More New York ESCOs Seek Extension To Retail Market Reset Order Deadlines, Citing Pending DPS Staff Review of Re-applications, Contracts

January 12, 2021

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CenStar Energy Corp. ('Censtar'); HIKO Energy, LLC; Major Energy Electric Services, LLC; Major Energy Services, LLC; Oasis Power, LLC d/b/a Oasis Energy; Spark Energy, LLC; Spark Energy Gas, LLC; and Verde Energy USA New York, LLC (together, the 'Spark Companies') requested from the New York PSC a sixty (60) day extension of the deadlines of Ordering Clauses 3, 4, and 5 of the PSC's retail market reset order on rehearing (related to the product limitations for mass market service), citing pending DPS Staff review of re-applications for certification and the ESCOs' contracts (with one exception)

As previously reported, under the reset order, ESCOs are limited to offering mass market customers: (1) a guaranteed savings (versus the utility) plan, (2) a fixed rate product that is limited in price to a 12-month trailing average utility supply rate plus a 5% premium, or (3) for electricity only, a 50% (above the minimum RPS) renewable plan that meets deliverability and other requirements in the order. The September 2020 rehearing order provided that, effective February 15, 2021, all enrollments of new customers or renewals of existing customers must be made in conformance with the limitations set forth in the Rehearing Order

The various Spark ESCOs noted that, "The Spark Companies filed retail access applications as directed by the Rehearing Order. Each of these applications also included new contracts. Only thirty-five (35) days remain until the effective date of the requirements of Ordering Clauses 3, 4, and 5 of the Rehearing Order. However, as of today, Department of Public Service ('DPS') staff has not yet approved the Spark Companies’ applications. In addition, with the exception of contracts submitted by Censtar, DPS staff has also not yet approved the Spark Companies’ contracts."

"In order to renew residential customers, ESCOs are required to provide a minimum of thirty (30) days’ advance notice. Further, to the extent there are 'material' changes to the terms of those customers’ agreements at renewal, ESCOs are required to obtain customer consent for renewal. Because their applications and contracts have not yet been approved, there is simply insufficient time for the Spark Companies to provide requisite notice to current customers whose contracts are renewing on or after February 15, 2021, or to take the steps necessary (e.g., revise (if necessary) documents, print, distribute and begin marketing) to implement new products and services consistent with the Reset Order and Rehearing Order," the Spark ESCOs said

"For the foregoing reasons, the Spark Companies respectfully request a sixty (60) day extension of the requirements of Ordering Clauses 3, 4, and 5 of the Rehearing Order to allow for the fair, orderly and efficient transition to new products and services contemplated by the Rehearing Order. Granting this extension request would provide appropriate time for DPS staff to evaluate and address the large volume of material submitted by market participants seeking authorization to provide products and services consistent with the Rehearing Order and to ensure customers are appropriately notified and managed in accordance with their contracts and applicable regulations," the Spark ESCOs said

Case 15-M-0127 et al.

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