N.J. Admin. Code § 14:4-6.5

Current through Register Vol. 56, No. 19, October 7, 2024

Section 14:4-6.5 - Establishing an Option 1 government-private energy aggregation program

(a) Each municipality or county that wishes to establish or participate in a government-private Option 1 energy aggregation program shall provide a copy of the ordinance or resolution adopted pursuant to N.J.A.C. 14:4-6.4(c) to each LDC that serves the geographic area governed by the municipality or county and to the Board and Rate Counsel pursuant to the instructions at N.J.A.C. 14:4-6.4(j).

(b) Each participating municipality in an Option 1 government-private energy aggregation program shall execute an LDC aggregation agreement with each LDC that serves customers in the municipality. A detailed description of the LDC aggregation agreement is set forth at 14:4-6.7.

(c) The LDC shall provide written notice of the energy aggregation program to customers in accordance with (d) through (h) below, prior to the advertisement for the receipt of bids under 14:4-6.8.

(d) The notice required under (c) above shall be sent to customers as follows:

1. The LDC shall send the notice required under (c) above to all residential electric and gas customers within the geographic boundaries of each participating municipality that are receiving BGS or BGSS from the LDC or are being served by a third-party supplier through an expiring government energy aggregation program, except residential customers who have advised the municipality, the lead agency, or the selected supplier during the current, or a previous government energy aggregation program, that they prefer to be excluded from all government energy aggregation programs.

2. If requested by the municipality, the LDC shall also send a notice to all non-residential electric and gas customers located in the municipality.

3. The LDC shall send to each applicable municipality, a list of the names and addresses of customers from that municipality to whom it intends to send the notice. After receiving the list, each participating municipality shall review the list to identify any inconsistencies between the municipality's records and the addresses that the LDC has identified as being within the geographic boundaries of the municipality and to identify customers who are on the municipality's list of residential customers who prefer to be excluded from government energy aggregation programs. Within five business days of receipt of the list, the municipality shall notify the LDC accordingly, so that the LDC can adjust the list.

(e) The LDC shall send the notice required under (c) above no later than 25 calendar-days after both of the following:

1. The LDC aggregation agreement has been signed by all parties to the agreement; and

2. If the LDC aggregation agreement contains any prior conditions that must be met before the notice is sent, all of these prior conditions have been met.

(f) The notice to customers required under (c) above shall include the following:

1. A statement that the participating municipality is establishing or participating in an energy aggregation program;

2. If the notice is to a residential customer, a statement that the residential customer has a right to opt-out of the program, but that if no opt-out response is submitted the customer will be included in the program;

3. If the notice is to a non-residential customer, a statement that the customer has a right to opt-in to the program, but that if no opt-in response is submitted the customer will not be included in the program;

4. If the notice is to a non-residential customer, a statement that by choosing to opt-in to the program, the customer has authorized the participating municipality or lead agency to obtain the non-residential customer's 12-month historical usage information;

5. A requirement that any opt-out or opt-in response be submitted to the option administrator within 30 calendar-days after the postmark on the notice;

6. Directions on how to submit an opt-in or opt-out response;

7. A telephone number and e-mail address for customer inquiries regarding the energy aggregation program; and

8. An explanation that if the notification reaches a customer outside of the geographic boundaries of the participating municipality, the customer should contact the LDC to be removed from the program, and if a residential customer inside the geographic boundaries of a participating municipality does not receive notice of the program as is required under (c) above, the customer will be permitted to opt-in to the program at any time.

(g) For government-private energy aggregation programs, the lead agency shall submit a draft notice for use in notifying customers under (c) above to the Board and Rate Counsel, pursuant to the instructions at N.J.A.C. 14:4-6.4(j). This submittal shall provide at least 15 calendar days for Board staff and/or Rate Counsel to comment on the forms. The draft notice shall include, at a minimum, all of the information required at (f) above. The Board shall make available on its website sample customer notification forms for government-private energy aggregation programs that do not use special pricing for renewable energy in accordance with N.J.A.C. 14:4-6.9(g), or include appliance repair services. The sample customer notification forms can be found at http://www.nj.gov/bpu/about/divisions/energy/governmentenergyaggregation.html.

(h) The final version of the notice to residential customers required under (c) above shall be sent to the Board and Rate Counsel, along with an indication of the number of residential customers to which the notice will be sent, pursuant to the instructions at N.J.A.C. 14:4-6.4(j). The hard copies of the documents shall be post marked on or before the date the notice is mailed to residential customers. The electronic submittal shall be e-mailed on or before the date the notice is mailed to residential customers.

(i) If a non-residential customer does not submit an opt-in response to the LDC within 30 calendar-days after the postmark on the notice required under this section, the customer shall not be included in the energy aggregation program.

(j) If a non-residential customer does not submit an opt-in response to the LDC within 30 calendar-days after the postmark on the notice required under this section, the customer shall not be included in the energy aggregation program. However, the contract between the government aggregator and the selected TPS may include provisions that allow these customers to join the government energy aggregation program at a later date.

(k) Within 10 calendar-days after the expiration of the 30-day response period for customers to opt-in or opt-out, the LDC shall provide the following information to the person identified in the government aggregator agreement:

1. For a government energy aggregation program that has been established to purchase electric generation service:

i. The number of that LDC's residential electric customers, by rate class and the aggregate capacity obligation, aggregate transmission obligation, and aggregate usage data by residential rate class for residential customers that:

(1) Are located within the geographic boundary of the participating municipality;

(2) Are receiving BGS service from the LDC or are being served by a third-party supplier through an expiring government energy aggregation program; and

(3) Did not submit an opt-out response during the 30-day response period;

ii. The 12-month historical usage for each non-residential customer located within the geographic boundary of the participating municipality, that has chosen to opt-in to the energy aggregation program. Less than 12 months of data may be supplied if the customer is new to the LDC system or, in the case of electric interval data, if the appropriate metering has been installed less than 12 months previously; and

iii. The 12-month historical usage for each government facility that each participating government aggregator has indicated will be included in the energy aggregation program. Less than 12 months of data may be supplied if the customer is new to the LDC system or, in the case of electric interval data, if the appropriate metering has been installed less than 12 months previously.

2. For a government energy aggregation program that has been established to purchase gas supply service:

i. The number of residential gas customers, by rate class, and the aggregate usage data by residential rate class for residential customers that:

(1) Are located within the geographic boundary of the participating municipality;

(2) Are receiving BGSS service from the LDC or are being served by a third-party supplier through an expiring government energy aggregation program; and

(3) Did not submit an opt-out response during the 30-day response period;

ii. The 12-month historical usage for each non-residential customer located within the geographic boundary of the participating municipality that has chosen to opt-in to the energy aggregation program. Less than 12 months of data may be supplied, if the customer is new to the LDC system; and

(l) Within six months after the end of the 30-day response period required under this section, the lead agency shall advertise for the receipt of bids in accordance with N.J.A.C. 14:4-6.8. If the advertisement is not issued within this time, the customer notice and opt-in/opt-out process required under (c) through (f) above shall be repeated. The lead agency may voluntarily choose to provide a copy of draft bidding documents to the Board and/or Rate Counsel for comments prior to advertising for bids. Any such voluntary submittal shall provide at least 15 calendar days for the Board and/or Rate Counsel to comment on the documents and shall be submitted pursuant to the instructions at N.J.A.C. 14:4-6.4(j).

(m) Upon completion of the bidding process in accordance with N.J.A.C. 14:4-6.8, the lead agency shall determine whether to award a contract to a TPS in accordance with N.J.A.C. 14:4-6.8, and to which TPS the contract shall be awarded. The lead agency may voluntarily choose to provide a copy of the draft contract to the Board and/or Rate Counsel for comments prior to executing the contract. Any such voluntary submittal shall provide at least 15 calendar days for the Board and/or Rate Counsel to comment on the draft contract and shall be submitted pursuant to the instructions at N.J.A.C. 14:4-6.4(j).

(n) The lead agency shall execute a contract with the selected TPS. The contract shall comply with N.J.A.C. 14:4-6.9 and 6.10.

(o) The lead agency shall execute a contract with the selected TPS. The contract shall comply with N.J.A.C. 14:4-6.9 and 6.10. The lead agency shall submit copies of the executed contract to the Board and Rate Counsel pursuant to the instructions at N.J.A.C. 14:4-6.4(j), and to the Division of Consumer of Affairs within three business days of execution. A TPS may elect to file a request for treatment of designated information in the contract as confidential information under the Board's Open Public Records Act (OPRA) rules at N.J.A.C. 14:1-12.

(p) Within 10 calendar days after the postmark on the notice to the LDC required under (n) above, the LDC shall provide to the lead agency or its designee, the name, address, and account number of each residential and non-residential customer that will be included in the program, as indicated by the opt-in and opt-out responses that were submitted to the LDC.

(q) The government aggregator shall begin operation of the program promptly upon selection of a TPS.

(r) If, at any time after submitting documents to the Board and to Rate Counsel pursuant to (g) above, the lead agency, or one of the participating municipalities, determines that it will not implement the proposed government energy aggregation program, the lead agency shall notify the Board, Rate Counsel, and the affected LDC(s) of this decision in writing pursuant to the instructions at N.J.A.C. 14:4-6.4(j).

N.J. Admin. Code § 14:4-6.5

Amended by 49 N.J.R. 4015(a), effective 12/18/2017