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New York ESCO To Pay $1.5 Million Under Court-Approved Settlement
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A New York Court has approved a settlement under which Columbia Utilities Power, LLC ("Columbia") will contribute $1.5 million into a settlement fund to resolve legal action related to its cessation of fixed price energy supply service to several opt-out municipal aggregations
Columbia Utilities Power, LLC provided the following statement concerning the matter:
"Columbia Utilities Power, LLC ('Columbia Utilities Power'), a New York-only ESCO, experienced significant billing issues in Central Hudson’s territory in 2021 and 2022 which culminated in customers returning to default service in July 2022.
"We are pleased to have reached a settlement with certain New York municipalities and other stakeholders which resolves all outstanding civil and regulatory actions related to this issue and will provide significant compensation to a group of impacted customers. We remain committed to serving customers in a compliant manner, following all federal, state, and local laws and regulations. We will continue to work towards innovating and maintaining high-quality, compliant service to customers while delivering a great customer experience."
The settlement will provide payments to about 25,000 affected customers in the Central Hudson service area, with each customer receiving $40-$50 after legal fees
As stated by the New York PSC in a press release, Columbia Utilities Power, LLC was contracted to supply 10 municipalities in a CCA
As alleged by the New York PSC in a news release, "The electricity supply agreements contractually obligated Columbia to provide a fixed price per kilowatt-hour for participating customers within the municipalities for a three-year term: July 1, 2021 to June 30, 2024."
As alleged by the New York PSC in a news release, "on July 18, 2021 [sic, default occurred in July 2022], the New York State Independent Operator (NYISO) terminated Columbia’s rights to participate in NYISO-administered market in New York State as a result of Columbia’s failure to post approximately $3.5 million in collateral to comply with NYISO’s creditworthiness requirements."
That led to the drop of the CCA customers served by Columbia Utilities Power, LLC to default service, "at a higher retail market rate," the PSC alleged
"The Commission remains watchful of ESCO programs so that they can benefit consumers, provide market transparency and integrity, and advance state energy goals," said New York PSC Chair Rory Christian. "When an ESCO fails to adhere to its promises, the Commission will take swift action to protect customers."
The PSC stated, "Columbia remains in business in New York after the settlement."
Joule Assets, Inc. has served as the relevant CCAs' administrator and had brought legal action against Columbia Utilities Power, LLC which resulted in the settlement. The PSC also intervened in such court proceedings
See more background on the issues here
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December 4, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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