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New York Court Stays Part Of New York PSC's Broker Regulation Order, Lifts Temporary Restraining Order On Bulk Of Broker Rules
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A New York court has stayed certain ordering clauses of the New York PSC's retail energy broker regulation order
The Court's ordering paragraph stated as follows:
"ORDERED that pending a determination and decision by this Court, respondent PSC, its
agents, officers, employees, successors assigns and all persons acting in concert with it or on its
behalf, is hereby stayed from enforcement of the Ordering Clauses of respondent's 'Declaratory
Ruling and Order on Rehearing' issued on April 18,2024, specifically Ordering Clauses 3,6 and
7, which specifically remove a bond as an acceptable form of financial accountability as set forth
in the Public Service Law $ 66-T*2 and instead require an energy broker or energy consultant to
submit an irrevocable letter of credit with their registration package to respondent PSC."
Ordering Clauses 3, 6 and 7 are summarized below
3. The new Uniform Business Practices (UBPs) reflecting the new broker rules are effective July 31, 2024
6. Brokers/consultants shall comply with the new UBPs
7. Brokers/consultants shall register with the PSC by July 31, 2024
ECM interprets the court's ruling as providing that, pending an order on the merits of an appeal filed by ESCOs, the PSC is stayed from enforcing Ordering Clauses 3, 6 and 7 in so far as such ordering clauses do not allow a broker/consultant to use a bond as an acceptable form of financial accountability under the broker law and in so far as such ordering clauses instead require the broker/consultant to provide an irrevocable letter of credit
ECM interprets the court's granted relief as limited specifically to Ordering Clauses 3, 6 and 7 solely as they relate to such ordering clauses' prohibition on the use of bonds
As interpreted by ECM, the court did not broadly stay or issue a comprehensive preliminary injunction against the entirety of the PSC's broker regulation order
As interpreted by ECM, the broker registration requirement and deadline remain in effect; the PSC merely cannot deny use of a bond pending the appeal. With the court just now issuing the order, whether the PSC will resume processing broker registrations remains to be determined by the PSC
The court vacated a prior temporary restraining order against enforcement of every ordering clause of the PSC's broker regulation order, but the PSC is subject to the stay noted above
"In this matter, it is within the Court's
discretion to only enjoin enforcement of the financial assurance requirement and the removal of
bonds as a method of financial accountability. Addressing that alleged harm does not require an
injunction barring implementation of PSC's entire program. This outcome would avert any
alleged losses of market share or good will while also permitting the PSC to proceed with the
consumer protection rules that the Legislature has directed it to implement, to review applications, communicate with market participants, and review and incorporate staff's s final
revisions to the regulations while this matter is pending," the court said
Index No: 907356-24
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September 12, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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