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New York PSC Issues Show Cause Order To ESCO, Alleges Failure To Provide Ordered Re-rates
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The New York PSC issued a show cause order to Energo Power & Gas LLC (Energo), as Department of Public Service Staff (Staff) alleged, among other things, that Energo failed to "adequately" re-rate customers as required under a prior PSC order
The PSC directed Energo to show cause within 30 days why its eligibility to act as an Energy Services Company (ESCO) in New York State should not be revoked or, alternatively, why other consequences as set forth in the Commission’s Uniform Business Practices (UBP) should not be imposed.
Energo provided the following statement concerning the matter
"Energo has a history of working with the PSC to ensure the highest level of compliance. We are closely reviewing the matter and will respond when we have completed our review."
--- Statement from Energo
The PSC noted that, "The Commission notes that the presentation of Staff’s allegations herein does not reflect a final determination of fact or legal conclusion."
In New York, Energo is currently eligible to serve both residential and non-residential natural gas and electric customers, though Energo sold its electric and gas books in separate transactions in 2024, as previously reported. DPS Staff said that NYGATS load data appears to show that Energo stopped serving electric customers in May of 2024.
As previously reported, the PSC had in 2020 ordered Energo, formerly known as Marathon Power, to re-rate fixed price customers who had experienced an increased rate when Marathon changed rates as a result of a change in the peak hour used to calculate a customer's ICAP tag, as the PSC found that such a rate change did not qualify for treatment under a regulatory change clause, and therefore violated the Uniform Business Practices (see details here)
DPS Staff alleged that Energo apparently failed to comply with this PSC re-rate order, which had been appealed but which was upheld by a New York state court
The PSC alleged in its order that, "To date, Energo has apparently not refunded all impacted customers."
The PSC said, "Staff contends that Energo’s reported data does not include any customer specific metrics, nor does it include any proof that customers received a reimbursement. Accordingly, Staff used alternative data sources to attempt to track compliance, but NYGATS load data appears to show that Energo stopped serving electric customers in May of 2024. Staff has also observed utility migration data that shows drops in the number of Energo’s customers, potentially indicating that some customers appeared to have been transferred to other ESCOs at various times during the 2024 calendar year. Following a review of the most recent Energo filings, Staff requested clarification from Energo in an attempt to clarify the reimbursement data. Staff alleges that Energo did not adequately rerate its customers, and therefore violated the Commission’s June 2020 Order Imposing Consequences."
DPS Staff has also alleged that Energo:
• Apparently violated the Clean Energy Standard by failing to satisfy its annual obligation to purchase Zero-Emissions Credits (ZEC) and failing to procure and retire Tier 1 Renewable Energy Credits (REC) to meet the Renewable Energy Standard (RES) or alternatively submit an Alternative Compliance Payment (ACP). Staff alleged that Energo failed to pay $2,540,835.75 in ACPs and $35,833.68 in ZECs
• Apparently violated UBP Section 2.D.5.b by failing to honor the terms of its sales agreement, which required Energo to purchase a specific percentage of voluntary RECs to satisfy contractual obligations. Staff alleged that Energo failed to pay $209,517.30 for Voluntary Compliance Payments in lieu of purchasing and retiring RECs for customer sales agreements which required Energo to match a portion of its customers' load with either 50% and 100% renewable electric energy.
Case 25-M-0244
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June 24, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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