AARP Seeks Status Update of New York Case That Could Ban Door-to-Door Marketing, Restrict Customer Eligibility for Choice, and End POR

AARP New York has asked the New York PSC for a status update concerning a wide-ranging retail energy market investigation which, among other things, is considering permissible sales and marketing practices for ESCOs, as well as the potential elimination of purchase of receivables without recourse.

Notable proposals under consideration by the PSC include a complete ban on door-to-door marketing, and prohibiting low-income customers from participating in retail choice.

Click here for background on the New York PSC retail market investigation

The case has not had any substantive public activity since a March round of reply comments.

"In our previously filed comments, AARP stated that growing evidence shows consumers who use the services provided by Energy Service Companies (ESCOs) may be paying more in utility costs than those who remain with the traditional utility company," AARP said in requesting the status update.

"AARP continues to advocate for the development of bill calculators through the Public Service Commission or utility websites and other appropriate platforms so that consumers have the ability to make informed cost comparisons, and we maintain our position that access to this information should not be restricted to consumers who have previously elected ESCO services," AARP said.

"AARP also made note of the fact that door-to-door marketing and telemarketing for ESCO services has a long history of abusive and deceptive sales techniques, with ESCO agents making oral statements that contradict the terms of the agreement in order to increase sales. This is of particular concern for AARP as door-to-door marketers often target elderly and low income individuals. As such, AARP has requested that the Commission implement a certification process for ESCO marketers, develop oral and written disclosure requirements that allow consumers to make accurate cost comparisons, review and regulate ESCO contract terms, and cease promotion of ESCOs through inaccurate promises of savings," AARP said.

Case 12-M-0476 et. al.