PSC-18-16-00016-P Amendments to the Uniform Business Practices of ESCOs

5/4/16 N.Y. St. Reg. PSC-18-16-00016-P

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 18

May 04, 2016

RULE MAKING ACTIVITIES

PUBLIC SERVICE COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. PSC-18-16-00016-P

Amendments to the Uniform Business Practices of ESCOs

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

The Commission is considering amendments to the Uniform Business Practices with respect to use of a forward-looking reference price as the basis for establishing energy service company (ESCO) products at fair prices.

Statutory authority:

Public Service Law, sections 5(1), 65(1), (2), (3), 66(2), (3), (5), (8), (9) and (12)

Subject:

Amendments to the Uniform Business Practices of ESCOs.

Purpose:

To ensure consumer protection for ESCO customers.

Substance of proposed rule:

The New York State Public Service Commission (PSC) is considering amendments to the Uniform Business Practices (UBP) with respect to the products ESCOs could be allowed to offer residential and small commercial customers. The consideration of products will include, but not be limited to, the use of a forward-looking reference price calculated based on publicly available information as the basis for establishing a fair forward-looking price upon which ESCO products could be built in a manner that would ensure just and reasonable rates for ESCO customers. The reference price could be established based on forward prices for energy and capacity and other related costs. The reference prices may or may not incorporate a risk premium, such as to establish a going-forward fixed-price reference price. The reference prices could be established by commodity, load zone, service territory, and product, or other measure. The reference prices could be calculated by Department of Public Service Staff, or a third party, and could be made available on the Public Service Commission web site, and updated on a monthly or other periodic basis. Individual ESCO products could include a premium above or discount below the reference price to reflect the additional risks the customer or ESCO would assume for certain products. The Commission is also considering whether for combined commodity and energy-related value-added products, the price of the commodity component should be disclosed to customers along with the total price as a mandatory requirement so that the customer has the information necessary to judge the fair worth of the value-added component. Various ESCO products could possibly be built upon a reference price foundation including, but not limited to: variable-priced commodity products; variable-priced commodity products with an energy-related value-added product, fixed-price commodity products; and fixed-price commodity products with an energy-related value-added product. The Commission may consider what actions will be taken against an ESCO that exceeds the reference price for certain products. Any changes to the UBP would require Commission approval. The PSC may adopt, reject or modify, in whole or in part, the changes proposed, and may resolve related matters.

Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.ny.gov/f96dir.htm. For questions, contact:

John Pitucci, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Kathleen H. Burgess, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, [phone], email: [e-mail]

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(15-M-0127SP6)