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New York PSC Revokes Eligibility Of ESCO
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The New York PSC issued an order revoking the eligibility of Energo Power and Gas, LLC to serve energy customers in New York State
The PSC's order followed a show cause order issued in June 2025
On Oct. 16, the day that the PSC considered the revocation order on its consent agenda (without discussion), prior to the issuance on Oct. 21 of a written revocation order, Energo had 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."
--- Oct. 16 statement from Energo
The PSC stated in its written order that, "Energo did not respond to the Commission’s June 2025 OTSC [order to show cause] within the specified thirty-day timeframe and has therefore defaulted."
Energo on October 15 had filed a request for an extension of the deadline to respond to the show cause order
The PSC's Secretary denied the requested extension on October 16, with the Secretary stating, "Pursuant to the Order, Energo was directed to respond by
July 23, 2025, and if additional time was needed, to file its extension request at least three days
before the applicable compliance deadline. Your extension request is almost three months too
late."
In the October 15 extension request filed by Energo, Energo had stated, "the Order alleges that Energo did not adequately rerate its customers, and
therefore violated a previous Commission order imposing consequences. In support of these
allegations, the Order states that '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.'
Of note,
Energo previously advised Department of Public Service Staff that it was transferring all of its
electric and natural gas customers prior to issuing transfer requests to the utilities. Insomuch as
the Order may contain factual inaccuracies, Energo has submitted a Freedom of Information Law
request to the Department of Public Service’s Records Access Officer seeking certain
information in connection with the allegations in the Order (the 'FOIL Request'). Accordingly,
Energo respectfully requests an extension of time, until 30 days after a response to the FOIL
Request is issued, to respond to the Order and removal of Energo from the Commission session
agenda."
The allegations addressed by the PSC's revocation order were fully detailed in our prior story from June (click here)
In brief, Dept. of Public Service Staff had alleged that Energo apparently failed to comply with a prior PSC order requiring Energo to re-rate customers, which had been appealed but which was upheld by a New York state court (see background here)
DPS Staff had 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.
In the revocation order, the PSC found that, "Energo failed to honor the terms of its sales agreements in violation of the UBP Section 2.D.5.b. and failed to comply with a previous Commission order to rerate adversely affected customers."
In the revocation order, the PSC, "holds that Energo has violated the CES by failing to satisfy its annual obligation to purchase ZECs and its RES obligation to purchase and retire Tier 1 RECs or make ACP’s. Energo has failed to pay over $2.5 million to NYSERDA, demonstrating a flagrant disregard for the Commission’s orders and regulatory authority."
In New York, Energo had been 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.
Case 25-M-0244
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October 22, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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