Paused Community Energy Program to Re-start in November
An increasingly popular community energy program that had to be paused at the end of June because of surging costs will resume on Nov. 1.
Sustainable Westchester will restart the Westchester Power Community Energy Program after the terms for a new two-year contract were recently finalized with Constellation New Energy following an open bid process. The new contract runs through Oct. 31, 2024.
For the more than 90,000 customers in 24 participating municipalities across the county that had been enrolled in the program, that’s good news. Spiraling energy prices earlier this year, made worse by the war in Ukraine, combined to push the price per kilowatt hour into the stratosphere preventing a new agreement to be reached.
Con Edison customers who had signed up for the program under the previous 18-month contract that expired June 30 had an initial rate of 7.4 cents per kilowatt hour for the renewable option; however, there was a variable rate that kicked in once prices spiked.
Then Sustainable Westchester was unable to negotiate a new rate in time as prices were at or near their highest in June.
“We went into the bid carrying the collective trepidation of all of our experience with this volatile market over the past year which saw Con Edison utility rates as high as 17 cents and averaging over 11 cents through August,” said Dan Welsh, Sustainable Westchester’s program director for Westchester Power.
“Though the new contract rates are much higher than our last contract, we’re pleased that our bid results are competitive with today’s rates for renewable energy from the major (Energy Services Companies) which range from the low 16 cents to well over 19 cents. Staying at the lowest end of comparable offerings, as the program has done consistently in the past, was an important benchmark for us.”
The new rate, which will be fixed for the length of the contact, is 13.364 cents a kilowatt hour for the standard supply and 15.128 cents for those customers who choose the 100 percent renewable supply.
The fixed-price format will provide insurance against market volatility. Residents can choose to opt out or in at any time without a fee or penalty. While the previous contract had a base price of 7.4 cents per kilowatt hour for the renewable option there was a “not-to-exceed” clause, which allowed price escalation to 12.5 cents, which was later revised up to 13.9 cents, Welsh explained in June.
Aside from saving customers an estimated 10 percent on their energy bills, participation in the program resulted in the reduction of 166,000 metric tons of CO2 last year, or the equivalent of taking 36,800 cars off the road for one year, according to Sustainable Westchester.
Eligible participants will receive enrollment notification letters in the mail and be alerted to the 30-day window for the initial opt-out before the rates go into effect and they become enrolled. Information sessions will be held during the 30-day opt-out period for community members to learn more about the program.
Then participants will begin enrolling in the program starting on their first meter-read date on or after Nov. 1. Upon receipt of a letter, eligible participants do not need to take action if they want to be enrolled in the program.
The six-year-old program is looked at as a model for community energy programs in New York State, offering both the standard supply and renewable options to residents and small businesses located in Westchester’s participating municipalities.
Local communities that are part of the program include Croton-on-Hudson, Ossining, Mount Kisco, New Castle, Pleasantville, Peekskill and White Plains.
NYSEG customers who have signed up for community energy have been unaffected during these last few months. They are locked into their contract at 10.2 cents per kilowatt through November 2023. The City of Yonkers, which is also in Con Edison territory, has its own agreement with the utility for 8.7 cents. That contract also doesn’t expire until a year from November.
Anyone with questions can e-mail westchesterpower@sustainablewestchester.org or call 914-242-4725 ext. 111.
Martin has more than 30 years experience covering local news in Westchester and Putnam counties, including a frequent focus on zoning and planning issues. He has been editor-in-chief of The Examiner since its inception in 2007. Read more from Martin’s editor-author bio here. Read Martin’s archived work here: https://www.theexaminernews.com/author/martin-wilbur2007/
