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RESA Notes Logistical Problems In Implementing NY Low-Income Moratorium, Seeks Clarification, Rehearing From PSC

August 11, 2016

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

The Retail Energy Supply Association sought clarification and rehearing of the New York PSC's order imposing a moratorium on ESCO service to assistance program participant (APP) customers, noting several logistical problems.

As noted by several other ESCOs, the PSC's order would require ESCOs to drop APP customers to default service on the same day such customers are identified by the utility. RESA noted that ESCOs will need to identify APP customers who are on fixed term products which may continue to be served under the moratorium until contract expiration.

Additionally, RESA noted that the utilities have informed ESCOs that the utilities will send ESCOs a file that includes all ESCO customers who have blocks on their accounts, and it will be the ESCO's responsibility to determine which of these customers are low income and must be dropped.

However, RESA noted that customers may request switch blocks on their accounts for other reasons (such as to prevent slamming after selecting their chosen ESCO). And although not noted explicitly by RESA, blocks are only issued or removed when a customer contacts the utility, and therefore an ESCO would not be aware if its customer has requested a switch block to maintain service with their current ESCO and prevent slamming.

Therefore, the ESCOs will not be able to determine which customers on the switch block list need to be dropped due to APP status, and those which they can continue to serve since the customer is not APP but merely put a switch block on their account to prevent slamming by another ESCO

RESA also noted that the timeline under the PSC's order to drop APP customers to default service conflicts with the UBPs, and sought clarification of which should govern. Notably, per UBP (Section 5.H.4.a), an ESCO is obligated to provide to the customer 15 days advance notice of a drop of service back to the utility. Similarly, 5.H.3 requires that an ESCO dropping 5,000 or more accounts during a billing cycle must provide the utility with 60 days advance notice.

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