NY ESCO Files Complaint To Stop Utility From Implementing POR "Netting"

East Coast Power & Gas, LLC filed a complaint at the New York PSC against KeySpan Gas East Corporation d/b/a National Grid concerning the LDC's plan to update the current outbound 820 file to include: (1) the netting out of the Billing Service Fee and the Credit and Collection Fee for the National Grid KEDNY gas service territory; and (2) the netting out of the Credit and Collection Fee for the National Grid KEDLI gas service territories.

Essentially, the KeySpan LDCs have sought to switch the billing charge from a payment to a net-out from the Purchase of Receivables.

"The proposed amendment does not include sufficient detail on how National Grid will ensure the accuracy of its calculations or the process for returning service fees to the ESCOs. National Grid has a lengthy record of billing software inaccuracies and other miscalculations, requiring costly and time-consuming intervention by ESCOs and the Public Service Commission. This amendment would improperly place the onus on ESCOs of determining that National Grid’s withdrawal of the service fee was correct and appropriate. Given National Grid’s troubling history and the lack of clarification in the amendment, it is highly likely that its implementation will lead to further billing inaccuracies and undue burdens on the ESCOs," East Coast Power & Gas said

"As admitted by the Company, similar updates to its billing system have been unsuccessful, inefficient, and incorrect. For example, Company experienced systematic and widespread billing failures when it attempted to introduce the conversion of the Long Island billing system in December 2013. It was fined in excess of $10 million for its failure to meet its billing standard obligations, and was directed to make refunds to thousands of commercial customers because it billed at an incorrect rate. In Matter No. 14-02495, a review by Commission Staff determined that after the billing system conversion on Long Island in December 2013, National Grid issued numerous erroneous files and bills, applied double charges to many customers, failed to include ESCO charges on several bills and then issued multiple charges on one bill. Further, in 2014 and 2015, the billing services provided by National Grid were plagued with systemic errors and omissions. All system generated invoices in Long island for the month of October 2014, for example, were flawed and corrected system invoices had to be issued," East Coast Power & Gas alleged

"Given the numerous issues listed above, ESCOs have little faith or confidence in National Grid’s ability to ensure the proposed POR netting will be either accurate or reliable. The costs involved in monitoring its reliability and the process of resolving any inaccuracies could be significant, and it is unreasonable to place the burden of National Grid’s inefficiency on ESCOs," East Coast Power & Gas said

East Coast Power & Gas requested that the PSC through the dispute resolution process take the following remedial actions:

1. Notify the LDCs that during the pendency of the Complaint and its final resolution, the LDCs are precluded from netting monies directly from ESCOs Purchase of Receivables;

2. Notify the LDCs that they do not have the authority to net monies directly from ESCOs Purchase of Receivables; and,

3. Determine that the LDCs' billing system in connection with the proposed amendments is unreliable.

Given that the proposed changes will otherwise enter into effect on March 1, 2016, East Coast Power & Gas on February 29 sought immediate resolution of the dispute on an expedited basis