly per Btu rates for each
subsequent 6-month sub-period; and that no later than 2 months prior to
S. 5500--C 5
the commencement of each 6-month sub-period, the ESCO shall notify the
program administrator of the fixed monthly per Btu rate for such upcom-
ing sub-period, pursuant to section seven of this act;
(d) provisions requiring the ESCO or ESCOs to provide electric and/or
gas supply rates lower than the distribution utility's electric and/or
gas supply rates pursuant to paragraphs (b) and (c) of this subdivision,
provided that a violation of this provision shall subject such ESCO to
refund participating customers at the time of termination of a contract
pursuant to section nine of this act;
(e) provisions prohibiting a municipal energy aggregator from opting-
out of the contract during the term of such contract;
(f) provisions for the termination of a contract for an energy aggre-
gation program if an ESCO fails to meet the requirements of this act
with the ESCO having exclusive responsibility for all re-entry fees
charged to a participating customer by distribution utilities for the
resumption of supply;
(g) provisions indemnifying energy aggregators from all liabilities,
damages and costs associated with the performance of an ESCO operating
under a contract for an energy aggregation program; and
(h) a requirement that the ESCO provide a performance bond if required
by the energy aggregators.
5. Immediately following the finalization of a contract for an energy
aggregation program pursuant to subdivision four of this section, the
program administrator shall promptly notify the distribution utility
and/or distribution utilities of such contract, the length of such
contract and the distribution utility's responsibilities under this act.
S 5. Notice of municipal energy aggregation contract required. 1.
Upon the completion of the contract for an energy aggregation program
provided for under subdivision three of section four of this act, the
program administrator shall obtain from distribution utilities at a
reasonable cost as determined by the commission within 60 days of the
effective date of this act their lists of residents that may be affected
by such contract and provide the municipal energy aggregators with such
information. Each municipal energy aggregator shall then notify such
residents as to the provisions of such contract, including but not
limited to price benchmarks.
2. Distribution utilities shall make all reasonable preparations to
release residents who do not choose to opt-out pursuant to subdivision
three of this section from receiving electric and/or gas supply,
provided that all residents shall continue to receive delivery from such
utilities.
3. Upon completion of a contract provided for under subdivision three
of section four of this act, municipal energy aggregators must mail a
notice to each resident which shall include:
(a) that the resident's municipal board has chosen to participate in a
municipal energy aggregation contract;
(b) that unless he/she elects to opt-out within 60 days of the post-
marked notice, such resident will become a participating customer and
will receive electric and/or gas supply through a municipal energy
aggregation contract;
(c) instructions detailing how a resident may submit an opt-out
response, provided that such procedures shall permit the resident to
opt-out by contacting the program administrator and/or ESCO or ESCOs
selected pursuant to the contract;
S. 5500--C 6
(d) that each resident who does not elect to opt-out within the
prescribed period and becomes a participating customer, may elect to
opt-out of such contract at any time; and
(e) that in the case of a participating customer the distribution
utility will no longer be responsible for supply rates charged to such
customer and that all complaints about supply under the aggregation
contract shall be the responsibility of the municipal energy aggregator
in which the customer resides and ESCO or ESCOs.
4. Immediately following the 60-day opt-out period provided for in
paragraph (b) of subdivision three of this section, a municipal energy
aggregator shall provide the program administrator with the following
information:
(a) the number of residents that received electric and/or gas supply
from such distribution utility who are participating customers by rate
class; and
(b) the name, address, and account number of each participating
customer.
5. The program administrator, upon receipt of information required
under subdivision four of this section, shall submit such information
and the information provided for under subdivision two of section three
of this act to the ESCO or ESCOs. Such ESCOs shall commence electric
and/or gas supply to participating customers.
S 6. Distribution utility requirements following a contract for aggre-
gation program services. No later than 2 weeks preceding the expiration
of the initial 6-month sub-period under a contract for an energy aggre-
gation program and any subsequent 6-month sub-period pursuant to such
contract for an aggregation program, a distribution utility shall
provide the program administrator with:
1. the average monthly per kWh rate for supply by class served for the
previous 6-month period; and
2. the average monthly per Btu rate for supply by class served for the
previous 6-month period.
S 7. ESCO supply rate notification requirements. 1. For the sub-period
commencing after the initial sub-period provided for under a contract
for an energy aggregation program, the ESCO or ESCOs shall provide the
program administrator with the fixed monthly per kWh supply rate and/or
the fixed monthly per Btu supply rate for the upcoming 6-month sub-per-
iod.
2. Any expenses incurred by an ESCO or ESCOs, including but not limit-
ed to expenses incurred in the execution of a contract for an energy
aggregation program pursuant to section four of this act, shall only be
recovered from the per kWh supply rate and/or per Btu supply rate
charged to participating customers pursuant to a contract for energy
aggregation services. The ESCO or ESCOs selected shall not issue any
charge, fee, or bill for aggregation program services to an aggregator,
resident, participating customer or program administrator to recover
expenses, including, but not limited to expenses incurred for:
(a) electric and gas supply procurement;
(b) taxes, assessments, fees and surcharges;
(c) wheeling and/or transfer costs; and
(d) administrative charges, expenses, staff and consultant costs.
S 8. Notice of 6-month fixed rate. 1. No later than 2 months prior to
the commencement of each 6-month sub-period under a contract for an
aggregation program, the program administrator shall mail to each
participating customer a notice that shall provide the fixed monthly per
S. 5500--C 7
kWh rates and/or fixed monthly per Btu rates for such upcoming sub-per-
iod.
2. No later than 6 months after the commencement of a contract for an
aggregation program and every six months thereafter, the program admin-
istrator shall mail to each participating customer a statement that
shall provide:
(a) the average per kWh and/or per Btu rate for supply for the previ-
ous 6-month sub-period charged by the distribution utility, provided
that such rates shall only be the actual supply rates charged by the
utility, and shall not include any delivery rates, service charges, or
taxes, assessments, fees and surcharges recovered from customers;
(b) the fixed monthly rate charged by the ESCO and/or ESCOs for the
previous 6-month sub-period;
(c) the fixed monthly per kWh rates and/or fixed monthly per Btu rates
to be charged by an ESCO and/or ESCOs for such upcoming sub-period; and
(d) instructions detailing how a resident may submit an opt-out.
3. If any word, statement, notice or any other information required by
or under the authority of this act appears in any letter, email or any
other written communication to a recipient, including but not limited to
a resident or participating customer, such word, statement, notice or
other information must be prominently placed thereon with such conspicu-
ousness (as compared with other words, statements, designs, devices also
included thereon) and in such terms as to render it likely to be read
and understood by an ordinary individual under customary conditions of
purchase and use.
Any letter, email or other written communication from an ESCO seeking
to or selected to provide energy aggregation program supply, a program
administrator, or an energy aggregator, to a customer or participating
customer relating to an energy aggregation program shall be written in a
conspicuous font size of 12 point or greater.
S 9. Public service commission review. 1. Within 365 days of the
commencement of gas and/or electric supply services under an aggregation
contract, the commission, after consultation with the department shall
commence an audit to ensure such ESCO or ESCOs selected has met the
terms of its contract.
2. (a) If the commission determines that the ESCO or ESCOs providing
gas and/or electric supply has failed to achieve the terms of its
contract, the contract for an energy aggregation program established
pursuant to subdivision 3 of section four of this act shall be termi-
nated immediately.
(b) Within 30 days of the termination of a contract for an energy
aggregation program, the ESCO shall issue payment to each participating
customer for any supply rates above those specified in the contract,
including the cost of any applicable re-entry fees charged to a resident
for resumption of supply.
(c) The commission shall ensure that all residents eligible for
resumption of electric and/or gas supply from their respective distrib-
ution utility receive such services regardless of the actual timing of
the payment provided for under paragraph (b) of this subdivision.
3. An ESCO shall not levy any charge to an energy aggregator to cover
expenses related to the termination of a contract.
S 10. Within 30 months of the establishment of a contract for an ener-
gy aggregation program or upon the termination of such contract, the
commission shall submit a report to the executive, the temporary presi-
dent of the senate, the speaker of the assembly, the chairs of the
senate energy and telecommunications committee and the assembly energy
S. 5500--C 8
committee detailing the performance of any aggregation contract. Such
report shall include the following information:
1. the number of participating customers served;
2. the ability of the ESCO or ESCOs selected under an aggregation
program to provide adequate supply services;
3. the actual kWh and/or Btu supply rates charged under a contract for
an energy aggregation program;
4. the amount, if any, of participating customers whose residential or
non-residential service was disconnected; and
5. any other information the public service commission deems neces-
sary.
S 11. Energy services company bill of rights applicable to participat-
ing customers. For purposes of this act the term "customer" as defined
in paragraph (c) of subdivision 1 of section 349-d of the general busi-
ness law, shall include participating customers.
S 12. This act shall take effect immediately.