A group of 20 Westchester municipalities have signed a power-buying agreement that is the first of its kind in New York state.
Sustainable Westchester Inc., a nonprofit representing 40 communities in Westchester, reached a deal with ConEdison Solutions, a subsidiary of Consolidated Edison Inc., to supply 90,000 homes and small businesses with electricity at a fixed rate over a two-year period. The group reached a parallel deal with Constellation Energy Group, a division of Exelon Corp., for 20,000 homes in towns and villages in the northern part of the county, which receive electricity from New York State Electric and Gas Corp.
The $150 million contract is the first in the so-called community choice aggregation program, part of Gov. Andrew Cuomo”™s Reforming Energy Vision strategy. The program gives municipalities the ability to form a consortium and negotiate directly with energy suppliers on a bulk discount rate.
That vision includes the ability to choose power from renewable sources. The 20 municipalities in the program, known as Westchester Power, can choose between a 100 percent renewable energy supply or a slightly lower-priced energy supply that includes a mix of traditional and renewable energy sources.
Multiple energy suppliers bid on the contract, according to Leo Wiegman, executive director for Sustainable Westchester. The contract will save customers 3 to 5 percent per month on energy costs compared with rates from the year before, he said. The level of savings depends on whether customers elect to use the basic supply or the 100 percent renewable plan.
“This program is the first of a number of programs Sustainable Westchester will be launching,” Wiegman said, adding that the level of collaboration among municipalities makes the group”™s programs distinct.
Similar community choice aggregation agreements exist in California, Illinois, Massachusetts, Ohio, New Jersey and Rhode Island.
Residents and businesses in the 17 municipalities in Westchester Power will automatically be enrolled in the program starting May 1. However, they can choose to opt out and continue with their previous suppliers or “opt up” for the 100 percent renewable power option.
Wiegman said 13 municipalities have chosen the 100 percent clean energy option. The other seven have elected for the basic supply.
Sustainable Westchester launched the website westchesterpower.org to provide information on the program and will also be mailing information to residents and small businesses in the municipalities.
The municipalities involved in the deal are: the towns of Bedford, Greenburgh, Lewisboro, Mamaroneck, New Castle, North Salem, Ossining and Somers; the villages of Hastings-on-Hudson, Irvington, Larchmont, Mamaroneck, Mount Kisco, Ossining, Pelham, Pleasantville, Rye Brook, Tarrytown; and cities of New Rochelle and White Plains.
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