N.Y. ESCO To Issue Nearly $1 Million in Refunds Under Agreement With Consumer Advocate

New York Governor Andrew Cuomo announced yesterday that, "an investigation by the Department of Public Service’s Consumer Advocate has resulted in 1,566 utility consumers receiving $950,700 in energy bill refunds from Ambit Energy, a retail electricity provider, following customer complaints filed against the company in New York State."

"New York has no tolerance for companies who change the rules and rob ratepayers of an even playing field," Cuomo said.

"It is critically important that energy providers follow New York’s vigorous rules and regulations and adhere to best practices in regards to customer service," said Audrey Zibelman, Chief Executive Officer of the Department of Public Service. "Rather than run the risk of losing its ability to do business in New York, Ambit agreed to address the outstanding consumer complaints investigated by our DPS Consumer Advocate and refund the approximately $1 million owed to customers."

According to the governor's office, "the investigation was launched after the Department of Public Service raised concerns over Ambit’s customer disclosure statements and renewal notices, particularly for customers who were moved from a guaranteed-savings plan into a variable rate plan charging significantly more."

"As a result of the investigation, Ambit has made major adjustments to customers’ bills in an effort to both resolve concerns raised by the Department and satisfy customers who were charged more after being moved out of the guaranteed-savings plan. In concluding its investigation, the Department reviewed the company’s response and determined that it had adequately addressed deficiencies and had appropriately adjusted customer rates and bills. The actual level of refund is dependent on a number of factors, including how long the customer was charged a higher rate," the governor's office said

The governor's office said that refunds would be provided to various customers as follows:

Service Territory   Customers  Refunds
Hudson Valley          43      $14,300
New York City         153      $62,200
Central/Eastern NY    774     $500,100
Southern Tier         396     $275,900
Western New York      200      $98,200
Grand Total         1,566     $950,700