P’ville Residents Split Over Joining Community Energy Program
As Pleasantville officials mull over joining a community choice aggregation energy buying program through Sustainable Westchester, residents appeared divided over whether the program would be right for the village.
At last Monday night’s village board meeting, Sustainable Westchester Co-chairman Mike Gordon explained how the program benefits residents of participating communities.
“The benefit from this process is simply that we can bring some value to the municipalities and help make something real that we have envisioned making real for a number of years,” Gordon said.
So far three Westchester communities–Lewisboro, Croton-on-Hudson and Somers–have opted to participate in the group energy buying program, which Gordon said will help deliver better rates to residents through alternative energy service companies (ESCOs). Another 10 municipalities are currently considering joining Sustainable Westchester.
Gordon said residents still using Con Edison are paying two separate charges, one for energy consumption and another for energy delivery through the poles and wires owned by the utility.
Since Con Edison is not permitted to profit on the sale of energy and because it is required to get a portion of its energy from specific sources, the utility doesn’t have the ability to negotiate lower rates, said Gordon. Furthermore, Con Edison is more concerned about delivery of energy, he said.
Under the program, Con Edison would still deliver energy, but the energy supply would be purchased from another ESCO.
Based on statistics from other states that have used community choice aggregation, which was approved in New York in February, Gordon said that participating Westchester municipalities could save residents about 5 to 10 percent over their current energy bills.
Jonathan Cunningham, who recently retired from the board but was involved in early discussions about the program, presented some calculations based on his own electric bill. He said he believes that Pleasantville residents could save between $150 and $500 per year if the village participates. Even if residents don’t want to participate, Cunningham said the savings could help others who are struggling to make ends meet.
“The idea of not providing the community [with] this savings when the only cost…that we’re asking the community to do is to make a phone call to opt out if they don’t want to [participate], I don’t think that’s a very high cost to give a lot of the community that could actually use somewhere between $50 or $150 or $500 a year in savings that opportunity,” Cunningham said.
Once the sign-up process is complete, Sustainable Westchester will put out a Request for Proposal (RFP) and would only enter into a contract with an ESCO if the bids reflect a savings over current Con Edison prices.
Gordon said Sustainable Westchester would seek bids for one-, two- and three-year contracts with ESCOs, locking in the energy price for the contract’s duration.
Once a contract is agreed upon, residents still utilizing Con Edison would automatically be included in the community choice aggregation program. If they wish, residents can opt out simply by calling Con Edison. However, the program being operated on an opt-out arrangement rather than requiring residents to opt in remained a sticking point for some last week.
Gordon said the program is operated on an opt-out basis because around 75 percent of residents won’t bother to join.
“I do believe it should be an opt-out because, having worked with many volunteer groups, it’s almost impossible to get people to sign up,” said resident Helen Meurer.
Resident Bill Stoller was receptive to the proposal, but would like the concept more if it were an opt-in program.
“I am leaning in favor of this. I don’t see the village imposing this as much as facilitating it, but I wish it was the other way around. I really wish it was an opt-in,” he said.
Gordon said if residents decided to opt out, they could do so without penalties. In addition, if residents change their mind, they can rejoin the program, although they won’t be guaranteed the fixed rate until the next contract is negotiated. At the conclusion of each contract, residents would receive notice reminding them of their options. Furthermore, if a homeowner moves, the ESCO will remain the energy provider for that residence until the new homeowner chooses to opt out, Gordon said.
“If we vote to participate, every homeowner is free to do whatever they want. They can opt out and stay with Con Ed and they can switch back and forth however they wish in the future,” said Mayor Peter Scherer.
Although homeowners are not required to participate, some remained opposed to the village’s participation.
“I, for one, urge the board to vote no. I don’t really want you involved in my electricity purchases,” said resident Michael Latari. “You can’t guarantee me a savings. You can say you’re going to save me money. I have chosen to stay with Con Edison. I know I have ESCOs, but Con Edison is not making money buying or selling electricity.”
Gordon said that Sustainable Westchester is required to release a monthly report showing how the adopted ESCO is providing a savings. That information will be available for residents to view anytime online.
Residents would see a surcharge of 1/10 of a cent per kilowatt hour from Sustainable Westchester on their bills. The charge, which would amount to about $8 annually, will go toward customer service for the community choice aggregation program.
Latari said he’s never heard of Sustainable Westchester and questioned its mission statement and sources of funding.
Gordon responded that Sustainable Westchester is a nonprofit organization. In Westchester, 42 of 45 municipalities pay dues to the organization, accounting for about $40,000 to $60,000 of funding for the organization.
Pleasantville trustees plan to discuss the issue again at the Apr. 27 board meeting and make a decision on May 11.
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