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Rhinebeck board authorizes start of Community Choice Aggregation process with administrator candidate

2171935 · January 1, 2025
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Summary

After a presentation by a CCA administrator candidate, the Village Board voted to authorize the firm to begin the procurement and outreach steps needed to explore a Community Choice Aggregation program and to participate in a larger Hudson Valley procurement if pricing rounds align.

The Village Board of Rhinebeck voted to authorize a candidate to serve as Community Choice Aggregation (CCA) administrator and to begin outreach and procurement work needed to evaluate whether the village should launch a CCA program.

The administrator candidate presented the CCA model, procurement process and timetable for joining a regional Hudson Valley purchasing group that would issue an electricity supply RFP on behalf of multiple municipalities. The presenter outlined program steps: a pre-award 60-day outreach window, a post-award 30-day outreach and opt-out period, and an enrollment and launch timeline tied to the supplier contract award.

Why it matters: CCA lets a municipality set the default electricity supply for residents and small businesses and can be used to secure renewable energy at scale. If Rhinebeck participates in the larger Hudson Valley procurement, it may benefit from stronger pricing due to larger customer volume. The village faces a decision point in March 2025 after two pricing rounds when officials will decide whether to accept the supply contract.

Presentation and timeline

A representative for the administrator candidate explained how CCA purchases supply through a tri-party Electricity Supply Agreement (municipality, program administrator and supplier), and how renewable energy claims are tracked and verified by New York State systems (including REC tracking). The vendor described three product options commonly offered to municipalities: the utility’s standard supply, a 50% renewable product and a 100% renewable product; the municipality selects the default product but customers can opt out or switch at any time.

The presenter said indicative pricing will be available in early February with firm pricing in March; if the March pricing round is unattractive the village can decline to award a supplier and then delay or re-run the procurement later. The presenter said joining the Hudson Valley purchasing group would require Rhinebeck to move quickly to be included in the group’s upcoming RFP, which would accelerate a potential August program launch if the village awards a contract by March.

Board discussion and vote

Board members asked about recent price differences between the utility’s “basic service” and CCA contracts, the mechanics of opting out, and how long municipal participation would be locked in. The presenter said that CCA contracts are typically fixed-rate for the contract term (commonly 12–24 months) and that customers return to the utility’s basic service if there is a gap between CCA contracts; the presenter also said about half the time the administrator recommends not awarding if initial bids are not favorable.

After discussion, a board member moved to authorize the administrator candidate to begin the RFP participation and public outreach process. The board approved the motion by voice vote.

Next steps

If the board proceeds with procurement, the administrator will run public outreach in early 2025, request indicative pricing in February, and come back to the board in March with firm offers and a recommendation. The board will make the final decision whether to award a supply contract; the village is under no obligation to proceed until that award is made and may decline an offer if pricing or terms are unfavorable.