New York Suspends ESCO's Ability to Conduct Door-to-Door Sales

The New York PSC said yesterday that it directed Liberty Power Holdings LLC to suspend all door-to-door sales, "pending the development of longer-term solutions to address its marketing problems."

A copy of the PSC's written order was not immediately available.

According to a PSC news release, "[t]his action is the result of a March 14, 2013 Commission order directing Liberty to show cause why its eligibility to enroll new customers should not be suspended or why its eligibility to provide ESCO services in the State should not be revoked or other consequences imposed."

See prior story for background on show cause order

"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.

Liberty Power Holdings LLC provided Matters with the following statement from Leah Lopez, Chief Operating Officer:

"In advance of this order and to demonstrate our commitment to addressing the concerns of the NY Public Service Commission, Liberty Power proactively discontinued the use of door to door sales channels for residential customer acquisition. The company is committed to working with the PSC to find more effective ways of making the power of choice in electricity accessible to all consumers. Liberty Power has served the state of NY with over a decade of reputable service; and, as such, has been greatly distressed by the recent events. We have a great suite of products and services that benefit consumers in the state of NY. We look forward to working with the Commission on establishing marketing best practices for our industry to ensure that the customer experience is of the highest quality. We look forward to continuing to serve this great community."

On March 20, 2013 and April 4, 2013, Liberty Power Holdings LLC notified the Commission of marketing practice changes it had implemented, and it addressed why its eligibility should not be revoked.

According to the PSC, Liberty Power Holdings LLC serves customers in the service territories of Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange & Rockland Utilities, Inc., and Rochester Gas & Electric Corporation. The majority of its customers are in Con Edison's territory, the PSC said.

Case 13-E-0062

Separately, the NY PSC yesterday issued a show cause order to a second, unrelated ESCO concerning marketing practices, see related story today for details