N.Y. PSC Extends Deadline For Compliance With Low-Income Service Prohibition For Certain ESCOs

The New York PSC has extended the deadline by which ESCOs must comply with various ordering clauses of its order prohibiting service to assistance program participant customers (APP) for the 12 ESCOs who have submitted waiver requests to continue serving APP customers with a guaranteed savings product, pending the PSC's ruling on such waiver requests.

"[A]s permitted by the Prohibition Order, 12 ESCOs filed petitions for a waiver of the low-income prohibition, indicating that they were willing and able to provide low-income customers with a guarantee of savings compared to what the customer would pay as a full service utility customer," the PSC noted.

Petitions for waivers were submitted in Case 12-M-0476 et al. by: Zone One Energy LLC (January 12, 2017); Ambit New York, LLC (January 13, 2017); National Fuel Resources, Inc. (January 13, 2017); Stream Energy New York, LLC (January 27, 2017); Starion Energy NY Inc. (January 30, 2017); Drift Marketplace, Inc. (January 30, 2017); Agway Energy Services, LLC (January 30, 2017); South Bay Energy Corp. (January 30, 2017); Just Energy New York Corporation (January 30, 2017); M&R Energy Resources Corp. (January 30, 2017); Utility Expense Reduction, LLC (January 31, 2017); and, New Wave Energy Corporation (January 31, 2017).

"The Commission has yet to issue a decision on any of those 12 petitions, and given the possibility that some or all of those petitions for a waiver may be granted, it would be inequitable to implement the low-income prohibition for the 12 ESCOs that filed waiver petitions. These companies submitted petitions that proposed to further the Commission’s policy objectives of protecting low-income assistance funds and ensuring the low-income customers maintain essential service. It would be unfair to implement the prohibition and cause these ESCOs to lose a portion of their customer base, when ultimately, their petition for a waiver may be granted. Therefore, the deadline by which to implement the low-income prohibition with respect to Zone One Energy LLC; Ambit New York, LLC; National Fuel Resources, Inc.; Stream Energy New York, LLC; Starion Energy NY Inc.; Drift Marketplace, Inc.; Agway Energy Services, LLC; South Bay Energy Corp.; Just Energy New York Corporation; M&R Energy Resources Corp.; Utility Expense Reduction, LLC; and, New Wave Energy Corporation is extended until Commission action on each company’s waiver petition," the PSC ruled

Additionally, the PSC provided further clarification on the deadlines for compliance with the December 2016 APP prohibition order for ESCOs who did not submit a petition for a waiver

"Additionally, with respect to timing, this Notice offers clarity as to the specific dates for implementation of the Prohibition Order. Initially, compliance with Ordering Clause 4 has already been completed. Compliance with Ordering Clauses 1, 2, 3, and 11 shall begin on the first day of implementation, July 26, 2017. As discussed in the Prohibition Order, compliance with Ordering Clause 5 shall be done no later than 14 days after compliance with Ordering Clauses 1 and 2. Compliance with Ordering Clauses 6, 7, 8, 9, and 10 shall be done on a rolling basis, as described in the Ordering Clauses and the Prohibition Order," the PSC stated

The referenced Ordering Clauses from the December 2016 prohibition order (Order) provide as follows:

1. Electric and gas distribution utilities that have tariffed provisions providing for retail access are directed to, within 60 days of the effective date of this Order, place a block on all assistance program participant accounts, preventing those accounts from being enrolled with an energy service company.

2. Electric and gas distribution utilities that have tariffed provisions providing for retail access are directed to, within 60 days of the effective date of this Order, communicate to each energy service company serving assistance program participants which accounts the ESCO is no longer eligible to serve, consistent with the discussion in the body of this Order.

3. Energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory are directed to, within 60 days of the effective date of this Order, communicate to National Fuel Distribution Corporation which accounts the ESCO is receiving a HEAP payment on the customer’s behalf.

4. Electric and gas distribution utilities that have tariffed provisions providing for retail access and energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory are directed to, within 30 days of the effective date of this Order, file with the Secretary, for Department of Public Service Staff review, drafts of the letters to be sent to energy service company customers that are assistance program participants informing them that they will be returned to utility service, consistent with the discussion in the body of this Order.

5. Electric and gas distribution utilities that have tariffed provisions providing for retail access and energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory are directed to, within 60 days of the effective date of this Order, send the letters developed pursuant to Ordering Clause 4 to energy service company customers that are assistance program participants, consistent with the discussion in the body of this Order.

6. Electric and gas distribution utilities that have tariffed provisions providing for retail access are directed to, on a rolling basis, communicate to each energy service company serving customers who subsequently become assistance program participants which accounts the ESCO is no longer eligible to serve by sending an updated list of such accounts, consistent with the discussion in the body of this Order.

7. Energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory are directed to, on a rolling basis, communicate to National Fuel Distribution Corporation which accounts the ESCO is receiving a HEAP payment on the customer’s behalf.

8. Electric and gas distribution utilities that have tariffed provisions providing for retail access are directed to on a rolling basis, notify energy service company customers that subsequently become assistance program participants by sending such customers the letters developed pursuant to Ordering Clause 4, informing them of the prohibition imposed by this Order and that they will be returned to utility service.

9. Energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory are directed to on a rolling basis, notify customers that subsequently become assistance program participants by sending such customers the letters developed pursuant to Ordering Clause 4, informing them of the prohibition imposed by this Order and that they will be returned to utility service.

10. Every energy service company eligible to serve customers in New York State shall, within 30 days of receiving the communication from the electric and gas distribution utilities pursuant to Ordering Clause 2 and 6 of this Order, de-enroll any customer accounts identified by the electric and gas distribution utilities, provided that existing contracts will continue until their expiration.

11. Energy service companies that participate in the ESCO Consolidated Billing Model in National Fuel Distribution Corporation’s service territory shall, within 60 days of the effective date of this Order, de-enroll any customer accounts on whose behalf the Energy service company receives a HEAP benefit, provided that existing contracts will continue until their expiration.