New York PSC Chair Says DPS Has Observed "Repeated Violations" Of CCA Rules, Violations "Misleading" To Customers -- EnergyChoiceMatters.com

New York PSC Chair Says DPS Has Observed "Repeated Violations" Of CCA Rules, Violations "Misleading" To Customers

November 29, 2023

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Reporting by Paul Ring • ring@energychoicematters.com

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"After observing repeated violations of the Community Choice Aggregation (CCA) Program Rules," Rory M. Christian, Chair and Chief Executive Officer of the New York Public Service Commission, issued a letter to New York State’s approved CCA Administrators, "to ensure continued compliance with existing regulations."

"[T]he Department [of Public Service, or DPS] remains concerned about the lack of adherence to the rules established by the Commission, which were put in place to protect CCA program participants and ensure that CCAs meet customer expectations," Christian wrote in the letter on behalf of the DPS

In such letter, the DPS reminded CCA administrators of various rules, including some of the key outreach and education rules that must be complied with, as follows:

• "The CCA Administrator must submit the Municipality Filing template that includes, among other things, the completed Outreach and Education record that complies with the applicable requirements, the opt-out letter, and attestation to the filing being accurate and in compliance with requirements. Only upon approval can the opt-out letters be mailed to eligible program participants. The Department is aware of some Administrators mailing opt-out letters, which include incorrect information, before having approval to do so. Such violations have proven to be misleading to customers and may cause confusion regarding the nature of the program and the customer’s rights." [emphasis by DPS]
• To ensure sufficient customer education and awareness of opt-out enrollment in the CCA program, multiple forms of Outreach and Education (public meetings, tabling events, and media) may only be performed over a period of no less than 60 days by the CCA Administrator authorized in the Master Implementation Plan and must be conducted within the municipality the program is to serve.
• At a minimum, Outreach and Education must include, CCA Administrator name, contact information, and specific website link; Program name (if applicable); general information about the program, including any termination fees; information to inform municipal residents of opt-out enrollment and how to read and comprehend their energy bills; and when available, contract terms, pricing, ability to opt-up or opt-down, and price comparisons including disclosing customers may pay a premium for renewable supply services though they will be contributing to NYS clean energy goals. The Department is aware that some Administrators have not met the minimum outreach and education requirements for post-award meetings. [emphasis by DPS]
• To ensure information is available to municipalities and customers, CCA program websites must include the following data points: CCA Administrator name and contact information, a list and link to all participating municipalities’ program information including: contract information with rates, identification of the ESCO serving, the defined price to compare information, opt-out periods, and Outreach and Education; municipal liaison information; customer service and complaint filing information; links to clearly identified opt-in offerings; links to the Department’s CCA webpage and NYSERDA CCA resource information; contact information for the incumbent utility; and adopted FAQs. The Department is aware of some CCA program websites that are not compliant with the CCA Modification Order as well as instances of Administrators not submitting an attestation to the Secretary regarding website compliance. Such violations may perpetuate a public misunderstanding or misinterpretation of product offerings and customer protections available under the CCA Program Rules. [emphasis by DPS]
• For standard grid mixed supply products, fixed-rate offerings shall be limited to a price no greater than 5% above the trailing 12-month average utility supply rate, and variable-rate products must guarantee a savings compared to what the customer would pay as a full-service utility customer.
• ESCOs providing green energy in the context of CCA must maintain auditable New York-specific records to demonstrate that such customers are receiving green energy compliant with the environmental attributes and delivery rules of the Commission’s Environmental Disclosure Program. The Department is aware of violations of the green procurement policies as required in the Commission’s Environmental Disclosure Program. Such violations have proven to be misleading to customers and may cause confusion regarding the nature of the program and available green energy offerings. [emphasis by DPS]
In the letter to CCA administrators, Christian, "ask[s] that you [CCA administrator] acknowledge receipt of this letter and your continued compliance with the underlying rules no later than December 15, 2023."

The letter from the DPS did not allege any violations by a specific CCA administrator or administrators

The letter was sent to the state's approved CCA administrators, which include Sustainable Westchester, Good Energy, L.P., and Joule Assets, Inc.

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