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Updated: New York PSC Authorizes More Opt-Out Municipal Aggregations, New Administrator

January 17, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Update, 1/19: The PSC's final written order authorizing Good Energy's CCAs includes the provisions contained in draft discussion document, and the descriptions below are consistent with the language adopted in the final order

From 1/18:

The story below was first published on EnergyChoiceMatters.com at 11:05 a.m. on January 18

The New York PSC adopted an order at its public session today that authorizes Good Energy, L.P., as the community choice aggregation (CCA) administrator, to implement opt-out municipal aggregations for several municipalities in New York State.

As stated in a draft discussion document prepared for today's session, the municipalities included in Good Energy's CCAs include the Towns of Cairo and New Baltimore, Greene County; the Village of Coxsackie, Greene County; and the Villages of Fayetteville and Minoa, Onondaga County

The PSC's authorization was conditioned on several provisions, many of which were first required in the recent Municipal Electric and Gas Alliance (MEGA) CCA authorization order (MEGA order).

Staff discussed these provisions during session today, and as discussed by Staff, these provisions were generally the same as those that were described in a draft discussion document posted in advance of session.

A final written order, whose language and direction may depart from the discussion draft, has not yet been issued

The draft discussion document clarified that the opt-out period of at least 30 days for the CCA is separate from the outreach period, which are both required under the CCA Framework Order. In other words, the draft said, the opt-out period cannot start until after the outreach of no less than two months has already ended.

The draft noted that, "Good Energy’s Planned Schedule shows education to begin on day 52, additional public outreach meeting on day 55, and opt-out notices to be mailed on day 80."

The draft noted that this would indicate that the opt-out notices would be mailed 28 days after outreach/education begins, which, the draft discussion document stated, "would be in violation of the order." Keeping with consumer education/outreach beginning on day 52, the soonest Good Energy would be able to mail opt-out notices would be day 112. The planned schedule and outreach timeline must be updated with correct timelines (education/outreach period, ESCO selection, and additional outreach meeting(s) before opt-out letters are to be mailed), the draft discussion document would provide.

The draft discussion document would provide that, consistent with the MEGA order, Good Energy may only serve participants in utility low-income assistance programs (APPs) if it offers them a product consistent with Commission rules for ESCO service to APPs. At this time, those rules require that APPs be provided with guaranteed savings.

Consistent with the discussion in the MEGA order, the draft discussion document would provide that Good Energy shall remove customer account number from its definition of "Customer Contact Information" in its Implementation Plan (Attachment A) and Data Protection Plan (Attachment B). The Commission previously determined in the MEGA Order that account numbers are not essential during the opt-out phase and that allowing utilities to withhold account numbers reduced the risk to customers.

The draft discussion document noted that Good Energy’s Implementation Plan Supplement advises that, "[i]f necessary, the selected ESCO will provide bilingual or multilingual customer support to explain the opt-out procedure to non-English speaking residents during this period and throughout the initial procurement term."

The draft discussion document noted that, "ESCOs are bound by the conditions of the Uniform Business Practices (UBP), which includes provisions for limited English proficiency (LEP) consumers. The Marketing Standards of the UBP require that 'any written materials, including contracts, sales agreements, marketing materials and the ESCO Consumer Bill of Rights, must be provided to the customer in the same language utilized to solicit the customer.'"

The draft discussion document further noted that the CCA Framework Order also requires that all communications with LEP consumers, to the extent they can be identified by utility and/or municipal records, be provided in their native language. This provision, the draft noted, is to ensure that all consumers cannot only make an informed decision on whether to participate in the CCA program, but are also able to receive answers regarding any questions they may have throughout the life of the program.

The draft discussion document would therefore provide, "As such, translation service must be available for all stages of a CCA program, including the internal call center that Good Energy advises it has created to be 'staffed with experts to take calls from municipal residents inquiring about the municipality’s CCA program throughout its term.'"

"The ESCO might be unable to address some questions or concerns, such as implications of switching in and out of the CCA program; therefore, it is essential that Good Energy’s call center includes translation service capabilities. Additionally, all documentation sent to identified LEP consumers must be in their native language, throughout the life of the CCA program," the draft discussion document would provide

The draft noted that Good Energy’s plans assert that the selected ESCO(s) will be responsible for compliance with some of the requirements set forth in the CCA Framework Order.

"It is important to note that while the municipalities can outsource requirements to vendors, the municipality is ultimately responsible for ensuring the CCA program’s compliance with all portions of the CCA Framework Order," the draft discussion document states

Good Energy's implementation plan is somewhat unique in New York (thus far) in that it offers participating municipalities the selection to participate in various Buying Groups run by Good Energy.

Good Energy defines a Buying Group as participating municipalities that join with other municipal aggregators in combining its load for purposes of soliciting bids from ESCOs. The purpose of the Buying Group is to allow municipal aggregators to capture the benefits of collective purchasing power while retaining full municipal autonomy. Each municipality participating in the Buying Group would be represented by a designee(s) of their choosing on the executive committee of the Buying Group. A municipality, through its designee, would select an ESCO based on the needs of the municipality and would not be required to select the same terms or ESCO as other members of the Buying Group. Each participating municipality would be free to join or leave the Buying Group at any time and would be required to take all proper steps to approve the program as if the municipality were implementing a CCA program of its own, including enactment of a local law

Good Energy's Master Implementation Plan notes that Good Energy would work with the municipality to determine whether it would benefit from joining a Buying Group, which can help municipalities leverage their aggregated load with other municipalities’ aggregated load to further reduce energy expenses for all participating residents. Each municipality would have the independent authority to decide whether to join or leave a Buying Group.

Case 14-M-0224

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