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New York ALJs Find Notice For Mass Market Review Was Proper, Decline to Suspend Proceeding

May 16, 2017

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

The presiding ALJs in the New York PSC's evidentiary review of the retail energy mass markets have found that the PSC's notice initiating the proceeding was proper, and declined to holding the proceedings in abeyance

On December 2, 2016, a notice was issued by the PSC Secretary that established two separate tracks for a review of the retail mass market, evidentiary (Track I) and collaborative (Track II), in order to develop a record with respect to the Commission’s ongoing review of the role that ESCOs should play in New York State

The Retail Energy Supply Association had argued that because, "there was no public filing of a Certificate [pursuant to PSL § 8] to indicate that the Chairman had directed the Hearing and/or specifically authorized the Secretary to direct a Hearing," the December notice is invalid. RESA asked that the proceedings be held in abeyance pending proper notice

"We decline to suspend or hold these proceedings in abeyance," the ALJs said in a ruling.

"Within the context of these proceedings, the Commission already has determined that, as currently structured, the retail energy commodity market for mass-market customers is not workably competitive and needs to be transformed. As a result, the Reset Order specifically contemplated further investigation and evaluation of the retail energy market within the context of these proceedings," the ALJs said

"Moreover, in considering the petitions by RESA and others that challenged the Reset Order, the Supreme Court acknowledged the Commission’s 'jurisdiction over the retail energy market', specifically its ability to assert 'authority over ESCO eligibility and marketing practices', as well as the Commission’s broad regulatory power to ensure that all charges demanded by entities providing electric or gas services are just and reasonable. The Court was concerned, however, that ESCOs had not been provided an adequate opportunity to be heard with respect to certain transformations implemented in the Reset Order. Accordingly, the Court remanded the matter to the Commission to conduct further proceedings, and expressly directed a 'Notice specific to the directives of the February 26, 2016 Reset Order' be issued," the ALJs said

"In light of the Court’s express order to the Commission to issue a notice and conduct further proceedings, and given the ongoing nature of the Commission’s investigation into the role ESCOs should play in the State, we consider the Secretary’s issuance of the December Notice to be a ministerial act that both implements the Court’s order and advances the Commission’s continuing investigation," the ALJs said

While the ALJs' instant ruling addresses the sought broad suspension of the proceeding based on RESA's arguments concerning notice of the proceeding, as previously reported, the ALJs did previously extend the due date for testimony by 65 days, until July 14.

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