New York PSC Denies ESCO Green Gas Product Petitions, Provides Limited Extension For Current Customers

Grants Certain ESCOs Ability To Offer Home Warranty Products Not Subject To Pricing Limitations

Burman Says Order Sets Deadline For Start Of Track 2 Value-Added Collaborative, Start Date Deadline Is After Effective Date Of Mass Market Product Limits

January 21, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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The New York PSC today adopted an order which addresses several petitions from ESCOs to offer value-added products for mass market customers that would not be subject to the pricing or renewable electricity limitations established in the previously reported retail market reset order

A written order was not immediately available; information in this story is based on a summary of the order as described by Commissioner Diane Burman during today's session.

As previously reported, 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.

As previously reported, several ESCOs petitioned the PSC to offer a green natural gas or carbon offset natural gas product that would not be subject to these limits.

The PSC denied all of these green gas petitions

However, the PSC will allow ESCOs to continue to serve existing green gas customers without being subject to the pricing limits described above for a one-year period under a waiver, while the issue is further studied in the Track 2 proceeding.

The issue of green gas products is to be further addressed under the Track 2 proceeding examining value-added products, and the PSC did not foreclose future adoption of an authorized green gas product

However, Commissioner Diane Burman, who dissented in part and concurred in part, said that the order adopted today establishes a deadline for commencement of the Track 2 proceeding, such that the Secretary shall issue a notice initiating the Track 2 process within 60 days of implementation of Ordering Clause #3 from the September 2020 reset order on reconsideration. Ordering Clause #3 from the September 2020 reset order on reconsideration sets forth the product limits for mass market service and the effective date for such product limits, which is Feb. 15, 2021. In other words, the deadline for the Track 2 value-added product collaborative to begin is not until after the product limits take effect.

The PSC did grant certain petitions from ESCOs to offer a product bundling a home warranty or protection plan with commodity supply which is not subject to the pricing and product limits described above. It was not immediately clear which specific ESCO home warranty product petitions were granted. While further specifics were not immediately available, the granted home warranty products were described as, "compliant with Commission precedent"

Notably, under the PSC's order adopted today, ESCOs must file sample sales agreements for the home warranty products with DPS Staff for review. ESCOs cannot begin offering the home warranty product until the ESCO receives approval of the agreement from Staff

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