NY PSC Chair Nominee: Record Seems To Indicate Some Consumers Have Been Disadvantaged By ESCOs

Speaking before a New York Senate committee, John Rhodes, currently the CEO of NYSERDA who has been nominated to chair the New York PSC, said that the record seems to indicate that some customers have been "disadvantaged" by some of the practices of ESCOs, as Rhodes emphasized the need for consumer protection.

Asked about the ESCO market during the hearing, Rhodes said, "I absolutely see a role for innovative companies that can provide good solutions to customers. And I'd certainly like to see that continue into the future. The record seems to indicate that some consumers have been disadvantaged by some of the practices."

Rhodes said that he would "embrace" the consumer protection role of the PSC and make it a priority

"We need to have those innovative solutions, but we still need to stand firm on protecting consumers, especially the most vulnerable consumers," Rhodes said

Sen. John DeFrancisco, deputy majority leader, pressed Rhodes concerning the treatment of ESCOs, criticizing the PSC's February 2016 mass market order that prohibited all mass market sales except for certain eligible products (whose ordering clauses pertaining to ESCOs was vacated by a court), and, in particular, the original order's directive that the prohibition was effective only 10 days after the order.

Asked by DeFrancisco about litigation of the order, and whether Rhodes agreed with a judge that had found that the order was, "arbitrary and capricious," Rhodes said, "I'm not in a position to have a view on that."

"I'm aware of the outcomes that the state would like from the ESCO community in general. I'm not aware of the details of any discussions or litigation and I'm staying out of that. What would be good for New Yorkers, is an industry that is positioned, free to provide good solutions to customers and solutions that they want," Rhodes said

Asked by DeFrancisco whether, if confirmed to the PSC, Rhodes would review, re-evaluate, or rollback the February 2016 reset order, Rhodes, answering generally, said, "I will take up whatever action I see is required for the benefit of New Yorkers," but said that he did not have enough facts to speak specifically to the reset order.

"I'll review anything, wherever the facts and the record leads us," Rhodes said, speaking generally.