New York PSC Revokes Eligibility Of Two ESCOs -- EnergyChoiceMatters.com

New York PSC Revokes Eligibility Of Two ESCOs

May 13, 2022

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Reporting by Paul Ring • ring@energychoicematters.com

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In separate orders, the New York PSC revoked the ESCO eligibility of AAA ESCO, LLC and Switch On Power Corp.

AAA ESCO

With respect to AAA ESCO, LLC, the PSC said, "AAA ESCO has exhibited a pattern of non-compliant behavior with respect to UBP required compliance filings."

The PSC cited numerous past instances in which the PSC said AAA ESCO failed to timely file its annual January compliance filing, including in 2021

In response to PSC outreach concerning the filing and a show cause order, AAA did file in March 2022 a letter with the PSC stating that AAA has performed no services in the State of New York since its backoffice vendor filed for bankruptcy protection several years ago (with all of its customers returned to default service at such time)

AAA stated, "Thereafter, AAA filed its quarterly [pricing] reports indicating that it was no longer doing business in New York and that if AAA were to return to the market it would comply with all New York State requirements. That statement is a public filing made in the 2nd Quarter 2020 filing. AAA did not go out of business but became dormant. Finally, it was our belief having made this representation to the State of New York Public Service Commission that we were thereafter in compliance."

AAA included the requisite pricing and annual filings in its March 2022 letter

AAA noted concerning the 2021 filing, "The person who handled that task for AAA moved out of New York State and has been mostly unreachable during the Covid-19 Pandemic as a result I was forced to recreate all of our electronic files and other templates with the assistance previously provided."

While the PSC made note of these submissions, the PSC said, " The Commission notes that various other ESCOs did make timely compliance submissions during 2021 – as well as during previous years. While AAA ESCO responded to the February 18, 2022 OTSC [show cause order] on March 24, 2022, its response shows a pattern of corporate neglect and an indifference to the UBP obligations that govern the company’s participation in the New York retail energy market such that the Commission lacks confidence that AAA ESCO will serve as a responsible actor in that marketplace. Moreover, given that the company has ignored essential, baseline UBP reporting obligations, the Commission is concerned that, if AAA ESCO were to serve customers in New York, the company would not follow other UBP obligations that protect New York retail customers," and thus revoked AAA's ESCO eligibility

Case 22-G-0035

Switch On Power Corp.

With respect to Switch On Power Corp., the PSC said that Switch On Power failed to file a 2021 annual compliance reported, and thus all company contacts were not reachable, including through certified mail

"[T]he Commission finds that Switch On Power has violated the annual filing requirements of UBP Section 2.D.1, despite the many notices provided by Department Staff. Given this habitual pattern of non-compliance and repetitive disregard for regulatory authority, the Commission hereby revokes Switch On Power Corp. eligibility to serve energy customers in New York State," the PSC said

Case 22-M-0036

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