New York PSC To Allow Large ESCO To Continue Enrolling, Serving Customers, In Ruling On Show Cause Order

Addressing a prior order to show cause, the New York PSC will allow Spark Energy, LLC and Spark Energy Gas, LLC (together, Spark, or the Company) to continue marketing to and enrolling residential and non-residential natural gas and electric customers, "as long as Spark abides by the procedural improvements noted in its initial and supplemental responses and it complies with all provisions of the UBP and applicable Commission Orders."

The PSC said in its order that, "The Department’s investigation and review of the documentation Spark provided in its NOAF [Notice of Apparent Failure] responses revealed Spark’s non-compliance with several UBP requirements for valid enrollment of new customers. Specifically, Spark’s TPVs did not include all of the UBP-required questions, which resulted in unauthorized switching of customers to Spark."

The PSC said in its order that, "The Company subsequently met with Staff in March 2017 to discuss the allegations relevant to Spark in the Show Cause Order and to discuss the Company’s February 24th response. After further internal review, Spark concluded that its TPVs were not compliant with the UBP and modified its TPV script, along with internal processes, which, if followed, will ensure UBP compliance."

The PSC said in its order that, "Sparks’ supplemental response outlines the following actions Spark has committed to implement to maintain complete regulatory compliance. Spark: a) modified its customer complaint handling process with dedicated resources to resolve customer issues; b) modified its TPV script to be UBP compliant, including identifying the authorizing individual’s relationship with the account holder; c) will ensure marketing campaigns are UBP compliant; d) modified its internal process to ensure all documents are provided to customers in the same language used to solicit to the customer; e) developed a new and enhanced quality assurance program and training materials that emphasize proper and valid customer enrollment; f) developed an in-depth training and code of conduct for marketing representatives; g) plans to hire a dedicated compliance manager in conjunction with two analysts to audit all sales and marketing vendors; h) is thoroughly vetting marketing vendors prior to their contracting with Spark; and i) has moved its compliance department into its legal/regulatory division for additional monitoring.

The PSC said in its order that, "Spark’s actions and submissions since the Show Cause Order provide reason to believe Spark can be a responsible participant in the retail access market in New York State. Spark is therefore allowed to continue marketing and enrolling new customers so long as it does so in a manner that is consistent with the Commission’s regulations and orders and the Uniform Business Practices. Staff is directed to continue to monitor any new complaints and Spark’s actions and responses to those complaints and to promptly report to the Commission any compliance issues."

Case 16-M-0468