Energy Choice
                            

Matters

N.Y. ESCO Subject To Marketing Suspension Calls Potential License Revocation "Unnecessarily Prescriptive," Proposes Plan To Resume Limited Commercial Marketing

November 17, 2015

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

Astral Energy LLC submitted an additional response to a show cause order issued by the New York PSC, arguing that revocation of its license would be, "overly and unnecessarily prescriptive," in light of the PSC's recent suspension of Astral's ability to market to and enroll customers, and proposing a program to phase-in resumption of commercial marketing.

EnergyChoiceMatters.com was first to report on November 9 that the PSC suspended Astral Energy, LLC's ability to market to and enroll residential and non-residential customers until the Commission orders otherwise.

Regarding license revocation, Astral said, "This is by any standard a most drastic measure that carries with it significant financial hardship and business repercussions. In view of this serious action already implemented, it would be overly and unnecessarily prescriptive for the Commission to impose additional enforcement measures including revocation."

Astral sites its various remedial measures undertaken in response to the PSC's order, as previously reported here

Given the remedial measures, Astral, "respectfully requests that the Commission consider allowing Astral to recommence marketing and enrollment of commercial customers consistent with the specific program described herein. This program would be limited in scope and allow DPS Staff to monitor the marketing efforts on a timely basis to ensure compliance with the UBP."

Under the proposed program, "Astral will initially identify with respect to commercial customers a specific geographic area and the maximum number of commercial customers to be enrolled under the program."

The initial phase would last no more than 30 days and allow for enrollment of up to 150 commercial accounts. The initial phase would commence in the month following the first month in which the level of QRS complaints does not exceed the level achieved in May 2015.

Prior to initiating the phase-in program, Astral will provide each marketer with copies of all required and applicable documents, such as the revised Sales Agreement, Bill of Rights, etc. In addition the marketer will be provided a copy of a Quality Control manual, and a shorter Checklist applicable to the mode of marketing that will be used. Astral will also conduct a Training Session with the marketers. All of these documents will be provided to Staff for their review and acceptance prior to being issued to the marketers.

Astral will notify Staff when the marketing period commences and the day it is completed.

Astral will require an ID verification of the individual signing or agreeing on behalf of the customer to take service from Astral

After each day of marketing, Astral will review any required TPVs for compliance with the UBP, and each Sales Agreement form as they are submitted to the office.

Prior to processing any enrollment, Astral will review all related documentation and Astral will attempt to contact each customer by telephone and assess the customer's understanding of the enrollment process. If any problem or confusion is discerned, the enrollment will not be processed.

After the initial monthly phase period is completed, Astral will review all the enrollments for compliance purposes. In addition Astral will review and respond to all QRS complaints and any Utility slamming complaints (Staff will need to provide this information) within 7 days of receiving the complaint.

Astral will provide Staff with a copy of its review of the phase-in marketing period.

Astral will enhance its customer service staffing to be able to respond more expeditiously and effectively to customers.

"If Staff finds that Astral has marketed in a compliant manner during the phase-in period, Astral will be allowed to conduct another 30 day phase-in commercial marketing period under the same limited conditions. After completion of the second 30-day phase in period, Staff will conduct its review of Astral's marketing efforts. If they are found to be acceptable, Astral will be allowed to engage in broader commercial marketing activity," Astral proposed

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