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NY PSC Staff Whitepaper Proposes Alternatives To Receiving Express Customer Consent For Material Changes in Contract Terms/Renewals

May 5, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The New York PSC Staff have issued a whitepaper for an alternative to the requirement to obtain express customer consent for material contract changes and contract renewal.

The issue for express consent for material changes has been implicated in the PSC's retail market reset order, and potential migration of existing customers onto new products which comply with such reset order.

The Staff whitepaper proposes that UBP Section 5(B)(5)(d) be modified, "to provide for an alternative to express consent for renewals and material changes to customer contracts."

The proposed modification would require ESCOs to send a total of three notices to customers as follows, in a process which expands upon similar notice provisions in Pennsylvania:

• 1st Notice: Change is coming; watch your mail for additional information as well as options.

• 2nd Notice: The details of the change(s); the customer’s options for rejecting the changes/discontinuing service, details of other offers available from their ESCO, shopping for another ESCO or returning to utility service; a copy of the new Terms of Service.

• 3rd Notice: a postcard reminding customers to read the 2nd Notice.

The specific notice details would be in the standardized format provided by the Department and include the following:

1st Notice

• Sent 45-60 days prior to the material change or contract expiration.

• General description of the changes.

• Effective date of the changes.

• Explanation of why the change is needed.

• Statement that a follow-up “option” letter will be coming soon.

2nd Notice

• Sent 30 days prior to the material change or contract expiration.

• Summarize the specific changes (use the standardized format in NY UBP with the summary table).

• Explanation of how to exercise options

       o Ability to accept change;

       o Ability to reject change;

       o Choose another offer from current ESCO;

       o How to select another ESCO;

       o How to return to utility service.

• Contact info: toll-free phone and web addresses for ESCO, DPS and PowerToChoose, and the local utility.

• The bill cycle in which the change takes effect.

• New price (if applicable).

3rd Notice

• Unique NY requirement (not in PA rule).

• Should be mailed two-three days after 2nd Notice.

• A reminder to read the 2nd Notice letter.

"The proposed 1st and 2nd Notice letters as well as the envelope message should be consistent with the standardized renewal notice under UBP Section 5. Additionally, Staff recommends that electronic notices be allowed, only with the customer’s authorization, if that is the customer’s preferred method of receiving notices," the whitepaper states

Case 15-M-0127

NY PSC Staff Whitepaper Proposes Benchmark Price That ESCOs Would Need to Beat To Offer Fixed Price Product

NY PSC Staff Whitepaper Provides Options For Imposing Additional Security Requirements on ESCOs

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