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Here's What Wasn't Included in New York's Retail Market Order
As noted by EnergyChoiceMatters.com's extensive coverage (click here), the New York PSC's retail markets investigation order directed a wealth of significant, market-altering changes, including the introduction of a measure of recourse to POR, subjecting ESCO service to certain low-income customers to various conditions, requiring independent TPVs of certain sales channels, ending the ESCO referral programs, and requiring the publication of ESCO rate histories, to name a few.
But here are several controversial policies sought in the proceeding which the PSC declined to implement:
Publication of Variable Rate Methodology "Such a formula is unlikely to provide meaningful, actionable information for mass market customers. In addition, such an approach would place undue weight on the published rate methodology, instead of on the actual attributes of the service valued by customers such as the extent of energy-related value-added services and the actual price charged by the ESCO," the PSC said.
The PSC further said that its other actions, including the posting of variable rate histories and new requirements for Power to Choose (such as a prohibition on teaser rate postings) will do more to improve rate transparency than publication of variable rate methodologies.
"Moreover, imposing a requirement to publish a rate methodology would unduly constrain ESCOs and inhibit their ability to respond to unanticipated market factors, thereby potentially impeding competition," the PSC said
"However, we encourage ESCOs to provide meaningful, understandable information to customers about how variable prices are determined, consistent with the UBP. Clear, plain language descriptions will assist customers in understanding ESCO offerings and enhance consumer confidence in retail energy markets," the PSC said.
Publication of Cost Comparisons on Bills Licensing of Brokers The PSC did stress that ESCOs remain responsible for the actions of those who market or sell on behalf of the ESCO. "To re-enforce this responsibility, we modify the UBP's definition of 'ESCO marketing representative' to state that the term encompasses the ESCO, its employees, agents or contractors/vendors conducting marketing activities on behalf of the ESCO or ESCOs. Further, the definition includes subcontractors, employees, agents, vendors and representatives not directly contracted by the ESCO who conduct marketing or sales activities on behalf of the ESCO, such as energy brokers," the PSC said.
Additionally, the PSC will be monitoring the activities of non-ESCO marketing agents and brokers, including through reports required to be filed by ESCOs concerning the agents and brokers on which they rely
"We will continue to monitor third party marketers' involvement with energy consumers and ESCOs, as well as the UBP compliance of ESCOs who partner with these entities, to determine if further action on our part is required," the PSC said.
Cost Comparisons Mailed to Payment Troubled Customers The PSC declined to adopt this proposal. "We will not require additional information be provided to payment troubled customers or low income customers."
As noted above, all utilities will implement an online comparison for ESCO customers of their cost under ESCO supply versus shadow-billed default service costs.
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Reporting by Paul Ring • ring@energychoicematters.com
Although the PSC will require the posting of variable rate histories, the PSC will not require that ESCOs specify their variable rate methodology and tie such methodology to publicly available information. Such a provision had been sought by certain consumer interests.
While the PSC did order the ubiquitous implementation of historic ESCO-versus-utility cost calculators on utility websites, the PSC will not direct, at this time, that consolidated utility bills include a direct comparison of what the customer would have paid if the customer had purchased supply from the distribution utility.
"However, we will require that a brief message be included on each consolidated utility bill for mass market customers that advertises the availability and location of the historic bill calculator," the PSC said.
The PSC declined to require that brokers or other marketing agents or consultants be licensed by the PSC.
Several parties had sought to require the utilities to provide comparisons between ESCO and default service costs in direct mailers to payment troubled and/or low-income customers.
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