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New York PSC Issues Show Cause Order To ESCO
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The New York PSC issued an order to show cause to Verde Energy USA New York, LLC (Verde) directing Verde to demonstrate why the PSC should not revoke Verde's eligibility to operate as an ESCO, or impose other consequences, as a result of alleged violations, as alleged by Department of Public Service Staff, of requirements to produce records related to customer verification and enrollment
Verde Energy provided the following statement concerning the matter:
"Verde Energy is aware of the Order to Show Cause issued by the New York Public Service Commission. While it is our policy not to comment on the specifics of ongoing regulatory investigations, we are cooperating fully with PSC Staff and will continue to do so throughout the process. Our priority remains providing consumer choice in energy supply while ensuring full compliance with New York’s regulatory standards."
--- Statement from Verde Energy
UBP §4.B.3 requires ESCOs to, "retain, for a minimum of two years or for the length of the sales agreement whichever is longer, verifiable proof of authorization for each customer." This UBP provision further states that ESCOs shall provide such customer verification records to Staff within five calendar days after Staff makes such a request.
UBP §5.I.3 mandates that ESCOs, "shall retain, and produce upon request," documentation that an ESCO, Energy Broker, or Energy Consultant was authorized to act as a customer’s agent. Pursuant to this requirement, ESCOs must preserve, among other things, "the customer’s name, service address and, if different, mailing address, telephone number, [and] customer’s requested service date for initiation of delivery service ...."
UBP §5, Attachment 2 further provides that, "ESCOs, Energy Brokers, and Energy Consultants shall retain documentation of a customer’s agreement in a retrievable format for two years from the effective date of the customer’s acceptance and/or authorization or for the length of the sales agreement whichever is longer. In the event of any dispute involving an electronic agreement or authorization, the ESCO, Energy Broker, or Energy Consultant shall provide a copy of the customer’s acceptance of the sales agreement and/or authorization for release of information or provide on-line access to the acceptance and/or authorization within five calendar days after a request from the Department."
UBP §10.C.4.g provides that, "ESCOs shall ... Cooperate with the Department and PSC regarding marketing practices proscribed by the UBP and with local law enforcement in investigations concerning deceptive marketing practices."
The PSC said that DPS Staff in 2025 initiated an investigation that, among other things, concerned Verde’s mass market customer enrollments
The PSC stated, "Staff’s initial findings in that investigation suggest that numerous improper enrollments and/or attempted improper enrollments with Verde occurred over the course of several months in 2025."
The PSC stated, "On October 21, 2025, Staff issued information requests to Verde regarding this ongoing investigation. Staff sought information that ESCOs such as Verde are required to collect, maintain, and provide to Staff upon request. The routine information that Staff requested from Verde includes, but is not limited to, new customer enrollment documentation, a list of cancelled customer accounts, and contracts with third-party marketing vendors. Staff requested that Verde provide a response to Staff within 14 days, or no later than November 4, 2025."
The PSC alleged, "After being granted an extension of time to respond, Verde provided its response to Staff on November 12, 2025. In that response, the Company generally and specifically objected to Staff’s requests and refused to provide the critical information referenced above, claiming, among other things, that Staff’s requests were 'overbroad, unduly burdensome, and not reasonably calculated to lead to the discovery of evidence admissible in a Commission proceeding.'"
Staff alleges that such objections are improper and not applicable in an ongoing investigation. Staff alleges that the UBP expressly contemplates that ESCOs will provide this information to Staff, "upon request," without any limitation.
The PSC stated, "In its response, Verde further indicated that it was conducting an internal investigation and reserved the right to supplement its response based on its continuing investigation. However, as of January 7, 2026, Staff has not received any supplemental response from Verde."
Staff alleged that Verde, by allegedly not timely providing the info sought by Staff, apparently violated UBP §4.B.3 and UBP §5.I.3
Staff alleged that Verde's alleged failure to provide responsive information in a timely manner is an apparent violation of UBP §10.C.4.g.
To the extent Verde did not retain the information described above, Staff alleges that such behavior would violate the applicable UBPs
Staff alleges that Verde’s apparent violations were not isolated events and may reflect, as termed by the PSC in summarizing Staff's position, a "pervasive" disregard of the UBP.
The PSC stated, "The opportunity for an ESCO to market energy service products in New York comes with the concomitant need to respond to Staff investigative requests for data and information."
The PSC stated, "The Commission notes that the presentation of Staff’s allegations herein does not reflect a final determination of facts or legal conclusions."
The PSC stated, "However, at this initial stage of the proceeding, the Commission finds that the Department has identified sufficient credible information to support Staff’s contention," that:
1) "Verde apparently violated UBP §4.B.3, which requires ESCOs to provide customer verification records to Staff upon request;
2) "Verde apparently violated UBP §5.I.3, which requires ESCOs to produce enrollment authorization documentation to Staff upon request;
3) "To the extent that Verde did not produce certain responsive records to Staff because Verde did not retain such documentation, Verde apparently committed a second violation of UBP §4.B.3;
4) "To the extent that Verde did not produce certain responsive records to Staff because Verde did not retain such documentation, Verde apparently committed a second violation of UBP §5.I.3;
5) "To the extent that Verde did not produce certain responsive records to Staff because Verde did not retain such documentation, Verde apparently violated UBP §5, Attachment 2, Section E; and
6) "Verde apparently violated UBP §10.C.4.g, which requires ESCOs to cooperate with Staff in investigations regarding misleading marketing practices."
Case 25-E-0763
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January 26, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
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