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Proposed NY UBP Language Could Authorize "Slamming" of Already Shopping Customers By Municipal Aggregators

May 15, 2017

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

The imprecise language used in proposed revisions to the New York Uniform Business Practices to implement the PSC's finding that switches made pursuant to an opt-out municipal aggregation do not constitute slamming could be interpreted as authorizing municipal aggregators to switch any customer, even customers currently with an ESCO, without customer authorization.

As noted by the Retail Energy Supply Association in its comments on the proposed UBP changes, the proposed UBP revision states: "A change of a customer to another energy provider, without the customer’s authorization, commonly known as slamming, is not permitted, except when the customer is enrolled in a Community Choice Aggregation (CCA) program, in which case this does not apply." RESA supports codifying in the UBPs the PSC's prior finding in its CCA order that CCAs may enroll utility supply customers on an opt-out basis.

However, the proposed language is broader, and, while perhaps not intended, could be interpreted as providing that any switch by a CCA does not constitute slamming. Notably, the language essentially states that CCA enrollments do not constitute slamming, but is not explicit as to what type of enrollments enjoy this protection (e.g. only "valid" enrollments, or only enrollments of non-shopping customers).

"Although it is appropriate to clarify that valid enrollments under a CCA program do not constitute slamming, RESA believes that utilities, CCA administrators and ESCOs involved in a CCA program should take care not to inadvertently switch customers who are already served by an ESCO. Customers who have made an affirmative choice to move to an ESCO should have that choice respected," RESA said

To avoid confusion, RESA proposed that the UBPs instead state: "A change of a customer to another energy provider, without the customer’s authorization, commonly known as slamming, is not permitted. The valid enrollment of an eligible customer into an opt-out community choice aggregation program shall not constitute slamming."

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