December 25, 2024
Marketers Seek Rehearing on NY Low-Income Moratorium
The National Energy Marketers Association has asked for a rehearing of New York regulators’ moratorium on the enrollment of low-income customers by energy service companies.

By William Opalka

The National Energy Marketers Association has asked for a rehearing of New York regulators’ moratorium on the enrollment of low-income customers by energy service companies (98-M-0667).

The New York Public Service Commission last month imposed the moratorium because stakeholders were unable to reach a consensus on reforms. (See NYPSC Declares Moratorium on Low-Income Sign-ups.)

In a petition filed Aug. 15, NEM said regulators violated stakeholders’ due process rights by adopting the moratorium without notice, violated state law and made other procedural errors.

State law “does not grant the commission authority to institute a moratorium on ESCO service to low-income customers,” the petition states.

NEM cites the same procedural mistakes the commission made in its February order attempting to revamp ESCO practices for customers not receiving public assistance. A state Supreme Court justice ruled that the PSC failed to give adequate notice. (See New York ESCO Order Vacated by Court.)

“The July order erroneously concludes that low-income consumers should not be permitted to make their own energy purchasing decisions,” the petition says, calling the PSC’s action “unfounded and [a] paternalistic view of low-income consumers’” shopping decisions.

The petition also asks for a clarification of the order, saying it fails to address how and under what circumstances the moratorium would be lifted.

“Despite the intention expressed that the moratorium be temporary in nature, the order itself provides no detail of the circumstances or timeline under which it will be lifted. NEM recognizes that the resolution of other related proceedings potentially impacts the duration of any moratorium,” NEM wrote. “However, ESCOs should be provided with some guidance and regulatory certainty about the potential duration of the moratorium in order to properly inform their decisions about serving New York state customers.”

New YorkNY PSC

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