Red Hook authorizes CCA solicitation; board sets target pricing message and schedules special meeting

The Town Board authorized town officials on Feb. 11 to participate in a competitive Community Choice Aggregation (CCA) solicitation run by the program administrator and approved issuing a request for proposals (RFP) to solicit energy suppliers. The board also instructed staff and the program administrator to aim for target pricing that would make the town’s participation acceptable, and set a special meeting for Feb. 19 to consider final pricing and whether to join the supply contract.

Supervisor Robert McKean explained that CCA covers the supply portion of electricity bills and that participating municipalities aggregate buying power to obtain supplier offers. The board discussed a default product of 50% New York State renewable energy, with the remaining supply expected from other renewable sources or renewable-energy credits. McKean said prior indicative pricing suggested an aggregate price could be around 11¢ per kilowatt-hour for a 50% New York renewable product, compared with roughly 9¢–10¢ per kilowatt-hour for Central Hudson conventional supply over the prior 12 months; retail 100% renewable options on the retail market were cited around 13¢ per kWh.

Several board members advocated including a target-price message in the solicitation and an option for the town to decline participation if bids exceed specified thresholds. Board members discussed possible benchmark targets and suggested a target of about 10.5¢ per kWh for the 50% New York‑renewable product and about 11.5¢ per kWh for a 100% product as negotiation or participation thresholds. The board agreed to schedule a special meeting for Feb. 19 to consider actual pricing results and make a final decision on participation; the board authorized the supervisor to execute the administrator agreement and to have the administrator solicit bids on the town’s behalf.

Why it matters: A CCA can change the default supply mix and potentially deliver more renewable energy to residents and small businesses; pricing and contract terms determine whether the town will switch supply for subscribers who do not opt out.

Next steps and implementation: The board approved authorization for the supervisor (or deputy supervisor in his absence) to execute the agreement with the program administrator and to permit the administrator to run the RFP. Jewel/Dual Assets (named in the draft documents) will recommend a supplier award; the town will make the final decision about whether to enter an electricity supply agreement based on the bids. The board scheduled a special meeting on Feb. 19 to evaluate realized pricing and determine participation.