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Scheduled to Begin Enrolling Customers by End of Year

After years of development and delays, Ithaca’s Community Choice Aggregation (CCA) program, branded as Tompkins Green Energy Network (TGEN), is scheduled to begin enrolling customers by the end of the year.

Ithaca Sustainability Director Rebecca Evans has said that TGEN aims to lower energy costs while reducing greenhouse gas emissions through bulk purchasing of renewable energy for city and town residents.

“This is the Costco of energy,” Evans said. “It gives us the buying power that we wouldn’t ordinarily have if, say, each individual resident were to go to the energy market and try to negotiate a better price for renewable energy on their own.”

The program allows the city and town of Ithaca to compile most eligible energy accounts into a single purchasing pool. This enables competitive bidding from energy suppliers to secure rates that aim to “meet or beat” default rates set by NYSEG, the region’s primary utility.

According to Evans, “these types of programs typically aim at achieving 10-15% savings.” She added, “we won’t launch the program if the prices are going to be higher than what the default price from NYSEG is.”

Evans clarified the limitations of the program regarding energy costs, saying that while it could help mitigate increases in supply rates due to the development of community owned renewable energy sources, delivery rate increases would still apply because NYSEG infrastructure wouldn’t be replaced.

“This program would provide us some protection from an increase in price on supply based on how the energy is generated,” Evans said. “What it will not protect you against are delivery rate increases because all the infrastructure it takes to actually get the energy to you is still owned by NYSEG.”

The program will provide both electricity and natural gas options, with an eventual goal of phasing out natural gas in line with Ithaca’s Green New Deal (IGND) goals. According to Evans, “The goals for the IGND mean we will come off of gas eventually, but for now, we will purchase both.”

The program operates as an opt-out system, meaning eligible customers will automatically be enrolled unless they actively choose not to participate. However, large energy users such as Cornell University and Ithaca College, as well as residents receiving energy assistance, will be excluded.

Evans said that residents receiving assistance will be excluded to protect them from potential cost increases. “If they were to opt into CCA, it’s more than likely that they would lose their assistance [so] it’s not in their best interest [and] they should stay with NYSEG.”

Evans noted that large energy users like Cornell University and Ithaca College won’t be automatically included in the program due to utility classification rules. “It has to do with the type of user they are,” she said. “Utilities have different customer categories, and major users typically fall into one of those weirder categories, so they’re not automatically enrolled.”

She said that the city plans to engage with these institutions to encourage their participation. “We’ll be reaching out to them to try to get them on board,” she said. “One way we’re doing this is by connecting TGEN to our Net Zero Energy Code, which takes effect in 2026.” Evans added, “they can meet the requirements of that code by purchasing renewable energy through TGEN instead of installing solar on their rooftops.”

Evans emphasized that public transparency is a cornerstone of TGEN. “We have a really big outreach plan,” she said. “We’ll be using direct mail, radio, TV, and in-person events to ensure residents are informed about their options.”

In addition to cost savings, TGEN is expected to deliver significant environmental benefits by immediately reducing greenhouse gas emissions by 20% to 30% of the city’s total emissions. The program also offers increased transparency around renewable energy credits, addressing common concerns about the legitimacy of “green” energy portfolios.

Evans said that “the program eliminates scope two emissions—47,600 metric tons of CO2 equivalents—which means we’re eliminating the emissions associated with electricity use.”

The program’s development began in 2022, but progress was stalled for nearly 19 months as the New York State Public Service Commission (PSC) reviewed and updated its regulations for CCA administrators. Approval for Ithaca’s administrator, Local Power, finally came through on Christmas Eve, 2024.

Evans described the delay as frustrating but said that new state regulations have simplified the process and increased oversight to prevent fraud.

“There were a lot of bad actors within New York State that lacked transparency, especially in the renewable energy market,” she said. “Our administrator is currently the only one approved to do business in New York, which is great because we really like them.”

The program is expected to launch in phases throughout 2025. A 120-day public outreach and education period will begin this spring, during which residents will receive detailed information, including price comparisons between NYSEG and TGEN rates. Enrollment is anticipated by November 2025.

- Matt Dougherty, Ithaca Times, 1/22/25