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2015 NY Att'y Gen. Rep. & Op. 1 (2015)

handle is hein.nyattgen/nysag0136 and id is 1 raw text is: 




General Municipal Law §§ 360, 360(2), 360(3), 360(5), Art. 14-A


General Municipal Law § 360 does not apply to the Town's proposed participation in
a pilot Community Choice Aggregation program and thus section 360's requirement
of a referendum likewise does not apply.

                                June 26, 2015

Eric L. Gordon                           Informal Opinion
Attorney                                 No. 2015-1
Town  of Bedford
Keane  & Beane P.C.
445 Hamilton Avenue
White Plains, New York 10601

Dear Mr. Gordon:

      You  have   requested an  opinion  relating to the  Town's  anticipated
participation in a pilot Community Choice Aggregation program as approved by the
Public Service Commission. Under the program, the Town would procure electricity
from a utility service on behalf of participating residents and small businesses. You
have asked whether, if the Town participates in the program under the authority of
General Municipal Law  § 360, the Town's participation is subject to a referendum.
As explained below, we are of the opinion that General Municipal Law § 360 does
not apply to the Town's proposed participation and thus that its requirement of a
referendum likewise does not apply.

      You have explained that the Public Service Commission (PSC) has authorized
Sustainable Westchester, Inc., a consortium of local governments in Westchester
County, to undertake a pilot Community Choice Aggregation (CCA) program. The
Town  is a member of Sustainable Westchester. A fundamental  component of the
pilot program is that a participating local government, in this case the Town, will
aggregate the energy and gas supply of its residents and small businesses and enter
into a contract with a utility that distributes such services. The Town in essence
will be acting as an energy broker for its constituents. Ownership and operation of
the utility service will remain with the distributing utility company.

      In its order instituting the proceeding to enable CCA programs, the PSC
noted that a municipality might find authority to participate in a CCA program in
Article 14-A of the General Municipal Law, which permits municipal involvement in
the provision of gas and electric service to residents. Public Service Com'n, Case 14-
M-0224,  Proceeding on Motion of the Commission  to Enable Community   Choice
Aggregation Programs,  Order  Instituting Proceeding and Soliciting Comments
(issued Dec. 15, 2014), at 6. The PSC advised that, if proceeding under Article 14-A,