New York PSC Issues Show Cause Order To ESCO
June 18, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott (at) energychoicematters.com
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The New York PSC issued a show cause order to Premier Empire Energy, LLC (Premier), directing Premier to show cause, "why its eligibility to act as an 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," for what the PSC stated were delinquent payments related to Premier's zero emissions credits (ZECs) obligations
The PSC stated in its order that, "On March 13, 2018, NYSERDA notified the Department that Premier was delinquent on its monthly payments for its 2017-2018 Period ZEC obligations, in total Premier had not paid $27,748.80 of its ZEC obligations. NYSERDA emailed monthly 'late' notifications to Premier each month from May 2017 through November 2017 and again in January and March 2018. In addition, NYSERA [sic] reached out directly to a principal at Premier by phone on September 8, 2017 and email on January 9, 2018."
The PSC stated in its order that, "On March 19, 2018, [DPS] Staff sent a notice of apparent failure (NOAF) to Premier for failure to meet its 2017-2018 ZEC obligations. The NOAF instructed Premier to provide all required payments to NYSERDA by March 31, 2018 and provide a response to the NOAF to the Department by that same date."
The PSC stated in its order that, "Premier did not make the required payments to NYSERDA by March 31, 2018. Premier did respond to the Department regarding the NOAF. In its reply Premier stated that its actual load served during the 2017-2018 Period would be well below the load used to calculate its payment obligations for the 2017-2018 Period."
The PSC stated in its order that, "In response to the NOAF, Premier claimed that its actual load served during the 2017-2018 Period was significantly below the load used to calculate Premier’s ZEC obligations for the 2017-2018 Period. Premier argued, therefore, that its ZEC obligations should be reduced. Premier, however, did not provide complete and accurate documentation to support this claim."
The PSC stated in its order that, "Premier’s reduced load claim does not excuse its failure to comply with the CES Order, as the CES Order specifically includes a reconciliation process to account for any actual versus projected load differences served by an LSE. Moreover, even if one accepts Premier’s estimated load, and recomputed its ZEC obligation for the 2017-2018 Period, Premier has still not paid even this hypothetical amount. Furthermore, while it could have, Premier did not previously try to seek a reduction in its ZEC obligations, instead it simply failed to make the required payments."
The PSC stated in its order that, "Finally, we note that Premier made a payment to NYSEDA [sic] on April 20, 2018, which NYSERDA applied to Premier’s ZEC obligation for the first payment due for the 2018-2019 period. This ZEC obligation is based on the actual load served by Premier during the period from May 1, 2016 through April 30, 2017."