BY ADAM ATKINSON
North Country This Week

POTSDAM — The town board, by a split vote, has approved a contract with a firm to handle its community choice aggregation program, essentially an electricity buying club for town residents.

The town board passed the contract at their meeting Dec. 13 in a 3 to 2 vote.

Town Council members Toni Kennedy, Lynn Hall and Allyssa Hardiman all voted in favor. Voting against were Town Councilman and Deputy Supervisor Marty Miller, and Town Supervisor Ann Carvill.

Joule Community Power, a firm which administers a large number of community choice aggregation power arrangements for municipalities around the state, will be doing the same for town residents under the contract. The firm will essentially serve as a middle man, brokering sources of renewable energy from producers at a fixed rate on behalf of town residents.

The contract with the firm will last 18 months, and then auto renew for 18 more unless it is terminated in writing 30 days prior to the renewal.

Joule is required to hold a $1 million insurance policy for potential legal claims for each energy contract it secures on behalf of town residents, with a $50,000 deductible. A $2 million commercial general liability insurance and a $1 million business automobile liability policy is also required.

Under the contract the municipality is insulated from third-party lawsuits to some extent.

Joule shall be responsible for the town’s CCA Program organization, administration, procurement, communications and implementation.

Most notably the company will manage the procurement process, including without limitation, preparing bid specifications, procuring competitive bids, reviewing responses and negotiating energy contracts with selected energy suppliers that are most advantageous to the CCA program and municipality.

Joule will also be responsible for managing the opt out process. Under the town’s CCA program, residents are automatically enrolled in the CCA program and will be forced to opt out on their own if they choose not to participate.

Joule will provide a staffed call center for the opt-out process to respond to questions or requests by residents to opt out.

The company will conduct public outreach and education annually in an attempt to maintain support of the CCA program and to spread awareness.

According to the contract, Joule will make its money through a program administration fee. For administering the program, the company will be paid by prospective energy suppliers a fee or commission from each contract.

The town of Potsdam will not be required to make a payment to Joule for services or expenses incurred during administration of the program, unless the municipality agrees in writing to do so.

Representatives from Joule have been present at board meetings in Potsdam and Canton over the last year, and have offered their services to the town of Potsdam after that municipality approved setting up a CCA program this past year.

Municipal community choice aggregation programs, authorized by the state last year, allow local governments to pass local laws to set up buying clubs for their residents to purchase cheap or renewable energy on the open market. The buying club can potentially give the residents more power to find the best pricing for electricity on the open market.