NY PSC Says ESCO Fixed Rate May Require Guaranteed Savings If Later Permitted For Low-Income Customers

As noted in our related story today, the PSC is permitting ESCOs to seek a waiver of the low-income prohibition for guaranteed savings products, and the PSC said in such order that it would potentially reconsider any other products identified in the larger mass market review that are found to offer savings

However, don't expect fixed products to be permitted for low-income customers absent clearing a high hurdle

In its December 16 order, the PSC said, "Low-income customers have very little margin for paying premiums for services, so any fixed-rate product would have to come with a minimal premium and perhaps a guarantee of savings for it to be acceptable."

"The level of scrutiny that would be necessary to allow such products is not achievable in the current climate where ESCOs have not been cooperating in creating meaningful solutions," the PSC said in its December 16 order