IGS Energy Seeks Extension of Compliance Deadline for NY Order Which Requires "Full Stop" of Retail Markets; Calls Timeline "Impossible"

New York's February 23 order requiring a "full stop" to the retail energy mass market, "requires changes that were unexpected and are impossible to implement within the 10 day time-frame specified in the Order," IGS Energy said in a request for an extension of the compliance deadline

IGS Energy requested a 45-day extension of the compliance deadline.

As first reported by EnergyChoiceMatters.com, the New York PSC's "full stop" order prohibits ESCO service to new and renewed mass market customers except under two limited circumstances, and requires certain existing customers to be returned to default service to the extent they are not moved to a compliance product (click here for details on the order).

Specifically, the New York PSC banned ESCOs from enrolling or renewing residential and small non-residential customers, unless the product guarantees savings versus the utility rate over an "annual" period or the product includes at least 30% "delivered" renewable electricity (RECs are not permitted for compliance).

The order further provides, "that ESCOs that currently serve mass market customers through month-to-month variable rate agreements must enroll those customers in a compliant product at the end of the current billing cycle or return the customers to utility supply service."

IGS Energy noted several challenges facing ESCOs seeking to comply with the order due to its ambiguous provisions, including several recently noted by RetailEnergyX.com

"While the Order undoubtedly will require transformational changes to the operation of the retail market, the ultimate extent of those changes are unclear because the Order is ambiguous. For example, it is not clear whether an ESCO serving a customer on a variable month to month contract can provide a 30% renewable product without obtaining affirmative consent. Moreover, it is not clear what resources qualify as renewable under the Order, especially given the uncertainty regarding the pending changes to the Environmental Disclosure Labeling Program—an issue the Order recognizes but does not resolve. The Order also identifies that ESCOs may provide value added services to customers, yet the Order does not identify what products and services fit that within that requirement. Therefore, ESCOs are placed in the difficult if not impossible position of achieving expedited compliance with an uncertain set of rules," IGS Energy said

"Likewise, for purposes of satisfying the requirement to provide service below the otherwise applicable default service rate, ESCOs must undergo a comparative analysis for numerous rate classes in several gas and electric utilities, and, in some instances, several pricing cycles within each month. In Consolidated Edison ('ConEd') alone, for example, IGS must evaluate over 300 prices to compare for each month. And this analysis must be completed in time to submit pricing information to each utility in advance of the next billing cycle. This is no small feat—the analytic and operational ramifications of the Order simply cannot be achieved within the 10-day time frame specified in the Order," IGS Energy said

IGS Energy noted that the PSC has previously stayed orders that contain ambiguity, "noting that piecemeal and repetitious implementation of new regulatory requirements is not in the public interest."