"Rating System" For NY ESCOs Proposed

Supreme Energy, Inc. proposed that the New York PSC could set up a "rating system" for ESCOs, similar to the points used on driver's licenses, in which ESCOs with records of good behavior could apply such record in an instance of a Uniform Business Practice violation.

Supreme Energy was commenting on a PSC request for comment concerning what penalties may apply to ESCOs that violate the UBP or other Commission orders.

Supreme Energy called the penalties available under PSL §§ 25 and 25-a, which includes fines of up to $100,000 per day, "unnecessarily draconian," especially if applied to first or minor offenses of the UBP.

"We suggest a progressive disciplinary protocol. For example, the process might start with a warning and/or minor penalty for a first or lesser offense with an opportunity to cure violations and make restitution. The next level might warrant suspension of ability to enroll new customers and/or monetary fines up to $1,000/violation/affected customer to a maximum of $500,000, and the final step would be loss of eligibility to operate in the State. The Commission should have the flexibility to impose other non-monetary conditions such as those already included in UBP(D)(6)(b) and to skip any of these stages in cases of egregious misconduct. At the same time, ESCOs should be guaranteed due process and the ability to appeal the Commission’s actions before penalties are imposed or findings are published," Supreme Energy said

"We also believe in the power of incentives. For example, the Commission could set up a rating system for ESCOs based on number of violations and complaints and award credits for every year in which the ESCO received an exemplary rating. Those credits could then be redeemed to reduce disciplinary actions in case of a future violation. By this mechanism, the Commission would encourage punctilious observance of the rules and would shield good-faith ESCOs from drastic consequences for an unintended or isolated mistake," Supreme Energy said