New York Approves Opt-Out Municipal Aggregation on Statewide Basis

The New York PSC today approved an order which allows municipalities to engage in opt-out aggregation, and which contains requirements governing such aggregations, including customer eligibility

A written order was not immediately available

Staff said that "mass market" customers may be aggregated by municipalities on an opt-out basis (a specific definition was not cited during the discussion). However, Staff said that large customers may join aggregations on an opt-in basis

To date, the PSC had only allowed opt-out aggregation on a pilot basis, with only one pilot approved (Sustainable Westchester), though several additional aggregations had sought pilot status, and such aggregations presumably will act to move forward, subject to the new requirements, now that the mechanism of an opt-out aggregation has been approved generally.

Municipal aggregations which have sought approval as pilots to date have included (click links for background):

• Municipal Electric and Gas Alliance -- Municipal Electric and Gas Alliance Consortium Representing Over 300 Entities Seeks PSC Approval for Opt-Out Aggregation (Albany Expresses Interest)

• Sullivan County -- Sullivan Alliance for Sustainable Development Seeks Approval As "Demonstration" Project, Wants To Include "Large-scale" Business Customers (Will Also Offer Smart Energy Tools To Homes)

• Ulster County -- Citizens for Local Power Proposes Opt-Out Municipal Aggregation "Demonstration" Project

In discussing the order before the Commission, PSC Staff said that products offered by municipal aggregations will be governed by the PSC's February 23 retail market reset order. Noting that work remains to be done on products allowed to be offered by ESCOs under the February 23 order, PSC Chair Audrey Zibelman said that work remains to be done before municipal aggregations are implemented -- the state isn't going to see a wave of aggregations start in the next week or two, Zibelman said

In contrast, the February 23 order had specifically exempted, at that time, the Sustainable Westchester municipal aggregation from the order's provisions concerning compliant products

Municipal aggregations will need to file implementation plans with the PSC and certain approvals will be needed

Specific details on requirements for municipal aggregations will follow once the PSC publishes its order