Bill Text: NY S05500 | 2013-2014 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relates to municipal energy aggregation programs; authorizes inter-municipal agreement for the purpose of coordinating efforts by municipal energy aggregators to requests bids for and potentially select an energy service provider to provide electric and/or gas supply services to participating customers.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Vetoed) 2014-12-17 - VETOED MEMO.560 [S05500 Detail]

Download: New_York-2013-S05500-Amended.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        5500--A
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                     May 16, 2013
                                      ___________
       Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
         printed to be committed to the Committee on  Energy  and  Telecommuni-
         cations  --  committee  discharged, bill amended, ordered reprinted as
         amended and recommitted to said committee
       AN ACT authorizing certain municipalities to participate in a  municipal
         energy  aggregation  program through an inter-municipal agreement with
         one or more municipalities in order to coordinate efforts  to  procure
         electric and/or gas supply services on behalf of its residents
         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. "Resident" 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  municipal  energy  aggregation  program,
    7  provided that such customer did not  receive  electric  and  gas  supply
    8  services  from  an energy services company and/or the power authority of
    9  the state of New York.
   10    2. "Distribution  utility"  or  "distribution  utilities"  shall  mean
   11  Consolidated  Edison (Con-Edison) and/or New York State Electric and Gas
   12  ("NYSEG").
   13    3. "Participating customer" shall mean a resident who  receives  elec-
   14  tric  and/or  gas supply services through a municipal energy aggregation
   15  program.
   16    4. "Municipal energy aggregation  program"  or  "aggregation  program"
   17  shall  mean  an  inter-municipal agreement or a municipal resolution for
   18  the purpose of coordinating or initiating efforts by a  municipality  or
   19  by  municipal  energy  aggregators  to  request bids for and potentially
   20  select an ESCO or ESCOs to provide electric and/or gas  supply  services
   21  to participating customers.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11030-03-3
       S. 5500--A                          2
    1    5.  "Energy services company" or "ESCO" shall have the same meaning as
    2  such term is used in subdivision 5 of section 44 of the  public  service
    3  law.
    4    6.  "Municipality"  or  "municipalities"  shall  mean  a city, town or
    5  village located in Westchester county.
    6    7. "Municipal energy aggregator" or "energy aggregator" shall  mean  a
    7  municipality authorized pursuant to a local resolution to participate in
    8  an inter-municipal agreement establishing a municipal energy aggregation
    9  program.
   10    8.  "Program  administrator"  shall mean a municipal energy aggregator
   11  that is designated  pursuant  to  an  inter-municipal  agreement  or  an
   12  employee  designated  by  a  municipal  energy aggregator to fulfill the
   13  responsibilities of: (i) requesting and compiling historical usage  data
   14  of  distribution  utility  customers  as  required  under this act, (ii)
   15  submitting a request for bids for  energy  supply  services  from  ESCOs
   16  authorized  to  supply  electric and/or gas in New York state, and (iii)
   17  carrying out the administration of the contract  and  implementation  of
   18  aggregated services.
   19    9.  "Department" shall mean the New York department of public service.
   20    S  2.  Municipal  energy  aggregation programs. 1. A municipality may,
   21  after adopting a resolution approved by  a  majority  of  its  governing
   22  board,  participate in a municipal energy aggregation program through an
   23  inter-municipal agreement with one or more municipalities  in  order  to
   24  coordinate  efforts, or through its own municipal aggregation program to
   25  procure electric and/or gas supply services on behalf of its  residents.
   26  Such municipal energy aggregation program must provide for:
   27    (a) The expiration of such program of no later than five years; and
   28    (b) The designation of a program administrator to facilitate the oper-
   29  ations  of  a  municipal  energy  aggregation program, including but not
   30  limited to the receipt of resident  historical  usage  data  information
   31  from  distribution  utilities  pursuant to section three of this act and
   32  any communications necessary with potential  ESCOs  that  would  provide
   33  electric and/or gas supply services for such program;
   34    2.  A  municipal energy aggregator shall be responsible for responding
   35  to inquiries  regarding  the  particular  municipal  energy  aggregation
   36  program  in  which it is a participant. Such municipal energy aggregator
   37  shall provide contact information, including but not limited to a  mail-
   38  ing address, telephone number, e-mail address and fax number at which it
   39  may be contacted in all notices to participating customers.
   40    3. In establishing a contract for electric and/or gas services with an
   41  ESCO,  a program administrator shall comply with article 7 of the public
   42  officers law.
   43    S 3. Establishment of municipal energy  aggregation  program.  1.  The
   44  program  administrator  designated pursuant to an inter-municipal agree-
   45  ment establishing an aggregation program shall provide a  copy  of  such
   46  agreement  to the distribution utilities and submit a formal request for
   47  bulk usage information  provided  for  under  subdivision  two  of  this
   48  section.
   49    2.  (a) Within 60 days of the establishment of a municipal aggregation
   50  program or of an inter-municipal agreement establishing  an  aggregation
   51  program  and  the  formal  request,  distribution  utilities shall, at a
   52  reasonable cost as determined  by  the  commission  within  60  days  of
   53  adoption of this act, provide to the program administrator the following
   54  utility  bulk  information regarding residents receiving gas or electric
   55  supply services from such distribution utility:
       S. 5500--A                          3
    1    (i) the number of residents, by class served that do not receive elec-
    2  tric and/or gas supply service from an ESCO or the  power  authority  of
    3  the state of New York;
    4    (ii)  the  aggregate  gas  and  electric  usage of residents, by class
    5  served, for the 12-month period preceding the request; the  system  peak
    6  hour  or  hours that determines capacity buying requirements, and to the
    7  degree that it is available the aggregated load factor by  class  served
    8  for the 12-month period preceding the request; and
    9    (iii)  to  the  degree  that  it  is  available, reasonable efforts to
   10  provide more detailed historic  information  relating  to  energy  usage
   11  characteristics  of  customers, including but not limited to information
   12  by rate class on meter type, the number of smart  meters  deployed,  kWh
   13  usage  and  peak  demand information classification, meter reading cycle
   14  information, load profile designating information, the number of custom-
   15  ers enrolled in budget  billing  plans,  loss  factor  information,  net
   16  metering  information  and  any  other  information deemed useful by the
   17  program administrator to successfully solicit bids for and implement the
   18  aggregation program;
   19    (b) In providing the utility  bulk  information  required  under  this
   20  subdivision,  a  distribution  utility  shall  not  provide to a program
   21  administrator any information  identifying,  by  name  or  address,  any
   22  customer  of  such  utility  or  the  financial  information of any such
   23  customer, including, but not limited to social security numbers,  credit
   24  card or bank account numbers.
   25    S  4.  Selection  of  ESCO  providers. 1. Upon receipt of utility bulk
   26  information required under section three of this act, the program admin-
   27  istrator is authorized to advertise for the request of bids  from  ESCOs
   28  for  the  provision  of services for an aggregation program. Any request
   29  for bids shall specify that a contract for aggregation program  services
   30  must:
   31    (a) be limited to a period of no greater than 30 months;
   32    (b) include price benchmarks, which shall provide for:
   33    (i) monthly per kWh rates for electric supply services for each appli-
   34  cable  class  of  customers  that are below the 12-month average monthly
   35  price of supply services provided by  distribution  utilities  or  lower
   36  than  the  distribution utility's rate at the time of a request for bids
   37  as provided for in this section;
   38    (ii) monthly per Btu rates for gas supply services for each applicable
   39  class of customers that are below the 12-month average monthly price  of
   40  supply  services  provided  by  distribution utilities or lower than the
   41  distribution utility's rate at  the  time  of  a  request  for  bids  as
   42  provided for in this section;
   43    (c)  provide  that  the  ESCO  will  not levy any form of cancellation
   44  charge to participating customers who, after receiving  electric  and/or
   45  gas  supply  services  from  the  ESCO,  choose  to  receive such supply
   46  services from their respective distribution utility;
   47    (d) provide for a website for  participating  customers  to  view  the
   48  monthly rates charged for electric and/or gas supply services; and
   49    (e)  provide  that any costs associated with preparation for or imple-
   50  mentation of this program or contract shall only  be  reflected  in  the
   51  benchmark per kWh and per Btu bid price.
   52    2.  (a)  After  a review of bids submitted for energy supply services,
   53  energy aggregators are authorized to select the ESCO or ESCOs that  will
   54  offer  the  best  service,  price and other factors considered, provided
   55  that the per kWh supply rate for electricity and per Btu  rate  for  gas
   56  supply  services  that  is lower than the distribution utility's average
       S. 5500--A                          4
    1  monthly rate for supply services for the prior 12-month period, or lower
    2  than the distribution utility's rate at the time of a request  for  bids
    3  as provided for in this section and meet the requirements of subdivision
    4  one  of  this  section,  provided  that energy aggregators, may at their
    5  discretion, reject all bids or offers and readvertise for  new  bids  or
    6  offers in a manner provided by this act.
    7    (b)  In  making  a  selection, energy aggregators shall (i) select one
    8  ESCO for the provision of electric supply services; and (ii) select  one
    9  ESCO for the provision of gas supply services, provided however that the
   10  energy  aggregators  may select an ESCO to provide both electric and gas
   11  supply service, provided further that energy aggregators may not  select
   12  any  ESCO  that has been deemed ineligible to provide energy services by
   13  the department.
   14    3. After selection of an ESCO or ESCOs,  the  energy  aggregators  are
   15  authorized  to  enter  into  a  contract for supply services of up to 30
   16  months. Such contract shall include:
   17    (a) provisions prohibiting the ESCO or ESCOs from denying  service  to
   18  any  resident  receiving service from his or her distribution utility at
   19  the commencement of such contract;
   20    (b) monthly per kWh rates for electric supply services for each appli-
   21  cable class of customers that is  below  the  average  monthly  rate  of
   22  supply  services  provided  by  distribution  utilities  in the previous
   23  12-month period or lower than the distribution  utility's  rate  at  the
   24  time of a request for bids as provided for in this section;
   25    (c)  monthly per Btu rates for gas supply services for each applicable
   26  class of customers that is below the  average  monthly  rate  of  supply
   27  services  provided  by  distribution  utilities in the previous 12-month
   28  period or lower than the distribution utility's rate at the  time  of  a
   29  request for bids as provided for in this section;
   30    (d)  provisions requiring the ESCO or ESCOs to provide electric and/or
   31  gas supply rates lower than the distribution utility's  electric  and/or
   32  gas  supply rates for each monthly billing cycle for the duration of the
   33  contract, provided that a violation of this provision shall subject such
   34  ESCO to refund participating customers at the time of termination  of  a
   35  contract pursuant to section seven of this act;
   36    (e)  provisions prohibiting a municipal energy aggregator from opting-
   37  out of the contract during the term of such contract;
   38    (f) provisions for the termination of a contract for  services  if  an
   39  ESCO  fails  to  meet the price benchmarks pursuant to this act with the
   40  ESCO having exclusive responsibility for all re-entry fees charged to  a
   41  participating  customer  by distribution utilities for the resumption of
   42  supply services;
   43    (g) provisions indemnifying energy aggregators from  all  liabilities,
   44  damages  and  costs associated with the performance of an ESCO operating
   45  under a contract for services;
   46    (h) a requirement that the ESCO provide a performance bond if required
   47  by the energy aggregators; and
   48    (i) any other requirement that the energy aggregators  deem  necessary
   49  for  the  adequate  and  reliable  supply  of electric and/or gas supply
   50  services to participating customers.
   51    S 5. Notice of municipal  energy  aggregation  contract  required.  1.
   52  Upon  the  completion  of  the  contract for services provided for under
   53  subdivision three of section four of this act, the program administrator
   54  shall obtain from distribution utilities at a reasonable cost as  deter-
   55  mined by the commission within 60 days of the effective date of this act
   56  their  lists  of  residents  that  may  be affected by such contract and
       S. 5500--A                          5
    1  provide the municipal aggregators with such information.  The  municipal
    2  aggregator shall then notify such residents as to the provisions of such
    3  contract, including but not limited to price benchmarks.
    4    2.  Distribution  utilities  must  make all reasonable preparations to
    5  release residents who do not choose to opt-out pursuant  to  subdivision
    6  three  of  this  section  from  receiving  electric  and/or  gas  supply
    7  services, provided that all residents shall continue to receive delivery
    8  services from such utilities.
    9    3. Upon completion of a contract provided for under subdivision  three
   10  of  section  four  of this act, municipal energy aggregators must mail a
   11  notice to each resident not currently receiving supply services from  an
   12  ESCO  and/or  the  power  authority of the state of New York which shall
   13  include:
   14    (a) that the resident's municipal board has chosen to participate in a
   15  municipal energy aggregation contract;
   16    (b) that unless he/she elects to opt-out within 60 days of  the  post-
   17  marked  notice,  such  resident will become a participating customer and
   18  will receive electric and/or gas supply  services  through  a  municipal
   19  energy aggregation contract;
   20    (c)  instructions  detailing  how  a  resident  may  submit an opt-out
   21  response, provided that such procedures shall  permit  the  resident  to
   22  opt-out  by  contacting  the  program administrator and/or ESCO or ESCOs
   23  selected pursuant to the contract;
   24    (d) that each customer who  does  not  elect  to  opt-out  within  the
   25  prescribed period may elect to opt-out of such contract at any time; and
   26    (e)  that  in  the  case  of a participating customer the distribution
   27  utility is no longer  responsible  for  supply  rates  charged  to  such
   28  customer  and  that all complaints about supply service under the aggre-
   29  gation contract shall be the responsibility of the program administrator
   30  and ESCO or ESCOs.
   31    4. Immediately following the 60-day opt-out  period  provided  for  in
   32  paragraph  (b)  of subdivision three of this section, a municipal energy
   33  aggregator shall provide the program administrator  with  the  following
   34  information:
   35    (a)  the  number of residents that received electric and/or gas supply
   36  services from such distribution utility who are participating  customers
   37  by rate class; and
   38    (b)  the  name,  address,  and  account  number  of each participating
   39  customer.
   40    5. The program administrator, upon  receipt  of  information  required
   41  under  subdivision  four  of this section, shall submit such information
   42  and the information provided for under subdivision two of section  three
   43  of  this  act  to  the  ESCO  or ESCOs. Such ESCOs shall commence supply
   44  services to participating customers.
   45    S 6. Public service commission review.  1.  Within  365  days  of  the
   46  commencement of gas and/or electric supply services under an aggregation
   47  contract,  the  commission, after consultation with the department shall
   48  commence an audit to ensure such ESCO or ESCOs  selected  have  achieved
   49  benchmarks  established  pursuant to paragraph (b) of subdivision one of
   50  section four of this act.
   51    2. (a) If the commission determines that the ESCO or  ESCOs  providing
   52  gas  and/or  electric  gas  supply  services  has failed to achieve such
   53  benchmarks as established in subdivision three of section four  of  this
   54  act, the contract for services established pursuant to subdivision three
   55  of section four of this act shall be terminated immediately.
       S. 5500--A                          6
    1    (b)  Within 30 days of the termination of a contract for services, the
    2  ESCO shall issue payment to each participating customer for  any  supply
    3  rates  above  those specified in the contract, including the cost of any
    4  applicable re-entry fees charged to a resident for resumption of  supply
    5  services.
    6    (c)  The  commission  shall  ensure  that  all  residents eligible for
    7  resumption of electric and/or gas supply service from  their  respective
    8  distribution  utility  receive  such  services  regardless of the actual
    9  timing of the payment provided for under paragraph (b) of this  subdivi-
   10  sion.
   11    3.  An ESCO shall not levy any charge to an energy aggregator to cover
   12  expenses related to the termination of a contract.
   13    S 7. Within 30 months  of  the  establishment  of  a  supply  services
   14  contract  for  services  or  upon  the termination of such contract, the
   15  commission shall submit a report to the executive, the temporary  presi-
   16  dent  of  the  senate,  the  speaker  of the assembly, the chairs of the
   17  senate energy and telecommunications committee and the  assembly  energy
   18  committee  detailing  the  performance of any aggregation contract. Such
   19  report shall include the following information:
   20    1. the number of participating customers served;
   21    2. the ability of the ESCO or  ESCOs  selected  under  an  aggregation
   22  program to provide adequate supply services;
   23    3. the actual supply rates charged under a contract for services;
   24    4. the amount, if any, of participating customers whose residential or
   25  non-residential service was disconnected; and
   26    5.  any  other  information the public service commission deems neces-
   27  sary.
   28    S 8. Energy services company bill of rights applicable to  participat-
   29  ing  customers.  For purposes of this act the term "customer" as defined
   30  in paragraph (c) of subdivision 1 of section 349-d of the general  busi-
   31  ness law, shall include participating customers.
   32    S 9. This act shall take effect immediately.