Energy Choice
                            

Matters

New York Will Allow ESCOs To Offer Fixed Prices to Low-Income Customers, Sets Collaborative on Implementing General Prohibition on ESCOs Serving Such Customers

February 6, 2015

Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The New York PSC yesterday addressed certain rehearing requests related to its landmark February 2014 retail energy market order which, among other things, limited ESCOs' ability to serve low-income customers to certain situations.

The PSC's February 2014 order originally only allowed ESCOs to serve utility low-income assistance program customers if the ESCO either: (1) offered guaranteed savings versus default service, or (2) provided "energy-related value-added services that are designed to reduce customers' overall energy bills," such as home energy management services, demand response programs and tools, energy efficiency measures, and other tangible services as determined by Staff.

While the PSC said that it largely affirmed this decision, the PSC indicated at its meeting yesterday that its intent via the collaborative is to allow ESCOs to offer fixed price products to utility low-income assistance program customers, with such products considered to be a "value-added" service.

A written order was not immediately available, and it was unclear if certain conditions will be placed on fixed offers to low-income assistance customers (PSC Chair Audrey Zibelman refers that fixed rates must be "reasonable" in a news release, as noted below). A collaborative is to more fully address the issue within 180 days, including "requirements" for ESCO value-added products including fixed rate products offered to low-income assistance customers. The value-added products including fixed rate products should not "dilute" the assistance received by low-income customers, Staff said of the recommendation adopted by the Commission.

"As a result of the Commission’s action today, when implemented, low-income consumers will be guaranteed that they will pay no more than if they had purchased energy from the local utility or these customers could opt to purchase valuable services from third-party companies, such as home-energy management capabilities or prices fixed at reasonable levels," said PSC Chair Audrey Zibelman (emphasis added)

The collaborative is to address a "point of sale" process to determine if a customer is in a utility low-income assistance program, and how to identify customers who are not in such a program when enrolling with an ESCO, but later begin participating in a utility low-income assistance program.

The PSC also addressed its February 2014 requirement that mass market door-to-door and telephonic ESCO sales be third party verified.

Originally, the PSC provided that the TPV cannot include participation by the ESCO or its marketing representative

The PSC said that it will clarify this prohibition on TPV participation by the sales agent to provide that it will allow "flexibility" such that the ESCO's telemarketing rep may set-up the TPV, and that an interactive voice response TPV may be used. The PSC said that the TPV script would also be streamlined, and a collaborative is to address the TPV issue.

The PSC's action yesterday did not address still pending rehearing requests regarding purchase of receivables, and the implementation of certain aspects of the February 2014 order with respect to small commercial customers.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Director, Account Management
• NEW! -- Director of Business Development -- Houston
• NEW! -- PJM Pricing Manager/Director -- Retail Supplier -- Houston
• NEW! -- Retail Energy Project Analyst -- New York
• NEW! -- Supply Manager -- Retail Supplier -- Houston
• NEW! -- Broker Sales REP III - Mid-Markets -- Texas
• NEW! -- Senior Analyst, Front Power Supply -- Retail Supplier
• NEW! -- Accounts Management Director -- Retail Supplier
• NEW! -- Regional Sales Manager-Mass Markets -- Retail Supplier -- Houston
• NEW! -- Digital Marketing Manager -- Retail Supplier
• Director, Business Development Power & Gas -- Retail Supplier
• Business Development Manager -- Retail Supplier -- Houston/DFW
• Energy Advisor