New York PSC Issues Declaratory Ruling Regarding Pass-Through Of ZEC Costs By ESCOs

November 23, 2021

Email This Story
Copyright 2010-21 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

In response to a petition from UtiliSave, LLC, the New York PSC has issued a declaratory ruling concerning the pass-through of Zero-Emissions Credits (ZECs) costs by ESCOs to customers

Among other things, UtiliSave requested a declaratory ruling that, where ESCOs chose to pass through the ZEC-related costs to their customers, such pass-through charges are void unless they complied with existing Uniform Business Practices (UBP) provisions.

In response the PSC ruled that, "The Commission declines to provide a ruling on this point as UtiliSave seeks a specific determination without providing sufficient facts and information."

"That said, it is worth noting that all ESCOs must comply with the UBP, and that the specific language in the customer agreement will, in most instances, establish what additional costs, if any, the ESCO may impose on the customer," the PSC said

As part of its sought declaratory ruling, UtiliSave requested a declaratory ruling that ESCOs were not required to pass through costs related to ZEC obligations to customers.

In response the PSC ruled, "Pursuant to the CES Framework Order, LSEs, including ESCOs, were not required to pass-through costs related to ZEC obligations to customers, though they were likewise not prohibited from doing so."

"The expectation was that, in purchasing ZECs from NYSERDA, LSEs would then recover those costs from ratepayers through commodity charges on customer bills," the PSC said

"Relatedly, while the Commission recognized that some ESCOs with fixed-rate contracts may not have been able to pass through Renewable Energy Standard (RES) costs to customers in the initial years of the program, this issue would be mitigated as fixed-rate contracts expire. This underscores the expectation that ZEC and RES-related costs would be recovered from ratepayers. Nevertheless, the CES Framework Order did not specifically direct that LSEs recover ZEC-related costs from customers," the PSC said

With respect to concomitant issues raised by UtiliSave's request, the PSC ruled, "Without making any determination with respect to any specific facts regarding whether a refund is appropriate, the Commission hereby affirms that it has the authority under the UBP to require ESCOs it provide refunds to customers where appropriate."

"Regarding UtiliSave’s request for a declaratory ruling with respect to the applicability of the compliant [sic, complaint] procedures at 16 NYCRR Part 12 to non-residential customers, the Commission reaffirms prior determinations that such complaint procedures do not apply to non-residential customers," the PSC said

"It is worth adding, however, that the Commission retains enforcement powers over ESCOs and the jurisdiction to impose consequences against ESCOs for the violation of the UBP and other Commission rules," the PSC said

To summarize, the PSC ruled that : "(1) the complaint procedures of 16 NYCRR Part 12 are not applicable to complaints raised by non-residential customers against an energy service company (ESCO); (2) the Commission has the authority under the Uniform Business Practices to require ESCOs it provide refunds to customers where appropriate; and (3) the Commission’s August 1, 2016 Order Adopting a Clean Energy Standard in Case 15-E-0302 did not specifically require load serving entities to recover Zero Emission Credit-related costs from customers, nor did it prohibit such recovery."

Case 20-E-0243

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Digital Marketing Manager -- Retail Supplier
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Marketing Manager
• NEW! -- PJM Program Manager
• NEW! -- Sr. Margin Optimization Analyst - Retail Energy -- Houston
• NEW! -- Pricing Analyst -- Retail Supplier
• NEW! -- Senior Sales Executive -- Retail Supplier
• NEW! -- Power Analyst
• NEW! -- Financial Analyst
• NEW! -- Environmental Commodity Analyst
• NEW! -- Gas Analyst
• Energy Pricing Analyst -- Retail Supplier
• Senior Account Operations Analyst -- Retail Supplier
• Energy Procurement Manager

HOME

Copyright 2010-21 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.