New York PSC Extends Deadlines For ESCOs To Offer Compliant Products, Other Provisions Of Retail Energy Reset Order
PSC Schedules Stakeholder Meeting On ESCO Financial Security Requirements
January 22, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
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The Secretary of the New York PSC has extended the deadline for compliance with several of the ordering clauses of the PSC's retail energy market reset order
Among other things, the extension for ESCOs to offer compliant products was extended until May 11, 2020
"Upon consideration of all stakeholders’ interests and in light of the importance of ensuring an orderly transition and implementation of the Order’s requirements, extension of the deadlines set forth in Ordering Clauses 1, 2, 5, 6, and 8, is warranted," the Secretary said
"Based on the information that has been provided, and considering the justifications underlying the extension requests, an extension, until May 11, 2020, is granted to ESCOs eligible to operate in New York to comply with the requirements of Ordering Clauses 1, 2, and 5 of the Order and to the electric and gas distribution utilities that have tariffed provisions providing for retail access to comply with the requirements of Ordering Clause 8," the Secretary said
The impacted ordering clauses were as follows:
1. Consistent with the body of this Order (Section III) and subject to any exceptions identified therein, effective 60 calendar days from the date of this Order, energy service companies (ESCOs) shall enroll new residential or small nonresidential customers (mass-market customers) or renew existing mass-market customer contracts for gas and/or electric service only if at least one of the following conditions is met: (1) enrollment includes a guaranteed savings over the utility price, as reconciled on an annual basis; (2) enrollment is for a fixed-rate commodity product that is priced at no more than 5% greater than the trailing 12-month average utility supply rate; (3) enrollment is for a renewably sourced electric commodity product that (a) has a renewable mix that is at least 50% greater than the ESCO’s current Renewable Energy Standard (RES) obligation, (b) the ESCO complies with the RES locational and delivery requirements when procuring Renewable Energy Credits (RECs) or entering into bilateral contracts for renewable commodity supply, and (3) there is transparency of information and disclosures provided to the customer with respect to pricing and commodity sourcing.
2. Consistent with the body of this Order (Section III.D.3), effective 60 calendar days from the date of this Order, any mass-market customer contract for a fixed-rate commodity service that is subject to automatic renewal shall be renewed by the ESCO only as a contract for variable-rate, commodity-only service that includes a guaranteed savings over
the utility price, unless the ESCO obtains affirmative customer consent to renew the contract as a fixed-rate contract that is priced at no more than 5% greater than the trailing 12-month average utility supply rate.
5. Revisions to Section 2 and Section 5 of the Uniform Business Practices are adopted in accordance with the discussion of the body of the Order. The revisions shall be effective 60 days following the date this Order is issued.
6. ESCOs currently operating in New York that intend to continue to renew contracts with customers in New York and/or enroll new customers in New York following the effective date of Ordering Clause No. 1 (i.e., 60 calendar days following the date of this Order) are directed to file an application in accordance with the body of this Order no later than 30 calendar days
following the date the revisions to the Uniform Business
Practices become effective (i.e., no later than 90 calendar days
following the date of this Order).
8. Electric and gas distribution utilities that have tariffed provisions providing for retail access are directed to file tariff amendments or addenda to incorporate or reflect in their tariffs the Uniform Business Practices revisions approved in Ordering Clause No. 5. The tariff revisions shall be filed, on not less than one day’s notice, to become effective on or before February 10, 2020.
"In addition, an extension, until June 9, 2020, is granted to the ESCOs currently operating in New York that intend to continue to renew contracts with customers in New York and/or enroll new customers in New York to comply with the requirements of Ordering Clause 6," the Secretary said
"No extension is provided by this Notice with respect to the remaining clauses of the Order. Nothing in this Notice should be construed as limiting the Commission’s authority to establish different or more particular implementation deadlines, including in any order addressing the aforementioned petitions," the Secretary said
Separately, the PSC also set for February 26, 2020 a stakeholder meeting to discuss methodologies for assessing entry level and ongoing financial assurance requirements for ESCOs