New N.Y. PSC Chair: Action Moving Evidentiary Hearing Process Forward, "Signals The End Of An ESCO Market That Provides No Value To Customers"

In rejecting interlocutory appeals of several rulings concerning the scope and procedure for its retail mass market evidentiary hearing process, the New York PSC denied requests to suspend or terminate the evidentiary phase of the proceeding and affirmed that the evidentiary hearing process will move forward

The rejection of the interlocutory appeals had been first reported by EnergyChoiceMatters.com yesterday morning

In its decision, the PSC rejected the April 12, 2017 request by the Retail Energy Supply Association (RESA), and an earlier request by Direct Energy Services, to suspend or terminate the pending evidentiary hearing phase of the mass market review, currently slated to begin in October.

"The record is clear that certain ESCO customers have paid much more for their energy than necessary, and instead exposes them to the risks of overcharging," said Commission Chair John B. Rhodes in a news release.

"We have cracked down on bad-acting ESCOs, and we have banned ESCOs from serving low-income consumers. This action signals the end of an ESCO market that provides no value to customers, and instead exposes them to the risks of overcharging. The next step we will take is to explore whether and how ESCOs can truly provide energy services and value to New Yorkers in support of Governor Cuomo’s Reforming the Energy Vision," Rhodes said

As reported in our alert yesterday, the PSC affirmed the ALJs' ruling that discovery related to the commercial and industrial retail market is appropriate. The PSC also affirmed the ALJs' ruling that discovery related to ESCO profitability is appropriate

The PSC found that the process initiating the evidentiary hearing, including an initial Secretarial notice and subsequent ALJ rulings, were appropriate. ESCOs had called the notices procedurally deficient

However, to put the issue to rest, the PSC in an order denying the interlocutory appeal also explicitly authorizes the full evidentiary hearing process