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New York PSC Issues Orders To Show Cause To Two ESCOs

May 18, 2018

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

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The New York PSC issued separate orders to show cause to two ESCOs (BluCo Energy and Aspirity Energy), alleging that each failed to file a required Retail Access Eligibility Form update.

Neither ESCO is actively serving customers, according to the PSC

With respect to BluCo Energy, the PSC further alleged that BluCo is delinquent in ZEC compliance payments, which are based on its historic load (and later trued-up).

BluCo Energy

The PSC said in its order that, "On March 27, 2018, the Department of Public Service (Department) issued a Notice of Apparent Failure (NOAF or Notice) to BluCo Energy, LLC (BluCo) for failure to file with the Secretary its annual compliance filing attesting that the information and attachments submitted in its Retail Access Eligibility Form (RAAF) and application are current. As an alternative, BluCo could have provided a description of revisions to its RAAF and application package and a copy of the revised portions or, at BluCo’s option, a copy of the revised portions identifying the revisions by highlighting or other means."

The PSC said in its order that, "In addition, the New York State Energy Research and Development Authority (NYSERDA) has notified the Department that BluCo is delinquent on its Commission-required payments for ESCO zero-emission credit (ZEC) obligations. On August 1, 2016, the New York State Public Service Commission (PSC or Commission) issued an Order Adopting a Clean Energy Standard in Case 15-E-0302 requiring every load serving entity (LSE) to, inter alia, purchase zero-emission credits (ZECs) through contracts with the New York State Energy Research and Development Authority (NYSERDA). Because BluCo is an LSE as well as an Energy Service Company (ESCO), BluCo is required to purchase ZEC obligations from NYSERDA monthly beginning April 1, 2017 through March 31, 2018 based on load it served during the 12-month period of May 1, 2015 through April 30, 2016. NYSERDA informed staff that BluCo has not made any ZEC payments for the 2017-2018 period and has not responded to any of the late notices NYSERDA has sent to BluCo."

The PSC said in its order that, "By this Order to Show Cause, and based upon BluCo’s failure to respond to both Commission obligations, BluCo is required to show cause why its eligibility to act as an Energy Service Company (ESCO) in New York State should not be revoked or, alternatively, why other consequences as set forth in the Commission’s Uniform Business Practices (UBP) should not be imposed."

The PSC said that data reported by the utilities indicates that BluCo has not served any gas customers since 2015 or any electric customers since 2016.

The PSC said in its order that, "On March 27, 2018, Staff sent a NOAF letter to BluCo. The NOAF instructed BluCo to file its required January 31 statement by April 10, 2018, and if the Department did not receive the ESCO filing by that date, Staff would seek from the Commission an Order to Show Cause to find BluCo in violation of UBP §2.D and to seek further remedies, including the possible revocation of BluCo’s eligibility to operate as an ESCO in the State of New York. BluCo failed to respond to the Department’s March 27, 2018 NOAF."

The PSC said in its order that, "The Commission, therefore, orders BluCo to show why, based upon the allegations and findings described herein, its eligibility to provide services as an ESCO in New York should not be revoked. BluCo should further show why other consequences should not be imposed."

Aspirity Energy

The PSC said in its order that, "On March 27, 2018, the Department of Public Service (Department) issued a Notice of Apparent Failure (NOAF or Notice) to Aspirity Energy LLC (Aspirity) for failure to file with the Secretary its annual compliance filing attesting that the information and attachments submitted in its Retail Access Eligibility Form (RAAF) and application are current. As an alternative, Aspirity could have provided a description of revisions to the RAAF and application package and a copy of the revised portions or, at the Aspirity’s option, a copy of the revised portions identifying the revisions by highlighting or other means."

The PSC said in its order that, "This Order directs Aspirity to show cause why its eligibility to act as an energy services company (ESCO) in New York State should not be revoked or, alternatively, why other consequences as set forth in the Commission’s Uniform Business Practices (UBP) should not be imposed."

The PSC said that Aspirity did not begin serving customers after its initial ESCO eligibility was established, nor is Aspirity currently serving customers.

The PSC said in its order that, "On March 27, 2018, Staff sent a NOAF letter to Aspirity. The NOAF instructed Aspirity to file its required January 31 statement by April 10, 2018, and if not received by that date Staff would ask the Commission to issue an Order to Show Cause regarding Aspirity’s non-compliance with UBP §2.D.1 and to seek consequences. In the NOAF, Staff explained that the consequences could include the revocation of Aspirity’s eligibility to operate as an ESCO in the State of New York. Aspirity failed to respond to the NOAF."

The PSC said in its order that, "Accordingly, the Commission hereby orders Aspirity to show cause why, based upon the allegations and findings described herein, the Commission should not revoke Aspirity’s eligibility to provide services as an ESCO in New York. Further, Aspirity shall show cause why the Commission should not impose other consequences in lieu of or in addition to revocation."

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