New York to Develop Standard ESCO Contract Renewal Notice, Requires Additional Notice If Renewal A Fixed Rate

The New York PSC has adopted new procedures governing the renewal of residential and small non-residential ESCO electric and natural gas contracts, in its retail markets order.

The PSC declined to require affirmative customer consent on all contract renewals. "We decline at this time, to adopt such a requirement since it may inappropriately drive ESCO customers back to utility commodity service and raise ESCO operational costs," the PSC said.

However, the PSC will require ESCOs to publish, on all contract renewal notices for mass market customers for services with no energy-related value-added attributes, a prominent message stating that tools to help the customer compare historic and present ESCO prices are available on, or can be accessed from, the Department's website.

When issuing renewal notices, ESCOs must use a standardized format. Staff will develop a standard renewal notice and make it available to ESCOs on the Department's website.

Further, in the event of a fixed rate contract that renews at a fixed rate, the ESCOs shall provide the customer with additional notice prior to the issuance of the first bill under the terms of the contract as renewed, but not more than ten days prior to issuance of that bill.

"This additional notice shall include the new rate and inform the customer that, consistent with GBL §349-d(6) and the UBP, he or she cannot be charged a termination fee if he or she objects to the renewal within three business days of the customer's next bill," the PSC said.

Related New York Stories Today:

Black Tuesday: New York Adds Recourse to Purchase of Receivables; Will Adopt ESCO-Specific Discounts

Here's What ESCOs Will Be Required to File, and What New York Will Disclose, in Reporting ESCO Historic Pricing

New York Bans Teaser Rates from Power to Choose; Requires ESCOs to "Guarantee" Customers Pay No More Than Power to Choose Pricing, Expands Site to Small Commercial

State Ends Retail Supplier Customer Referral Programs

Here's How All ESCO Mass Market Sales Pitches Must Start in New York, and What TPVs Must Cover

State: Large Number of Retail Suppliers, "Generating Revenues By Offering Consumers Little More Than Higher Prices"

New York Asks If ESCOs Should Pay Annual Fee, Whether Eligibility Requirements Should Be Changed

New York Explains Treatment of Current Low-Income Customers on ESCO Service, Now That Such Service Is Generally Prohibited

New York to Examine Supplier Consolidated Billing, Customer Acquisition Costs, Other Barriers to Value-Added Offerings

Case 12-M-0476