ESCO Proposes $20,000 Assessment On N.Y. ESCOs

IGS Energy has proposed a $20,000 lump sum assessment on all New York ESCOs to pay for compliance and enforcement

IGS Energy made the proposal during a collaborative meeting regarding the New York retail market reset order

During the collaborative, certain stakeholders suggested that had the PSC been more aggressive in going after truly bad actors in the market -- ESCOs charging 8 times the prevailing price, for example -- there would not have been the need for the broad reset order issued in February. Funding increased enforcement activities was seen as a mechanism to address bad actors.

However, it was noted that funding of the PSC is accomplished through the 18-a assessment, and that adopting a new assessment dedicated for PSC operations would not be simple

Regarding ESCO participation in the market, IGS Energy also proposed that the PSC

• Establish minimum financial assurances all ESCOs must post

• Empower the Commission to fine and penalize ESCOs for violating the UBP, and suspend or revoke licenses when necessary

• Strengthen certification requirements

In separately filed comments filed on the reset order in advance of the collaborative, IGS Energy said that after the minimum financial assurance is posted, the Commission should also consider increasing the financial assurance requirement based on the customer count or load served by the ESCO in New York.