New York Retail Suppliers Recommend Standard Form Renewal Letter

The Retail Energy Supply Association has recommended that the New York PSC adopt a standardized format for ESCO contract renewal letters.

RESA's recommendation, which came in the PSC's retail electric market investigation, was made in response to calls from consumer advocates to require a new customer authorization for contract renewals.

RESA recommended that the Commission, "in consultation with the parties should develop a standardized renewal letter format that would be used by all ESCOs."

"This would ensure that the information provided to the consumer is understandable and contains the necessary disclosure requirements," RESA said.

"There is no need to provide additional comparative pricing information as suggested by the AG, as the customer is now considering a renewal of the contract so it is the forward rather than retrospective price that is most crucial," RESA added.

Apart from various notice requirements, RESA noted that current New York law allows a customer on a renewed contract to cancel the contract without the application of an early termination fee if the contract is cancelled within three business days of receipt of the first bill under the renewed agreement. "This effectively gives the customer the ability to cancel the renewal without penalty within the first two months of physical supply and provides a distinct protection to the customer with respect to a rate change in the renewed contract," RESA said.