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Direct Energy Encouraged By Initial New York Mass Market Evidentiary Review Procedural Conference, Sees Opportunity For Collaboration Among Parties

Company Welcomes Opportunity To Prove Value of Competitive Market To Mass Market Customers

January 27, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Discussing an initial procedural conference in the New York PSC's evidentiary review of the retail energy mass market, Direct Energy's Chris Kallaher, Senior Director of Government & Regulatory Affairs for the Northeast Region, told EnergyChoiceMatters.com that he found the procedural conference "encouraging" and a "pretty good start" at developing a cooperative and collaborative approach among the parties.

As previously reported, the PSC has established an evidentiary hearing process to consider whether to adopt a complete prohibition on ESCO service to mass market customers, or other market modifications. Such other modifications under consideration include requiring that ESCO bills be no greater than utility bills, and requiring the tariffing of ESCO service, including the potential for the PSC to, "void existing ESCO contracts if it tariffs ESCO services."

Click here for background on the retail energy mass market evidentiary review

Kallaher said that the overall tenor of the proceedings yesterday was positive, and sees a desire among parties to reach, "some kind of collaborative and collective solution to what this market can look like going forward."

The procedural conference largely dealt with identification of parties, discovery procedures, and scheduling. The ALJ took several issues discussed under advisement for a further formal ruling.

Kallaher said that Direct Energy is less focused on potential negative outcomes that some have observed the potential for based on the PSC's notice initiating the evidentiary process (such as the complete prohibition on ESCO sales in the mass market), "and rather we have looked at the opportunity that we believe the proceeding provides us to prove out the value of the competitive market to customers in New York."

"We believe when an adequate record is presented and collected among all the parties participating in the case, we're confident that the record will support that we are adding value, and that, along with perhaps some incremental or evolutionary improvements to the market, we believe that we can find a solution that the Commission will be comfortable approving and moving forward with, so that all customers can participate in the competitive market, " Kallaher said

Kallaher noted that the PSC's notice initiating the evidentiary process cited "current" products in discussing ESCO service to mass market customers.

Direct Energy is always looking to evolve the competitive market in New York so that it better serves customers, Kallaher said

To the extent that evidence developed in the case shows that current products may not be delivering as much value as they should to mass market customers, Kallaher said Direct Energy wants to have a robust discussion with other parties, "about how we improve the products that are offered, the incentive structures within the market for companies to offer those types of products, [and] the incentive to provide innovative product solutions," such as the types of innovative products envisioned by the Commission's notice.

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