Article 991
MUNICIPAL ENERGY AGGREGATION PROGRAM
Sections:
991.01 Municipal energy aggregation program established.
991.03 Municipal energy aggregation program hereby authorized.
991.04 Municipal energy aggregation program requirements.
991.01 Municipal energy aggregation program established.
There is hereby created and existing in the City of Meadville a municipal energy aggregation program which is established in accordance with applicable provisions of law to provide the opportunity for eligible end-use electric customers in the City of Meadville to receive electrical service at rates more favorable than those provided to individual customers who do not participate in the energy aggregation program. (Ord. 3677 § 1, 2010)
991.02 Definitions.
a. “Contracted electrical generation supplier” means the entity with which the City of Meadville has contracted through the municipal energy aggregation program to provide a supply of electricity.
b. “Excluded customers” means electricity consumers within the City of Meadville (1) that have opted out of the City of Meadville municipal aggregation program pursuant to the provisions of MMC 991.05; (2) that have a special contract or agreement with an electric distribution company; (3) other than residential consumers who are classified as retail electric consumers or small commercial consumers which are under a small commercial, small industrial or small business rate classification, and whose maximum registered peak load was less than 25 kW within the last 12 months; (4) that are enrolled in an electric distribution company’s customer assistance program that does not include any electric generation supplier charges in the calculation of the customer assistance program benefit; or (5) that are end-use consumers served or authorized to be served by an electric cooperative.
c. “Municipal energy aggregation” means the aggregation of residential consumers who are classified as retail electric consumers within the City of Meadville and small commercial consumers within the City of Meadville which are under a small commercial, small industrial or small business rate classification, and whose maximum registered peak load was less than 25 kW within the last 12 months.
d. “Municipal energy aggregation program” means the program hereby adopted as implemented by a contract with a contracted electrical generation supplier which provides a supply of electricity to certain residential and small commercial electricity consumers within the City of Meadville on an opt-out basis.
e. “Nonexcluded consumer” means an end-use electric customer within the City of Meadville which or who is not an excluded consumer.
f. Other terms defined in this article or as adopted in applicable legislation are incorporated by reference. (Ord. 3677 § 1, 2010)
991.03 Municipal energy aggregation program hereby authorized.
Under the municipal energy program hereby authorized, the City of Meadville is authorized to grant by contract an exclusive right to a contracted electrical generation supplier to provide electrical service to end-use electric customers within the City of Meadville who are not excluded customers and who do not opt out of the program.
Consistent with the broad powers granted the city under the Optional Third Class City Charter Law, and by reason of the uniqueness of the program and the fact that city funds are not expended for the service or the administration of the service to its residents, it is hereby determined that competitive procurement for the contract for implementation of the program is not required.
Upon the effective date of a contract entered into by the City of Meadville with an electrical generation supplier for the supply of electricity to eligible nonexcluded consumers in accordance with the City of Meadville’s municipal energy aggregation program, all nonexcluded consumers shall be supplied with and shall be obligated to receive electric generation supply pursuant to and in accordance with the municipal energy aggregation program hereby established. (Ord. 3677 § 1, 2010)
991.04 Municipal energy aggregation program requirements.
a. The proper officials of the City of Meadville are hereby authorized to enter into a contract without competitive bidding with an electric generation supplier for the provision of electric generation supply to nonexcluded consumers within the City of Meadville on an opt-out basis.
b. The contract shall, at a minimum, clearly indicate the price that the contracted electrical generation supplier will charge nonexcluded consumers for electric generation supply as well as the term of the contract. If the price is a fixed rate, the price shall be expressed in cents per kilowatt hour. If the contract provides for a percentage off of the default service rate, or any other type of pricing arrangement, an understandable description of the amount of the percentage discount, or other pricing arrangement, and how the rate may change shall be provided. If the contracted electrical generation supplier will charge different rates to different rate classes within the City of Meadville, the applicable rate(s) to nonexcluded consumers within each rate class shall be described.
c. No nonexcluded consumer shall be bound by a contract until at least 30 days following the mailing of the opt-out notices required by MMC 991.05, and the expiration of any waiting period for a consumer to cancel the pending change to the electric generation supplier following written confirmation by contracted electrical generation supplier.
d. The contracted electrical generation supplier may not impose any terms, conditions, fees, or charges on any consumer served by a municipal aggregation program that are materially different from the particular term, condition, fee, or charge which was included within the contract between the City of Meadville and the contracted electrical generation supplier or the notices provided pursuant to this section.
e. The contracted electrical generation supplier shall provide appropriate consumer education materials to inform consumers about the existence of the municipal aggregation program and the highlights of the program at no cost to the City of Meadville.
f. In the event a final determination shall be made by a court of competent jurisdiction or the Public Utility Commission that cities organized under the Pennsylvania Optional Third Class City Charter Law do not have authority to implement a municipal energy aggregation program for any reason, the contract shall be terminable upon notice by the City of Meadville and shall provide for such termination without liability of the City of Meadville or participating electric consumers. (Ord. 3677 § 1, 2010)
991.05 Opt-out program.
a. The municipal energy aggregation program shall be offered on an opt-out basis.
b. After the City of Meadville executes a contract for electric generation services with the contracted electrical generation supplier, but prior to including a consumer’s electric account or accounts in the municipal aggregation program, the contracted electrical generation supplier shall provide each consumer with written notice that the consumer’s account(s) will be automatically included in the municipal aggregation program unless the consumer affirmatively opts out of the municipal aggregation program. The notice, written in plain language, shall, at a minimum, include:
i. Disclosure of the price that the contracted electrical generation supplier will charge nonexcluded consumers for electric generation service.
ii. An itemized list and explanation of all fees and charges that are not incorporated into the rates charged for electric generation services that the contracted electrical generation supplier will charge to the nonexcluded consumer for participating in the municipal aggregation program, including any early termination penalties and any surcharges, or portions thereof, that may be assessed.
iii. Disclosure of the estimated service commencement date and notice that the nonexcluded consumer may opt out of the municipal aggregation program at the end of the term of the contract with the contracted electrical generation supplier and prior to the commencement of any subsequent municipal aggregation contract.
iv. A statement informing consumers that if they choose to opt out of the municipal aggregation program they will be served by the default service provider until the consumer chooses an alternative electrical generation supplier.
v. A statement informing nonexcluded consumers that, if they switch back to the default service provider, they may not be served under the same rates, terms, and conditions that apply to other nonexcluded consumers within the municipal aggregation program.
vi. Disclosure of any credit, collection and/or deposit policies and requirements.
vii. Disclosure of any limitations or conditions on consumer acceptance into the municipal aggregation program, including the date by which the consumer must affirmatively opt out of the program. The date shall not be less than 30 days following the mailing of the opt-out notice.
viii. A description of the process and associated time period for consumers to opt out of the municipal aggregation program.
ix. A local or toll-free telephone number, with the available calling hours, that consumers may call with questions regarding the formation or operation of the contracted electrical generation supplier. (Ord. 3677 § 1, 2010)