On August 25, 2026, New York State Department of Public Service (DPS) staff filed a Proposal for Modification of the Community Choice Aggregation Program in Case 14-M-0224, recommending that the New York State Public Service Commission (PSC) discontinue the state’s Community Choice Aggregation (CCA) program.
The PSC authorized the statewide CCA framework in 2016 to permit municipalities to aggregate the electric and natural gas supply requirements of eligible residential and small commercial customers. Under the CCA framework, a municipality, generally working through an approved CCA administrator, conducts a competitive solicitation and contracts with an energy service company (ESCO) to serve participating customers. The distinguishing feature of the CCA framework is its opt-out enrollment model: eligible customers are automatically enrolled unless they affirmatively decline participation. By contrast, ESCO enrollment of individual customers under the PSC’s Uniform Business Practices (UBP) requires affirmative customer consent, an executed customer agreement, and applicable disclosures.
In November 2024, the PSC issued an order directing an evaluation of the CCA framework to determine whether program pricing was competitive, levels of municipal engagement, and whether measurable contributions to the Climate Leadership and Community Protection Act (CLCPA) have been made under the CCA program. The evaluation undertaken in response to the November 2024 order produced the findings that serve as the basis for the proposal.
DPS Staff’s Findings on the CCA
According to the DPS staff, more than 80 municipalities have participated in CCA programs since 2016. According to the staff, however, municipal and supplier participation has declined substantially in recent years, and as of June 2026, there were no municipalities participating in either an electric or natural gas CCA aggregation. The staff reports that all CCA programs ended by the close of 2025 because solicitations either failed to attract competitive ESCO bids or produced responses that did not satisfy applicable program criteria.
Pricing is central to the DPS staff’s recommendation. The evaluation determined that, from 2019 through the third quarter of 2025, customers enrolled in an opt-out electric CCA program paid an average of approximately 16.4 percent more than the comparable utility default-supply cost. For natural gas CCA programs, the evaluation found an average premium of approximately 37.5 percent from 2021 through the third quarter of 2025. The staff acknowledges that the comparison was affected by energy-market volatility (particularly during 2022) and premiums paid for a required higher renewable energy mix than what is included in standard utility supply service but concludes that CCA products generally exceeded utility default-supply prices over the contract periods reviewed.
The DPS staff also states that the CCA program offerings play a limited role in advancing the state’s clean energy goals under the CLCPA. In particular, the staff found limited evidence that CCA renewable-energy offerings resulted in new renewable development or measurable CLCPA contributions beyond existing state programs and renewable energy requirements. The staff further identifies recurring deficiencies involving customer disclosures, outreach materials, reporting, premium-price disclosures, and consistency between approved implementation plans and actual program operations as other CCA program concerns.
DPS Staff’s Proposed Action
The DPS staff recommends that the PSC:
- Discontinue the existing CCA program.
- Decline to authorize new CCA programs under the current framework.
- Direct CCA administrators to transition any remaining customers to utility default-supply service.
- Establish reporting and compliance requirements to ensure a transparent and orderly program closure.
The DPS staff considered but did not recommend several alternatives, including pricing guarantees, revisions to the opt-out enrollment structure, enhanced consumer protections, increased regulatory oversight, and limiting CCA participation to opt-in renewable products.
Why the Proposal Matters to ESCOs
If adopted, the proposal would eliminate the CCA procurement channel through which ESCOs may acquire and serve aggregated municipal load. It would not prohibit ESCOs from enrolling customers consistent with the UBP.
The proposal nevertheless has potential implications extending beyond presently inactive CCA programs. The DPS staff’s analysis places renewed regulatory focus on several issues that may affect the broader ESCO market, including:
- The comparison of fixed-price ESCO products against variable utility default-supply rates.
- The treatment and disclosure of premiums associated with renewable energy products.
- The extent to which price stability, customer preferences, renewable attributes, and other non-price benefits should be recognized.
- The compliance responsibilities allocated among ESCOs, CCA administrators, and municipalities.
- The effect of procurement requirements, credit exposure, regulatory uncertainty, and administrative burdens on ESCO bidding and market participation.
- Whether conclusions reached in the CCA proceeding could inform future PSC policies concerning affirmative consent, pricing disclosures, renewable products, or other mass-market ESCO requirements.
The proposal does not provide a deadline for comments. Barclay Damon attorneys are following Case 14-M-0224 and the related stakeholder process very closely and will provide further updates regarding comment opportunities, stakeholder sessions, and any action taken by the PSC.
If you have any questions regarding the content of this alert, please contact Ekin Senlet, Regulatory Practice Area co-chair, at esenlet@barclaydamon.com; Gabrielle Figueroa, special counsel, at gfigueroa@barclaydamon.com; Lauryn Fulton, associate, at lfulton@barclaydamon.com; or another member of the firm’s Regulatory Practice Area.