New York Municipal Aggregation Programs

Consistent with an April 2016 decision in which it had determined that so-called community choice aggregation (CCA) programs would facilitate greater participation in competitive retail energy markets, the New York Public Service Commission approved CCA plans developed by the City of Elmira and six other smaller towns. Under the CCA precept, municipal government agencies are able to negotiate electricity supply arrangements on behalf of their citizens.

In authorizing the CCA initiative last year, the commission had contended that larger entities, such as cities or towns, clearly have more bargaining power than an individual, which bulk purchasing advantage can translate into significant energy cost savings for consumers. The commission affirmed that belief in its Elmira order, asserting that community-based groups can use their bulk procurements to leverage lower prices for their energy supply. Besides the pricing benefits of CCAs, though, the commission also had reasoned that because many local authorities have evidenced a municipal policy of promoting increased reliance on clean, green sources of electric generation, the move toward CCA offerings was likely to lead to further subscriptions to renewable energy products, thus advancing New York’s REV.

The commission noted that in addition to the environmental quality and cost saving aspects of utilizing renewable resources, further benefits from the REV and CCA strategies are expected in the form of growth in the local economy and expanded employment opportunities. When Elmira filed its CCA proposal, it pointed to the success enjoyed by Westchester County, which was one of the first jurisdictions in the state to embrace the CCA option. Elmira also expressed a desire to transition toward more renewable energy, in the interests of sustainability and reductions in greenhouse gases and other carbon emissions. Elmira’s CCA plan was predicated on collaboration with the Municipal Electric and Gas Alliance (MEGA), a nonprofit founded back in 2001 for the purpose of helping local governments navigate the state’s energy markets and improve their energy cost administration.

According to the commission, MEGA has specialized in assisting small communities in Upstate New York set up and manage their CCAs. As presented to the commission, Elmira and MEGA will jointly undertake a public outreach campaign through which to alert citizens to the availability of the CCA program. MEGA will oversee negotiations with potential energy supply providers and help Elmira execute contracts with selected vendors thereto. While the success of CCA depends in part on the most widespread participation possible, no customer will be compelled to participate. That is, every customer must be given an opportunity to opt out of the CCA plan if so desired.

Besides Elmira, the other towns and villages which received approval of their proffered CCA programs were Oneonta, Montour, Horseheads, Union, Binghamton, and Montour Falls. Observing that those towns are spread across four different counties, the commission stated that it envisions a number of other small local governments in northern New York joining the CCA movement in the near future, with most signing up with MEGA to help guide them through the process of creating and establishing a CCA plan. Re Municipal Electric & Gas Alliance, Inc., Cases 16-M- 0015, 14-M-0224, Oct. 19, 2017 (N.Y.P.S.C.).