New York Staff Raises Concern with ESCO's Use of Term "Local," Cite to Low Complaint Rate in Marketing Materials

Staff of the New York PSC raised concerns to an ESCO regarding the ESCO's statements in its marketing materials that it was the "only" local ESCO, and regarding a citation to the ESCO's low complaint rate, in a Staff review of the ESCO's marketing materials.

Specifically, the Staff raised concerns with certain statements in the marketing materials of NYSEG Solutions, now owned by Direct Energy. These concerns were unrelated to concerns raised by Staff over the use of the NYSEG name by a company not affiliated with NYSEG (see related story today for discussion of Direct Energy's response to these concerns).

However, of greater applicability to all ESCOs are the concerns Staff raised with parts of NYSEG Solutions' marketing materials that were not related to its brand name.

Direct Energy's response to a show cause order regarding the name NYSEG Solutions included as exhibits communications from Staff regarding concerns with the marketing materials. The exhibits did not include the original marketing materials which prompted Staff concerns, so the exact language with which Staff took issue is not known.

However, based on communications between Direct Energy and Staff, the original marketing materials apparently referred to NYSEG Solutions as the "only" local ESCO, or in some similar fashion

Staff wrote to Direct Energy that, "I doubt you are the only local ESCO in the Rochester area."

The final marketing materials, which were included in Direct Energy's show cause response, apparently removed the term "only," and instead said "Choose Your Local Energy Supplier," which was apparently satisfactory to Staff.

The original marketing materials also made a reference to NYSEG Solutions' low complaint rate at the PSC, though the exact language was not clear. However, whatever the language was, it prompted Staff to write, "[A]s a reminder, if a company is identified on the OCS complaint report, they have complaints. Several ESCos are not identified. Is that considered in your statement regarding complaint rates?"

The final NYSEG Solutions marketing materials did not refer to the PSC-compiled complaint rate, but did note that NYSEG Solutions has received an A+ rating from the Better Business Bureau

Related Story: Claim: New York PSC Staff Told ESCO Use of Non-Affiliate Utility Brand With Disclaimer Was OK Until Generic Proceeding Convened on Utility Trade Name Issues