N.J. Admin. Code § 14:4-6.6

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

Section 14:4-6.6 - Establishing an Option 2 energy aggregation program

(a) Each municipality or county that wishes to establish or participate in a government-private Option 2 energy aggregation program shall provide a copy of the resolution or ordinance 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) If the program is open to non-residential customers, the lead agency and each participating municipality shall issue a public notice. The notice shall advise nonresidential customers located within the geographic boundaries of the municipality or county that they are eligible to participate in the program if they submit an opt-in response to the option administrator within 30 calendar days after the resolution or ordinance authorizing the program.

(c) Each participating municipality in an Option 2 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.

(d) If a non-residential customer does not submit an opt-in response to the option administrator within the 30 calendar-day response period set forth in the public notice required under (b) above, 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.

(e) If the energy aggregation program includes non-residential customers, the option administrator shall provide to the LDC the names and account numbers of the nonresidential customers that submitted opt-in responses during the 30-day response period set forth in the public notice required under (b) above.

(f) Within 10 calendar-days after the date upon which all of the following have occurred, the LDC shall provide the customer information described at (g) below to the lead agency:

1. Each participating municipality in an Option 2 government-private energy aggregation program has executed the LDC agreement and has provided it to the LDC for execution;

2. If the LDC aggregation agreement contains any conditions that must be met prior to the provision of the information required under (g) below, all of these prior conditions have been met; and

3. If the energy aggregation program includes non-residential customers, the option administrator has provided the information required under (e) above.

(g) The LDC shall provide the lead agency with the following information as required under (f) above:

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

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

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

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

ii. The 12-month historical capacity obligation, transmission obligation, and usage of the non-residential customers that the option administrator has identified as program participants. This information may be provided separately for each customer or as an aggregate amount; and

iii. The 12-month historical capacity obligation, transmission obligation, and 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 gas customers that:

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

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

ii. The 12-month historical usage of the non-residential customers that the option administrator has identified as program participants. This information may be provided separately for each customer or as an aggregate amount; 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.

(h) After receiving the information required under (g) above, the lead agency shall prepare draft bidding documents that meet the requirements at 14:4-6.8.

(i) The lead agency shall provide a copy of the draft bidding documents to the Board and to Rate Counsel, pursuant to the instructions at N.J.A.C. 14:4-6.4(j), for their comment at least 30 calendar days prior to advertising for bids. The Board and Rate Counsel shall have 15 calendar days from receipt of the draft bidding documents to provide comments. The lead agency may accept or reject comments submitted by the Board and Rate Counsel.

(j) The lead agency shall advertise for the receipt of bids, shall determine whether to select a TPS, and shall determine which TPS to select, in accordance with 14:4-6.8.

(k) The lead agency shall prepare a draft contract with the selected TPS. The contract shall meet the requirements of 14:4-6.9 and 6.10.

(l) The lead agency shall provide a copy of the draft contract to the Board and Rate Counsel, pursuant to the instructions at N.J.A.C. 14:4-6.4(j), for their comment. The Board and Rate Counsel shall have 15 calendar days after receipt of the draft contract to provide comments to the lead agency.

(m) The lead agency may accept or reject comments submitted by the Board and/or Rate Counsel. However, the lead agency shall not execute the contract until the earlier of the following dates:

1. The date upon which the Board and Rate Counsel have both submitted comments on the contract or have both indicated that they will not comment; or

2. Twenty days after the Board and Rate Counsel received the draft contract.

(n) After the requirements for Board and Rate Counsel comments at (l) and (m) above are met, the lead agency may execute a contract with the selected TPS(s) that meets the requirements of N.J.A.C. 14:4-6.9and 6.10. Within three business days of execution, 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 Affairs. 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.

(o) After execution of the contract, the lead agency and/or each participating municipality shall provide written notice to all affected LDCs of the identity of the selected TPS(s).

(p) Within 10 business days after the postmark on the notice to the LDC required under (o) above, the LDC shall provide the lead agency with the name, address, and account number of each residential customer located in a participating municipality, that is receiving BGS or BGSS from the LDC or is being served by a third-party supplier through an expiring government energy aggregation program.

(q) After receiving the information required under (p) above from the LDC, each participating municipality shall review the information provided by the LDC to identify any inconsistencies between addresses that the LDC has identified as being within the geographic boundaries of the municipality and the municipality's records regarding which addresses are located within the municipality's geographic boundaries. The lead agency or each participating municipality shall then provide written notice in accordance with (r) and (s) below to all residential electric and/or gas customers within the jurisdiction of a 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.

(r) The notice to residential customers required under (q) above shall include the following:

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

2. A statement that the residential customer has a right to opt-out, as defined at 14:4-6.2, of the program; but that if no opt-out is submitted the customer will be included in the program;

3. A specific statement of the cost to customers of participation in the program, and any other information necessary to enable customers to compare the program to other alternatives;

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

5. Approximate start date for the program, and program duration;

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

7. A contact name, phone number, and e-mail address for customer inquiries;

8. An explanation that if the notification reaches a customer outside of the geographic boundaries of the participating municipality, the customer should contact the TPS to be removed from the program, and if a customer inside the geographic boundaries of a participating municipality does not receive an opt-out letter, he or she will be permitted to opt-in to the program at any time; and

9. A Government Energy Aggregation Program Summary that describes all relevant program provisions in a one-page document in a standardized format that will be posted under the heading "GEA Program Summary Standardized Format" on the Board's website, http://www.nj.gov/bpu/. The GEA Program Summary shall, at a minimum:

i. Summarize the material terms and conditions of the contract;

ii. Be available in Spanish upon request of the customer;

iii. Include instructions explaining how the customer may obtain a Spanish version of the GEA Program Summary;

iv. Be written in plain language;

v. State the duration of the contract;

vi. State, in a 12-point, boldface font, whether the contract is for a fixed rate or a variable rate;

vii. Provide a brief explanation of the difference between a fixed rate and a variable rate that is easily understandable by the general public, including an explanation on how weather fluctuations may affect the price of variable rate contracts;

viii. State the price per kilowatt hour or per therm as instructed in the posted Government Energy Program Summary Standardized Format;

ix. Utilize fonts that are no smaller than 12 point in size;

x. Fit on a single 8.5 inch by 11 inch page;

xi. List at the top of the Government Energy Aggregation Program Summary:

(1) The customer's name, address, and local distribution company account number; or

(2) The specific name of the government energy aggregation program followed by "Government Energy Aggregation Program Summary";

xii. Use gas or electric terminology, as appropriate. If a customer contracts for both gas and electric supply service, a separate Government Energy Aggregation Program Summary shall be provided for each service;

xiii. Utilize all of the exact headings shown in the boxes on the left side of the posted GEA Program Summary Standardized Format, except that the words "Third Party Supplier" in the heading, "Third Party Supplier Information" may be replaced with the name of the actual TPS, and the words, "Distribution Company" in the heading, "Distribution Company Information" may be replaced with the name of the actual distribution company; and

xiv. Include the appropriate information in each of the boxes on the right side of the GEA Program Summary based upon the specific instructions in the boxes on the right side of the below posted GEA Government Energy Aggregation Program Summary Standardized Format.

(s) The final version of the notice to residential customers required under (q) above shall be sent to the Board and Rate Counsel pursuant to the instructions at N.J.A.C. 14:4-6.4(j), along with an indication of the number of residential customers to which the notice will be sent. The hard copies of the documents shall be postmarked 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.

(t) For government-private energy aggregation programs, the lead agency shall submit a draft notice for use in notifying customers under (q) 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 (r) 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.

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

(v) The government aggregator shall begin operation of the program promptly upon completion of the 30-day response period for customer opt-outs.

(w) If, at any time after submitting documents to the Board and to Rate Counsel pursuant to (i) 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 § 14:4-6.6

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