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Red Hook board narrows community-choice aggregation preference to 50% renewable; local community solar planned

2628309 · February 12, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Town officials described a small community solar project on a former mine site and discussed Community Choice Aggregation (CCA) options. Board members said they are inclined to offer a 50% New York-state renewable default product (to reduce cost) but made no binding commitment; staff will seek indicative pricing and bids.

The Red Hook Town Board discussed two separate but related clean-energy initiatives Wednesday: a town-led community solar project and whether to rejoin a Community Choice Aggregation (CCA) purchasing contract that would make renewable energy the default supply for town residents.

Town staff said the community solar project will be built on a few acres of a former mined area near the recreation park (not on active farmland) and is expected to come online in the fall if funding and contracts proceed. The town described an earlier community solar PPA from 2019 with a 1.3% annual escalator and said earlier subscribers saved more on electricity than they paid in local taxes. The new project is intended to expand subscriber capacity and take advantage of federal tax credits in the Inflation Reduction Act if those incentives remain in place.

Separately, the board reviewed CCA options and indicative pricing. Staff explained that a 24-month CCA fixed-price contract was under consideration and that, because the Public Service Commission requires an opt-out enrollment flow, residents would be "default enrolled" but could opt out. Town presenters said indicative prices for a 100% New York-state renewable product were about 12'' per kilowatt-hour, while a 50% renewable default (with the remaining supply largely from out-of-state renewable sources) looked closer to 11'' per kilowatt-hour; by comparison, Central Hudson's average supply price over the last 12 months was reported as under 9'' per kWh.

Board members said they did not plan to make a binding commitment at the meeting but that, if they decide to proceed with a CCA, they were inclined to set a 50% renewable default to balance environmental goals and affordability. "I think I would be more inclined to go with the 50 percent knowing that it's probably ... 50 percent of it is from New York and 50 percent is not," one board member said, adding that the board should seek the most cost-effective option and that bids will determine the final price.

Why this matters: Community solar and CCA can lower electricity costs for subscribing residents and increase the share of renewable generation on the local load. The CCA approach requires municipal action to solicit bids and set a default product; individual customers may opt out.

Next steps: Staff will convey the board's preliminary preference (50% renewable default) to the CCA administrators and request indicative pricing and bids; any final decision will depend on the resulting bids and contract terms. Residents interested in community solar were asked to email the town to be placed on a contact list.