Energy Choice
                            

Matters

N.Y. PSC Staff Recommend Prohibition on Utility Brand Being Licensed To Non-Affiliate (NYSEG Solutions)

September 17, 2015

Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

In testimony in a NYSEG rate case, Staff of the New York PSC have recommended that, with limited exceptions, no non-affiliate entity should be allowed, by NYSEG or Rochester Gas & Electric, to use the NYSEG or RG&E name, trade names, trademarks, service marks or any derivative of the NYSEG or RG&E names

Direct Energy currently licenses the use of the NYSEG Solutions name after purchasing the retail supplier business from NYSEG's parent. As previously reported, Direct Energy, citing internal marketing strategy, has ceased using the NYSEG Solutions brand to market to new customers; however, it still uses the brand to serve previously enrolled customers.

The PSC had previously directed Direct Energy to show cause why its use of the NYSEG Solutions name under the licensing agreement was not "misleading" to customers as the PSC expressed concern that Direct Energy's use of the NYSEG Solutions brand could lead customers to infer an affiliate relationship where none exists. That matter remains pending before the PSC.

"In order to ensure that there is no future confusion about what is permitted and prohibited by the Companies' [NYSEG/RGE] Standards of Competitive Conduct on this issue, we recommend that the Commission adopt certain revisions to the Code of Conduct," Staff recommended in the newly filed rate case testimony

"Arrangements, such as that with NYSEG Solutions, in which utilities, or their affiliates, have either sold unregulated affiliates or licensed the use of the utilities‟ corporate name or trademark to third parties have occurred. Given the context of industry deregulation and promotion of competition in energy markets, arrangements of this type can cause significant customer confusion and perceived deception, particularly if the entity's solicitations cause customers to view it as having come from the utility itself, and not an independent business," Staff said

Staff said that the PSC has taken similar measures at Consolidated Edison, Niagara Mohawk, and Central Hudson

However, Staff said that NYSEG and RGE, "should be able to license the use of its name and logo to entities carrying out Commission-approved programs."

"The trademarks registered by NYSEG and RG&E may, at some point in time, be licensed for the joint marketing of energy efficiency programs and to industry organizations to which NYSEG and RG&E are members. As such, the Company should review such requests on a case-by-case basis and should not grant licenses for uses that reflect poorly upon the Companies, their customers, their service territories, or otherwise do not conform to the Companies' standards. The Companies should be able to license the use of its name and logo to entities carrying out Commission-approved programs," Staff said

Staff specifically proposed the following language for the utilities' code of conduct:

"In the event an affiliate business, or the assets of that business, is sold or otherwise is no longer an affiliate, such non-affiliated company will be allowed to use the same name, trade names, trademarks, service names, service marks or a derivative of a name of DISCO in New York State for a period not exceeding six months, provided that such use is restricted to (i) use of the DISCO logo during the pendency of the transition to new ownership (e.g., vehicle and facility signage) and (ii) educating customers about the sales transaction and the impacts on customers. During that 6 month period, DPS Staff will be given the opportunity to preview any communication using DISCO’s name or logo that is to be sent from a non-affiliate to DISCO’s utility customers in New York. DISCO shall supply a copy of any such communication to DPS Staff in advance of its actual use. DPS Staff may, in the exercise of reasonable discretion, reject any customer communication it deems not in compliance with this section by providing DISCO with written notice of its specific objections"

...

"DISCO [distribution company] may license the use of the DISCO same name, trade names, trademarks, service names, service marks, logos or a derivative of a name of RegCo, to a non-affiliate to assist with the marketing of Commission approved energy efficiency programs."

...

"The DISCO will not provide sales leads for customers in its service territory to any affiliate, including the ESCO, and will refrain from giving any appearance that the DISCO speaks on behalf of an affiliate or that an affiliate speaks on behalf of the DISCO. If a customer requests information about securing any service or product offered within the service territory by an affiliate, the DISCO may provide a list of all companies known to DISCO operating in the service territory who provide the service or product, which may include an affiliate, but the DISCO will not promote its affiliate. The DISCO must process all similar requests for distribution services in the same manner and within the same period of time."

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Pricing Analyst -- Retail Supplier
• NEW! -- Contracts Analyst -- Retail Supplier -- Houston
• NEW! -- Billing Analyst -- Retail Provider -- Houston
• NEW! -- Energy Services Program Director - $230K
• NEW! -- Senior Retail Analyst -- Retail Supplier
• NEW! -- Manager, Retail Pricing -- Retail Provider
• NEW! -- Retail Commodity Pricing Analyst -- Retail Supplier
• NEW! -- Director of Pricing, Risk & Portfolio -- Retail Supplier
• NEW! -- Manager/Director, Customer Retention and Satisfaction -- Retail Supplier -- Houston
• NEW! -- Bilingual Rep Support Specialist -- Retail Supplier
• NEW! -- Commercial Sales Support Analyst -- Retail Supplier -- Houston
• NEW! -- Financial Analyst -- Retail Energy Supplier
• NEW! -- Sales Executive -- Retail Supplier
• NEW! -- Manager, Power Retention -- Retail Supplier -- Houston
• NEW! -- Team Lead, Billing -- Retail Provider -- Houston
• NEW! -- Business Development Manager -- Retail Supplier -- DFW