N.Y. Staff Propose Licensing Standard for Distributed Energy Resource Providers

New York PSC Staff have proposed eligibility criteria and rules for distributed energy resource suppliers (DERS)

Much of the rules mirror current eligibility criteria and costumer protection rules applicable to ESCOs

The definition of DERS proposed by Staff incorporates all entities selling DER products, including entities selling energy commodity. ESCOs which only sell energy commodity would be subject only to the UBP. ESCOs which sell DER products, either bundled with energy commodity or as standalone products, would be subject to the UBP, and to the UBP-DERS for applicable DER products. Such ESCOs would be required to abide by the following requirements which are incremental to existing UBP requirements: certain information required for the application (Section 2), a marketing rule as identified in Section 4.B, rules governing conduct with the DSP [distribution service provider] (Section 8) and reporting requirements (Section 9). For administrative efficiency, an addendum to existing ESCO applications would be created to address additional application requirements applicable to such ESCOs, Staff said.

Staff's proposal for DERS eligibility include application requirements, marketing standards, and methods of customer verification.

Notably, Staff said that, "the proposed rules also identify specific requirements to address a known concern that some DERS currently use inflated forecasts of energy commodity prices while marketing to end users, thereby overestimating savings."

Staff sought comments on development of standardized contract language and a uniform customer disclosure statement for DER service, but did not provide a specific proposal

Click here for Staff's propose DERS eligibility criteria

Case 15-M-0180