EnergyChoiceMatters.com

Update: N.Y. ESCOs Must Drop Existing Low-Income Customers To Default Service At End of Contract Term

July 18, 2016

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

The New York PSC has issued a written order imposing a moratorium on ESCO service to low-income customers, which explains how treatment of existing low-income ESCO customers, or ESCO customers who later become eligible for low-income protections, are to be treated.

The moratorium is applicable to customers participating in utility low-income assistance programs (Assistance Program Participant, or APP)

Under the moratorium, which takes effect within 60 days of the effective date of the PSC's order, the utility shall place a block on all APP accounts preventing future enrollment with an ESCO. For existing APPs served by an ESCO, including customers who were not APP at the time of enrollment but subsequently become APP, the utility will inform the ESCO that a block has been placed on the account, that the ESCO is no longer eligible to serve the account, and that the customer must be de-enrolled at the expiration of the existing agreement (as further defined below).

More specifically, the moratorium on the enrollment of new customers will be implemented through a rejection by the utility, through an electronic data interchange (EDI) transaction, of an enrollment of an APP. Beginning 60 days after the effective date of the order, utilities will be required to place a block on all APP accounts. The ESCO can elect, at the point of sale, to ask the prospective customer if he or she is enrolled in a utility income assistance program. If the prospective customer indicates that he or she is, the ESCO should cease marketing to the customer. If the prospective customer claims that he or she is not enrolled in a utility low-income program when in fact they are, and the ESCO enrolls the customer, the enrollment will be rejected by the utility. This rejection will not reveal the customer’s APP status to the ESCO because customers can have blocks placed on their account at any time, for multiple reasons, or no reason at all.

Additionally, within 60 days of the effective date of the order, the utilities, utilizing their records regarding which customers are enrolled in their low-income program and are served by an ESCO, will communicate to the ESCO and will identify which accounts the ESCO is no longer eligible to serve.

After receiving the communication from the utility, the ESCO shall then de-enroll the identified accounts, "at the expiration of the existing agreement."

"With respect to customers on variable rate, month-to-month contracts, the expiration of the agreement is at the end of the current billing period. Therefore, once the ESCO receives the communication from the utility that they are no longer eligible to serve a customer, the ESCO shall de-enrolled the customer at the end of the billing period, as it exists at that time," the PSC said

At or around the same time, but no later than 14 days after the utility contacts the ESCO regarding the accounts the ESCO is no longer eligible to serve, the utility will also send a letter to the ESCO customer, informing the customer: (1) that they are enrolled in the utility’s low-income program; (2) of the moratorium directed by the PSC; (3) the reason for and protections provided under the moratorium; and, (4) that they will be returned to utility service at the expiration of their existing ESCO agreement.

With respect to ESCO customers who become APPs after the moratorium is implemented, communications by the utility, in the manner discussed above for existing APP ESCO customers, will be necessary on an ongoing basis. When a utility enrolls a new customer in its low-income program, it shall immediately place a block on the account. It shall also inform any ESCO serving that customer that the ESCO is no longer eligible to serve that account. As discussed above, after receiving the communication from the utility, the ESCO shall then de-enroll the accounts at the expiration of the existing agreement, which for variable rate, month-to-month contracts, is the end of the current billing period.

Email This Story

HOME

Copyright 2010-16 Energy Choice Matters. If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

Archive

Daily Email

Events

About/Contact

Search