The town of Brighton has settled its breach of contract lawsuit against a company that defaulted on an agreement to supply residents with 100 percent renewable power.

ICON Energy, which did business under the name Source Power, has agreed to settle the class-action lawsuit for just under $1.4 million, pending final approval from a judge. And many Brighton utility customers will be getting a share.

Brighton Supervisor Bill Moehle said during a news conference Friday that it was disappointing when Source Power defaulted because it derailed a town effort to help lower residents’ electricity bills and to get competitively priced renewable power.

“This was a great program,” Moehle said. “This was a real opportunity for all of us as a community to really move the needle on sustainability in the town. … Sustainability continues to be an important priority of ours, and we will continue to move forward to make sure that Brighton is as green a community as it can be.”

The initiative Moehle was talking about was the town’s community choice aggregation, or CCA, program, which it launched in January 2021. Through CCA programs, local governments procure power on behalf of residents, businesses, and municipal customers from a supplier. The utility company — Rochester Gas & Electric, in Brighton’s case — continues to provide transmission and distribution services.

The arrangement is about leverage. Buying renewable power in bulk is typically cheaper than individual household or business contracts.

Brighton contracted with Source Power to provide that power at a fixed rate that was cheaper than RG&E’s. But in June 2022, six months before the contract was to expire, Source stopped providing power, and customers participating in the aggregation program were kicked back to RG&E and its higher variable rates. That effectively ended the aggregation program.

Brighton and its aggregation program administrator Joule Assets filed a class action lawsuit on behalf of the town’s residents. When finalized, the settlement would be divided among a few recipients, according to the town:

• Residents collectively would receive $960,000. Customers who were still participating in the CCA program at the time Source Power stopped service would receive checks averaging $121. Customers who left before then would receive an average of $40. 
• The town would receive $319,000 to cover legal fees. 
• Joule Assets, as the program administrator, would receive $56,000. 
• Continental Datalogix, the firm that would make sure residents receive their settlements, would receive $40,000. 

Brighton’s CCA program has since been discontinued. But Moehle said with the lawsuit winding down, the town may take another look at the program. He added it would complement other measures Brighton is taking to be more sustainable, such as installing a geothermal heating and cooling system in Town Hall.

“In every way, we are looking very closely at how we can continue to become as sustainable a community, not only our own government operations, but the community as a whole,” Moehle said.