Sullivan applies for electricity purchasing program

Posted 8/21/12

MONTICELLO, NY — Sullivan Alliance for Sustainable Development (SASD), which advises the Sullivan County Legislature on sustainable energy matters, has submitted a petition to the New York State …

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Sullivan applies for electricity purchasing program

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MONTICELLO, NY — Sullivan Alliance for Sustainable Development (SASD), which advises the Sullivan County Legislature on sustainable energy matters, has submitted a petition to the New York State Public Service Commission (PSC) to allow SASD to establish a countywide Community Choice Aggregation (CCA) program.

Under the CCA, consumers in the county would have a choice about whether to purchase the electricity they use in their homes through the CCA, which could result in significant savings. By representing thousands of consumers, the CCA should be able to secure a more favorable rate than those offered to individual consumers.

According to a SASD press release, “Under the terms of a resolution unanimously adopted by the Sullivan County Legislature, the Sullivan County CCA must offer an electric rate that is equal to, or lower than, the prevailing commercial rate. CCA may also offer customers a premium, 100% renewable energy option.”

The resolution to move forward with the application, passed on September 17, also stipulated that the county would bear no cost for the application or the CCA. SASD worked with the county manager and the county attorney in preparing the application.

The CCA concept is relatively new to New York State, although not to other states. Thus far, six states have approved CCA programs in 1,300 communities: Massachusetts, Illinois, Ohio, California, New Jersey and Rhode Island. CCA programs have resulted in dramatic savings in the cost of electricity, and therefore have not always been welcomed by large utilities.

According to a report on the Clean Techinica website (tinyurl.com/pfu48e9), in 2010 Pacific Gas & Electric in California spent $46 million to promote legislation that would have prohibited communities from forming CCAs unless 66% of the residents agreed to do so. That bill was defeated. Another bill, introduced by a California lawmaker who was a former energy executive, would have required residents to “opt in” to the CCA rather than “opt out.” This would likely have greatly reduced participation, because many people in California, as in New York State, are not aware they have a choice about where they purchase electricity. That bill died because no member of the California Senate would sponsor it.

In New York, the first group to apply to the PSC to establish a CCA was Sustainable Westchester, which has received authorization and is hoping to serve residents in Westchester County with rates that are from 5% to 10% below what customers are paying now. In Ulster County a group called Citizens for Local Power has written a proposal for a CCA for that county.

In Sullivan, the CCA is not only looking to reduce rates for consumers but also to increase alternative energy resources, such as solar, wind and hydroelectric. SASD founder Dick Riseling said, “To the extent that Sullivan County can produce its own power, the money that customers spend on electricity will stay within the county.”

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