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NY State Agency Pushing Communities To Launch Opt-Out Aggregations By Offering Up To $250,000 Grant For Implementation, Other Actions

August 22, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Implementing an opt-out municipal aggregation is one of 10 "High Impact Actions" that New York communities may undertake to be eligible for grants up to $250,000 under NYSERDA's Clean Energy Communities program

Certain NYSERDA facts sheets regarding how implementing an opt-out aggregation counts as a High Impact Action suggests that the aggregation must have a default product that is 100% "renewable" (national green-E RECs) to qualify, and/or that "all" participating customers must be served under a 100% "renewable" product

However, this NYSERDA webpage is less clear regarding whether the default product must be 100% renewable

Specifically, this NYSERDA webpage states under "requirements" for eligible opt-out aggregations, "Customers must be allowed to migrate at any time with no fee or penalty (other than a rate differential) to a 100% Renewable Clean Power Product Mix, to be sourced from hydro, wind, or solar produced in the North America and certified by Green-e." [emphasis added], which under one reading suggests that the default product would not be 100% renewable.

It is possible that the migration referred to in this quote means that the aggregation must remain open at all times for new service customers, or customers who opted out or who were not included in the aggregation originally due to taking ESCO service.

However, if NYSERDA's promotion of opt-out aggregations is not contingent on the default product being 100% renewable, it suggests that the incentives for opt-out aggregations are motivated by other policy goals. After all, if cities must only offer a 100% renewable option, this same effect could be achieved under the much more customer-friendly opt-in aggregation model

In any case, regardless of whether aggregations must have a 100% renewable default product to qualify, it is notable that the so-called "renewable" aggregation is not limited to physical electricity supply located in, or deliverable into, New York -- a standard ESCOs were (and still may) be held to.

Being designated as a Clean Energy Community by NYSERDA allows the community to access grant funding, up to $250,000, with no local cost share, to support additional clean energy projects. Communities must complete four in 10 High Impact Actions to achieve Clean Energy Community

Other High Impact Actions include benchmarking, LED streetlights, clean vehicle, and solarize campaigns.

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