Another Large NY ESCO Seeks Waiver To Offer Service To Low-Income Customers, Via Cash Back Program

Stream Energy New York, LLC filed a petition with the New York PSC for waiver of the PSC's prohibition on service to Assistance Program Participant (APP) customers so that Stream may continue to offer such customers its cash back program

As previously reported, the PSC issued an order prohibiting ESCOs from serving APP customers except where the ESCO guarantees savings versus default service, ensuring, "that the customer will be paying no more than what they would have been [sic] paid to the utility."

As exclusively reported by EnergyChoiceMatters.com, the PSC last week extended the deadline for the effective date of the APP service prohibition (see details here)

Stream Energy New York, LLC said that it already offers a cash back rewards product to, "ensure savings for APP customers vis-à-vis its 'Cash Back Rewards' plans."

"These products are variable rate month-to-month plans which carry a reward that confer such a benefit to New York APP customers and also attempt to match utility pricing. Stream is seeking to continue to offer its Cash Back Rewards plans to New York APP consumers as the basis for its waiver petition," Stream said

"Under Stream's Cash Back Plan Rewards plans, not only does Stream attempt to match utility pricing, but Stream also provides a cash back reward incentive of a given percentage -- currently 2% or 5% (depending on the consumer' utility territory) if the consumer remains on the plan for 12 months," Stream said

"With respect to the applicable commodity rate charged, Stream attempts to match the utility rate posted by the utility on or around the first Monday or Tuesday following the first calendar day of each month. As such, this methodology attempts to match, as much as possible, the rate the consumer would have paid with the utility as it exists on or around the first calendar day of each month throughout the reward term of the plan," Stream said

"The reward provided at the end of the 12-month period is determined by multiplying the applicable reward percentage (i.e., 2% or 5%) by the total natural gas and/or electricity Stream commodity supply charges billed by the local distribution utility ('LDU') for the previous twelve (12) months of consecutive supply service by Stream, exclusive of sales taxes, the POR Discount Rate applied by the LDU, and LDU delivery, transportation, and transmission charges," Stream said

"Stream's program and product ... demonstrates Stream's assurance both that it will have both the ability to calculate what the customer might have paid to the utility and a willingness to ensure that the consumer will not pay more than that, as required by the Order. Stream's program attempts to capture what the customer would have paid to the utility based on the utility rate in effect on or around the 1st calendar day of each month the customer takes service under a Cash Back Rewards plan. Thus, the rate coupled with the cash back reward percentage attempts to ensure that the rate charged to the customer was not greater than what the customer might have paid had the customer remained with the utility," Stream said