New York Issues Show Cause Order to Second ESCO on Suspension/Revocation

The New York State Public Service Commission yesterday said that it directed Family Energy, Inc. to show why the Commission should not revoke the company's eligibility to enroll new customers or to offer services as an energy services company in New York, "given the company's pattern of apparent marketing violations and numerous customer complaints."

A copy of the show cause order was not immediately available.

"While we facilitate retail competition in the energy business, energy service companies that violate marketing standards that we've established to ensure consumers are treated fairly and reasonably will be held accountable for their actions,” PSC Chairman Garry Brown said in a news release.

According to the PSC news release, "Last year, Commission staff received 93 initial customer complaints against Family Energy, as compared to 40 in 2011. The majority of complaints against the company involved misleading marketing practices and sales representatives misrepresenting their identity. Although all of these complaints were eventually resolved, upon further investigation it appears the company's marketing representatives continued to violate the Commission's Uniform Business Practices (UBP), despite committing to several corrective actions."

According to the PSC news release, "Family Energy has been eligible to serve residential and non-residential natural gas customers across the state since June 2009. The majority of its customers are residential and are located in the territories of Consolidated Edison Company of New York, Inc. and National Grid USA's KeySpan Energy Delivery New York."

Per the news release, "[w]ithin seven days of the issuance of the Commission's order, Family Energy must explain why it should not be prevented from enrolling new customers until the Commission decides otherwise. Further, Family Energy must, within 14 days of the order, show why its eligibility to act as an ESCO in New York should not be revoked or, alternatively, why the Commission should not impose other consequences."

Case 13-M-0139

It is the second show cause order issued to a New York ESCO over marketing issues in as many months; the PSC yesterday also acted on a show cause order issued to another supplier see related story today for details