New York Utilities Seek Confirmation Co-Marketing With Third Party For Non-Utility Service, Use Of Logos Is Not Prohibited By Code Of Conduct Restrictions

October 24, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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The Brooklyn Union Gas Company d/b/a National Grid NY ('KEDNY'), KeySpan Gas East Corporation d/b/a National Grid ('KEDLI'), and Niagara Mohawk Power Corporation d/b/a National Grid ('Niagara Mohawk') (collectively 'National Grid' or the 'Companies') petitioned the New York PSC for a declaratory ruling that certain provisions on the Companies’ respective codes of conduct restrictions do not apply to one or more of the Companies’ plans to enter into an arrangement with a third-party provider of weatherization and home energy efficiency services that would include use of the KEDNY, KEDLI, Niagara Mohawk, and/or National Grid names and/or service marks by such third party alongside their own in the marketing and offering of such services.

In the alternative, if the Commission determines that such restrictions do apply, National Grid requested that those restrictions be waived to the extent necessary to enable the Companies to work with such third party to market and make such weatherization and efficiency services available to their customers.

"The Companies contend that enabling them to promote such services as contemplated would benefit customers, support the State’s greenhouse gas emissions reductions objectives, be aligned with the objectives of their respective codes of conduct, and is therefore in the public interest and should be approved," National Grid said

The Companies said that they are looking at additional opportunities to accelerate the deployment and improve the effectiveness of energy efficiency offerings, and have been in discussions with Sealed Inc. ('Sealed') about that company’s services as a complement to the Companies’ existing programs.

"Sealed is an energy and financial technology company that offers comprehensive home weatherization services through customer education, local contractor partners, and a performance payment program ('Sealed Program'). According to Sealed, the Sealed Program enables customers to implement comprehensive home improvements, improve home comfort, and reduce their environmental footprint with lower upfront costs than available under other programs. The Sealed Program offers several plans, including a Comfort Plan that focuses primarily on home 'shell' measures (e.g., insulation, air sealing, duct sealing) as well as other energy-saving measures (smart thermostat, lighting, etc.). With the Comfort Plan, Sealed invests up to $6,500 for the installation of such measures in customers’ homes, and customers pay Sealed back over time based on the amount of energy that customers actually save compared to each customer’s past energy usage (weather adjusted). The Sealed Program design encourages customers to implement deep energy efficiency measures and retrofits they may not otherwise have had the financial resources to undertake while keeping more money in their pockets upfront," National Grid said

"The arrangement the Companies are contemplating with Sealed includes 'co-marketing' elements, whereby the KEDNY, KEDLI, Niagara Mohawk and/or National Grid corporate names, service marks, logos, etc. would appear alongside the Sealed name, service mark, logo, etc., and would be used by Sealed for marketing the Sealed Program. It is the Companies’ position that the co-marketing approach contemplated for the Sealed Program and as described above is not prohibited by their respective codes of conduct," National Grid said

"Although the respective National Grid company names and/or marks would appear together with Sealed’s name and/or marks, National Grid will retain control of how its name, service marks, and logo are used. All uses of the Companies’ names, service marks, logos, etc., would be subject to their approval. Sealed’s use of such property would be non-exclusive, nontransferrable, and used solely for the purposes of marketing the Sealed Program. The Companies would not be 'selling' or otherwise transferring the use of its name, service mark or logo to Sealed, and they would retain the right to terminate Sealed’s use of the names or marks at any time. Materials promoting or describing the Sealed Program will clearly indicate the program is being provided by Sealed and will not state or imply that Sealed and National Grid are the same company or that Sealed is acting on behalf of or as an agent for National Grid," National Grid said

"The protections and limitations on the use of the Companies’ names and service marks are substantial and assure that the Companies will retain control of their corporate identities and customer confusion will be avoided," National Grid said

"The Companies believe that the 'co-marketing' approach contemplated with Sealed does not amount to the type of use prohibited in the codes of conduct. The Companies, therefore, request a declaratory ruling from the Commission that proceeding with the Sealed Program arrangement is consistent with the codes," National Grid said

Case 19-G-0690

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