Community Choice Aggregation (Energy)

What is Community Choice Aggregation?

Community choice aggregation (CCA) is a municipal energy procurement model that allows local governments to procure “clean” power on behalf of their qualified* residents, businesses, and municipal accounts from an alternative supplier while still receiving transmission and distribution service from their existing utility provider. CCAs are an attractive option for communities that want more local control over their electricity sources, more green power than is offered by the default utility, and/or lower electricity prices. By aggregating demand, communities gain leverage to negotiate better rates with competitive suppliers and choose greener power sources. By design, CCAs are opt-out community-wide programs that include all qualified households and businesses.

*Eligible customers as set forth by the NYSPSC see appendix D http://localpower.com/NY-PSC-CCA-Order-4-21-16.pdf

The underlying strategy in the CCA model is that the municipality/PA would leverage the entire community’s demand for electricity to negotiate with power suppliers for clean energy at a rate lower than what was recently charged by the local utility company for fossil-based energy sources. The concept is positioned as a win-win where customers are credited with using clean energy at a lower rate than they could have purchased independently, and the environment benefits from a shift to more demand for renewable energy sources. Of importance, there are no guarantees that cost savings to consumers will be achieved or sustained in the long term. Contracts are typically negotiated in two-year terms.

CCAs are currently authorized in California, Illinois, Ohio, Massachusetts, New Jersey, New York, and Rhode Island.

CCA in New York State

On April 21, 2016, the New York State Public Service Commission passed an order authorizing the framework for Community Choice Aggregation opt-out programs as part of Governor Cuomo’s Reforming the Energy Vision (REV) initiative.

CCA in Penfield

The Energy and Environmental Advisory Committee (EEAC) began investigating Community Choice Aggregation (CCA) in 2016 after the energy procurement model was authorized by the New York State Public Service Commission. Also in 2016, the EEAC began exploring Clean Energy Communities (CEC) designation for the Town. CEC specifies 10 high-impact actions local governments can take in pursuit of CEC designation. Community Choice Aggregation is a qualified high-impact action.

  • CCA Program Administrator: Good Energy, L.P.
  • Energy Supplier: Constellation NewEnergy

History

Since 2016, the EEAC has researched the role and performance of CCA in other communities and tracked the progress of neighboring municipalities in their evaluation and pursuit of CCA. Implementing CCA is a significant project that is typically managed by a third-party Program Administrator (PA). The EEAC has met with multiple PAs to review their organizations, experience, and performance. 

On March 4, 2020 the Town Board held a Public Hearing to consider the adoption of Local Law No. 2 of 2020, known as “A Local Law to Authorize Establishment of a Community Choice Aggregation (Energy) Program in the Town of Penfield.” VIDEO

On May 13, 2020 the Town Board discussed the adoption of Local Law No. 2 during their regularly scheduled work session: VIDEO

On May 20, 2020
the Town Board took a required first step towards CCA by adopting Local Law No. 2 of 2020, known as “A Local Law to Authorize Establishment of a Community Choice Aggregation (Energy) Program in the Town of Penfield.” This law enables the Town to pursue establishing CCA in Penfield. VIDEO

On October 7, 2020 the Town Board passed a resolution to advertise a Request for Proposal for a PA. The chosen PA would be authorized to negotiate for an energy supplier to deliver a specified mix of energy at a specific price point to Penfield electricity customers. The Town Board will then review supplier proposals presented by the PA. Based on what is presented, the Town Board will determine if it will continue to pursue CCA for Penfield. VIDEO

On June 2, 2021 the Town Board passed a resolution designating Good Energy, L.P. to act as the Program Administrator for the Town of Penfield’s Community Choice Aggregation (CCA) Program following an RFP process that was initiated in October 2020. Good Energy is the leader in CCA with more than 400 active public sector aggregations serving approximately 3,000,000 residents and municipal facilities. Roughly 400,000 households receive 100% renewable energy with combined savings exceeding $200 million. VIDEO

August 5, 2021: Good Energy is currently accepting bids from competitive suppliers in an effort to combine the lowest costs with the highest percentage of renewable energy resources. Good Energy will work with the Town Board to select a supplier, the most advantageous term length, and the optimal amount of renewable content. Once a supplier is selected, Good Energy will launch a 60-day outreach campaign to help create awareness in the community.

August 20, 2021: The Town of Penfield and its CCA Program Administrator Good Energy have completed the CCA supplier bidding process. After reviewing submissions, the Town Board authorized Supervisor Tony LaFountain to enter into a 24-month Aggregation Program Agreement with Constellation NewEnergy, Inc. to provide eligible Penfield residents an electricity product that is 50% green at the price of 5.733 cents/kWh. Residents who wish to opt-up to a 100% green product at a slightly higher fixed rate of 6.443 cents/kWh will have that option. Residents who do NOT wish to participate in the CCA program always have the ability to opt-out at no cost. Good Energy will begin public outreach in the coming weeks.

Resources: