Poughkeepsie approves nonbinding MOU to seek community energy contract with 50% New York renewable default

The Poughkeepsie Common Council on Feb. 5 approved a nonbinding memorandum of understanding (MOU) authorizing the city's CCA consultant to solicit supplier bids and establishing a 50% New York renewable supply as the city's default product.

The action follows a presentation by Glenn Monberg of Jewel Community Power, who outlined the CCA process, the January RFP, and indicative pricing. Monberg said the MOU is a "preapproval of certain pricing benchmarks or caps" and is not binding: the city can decline to proceed if returned bids fail to meet the benchmarks when final pricing is received on Feb. 19.

Why it matters: the CCA program lets municipalities select a default energy supplier and offer fixed-rate options to residential and small-business customers as an alternative to Central Hudson's variable basic service. Councilors cited competing goals: lowering bills for residents and advancing renewable energy procurement.

Monberg presented indicative numbers for comparison: a 12-month average for Central Hudson in 2024 of just under 9' per kilowatt-hour, CCA bidders "a little bit over 10'," about 11' for a 50% renewable option, and roughly 12' for a 100% renewable option. He warned the market is volatile and that tariffs (for example, on Canadian imports) could influence bids; he said the city's contract language generally forbids suppliers from passing such costs through to customers except for explicit state-imposed fees.

Council discussion focused on cost exposure for residents who may be auto-enrolled during the opt-out period, communication and outreach, and whether the city should select a 50% or 100% renewable default. Councilmember Menace argued for soliciting a 100% bid to see pricing; Councilmember McClinton and several others said they preferred the 50% default to reduce the risk of higher bills for residents who miss the opt-out notice. Corporate counsel confirmed the MOU itself is nonbinding and that any definitive decision would follow receipt of final bids.

Councilors and staff outlined consumer protections and outreach Jewel provides: a mailed notice and prepaid postcard during the opt-out window (scheduled in the program timeline for May, with service to begin June 1 if the contract proceeds), a call center staffed by Jewel employees, and multiple publicly noticed meetings during the opt-out period. Monberg said customers who opt out during the opt-out window or earlier remain out; customers who are later added or choose to participate can enroll without fees. He also said suppliers do not provide refunds for time a customer was enrolled and later chooses to opt out.

The council first voted 7-2 to amend the MOU to set the municipality's default product as "50% CCA blended: 50% New York State Renewable Supply." The full MOU then passed on a subsequent vote (recorded by voice; one recorded nay). The MOU authorizes Jewel to continue the RFP process and return to the council with final pricing and a recommendation.

Council members and staff emphasized the need for a robust outreach campaign to ensure residents recognize opt-out notices (mailed postcards and letters, website information and phone support) and to reduce the chances of residents being accidentally enrolled. Monberg said the program has historically secured better collective pricing than individual shopping but that the current market may limit savings.

Next steps: Jewel will return with final bids on Feb. 19; the city retains the right to decline the contract if benchmarks are not met.