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Another New York Municipal Aggregation Seeks Approval As "Demonstration" Project, Wants To Include "Large-scale" Business Customers (Will Also Offer Smart Energy Tools To Homes)

October 5, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Sullivan Alliance for Sustainable Development (SASD) has petitioned the New York PSC for approval of an opt-out electricity municipal aggregation in Sullivan County, New York for a four-year term, as a Reforming the Energy Vision "demonstration" project

Sullivan County is described in the petition as, "a rural county with a year-round of population of around 77,000," located within the New York State Electric & Gas (NYSEG), Central Hudson Gas & Electric, and Orange & Rockland Power service areas

"It is our view that larger-scale businesses, for example G3 customers, should be permitted to participate in SCCCA [Sullivan County community choice aggregation] because it will offer them the opportunity to actively engage in a program that will bring material benefits to the community that they serve. Nevertheless, SASD and Sullivan County are prepared to proceed with SCCCA should the Commission determine that relief from UBP should be limited to residential and 'small non-residential customers' and should that be defined by the Commission as 'non-demand customers'," the Alliance said

"No customer currently purchasing energy from an ESCO will be solicited to join SCCCA [Sullivan County community choice aggregation] or enrolled in the program by default, but ESCO customers will be permitted to opt into the program," the Alliance said

"SCCCA will be committed to offering either a default electric rate that is lower than the prevailing rate, or a fixed rate that is lower than the average prevailing rate during the preceding twelve months. Language to this effect is contained in SC Legislative Resolution 349-15, adopted in September 2015. SCCCA may also offer, at a premium, a 'light green' energy mix comprised of at least 33 percent renewables, and a 100 percent renewable energy option," the Alliance said

The Alliance sought PSC approval, "to allow SCCCA to impose surcharges to pay for the administration of the program and to support the introduction of Energy Efficiency (EE) measures and to build out local renewable energy systems that will ensure long term price stability, relieve pressure on the grid, and help New York State achieve its goal of reducing greenhouse gas (GHG) emissions."

The Alliance said that administrative fees of the SCCCA will be limited to up to one tenth of a penny per kilowatt hour (kWh) to cover day-to-day operations, including legal fees and communications. "SASD also requests permission for SCCAA to impose other fees so long as they do not interfere with the ability of the CCA to provide consumers with electricity that is priced below the prevailing rate or below the average prevailing rate during the preceding twelve months."

The Alliance is also seeking that the utilities that serve Sullivan County fund development costs totaling $325,215 in Year 1, "from the funds they have set aside for such programs."

"SASD proposes to utilize the existing capacity Demand-Response (D-R) revenue stream (approximately $30-40/ kW for four to twenty hours) secured with measured and verifiable Small Customer Aggregation submitted to New York Independent Systems Operators (NYISO) to deploy smart meters and smart thermostats and to perform data analysis research to enhance efficiency savings. SASD intends to submit further Petitions to the Commission, to propose specific tariff changes for homes equipped with remotely controlled smart thermostats," the Alliance said

The Alliance said that, "it is our view that under New York State law a county is a municipality and, as such, has the legal authority to establish a CCA without the explicit approval of every town within its jurisdiction. If the petition to establish SCCCA is approved, we will immediately seek an advisory opinion from the office of the New York State Attorney General (NYS AG) on this matter. If the NYS AG determines that a county cannot create a CCA without the explicit approval of the towns within its jurisdiction, SASD will pursue a multi-municipal CCA at the town level. If it is determined that a referendum is required, Sullivan County will comply with that requirement."

The Alliance also petitioned the PSC to order utilities to permit SCCCA to include 1,000 character messages, or inserts, in their monthly bills.

The Alliance asked that all data being provided by utilities be provided at no cost to the SCCCA, or at no more than 7 cents per record.

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