New York Electric Market

The New York Public Service Commission has refused to allow two competitive energy service companies (ESCOs) to serve low-income customers, explaining that the ESCOs had failed to prove that such customers could actually save money by enrolling with them versus their incumbent utility. More than a year ago, the commission had amended its retail market rules to prohibit ESCOs from enrolling or renewing customers who are participants in utility-sponsored low-income assistance programs unless the company could assure guaranteed savings to those customers.

However, while rejecting the requests from those two suppliers to serve low-income customers, the commission did approve a similar proposal from a third ESCO, noting that that company had been able to prove that customers would not pay any more for its supply service than they would for full service from their local utility for the same time frame. 

The commission commented that the record showed that during a recent 30-month period, competitive suppliers had overcharged low-income New Yorkers for natural gas and electricity by $96 million. 

It also pointed out that just last month, a state appeals court had upheld the commission's July 2016 order prohibiting ESCOs from serving lowincome ratepayers except under certain conditions. 

The two ESCOs whose applications were denied were Drift Marketplace Inc. and M&R Energy Resources Corporation. The ESCO that was granted a waiver from the prohibition was Ambit New York, LLC. (Cases 12- M-0476 et al.)