NRG Retail Suppliers Seek Extension For Compliance With New York Retail Reset Order

NRG Says It Will Submit Petition For PSC To Approve A Natural Gas Carbon Offset Product As One Of The Products Allowed Under The Order

January 16, 2020

Email This Story
Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The NRG Energy retail suppliers have submitted a request with the New York PSC for a ninety (90) day extension from several of the February 10, 2020 compliance deadlines set forth in the Public Service Commission’s retail energy market 'reset' order, adopted on December 12, 2019

The NRG suppliers said that, in the, "spirit of its continuing commitment," to assist with the Commission's development of retail energy competition policy and various clean energy policies, the NRG ESCOs have not sought rehearing and are executing plans to comply with the reset Order, "but respectfully, need additional time to do so."

The NRG suppliers said that an extension would allow for PSC consideration of a petition NRG is to file for the PSC to approve a natural gas carbon offset product as one of the compliant products under the reset order

The NRG suppliers said, "Notably, the Order is silent on any compliant renewable gas product ('green gas'). As a result, following discussions with Staff, the NRG ESCOs plan to submit a petition for waiver to allow them to market their green gas plan to currently served and prospective New York customers, which will provide customers with 100% carbon-offset natural gas to complement customers enrolled on a compliant renewable energy electricity product. The additional time being requested herein is necessary so that, while our petition is being considered by the Commission, our current customers on a complaint renewable energy electricity product do not elect to return to their default utility when they can no longer take both electric and gas supply from the same entity."

The NRG suppliers further said that, "the Order’s current deadlines pose a significant burden on the NRG ESCOs and cannot be accurately and thoroughly met by February 10, 2020."

"Given the size of the business presence of NRG’s retail subsidiaries in New York, compliance with the Order involves a significant amount of time and effort on the part of our business operations to make sure that we get it right, all while protecting our customers from needless confusion and disruption and advancing the State’s renewable energy goals. Not only do the NRG ESCOs operate in 20 competitive states across the country, they service over 3 million customers nationwide, including hundreds of thousands of customers in New York. Resources from across NRG’s retail organization are being diverted to complying with the Order, but 60 days is simply not enough time. This is particularly true given that the Order was issued on December 12, 2019 during year-end business accounting closing activities as well as the extended holidays," the NRG suppliers said

The NRG suppliers also noted that the joint utilities' request for additional time for the calculation and posting of 12-month trailing utility average rates (used for an ESCO rate cap) would provide ESCOs with only one business day to review such rate caps and make a decision on their product offerings. The utilities' petition had been first reported by EnergyChoiceMatters.com earlier this week (story here)

The NRG suppliers noted that, "on January 14, 2020, the Joint Utilities have requested an extension until February 7, 2020 to make their required filing identifying 12-month trailing average utility supply rates for each mass market service class and for each mass market customer grouping that receives different supply rates based on applicable utility tariffs (Ordering Clause 7). This compounds the already tight obligations imposed on the NRG ESCOs to formulate a compliant fixed rate product."

"Indeed, if the Joint Utilities’ extension request is granted, the NRG ESCOs would effectively have merely one business day to determine not only the viability but also the nature and extent of any compliant fixed rate product that it could market to customers. Given the internal efforts required for the NRG ESCOs to formulate a compliant fixed rate product and the required notice and affirmative consent provisions detailed in the Order and UBPs, a further extension on top of what the Joint Utilities have requested is not only essential but also equitable and fair," the NRG suppliers said

The NRG suppliers noted that, "The Joint Utilities have requested until Friday, February 7, 2020 to make a filing identifying 12-month trailing average utility supply rates for each mass market service class and for each mass market customer grouping that receives different supply rates based on applicable utility tariffs. Under the Order, effective Monday, February 10, 2020, the NRG ESCOs can only enroll new customers or renew existing mass market customers contracts using a compliant product. One of those compliant products (fixed rate commodity product that is priced at no more than 5% greater than the trailing 12-month average utility supply rate) is dependent on the required filings by the utilities."

"In sum, pursuant to Ordering Clause 13, the NRG ESCOs request a 90 day extension of the compliance deadlines set forth in Ordering Clauses 1 and 2 or, at a minimum, a 60 day extension from the date the utilities are required to comply with Ordering Clause 7," the NRG supplies said

Case 15-M-0127 et al.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Senior Consultant - Competitive Energy Markets -- Houston
• NEW! -- Channel Relations Manger -- Retail Supplier
• NEW! -- Customer Service Representative -- Retail Supplier
• NEW! -- Renewables and Energy Trader -- Retail Supplier