PULP: PSC Should Act To "Remove" ESCOs From N.Y. Who Charge "Unreasonable" Rates
September 30,2015
The Public Utility Law Project of New York urged the PSC to, "[o]pen an evidentiary proceeding to investigate patterns and practices of overcharging, deceptive practices, and other abuses of residential utility customers of New York State ESCOs ... and take direct action to remove all ESCOs from the market whose rates are determined to be unjust and reasonable or whose practices have been deceptive and/or abusive and/or that have ceased to engage in commerce in New York and simply function as shells."
PULP's comments came in a New York PSC proceeding concerning changes to ESCO licensing and marketing standards.
Alternatively, PULP said that the PSC should, "[r]eform the contracts and reshape the rates of those ESCOs that are proven to be overcharging, and bring notices/orders to show cause against all ESCOs currently operating in New York State for whom overcharging comprises at least 50% of complaints from 2012 – 14, or for whom deceptive practices (including outright 'slamming') comprises at least 5% of their complaints from 2012 – 14."
PULP said that the Commission should open a proceeding to determine how much of the $756 million of stale arrears the Commission reported as owed by residential electric and gas customers in its order instituting Case 14-M-0565 is derives from ESCO overcharging, with the goal of forgiving the portions of that debt that come from charges that were not just and reasonable, thus making any contract to purchase or collect them against public policy
PULP offered various figures to conclude that ESCO service is not the public interest, including:
• Overall annual complaints more than doubled (+136%) from 1,886 in 2012 to 4,454 in 2014.
• Complaints suggesting high prices charged by ESCOs increased at even faster rates than overall Complaints – up 166% from 1,082 in 2012 to 2,875 in 2014.
• Complaints suggesting deceptive practices by ESCOs (which may include slamming) rose from 572 in 2012 to 1,513 in 2014 (+165%).
• PULP's previous calculation that from 2010-12, ESCO customers at Niagara Mohawk paid $129.2 million more for their energy than would have been charged by the utility.