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N.Y. PSC Adopts Final ESCO Consumer Bill of Rights

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December 17, 2010

As noted during our live blog yesterday, the New York PSC adopted a final ESCO Consumer Bill of Rights.  A written order has not yet been published, though a copy of the Bill of Rights can be found attached to the PSC's press release.

The final bill of rights can be compared to the draft issued in September, first reported by Matters (10/1)

Absent written revisions to the Uniform Business Practices, which were not yet issued, it's unclear how the Commission addressed the issue of automatic renewals, which was one of the contested issues in the case whose outcome was not dictated by enabling legislation.  

Draft language had suggested that a new customer authorization, as provided in the UBPs, would be required for renewals containing material changes other than price, and for contracts renewing onto a monthly variable rate where the rate was not specified in the initial sales agreement.  ESCOs had especially sought clarification of the draft variable rate requirement, since the initial sales agreement will typically specify the formula or determination for a rollover variable rate at the end of the contract, but obviously not the rate itself.

The PSC did strike the following language in the final Bill of Rights:

"The customer will not be subject to early termination or cancellation fees if the customer objects to the renewal within three business days after receiving the first billing statement from the ESCO under the terms of the agreement as renewed.  Further, an ESCO cannot change any material terms, other than price, without your express consent."

However, not much can be read into the deletion of such language since it may have been excised for brevity and simplicity, with the obligations imposed on ESCOs remaining and addressed in the revised UBPs, which have not been issued yet.

Also excised from the final Bill of Rights is language informing the customer that they are entitled to, "[a] description of any early termination or cancellation fees provided for in the agreement.   An ESCO cannot impose Early Termination Fees exceeding $100 for a contract with a term of one year or less, $200 for a contract with a term greater than one year, or more than two times an estimate of your average monthly energy charge, which amount must be provided to you at the time of the agreement"

The termination fee limits will still apply (as they are set by legislation), and must be disclosed on the required disclosure statement under previously adopted regulations.

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