RESA: NY Utilities Proposed Low-Income Letter Takes "Liberties" In Opining on Retail Market Policy, Casting Negative Light

The Retail Energy Supply Association has objected to the draft text of a letter to be sent to New York Assistance Program Participant (APP) customers submitted by Central Hudson Gas & Electric for PSC Staff review, with the letter informing customers of the prohibition on ESCO service to such customers.

RESA takes issue with the following language at page 2 of the draft letter: "The PSC found that low-income customers have not benefitted from taking supply service from ESCOs. This moratorium will ensure that low- income customers are not paying any more than necessary for gas and electricity. This program change will help to keep your energy costs affordable."

"The Order does not give the utilities license to opine on public policy nor on the value of ESCO service to this particular group of customers or individual customers within the group, as Central Hudson has taken liberties with in its letter. Further, Central Hudson is painting a swath with a wide brush, casting a negative light on all ESCOs, regardless of their level of service to customers, including customers with value-added services, or fixed pricing," RESA said

The PSC's APP ESCO moratorium order explicitly states the utilities shall send customers a letter informing them: (1) that they are enrolled in the utility’s low-income program; (2) of the moratorium directed in this Order; (3) the reason for and protections provided under the moratorium; and, (4) that they will be returned to utility service at the expiration of their existing ESCO agreement.

To fulfill directive (3) of the informational elements of the utility letter to APP customers, RESA offered the following alternative language to that offered by Central Hudson: "The NY State Public Service Commission ordered the Moratorium to ensure that financial assistance provided to Assistance Program Participants is spent most efficiently."

"This language succinctly expresses the reason for the Moratorium and is taken directly from the 'Introduction' section of the Order on page 1. It would be appropriate to use this language for all utilities," RESA said