|
|
|
|
N.Y. Mulls Greater Financial Fitness, Risk Management Experience for ESCO Licenses, License Fee Also Floated
The New York PSC issued a discussion document drafted by Staff in advance of a previously reported technical conference on ESCO eligibility requirements (licensing), and among the considerations are the introduction of risk management competency and financial fitness requirements, while a licensing fee was also floated.
Staff noted that, to be deemed eligible to provide service in New York, ESCOs are not currently required to demonstrate expertise concerning financial risk management practices, "such as those needed to effectively design, offer and manage fixed price products."
In addition, ESCOs are not currently required to demonstrate experience or knowledge in providing customer service, Staff noted.
Staff asked:
a. Should such requirements be included?
b. Means for meeting these types of requirements could include energy commodity risk management experience, and customer service expertise. What requirements would best serve to provide the necessary information and expertise?
Furthermore, Commission regulations do not currently require ESCOs using standard billing practices in New York to demonstrate financial integrity, maintain a certain credit rating, or post security or a bond.
Staff noted that other states require information demonstrating an ESCO's financial integrity, including requiring evidence and maintenance of:
• Investment-grade credit rating;
• A specific tangible net worth;
• An irrevocable stand-by letter of credit payable to the Commission;
• A bond or other security of a certain amount payable to the Commission.
Staff asked:
a. Would such requirements provide some assurance that ESCOs can meet the financial obligations of procuring electricity and natural gas at cost-effective prices?
b. Could such requirements also serve as a source of funding in the event that the Commission directs the ESCO to provide refunds to its customers?
Staff also asked whether a licensing fee should be considered for ESCOs.
Additionally, Staff questioned whether a more formal "licensing" regime for ESCOs should be introduced, compared to today's eligibility criteria.
Regarding ESCO license applications, Staff asked whether a host of factors should be considered, the majority of which are standard fare in other states, but two of Staff's considerations on which it sought comment regarding the ESCO license application merit mention:
• If the Applicant intends to use telemarketing in New York State, provide a copy of the telemarketing script and Third Party Verification (TPV) script
• If using telemarketing to residential customers in New York State, complete a Do Not Call Certification under oath
Related Stories Today on NY ESCO Licensing Review:
New York Considers "Standard" Product Required To Be Offered By ESCOs
N.Y. Considers Licensing Energy Brokers, Requiring Supplier-Broker Agreements To Be Filed With PSC
Retail Energy "Self-Regulation" Coming to New York?
N.Y. Weighs Placing Additional Requirements on ESCOs With High Complaint Rates
Standard Distributed Energy Sales Agreement, Creditworthiness Among Issues To Be Considered By N.Y. PSC in Licensing Distributed Resource Providers
Case 15-M-0127
ADVERTISEMENT Copyright 2010-15 Energy Choice Matters. If you wish to share this story, please
email or post the website link; unauthorized copying, retransmission, or republication
prohibited.
April 30, 2015
Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Pricing Analyst -- Retail Supplier
• NEW! -- Senior Energy Supply Analyst -- Retail Supplier -- Houston
• NEW! -- Vice President, Commercial Sales -- Retail Provider -- Houston
• NEW! -- Regional Sales Manager-Mass Markets -- Retail Supplier -- Houston
• NEW! -- Special Billing Analyst -- Retail Provider -- Houston
• NEW! -- Market Relations Analyst -- Retail Supplier -- Houston
• NEW! -- Billing Analyst -- Retail Supplier -- Houston
• NEW! -- Account Manager -- Houston
• NEW! -- Director of Operations -- Retail Supplier -- Houston
• Operations Analyst -- Retail Supplier
• Analyst, Residential Pricing and Analysis -- Retail Supplier -- Houston
• Regional Sales Manager --Retail Provider -- Dallas, TX
|
|
|