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New York ESCO Seeks Designation Of Its "Smart Monitoring Product" As Energy-Related Value-Added Service, Not Subject To Price Caps
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NOCO Electric, LLC and NOCO Natural Gas, LLC (together, NOCO) sought from the New York PSC a declaratory ruling finding that NOCO’s smart monitoring product (the SMT Product) qualifies as an energy-related value-added product or service (ERVAS) which is not subject to the mass market price caps, or alternatively granting NOCO a limited waiver to offer the SMT Product
Under New York's retail market reset order, mass market plans from ESCOs must be either a fixed rate subject to the PSC-set price cap, a guaranteed savings plan, or, for electricity only, a compliant renewable energy plan (generally at least 50% renewable).
The PSC in the reset order envisioned that ERVAS may be developed by ESCOs, which would not be subject to the product limits for mass market customers. Thus far, the PSC has determined that certain bundled HVAC and home warranty plans offered as part of ESCO supply service qualify as ERVAS and are not subject to the mass market pricing limits
NOCO said that the SMT Product, which is to be offered on a bundled basis with retail energy supply, "is a fully integrated smart monitoring system designed to optimize heating and cooling in residential and commercial buildings by pairing customers’ thermostats with a dedicated energy dashboard, both inside the home or business and remotely, to provide real-time feedback on customer consumption, performance, comparison with neighboring properties, and potential carbon savings."
To enable the real-time monitoring, the SMT Product includes, "hardware that is installed on the customers’ premises, which is to be recovered over time through the customer’s utility bill[.]"
NOCO further described the SMT Product as follows: "[T]he SMT Product integrates advanced HVAC controls with a user-friendly dashboard, enabling automatic adjustments to reduce energy waste while maintaining comfort. The system provides real-time data insights, allowing property owners and tenants to monitor and control energy usage effectively. In addition, the SMT Product dashboard communicates consistent recommendations to the consumer on how to reduce energy and potential measures for increasing efficiency such as upgrading HVAC equipment or replacing filters within the home. Finally, the dashboard connects the consumer with information on potential incentive
programs that may be available through NYSERDA or other third parties."
NOCO further said, "With the SMT Product, an independent third-party, Energy Guard (who bears no relationship with the home warranty product known by the same name), remotely monitors customers’ energy dashboards 24 hours a day/7 days a week, to ensure the units are operating as intended and communicating accurate energy data to customers. There are no upfront costs to customers, but given the hardware that is installed on the customers’ premises, which is to be recovered over time through the customer’s utility bill, any early termination of the customer agreement would result in an early termination fee consistent with the applicable allowances under the Uniform Business Practices."
NOCO said that the SMT product can reduce customer consumption by around 20-33%, "which would provide meaningful benefits to not only customers, but also New York’s energy grid."
NOCO said that the SMT Product was recently piloted in Binghamton, New York over a six-month period.
NOCO said that, on average, customers experienced an approximately 32% reduction in operations run-time, which NOCO said, "is the equivalent of eliminating approximately 1.17 tons of carbon emissions on an annual basis."
"While NOCO did not have utility bill data for the entire customer portfolio, NOCO expected the reduction in energy usage to translate to at least a 20% reduction on customers’ energy bills. These results are consistent with New York’s stated energy goals," NOCO said
NOCO stated that, "Individual customer savings are not guaranteed as customer usage rates and energy efficiency measures will vary based on individual customer profiles and customers retain the right to override the program based on personal preferences or for other reasons."
NOCO noted that customers would see savings on their energy bills from the reduced consumption
NOCO said that the SMT Product is consistent with the vision outlined for ERVAS in the PSC's reset order
Quoting the order, NOCO said that products that, "further the State’s energy policy goals and provide meaningful value to the customer," are explicitly recognized in the Second Reset Order as ERVAS.
NOCO also said that the SMT Product is consistent with various state energy policy goals adopted through the Reforming the Energy Vision proceeding and the Climate Leadership and Community Protection Act
NOCO noted that, under various programs adopted pursuant to these policies, customers currently receive a monthly report depicting their energy consumption compared to other similar homes, or may be provided such information on a more limited basis, or not at all
In contrast, NOCO said that, "With the SMT Product, however, customers have continuous 24/7 access to data to keep them informed and send signals to immediately impact customer’s energy habits. Such a product and framework is exactly what the Commission envisioned in the REV proceeding to 'empower customers to take control of their energy usage.'"
NOCO further noted that the Second Reset Order specifically notes that, "demand-management programs or tools, voluntary dynamic pricing programs or tools, energy-efficiency measures, sophisticated energy management services and smart-grid technologies, energy storage products, and electric vehicle-related services" are examples of
ERVAS products that could be developed by ESCOs
NOCO further said, "it is also in the public interest for the Commission to issue a declaratory ruling recognizing the SMT Product as a compliant ERVAS because such product can assist customers and the electric grid by reducing energy consumption and optimizing customers’ energy usage."
NOCO said that bundling the SMT Product with energy supply is appropriate
"Given that ESCOs are currently not permitted to separately itemize products on utility bills, and because the SMT Product is directly tied to customers’ energy consumption ... NOCO should be permitted to bundle the SMT Product along with a customer’s commodity product," NOCO said
NOCO's petition was filed in Dockets 15-M-0127, 12-M-0476, and 98-M-1343
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May 30, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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