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Westchester Power 6/6/2024 Village of Croton A SHARED CHALLENGE CLIMATE CHANGE IS HERE, NOW TEMP RAIN OUR COMMUNITIES ARE IMPACTED White Plains 9/23/2023 Yorktown 9/23/2023 Tarrytown 10/21/2023 AMBITIOUS GOALS FOR NYS Climate Leadership and Community Protection Act - CLCPA 70% renewable energy by 2030 Zero emissions by 2040 SHARED SERVICES: DOING MORE TOGETHER SUSTAINABLE WESTCHESTER CREATED BY AND FOR WESTCHESTER’S MUNICIPALITIES and Westchester County itself COMMUNITY SOLAR COMMUNITY ENERGY ENERGYSMART HOMES SUNSHINE TO EV ELECTRIFICATION SOLUTIONS ZERO WASTE WESTCHESTER POWER SW IS SHARED SERVICE PROGRAMS GRID EFFICIENCY GRID REWARDS™ RECYCLE RIGHT APP BUILDING DECARBONIZATION WESTCHESTER POWER IS A CORNERSTONE OF REGIONAL CLIMATE ACTION Municipalities 145,000 Residents and Small Businesses WESTCHESTER POWER CCA First and Largest CCA in New York State Cap Electricity Costs Expand Consumer Choice Provide Clean Energy PROVIDE CLEAN ENERGY 310,860 Metric Tons of Carbon PROVIDE CLEAN ENERGY Cars off the road Based on EPA Calculator 73,985 PROVIDE CLEAN ENERGY $47,854,300 social costs averted. NYSDEC calculation for 2025, based on 2% discount rate 368,310 Tons of Carbon . . . Expand Consumer Choice Utility Traditional CCA DEFAULT OPT-OUT Westchester Power DEFAULT OPT-OUT ESCOs Utility ESCOs CAP ELECTRICITY COSTS UTILITY RATES HAVE VARIED from 4 cents to 22 cents since program launch. WP PREDICTABLE FIXED-RATE never exceeds the contract level. STATE GRANTS STATE GRANTS can be accessed by municipalities that participate in CCA. NYSERDA’s Clean Energy Communities program recognizes CCA as a high-impact action. CONSUMER-FRIENDLY with no fees or penalties for coming or going. CUSTOMER SUPPORT by phone or email, plus other program info. EASILY ACCESSIBLE INFORMATION to find Con Ed rate comparisons. HELP FOR MUNICIPAL STAFF is always available. CUSTOMER SUPPORT & EDUCATION CURRENT CONTRACT CURRENT CONTRACT: CON ED TERRITORY Supplier: Constellation New Energy Rates for Residential & Small Commercial: • Renewable – 15.449¢/kWh • Standard – 13.685¢/kWh Term: November 1st 2022 through October 31st 2024 (24 months) *Con Ed 12-month trailing average for the period 04/2023-03/2024: 9.378¢/kWh WHY? UNIQUE CHALLENGES IN 2022 WAR IN UKRAINE roils energy markets ENERGY PRICES FORECAST TO RISE ACTUAL PRICES DECLINE post-contract, leaving fixed-rate higher than utility WP RENEWABLE ENERGY IS A GOOD DEAL WP RENEWABLE ENERGY has typically come in below market costs, even in the most recent contract, comparing favorably with similar renewable offerings from ESCOs. Monthly ranges of comparable ESCO offerings (12-24 month contracts, 100% renewable) NEW CONTRACT OPPORTUNITIES MARKET CONTEXT: ADVANTAGES FOR FIXED RATES CAPACITY CONCERNS: NYISO projects a shortage in 2025 with the confluence of peaker plants coming offline, acceleration of electrification and new emissions rules coming into effect. PRESSURE ON NATURAL GAS PRICES: Natural gas is the electricity market price setter. Exports to higher priced market are again becoming a factor as port facility capacity increases. HOT SUMMER PREDICTED: 2-4 degrees higher than average. New York City will likely see twice as many 90-degree days as in 2023, when there were 12. AIMING FOR A GREENER CONTRACT CURRENT CONTRACT DEFAULT OPTIONS OR Fossil Brown 100% Utility Mix STANDARD RENEWABLE Green Medium 100% Tier 2 AIMING FOR A GREENER CONTRACT New Contract (initial) Options Only Default Choice Opt-up Green Medium 100% Tier 2 Green Light 50% Tier 2 MARKET CONTEXT: REC LIMITS & OPTIONS Tier 2 LIMITED SUPPLY Tier 1 NOW AVAILABLE RECs 101 ● New York renewable market system based on “renewable energy certificates” - RECs ● 1 REC = 1 megawatt-hour of power put out on the grid ● NYS has designed distinct “tiers” of RECs for different policy purposes, but all to grow renewables and meet clean energy goals ● For generation constructed prior to Jan 1, 2015 ● Maintaining and optimizing legacy facility output, and keeping it in-State ● Started operation after Jan 1, 2015 ● Considered higher “additionality” - deeper green. Primarily wind and solar Primarily hydropower AIMING FOR A GREENER CONTRACT If Tier 1 RECs Become Available Default Green Dark 100% 50/50 Tier 1/2 Green Light 50% Tier 2 GETTING TO 100 Challenge: NYSERDA price known by July, and sale in August, but we are looking to sign the main contract in June. So, June: Award sign contract for 50% Tier 2 July: NYSERDA announces price; if within target price range, munis who want to go to 100% sign a simple contract amendment changing the default product and price August: Supplier purchases RECs Three MOU Options 1. Tier 2 50% default and 100% opt up The product structure we initially go to bid with and contract for in June will be the structure for the upcoming contract, regardless of Tier 1 REC availability 2. Automatic shift to Tier 1+2 100% Renewable Default Indicates muni “shall” sign contract amendment to make 100% Renewable product the default if price cap is met 3. Muni decision to take Tier 1+2 100% Renewable Default Does not oblige muni to sign the amendment and allows for an additional decision to be made once product price is known REQUESTED ACTIONS & TIMETABLE Croton Select & Sign MOU: Now through Mid-June Sustainable Westchester RFP Release to Bidders: Early June Bid Award: Mid-June Sustainable Westchester & Croton Signs Initial 50% Default ESA: Late June Sustainable Westchester *Tier 1 Price Determined: Early July Croton Sign Contract Amendment: Early/Mid July Sustainable Westchester Tier 1 REC Transaction: Aug 1-15 Final Pricing: Aug 15-17 Sustainable Westchester Public Meeting(s): End of August Opt-out Period: Early Sept - Early Oct Customer Enrollments: Nov 1 *Point at which we learn the viability of 100% Renewable default product & whether to move forward with the ESA amendment or not THANK YOU! Contact Us Nick Tedrow, Deputy Program Director nick@sustainablewestchester.org 914-242-4725 ext 118 Westchester Power General westchesterpower@sustainablewestchester.org More Program Information sustainablewestchester.org/wp/conedterritory.org