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New York PSC Directs Evaluation Of Municipal Aggregation

PSC To Consider Whether Opt-Out CCA Serves Public Interest Of Mass Market Customers


November 14, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The New York PSC said today in a news release that it has directed that an evaluation shall be conducted concerning the benefits and effectiveness of opt-out municipal aggregation, or community choice aggregation (CCA)

The PSC directed DPS Staff to work with NYSERDA to select a third-party consultant to perform an "extensive evaluation" of community choice aggregation, "to assess the benefits and effectiveness of the program’s policies and goals."

"The program evaluation will inform the Commission as it considers whether the opt-out CCA program serves the public interest of mass market customers in New York State," the PSC said

The PSC said that there are currently 53 New York municipalities participating in community choice aggregation

Additionally, the PSC said that it adopted "enhancements" to the outreach and education requirements for CCAs

A written order with the new outreach and education requirements for CCAs was not published as of publication time (Case 14-M-0224)

As described by the PSC in a news release, "The expansion of the outreach and education requirements approved today will ensure that an appropriate and effective level of Administrator engagement was conducted within a CCA municipality prior to the start of the municipality’s out-opt CCA program. The changes include increasing community awareness and community engagement, lengthening the outreach and education period, increasing the minimum number of outreach and education actions necessary, clarifying the rules around the exchange of CCA related data, and ensuring municipalities acknowledge their legal and program requirements."

"The Commission remains interested in allowing CCA programs to provide more local control of energy supply sources and price, so long as consumers benefit and statewide policy goals are advanced," said Commission Chair Rory M. Christian. "As the Commission continues to review the outcomes achieved by CCAs in terms of price, customer participation in clean energy programs, and renewable energy procurements, we must ensure consumers have information about the CCA program and understand how to opt out if they wish."

Recently, Good Energy informed the PSC that it is returning CCA customers in several communities to default service, due to the price limits applicable to CCA mass market service

Good Energy said that communities to be "temporarily" returned to default service include the following:

• Village of Wesley Hills - January expiration - O&R

• Town of Cairo - December expiration - Central Hudson

• Town of New Baltimore - December expiration - Central Hudson

• Village of Coxsackie - December expiration - Central Hudson

• Town of Chazy - December expiration - NYSEG

"[W]e were unable to secure a price that falls within 5% of the utility price-to-compare (PTC)," for the relevant CCAs, Good Energy said

"Given this situation, we have made the decision to return the CCA participants back to their respective utilities temporarily," Good Energy said

"We will prospectively renew the programs the subsequent year of 2025, when prices are in line with CCA PTC rules," Good Energy said

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