Few answers after power program pulls plug

By JEFF MORRIS 

The suddenness of the Westchester Power program shutting down left many officials and customers without time to digest the news and make sense of what went wrong.

The end of the program run by Sustainable Westchester means that power contracts are ending, all customers will automatically be switched to the default supplier for their utility, whether Con Edison in Mount Kisco and a portion of Bedford, or NYSEG in the rest of Bedford and Pound Ridge.

As The Recorder reported earlier, the reason for the shutdown was not clear. Sustainable Westchester stated that New York had implemented new rules governing community energy programs statewide, and that “continuing the program under the current regulatory framework is not feasible.” But the state’s Department of Public Service disputed that, saying there were no new rules, and that Westchester Power’s recent municipal filings were rejected because of “numerous deficiencies” that failed to meet requirements for customer outreach and education.

The program’s director, Dan Welsh, had said, “It is not true that there was a deficit of outreach, and none of the mistakes were of such a substantive nature that customers would not have adequate information to make an informed choice.”

That dispute occurred against a backdrop of criticisms that have dogged the program over the last couple of years. The power program was initiated by the Sustainable Westchester consortium in 2015. It was intended not only to control electricity costs, but to increase the use of renewable energy by encouraging whole municipalities to opt for a renewable supply as their default. That was the case in most locations; in northern Westchester, Somers was the one town that opted for the standard supply.

In Lewisboro, where Welsh is a member of the Town Board, criticism of the program led to the contract being allowed to expire in 2024. Led by town board member Richard Sklarin, in 2024 the board refused to even hear a presentation by Sustainable Westchester’s Executive Director Noam Bramson. A group of Lewisboro residents had insisted that Welsh had a conflict of interest — even though he had recused himself from all votes related to the consortium — and was enriching himself at residents’ expense. 

Another criticism leveled at the program was that its opt-out basis left most people unaware they were even participating, or not knowing that they could opt out at any time and revert to the default utility supply or find another alternative on their own. 

In fact, the opt-out formula for Westchester Power was written into the original Public Service Commission authorization of community choice aggregation programs in 2016. The PSC stated, “opt-out aggregation appears necessary for CCA programs to achieve the scale that will enable ESCOs (energy supply companies) to create meaningful benefits for mass market customers,” and added, “In order to leverage the negotiating power to draw offers from ESCOs that will benefit residents, municipalities must have a reasonable level of certainty that a critical mass of customers will be available for their programs, which is best provided through a well-designed opt-out CCA program.”

Though it was no longer part of WP, Lewisboro Supervisor Tony Gonçalves told The Recorder that the framework for Lewisboro to participate in the program “was established in 2015 by a prior town board, and can be found in our Town Code.” He continued, “Being part of a CCA provided a vetted clean energy, fixed rate option which we would not otherwise have. I was supportive of this program, having been part of it after joining the Town Board in 2018. While, as NYSEG rates rose and fell over time, the program pricing could be more or less attractive, consumers could always opt out if they chose.” 

Gonçalves said the CCA program “gave an important boost to carbon reduction efforts here in Lewisboro and around the county,” and added, “I’m hoping that Sustainable Westchester can find some other creative ways to facilitate resident access to clean energy supply to make up for this loss.”

Bedford Supervisor Ellen Calves told The Recorder, “From what I understand, the PSC has made the notification and informational requirements so onerous over the past couple of years that all CCAs across the state are shutting down because they just can’t meet them — it is not unique to Westchester Power.”

Calves said she believes Westchester Power did a good job with its education and outreach. 

“There were many opportunities to understand the bidding process, the fixed rate, the energy supply mix, and the opportunities to opt out and opt in,” she said. “This is unlike NYSEG’s supply for which there is no information required to be pushed out to customers as to NYSEG’s contract with their supplier, the rates, the supply source, etc., but people who were in Westchester Power will now be opted in to that supply, with a variable rate, without their consent.” 

While people may now choose their energy supply, Calves called the list of ESCOs “ridiculously long, with no guidance as to how to evaluate them. ESCOs usually require a commitment of a year or two (no opt in or opt out at will like Westchester Power offered). So, hopefully we can find some guidance for where people should go to find a supplier they are comfortable with.”

Mark Thielking, Bedford’s director of energy and sustainability, expressed “deep disappointment with the state PSC in not facilitating and encouraging a viable pathway for continued CCA services.” He said he believed CCAs were the best way to sort through the providers of lower cost, pollution free electricity. 

Given the abrupt change, he said, “we are aiming to regroup ASAP and figure out another way to help the community make good choices for pollution free electricity, as that market is very difficult to navigate.”

Mariah Okrongly, executive director of Bedford 2030, said her organization also was disappointed by the closure.

“For years, this initiative made it simple and accessible for our community to choose 100% renewable electricity, a cornerstone of our shared progress toward a healthier, more sustainable future,” she said. “With the program ending, we encourage residents who want to continue powering their homes with renewable energy to review available ESCOs offering 100% renewable options.” 

She said they can visit the New York State Power to Choose website. However, consumers should note that the state has posted a consumer advisory warning that the PSC has been “critical of certain ESCOs” regarding prices, and that “the information offered on this website is self-reported by each ESCO and has not been audited for accuracy” and urging caution in evaluating offers.

“I think this is an extremely important time to remind people to take care when choosing an ESCO,” said County Legislator Erika Pierce. “Unlike Westchester Power’s program, it can be extremely difficult and expensive to exit other ESCOs. We have needed to call upon our Office of Consumer Protection to assist some residents with exiting an ESCO contract and in recouping monies well above what they had anticipated paying. We have also heard from residents who thought they were requesting information, only to discover they had somehow been signed up, an illegal practice called ‘slamming.’” 

Pound Ridge Supervisor Kevin Hansan echoed the others, saying, “I think it is disappointing because many enjoyed the fixed rate versus the variable rate NYSEG, as the energy supplier of last resort, uses.” 

In Mount Kisco, Mayor J. Michael Cindrich said the village decided against renewing the agreement to be part of the program last year, because complaints had been lodged about the automatic enrollment. There was also some customer disenchantment that the fixed rate contracted by Westchester Power became more expensive than what Con Edison was charging, he said.

Of particular concern for the village, said Cindrich, is whether Sustainable Westchester, which rented space at the former village police headquarters at 40 Green St., will continue to need to use the facility. “So what we’re trying to determine now is if they’re going to have a reduced workforce if that’s going to impact their need for space,” Cindrich said. “It is not resolved at this time.”

“Westchester Power helped reduce greenhouse gas emissions by over one million metric tons,” state Sen. Pete Harckham said in a statement. “... The end of this program does not end the need for clean, affordable energy. I am working with Sustainable Westchester, local governments, and the business community to support renewable options that can save residents money and create a healthier future.”

Assemblymember Chris Burdick said he had heard from reliable sources that at least some other CCAs in the state have shut down, though he did not know to what extent other CCAs were affected. Multiple requests by The Recorder to the PSC for confirmation of whether other CCAs had the same deficiencies or had shut down have not been answered.

Burdick said it is logical to conclude that if the opt-out model is the problem, all CCAs would be in jeopardy. But, he said, it is not fair to lay all the blame at the feet of the CCAs, as he thought the utilities themselves should have done a better job of communicating information to customers.

“The Department of Public Service does a very good job at some things,” said Burdick, “but I’m very disappointed at how this was handled.”

Burdick earlier said he was working with Sustainable Westchester and his colleagues in the Legislature to find a solution. With the Legislature not in session until January, he has not yet determined what form that will take.

Staff writer Martin Wilbur contributed to this report.