AARP, PULP Ask N.Y. PSC to Ensure "Stable, Least Cost" Default Service Prior to Embarking on Utility Structure Changes (REV)

New York should, "ensure a more stable and least cost default service for residential customers and review current mandates, prior to embarking on the REV [Reforming the Energy Vision] proceeding," AARP, the Public Utility Law Project, and NYPIRG said in a list of "principles" which should guide the PSC's investigation.

"It is well-documented that the “Polar Vortex” impacted short-term prices in the wholesale market, resulting in unprecedented price increases imposed by ESCOs on customers under variable price contracts. The fact that default service prices also showed immediate and short-term increases is equally disturbing," the groups said.

"Unlike other restructuring states, New York's default service policies and purchasing strategies rely far too heavily on monthly and short-term wholesale spot market prices and contracts based upon them. Further, other states are examining current mandates regarding renewable energy and net metering polices to ensure costs imposed on ratepayers are fair. The Commission's REV proceeding should consider the need for reforms in the retail market on a level with the consideration of new programs," the groups said.

The consumer groups asked that the PSC consider, "reforms ... to ensure that default service is based on a portfolio of a prudent mix of contracts types and terms to ensure stable and least cost service for residential customers."

In separate comments on another track of the REV proceeding, AARP and PULP said, "Default service should be defined as a least cost and 'plain vanilla' generation supply service that is procured in a competitive manner in the wholesale market pursuant to a Commission approved portfolio of contracts that are designed to provide a reasonable level of price stability over a 2-4 year period to residential and small commercial customers. AARP and the Utility Project strongly support the reform of the current default service policies that overly rely on shorter term wholesale market contracts and price signals."