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

With the prohibition on electric and natural gas ESCOs serving customers in utility low-income assistance programs, except under certain conditions, the PSC's written retail markets order explains how utility low-income assistance program customers currently shopping with an ESCO are to be treated.

As noted last week, the PSC will only allow ESCOs to serve utility low-income assistance program customers if the ESCO either: (1) offers guaranteed savings versus default service, or (2) provides "energy-related value-added services that are designed to reduce customers' overall energy bills," such as home energy management services, demand response programs and tools, energy efficiency measures, and other tangible services as determined by Staff

For an ESCO offering guaranteed savings to a utility low-income assistance program customer, the savings must accrue and be paid at least on an annual basis.

Regarding utility low-income assistance program customers currently on competitive supply, the PSC provided the following direction:

• For a low income customer with an ESCO contract without an early termination fee who contacts his or her ESCO, the ESCO may offer one or more plans that comply with the PSC's policy, or the ESCO shall offer to switch the customer back to utility default service without an early termination fee.

• For a low income customer with an ESCO contract that includes an early termination fee who contacts his or her ESCO, the ESCO must inform the customer of his or her options to continue with ESCO service for a specified number of months or pay the specified early termination fee.

• For a low income customer who does nothing in response to the notice, the ESCO may keep the customer on his or her existing plan for the remainder of the plan's then-current term, but shall not renew the existing plan unless it complies with the PSC's policy for new low-income customer enrollments.

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Case 12-M-0476