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Appeal Filed Against New York PSC Broker Regulation Order
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The New York Retail Choice Coalition (NYRCC or Coalition)
and M&R Energy Resources Corp. have informed the PSC that on July 29 NYRCC/M&R filed, in the Supreme Court for the County of Albany, their appeal challenging the PSC's April 2024 broker regulation rehearing order and the PSC's original June 2023 broker regulation order
A copy of the appeal, in the form of a CPLR Article 78 proceeding, was not immediately available.
NYRCC/M&R said that the appeal proceeding is pending
under Index No. 907244-24, Supreme Court for the County of Albany
While a copy of the appeal was not immediately available, NYRCC has previously stated that the PSC's rulings concerning the financial requirements for broker registrations do not comply with the statutory language which NYRCC says compels the PSC to allow the use of bonds for the security required under the registration. As previously reported, the PSC has rejected the use of bonds as a form of security for brokers, and is requiring brokers to post a letter of credit
The broker order specifically requires brokers to post a $100,000 irrevocable standby letter of credit for registration ($50,000 for consultants).
While PSL §66-t states that, "An energy broker or energy consultant shall register with the commission authorizing such registered energy broker or energy consultant to act as an energy broker or energy consultant in a manner prescribed by the commission; provided that such: (i) energy broker demonstrates financial accountability as evidenced by a bond or other method of financial accountability in an amount not less than one hundred thousand dollars; and (ii) energy consultant demonstrates financial accountability as evidenced by a bond or other method of financial accountability in an amount not less than fifty thousand dollars," the PSC has interpreted this provision as providing the PSC with the discretion to determine the acceptable financial instruments
With the appeal now filed, NYRCC/M&R again requested an extension of the July 31, 2024 deadline for broker registration and other compliance activities
The Secretary of the PSC, aware of the forthcoming appeal as it had been cited in comments by NYRCC, recently rejected a similar request for a further extension beyond July 31, 2024
NYRCC/M&R again sought an extension of the deadlines, "until the later of 60 days after the Albany Supreme
Court has issued a ruling on the Article 78 Petition. [sic]"
Separately, at least four brokers/consultants have requested extensions of the July 31 registration deadline citing delays in obtaining a letter of credit
While each entity made a unique individual request, several requests noted that the entity's banking institution won't be able to provide a letter of credit by the July 31 deadline, despite the entity having worked for over 60 days to obtain such LOC. Another request notes that the the entity provided a letter of credit to Department of Public Service Staff for review over 60 days ago, but Staff and the entity are continuing to discuss issues related to form and a specific LOC provision. Generally, the requesting entities stated that they have filed with the PSC all other information required under the broker registration process
Case 23-M-0106 et al.
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July 29, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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