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RESA Asks New York PSC To Start Collaborative On Mass Market Review
The Retail Energy Supply Association urged the New York PSC to initiate the Track II collaborative process envisioned under the PSC's retail mass market review, and said that the PSC's current proposal to revise the Uniform Business Practices, apart from two discrete issues, should be withdrawn, in favor of the outcome of the Track II collaborative process
As noted in our related story today (click here), RESA argued that the notices instituting the changes to the UBPs (which, among other things, would require all mass market sales to be subject to an independent TPV) are, "legally deficient," due to the proposals reflecting far broader changes than two discrete issues cited in the notices and housekeeping changes.
RESA urged that, aside from the two discrete issues prompted by a change in law and an ESCO petition (noted further below), the UBP changes should be withdrawn, in favor of the outcome of a collaborative process (Track II) envisioned by the PSC's investigation of the mass market.
RESA noted that the PSC has previously stated that the Track I evidentiary mass market review process is intended to determine, "whether the regulatory regime, rules and Uniform Business Practices (UBP) applicable to ESCOs need to be modified," in order to implement the outcome of the investigation of ESCOs, and their ability to continue to market products to residential and small commercial customers.
"Similarly, the Collaborative Notice states that the Track II proceeding is designed to consider 'whether new ESCO rules and products can be developed that would provide sufficient real value to mass-market customers such that new products could be provided to them by ESCOs in the future in a manner that would ensure just and reasonable rates,'" RESA said
"RESA respectfully recommends that any significant changes to the UBP (with the exception of the Termination Fee Change, resulting from a change in law, and the Identification Requirement Change, resulting from ESCO petition), be withdrawn and await the further development and outcome of these two proceedings. Otherwise, such proposed changes could be inconsistent with any industry changes that come out of these proceedings, and will also lack the benefit of the 'collaborative meetings of interested parties, [and] collaborative reports or proposals' that will be at the heart of the Track II proceeding," RESA said
RESA noted that the Track II proceeding has yet to be formally initiated. "RESA respectfully requests that the Commission initiate the Track II collaborative process to consider a range of potential policy reforms for the ESCO retail market in New York and include its proposed changes to the UBP as part of that collaborative process," RESA said
RESA stated:
"RESA believes that with some collaborative re-thinking about the UBP and other aspects of the New York ESCO markets, the markets could be substantively improved with benefits accruing to all stakeholders including most importantly, the mass market customers. These market improvements will improve the credibility of the market and enable the development and delivery of value-added products that the Commission is seeking and that are available in markets in other states that also provide for retail choice. While RESA is not prepared to advance specific proposals in these comments, RESA offers the following summary of categories for improvements that should be considered for the Track II collaborative proceeding:
1. Enhanced ESCO eligibility requirements, including specific technical, managerial and financial risk management capabilities.
2. Enhanced financial security requirements for an ESCO to serve retail customers in New York.
3. An examination of door to door marketing best practices and the adoption of new requirements for increased training and oversight.
4. Improvements to utility and ESCO enrollment processes to enhance the shopping experience, such as further accelerated switching refinement, enrolling without requiring a cumbersome utility account number, and seamless moves and instant connects.
5. Advanced metering and data availability.
6. Pricing and product transparency enhancements, particularly with product conversions or renewals to variable rates.
7. Improvements to consumer education through a better NYPowertoChoose website.
8. Reinforcing the underpinnings of the Commission’s oversight and enforcement authority
9. Flexible billing options including a requirement that all utilities offer billing system functionality that enables the delivery of value-added energy commodity and non-commodity products and services as well as the option for ESCO Consolidated Billing.
10. An examination of sales and marketing intermediaries and the potential for registration and oversight requirements."
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Says "Examination" Of Door-to-Door Marketing, Adoption Of Increased Training/Oversight Should Be Considered
May 15, 2017
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Reporting by Paul Ring • ring@energychoicematters.com
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