Community Choice Aggregation

Community Choice Aggregation [CCA] gives towns, cities and municipalities the ability to select 100% renewable electricity for their residents and small businesses at a contractually lower price than they have paid historically, generally the previous 1-2 years.

CCA lets towns/communities/etc. amass the buying power of residents and small businesses at large enough scale to determine their own terms of how they buy electricity. By combining local demand, municipalities can negotiate more favorable contract terms for the community.

CCA enables participants to pay less for renewable (or “clean”) energy than they’ve historically paid for the default utility electricity supply.

Community choice is a powerful means to:

• 1. Control costs by providing a fixed lower electricity rate than residents have been paying for a set period of time
• 2. Support the generation of clean, sustainable energy in New York State.
• 3. Increase consumer protection by instituting a program that has no additional charges or fees with a contract that guarantees a fixed rate for the community and gives residents flexibility to participate or not.

In 2016 Westchester Power, the first CCA pilot program in New York State, was launched in 21 communities in Westchester County. As of April 2020, the pilot program had expanded to 27 municipalities, of which 24 are choosing energy from renewable generation sources (i.e. solar, wind, and hydropower). Westchester Power is responsible for the largest purchase of clean energy in NY State history and, during the program's first two years, 110,000+ homes and small businesses saved more than $17 million.

Following this success, across New York State more than 100 municipalities are pursuing (or renewing) CCA to better serve their communities and achieve local clean energy goals. CCA programs are also in California, Illinois, Massachusetts, New Jersey, Ohio, and Rhode Island.

A program administrator works with participating municipalities to identify program priorities and solicit proposals from qualified energy supply companies on behalf of community residents and small businesses. A CCA program will only launch when an energy supply proposal meets the cost-saving and other requirements identified by the program administrator and participating communities.

If a community chooses to pursue CCA, local government officials must hold a public hearing to discuss the opportunity, pass a local law authorizing the municipality's participation, and communicate details to residents and businesses.

All towns, cities, and villages are eligible to participate in community choice programs.

If a community chooses to pursue CCA, local government officials must hold a public hearing to discuss the opportunity, pass a local law authorizing the municipality's participation, and communicate details to residents and businesses.

With an Energy Service Company [ESCO] customers typically sign an electricity supply contract. Consumers should read these contracts carefully, as people often get drawn in by a low introductory rate, only to find out later that the rate has increased.

Unlike an ESCO, a CCA program:

• - Incorporates a contract vetted by your municipality’s leaders, its’ legal counsel and CCA program administrator.
• - Leverages the collective buying power of multiple communities.
• - Offers a fixed low price for the entire length of the program.
• - Designates an administrator to educate the public, answer questions, and oversee the program.

The CCA administrator works with the city, town, or village to establish CCA programs at no cost to the municipalities or those enrolled. The administrative fee is paid for by the electricity supplier.

While the program only launches if the new fixed supply rates are lower than historical average rates, electricity retail rates do fluctuate over time. For instance, during the 2020 pandemic, electricity rates were very low. Therefore, it's possible for utility rates to fall lower than the fixed CCA rate. However, the CCA rate remains lower than the average that residents paid historically. And, crucially, customers are free to leave the program at any time without penalty.

CCA customers typically save money over time. As of April 2020, the Westchester Power CCA has saved 110,000+ residents and small businesses more than $17 million since inception in May 2016.

The agreement between the participating community, the program administrator, and the energy supplier requires data security provisions for all parties in order to protect the privacy of account-level data

Yes, they are opted-out. The most common utility bill payment assistance program is the Home Energy Assistance Plan, commonly referred to as "HEAP." The state excludes these folks from the eligible/opt-out customer list because the current iteration of CCA does not guarantee the program rate will always be less than the monthly rate obtained by the utility.

No. The “equal payments” plan, also known commonly as "budget billing," is an example of a billing arrangement between the customer and the utility company. Any billing arrangements are unaffected by the launch of a CCA program, so anyone in a budget billing arrangement is included, unless they (a) have a third-party contract already, (b) have placed a "block" on their account with the utility, which prevents inclusion in any third-party program, or (c) are in a bill payment assistance program, as discussed above.

It is recommended that the resident first check their supply contract or contact your ESCO to determine if you'll be subject to an exit fee from the ESCO or any other implications of enrolling in CCA. Remember there is never an entrance or exit fee from CCA.

Those who have selected an alternate supplier are NOT automatically enrolled in the community choice program. If a resident purchases their electricity supply from an alternate supplier and wishes to participate in the CCA program, they can contact the CCA administrator to discuss their options.

It is recommended that the resident first check their supply contract or contact your ESCO to determine if you'll be subject to an exit fee from the ESCO or any other implications of enrolling in CCA. Remember there is never an entrance or exit fee from CCA

No. You will continue to receive one bill from NYSEG.

No, you have the right to choose. Do nothing and by default you will receive fixed-rate 100% renewable energy. Opt out of the program altogether and you will continue to receive variable rate electricity through NYSEG’s providers, or you may choose another third-party energy provider. There are no contract, entrance, or exit fees.

But I already have a third-party energy supply company...

If you have a contract with an energy provider other than NYSEG, then this program will not affect you. The CCA is only applicable to those without a specified third-party energy supplier.