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NY Regulators Call to End ESCOs

December 9—The New York Public Service Commission (PSC) has recently set date and called for testimony regarding the state’s Energy Service Companies (ESCO)s. The PSC issued a moratorium on ESCOs selling to low-income communities in July. The moratorium and investigation came after Governor Andrew M. Cuomo announced an action plan to halt the business practices of what he called “unscrupulous companies, whose business model is to prey on ratepayers with promises of lower energy costs only to deliver skyrocketing bills” in February.

A New York Supreme Court Judge soon after struck down the proposed rules, finding that the state had failed to give the ESCOs the opportunity to state their case in a sufficient amount of time. However, the court also ordered the PSC to issue a new batch of rules.

In March, the PSC issued an order requiring ESCOs to either guarantee that Assistance Program Participants (APPs) would pay no more than what they would pay as a full-service utility customer. If the ESCO could not make that guarantee, it had to provide APPs with energy-related value-added products or services.



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