For Immediate Release: 01/22/16
Audrey Zibelman, Chair

Contact:

James Denn | James.Denn@dps.ny.gov | (518) 474-7080

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January 22, 2016

PSC Reigns-In Non-Compliant Energy Service Companies

Revokes Eligibility of 4 Energy Service Companies; 1 Facing Potential Revocation

ALBANY — The New York State Public Service Commission (Commission) announced administrative actions against five energy service companies for non-compliance of Commission rules for maintaining their eligibility status in New York State. As a result, four companies lost their ability to sell electricity or natural gas in New York State; a fifth company potentially faces a similar fate.

 

"Although the companies hadn’t yet served customers, the steps being taken were necessary because they failed to comply with regulations, and as a result they should not be serving customers,” said Commission Chair Audrey Zibelman. “These companies are required to abide by the regulations, regardless of whether they currently have customers or not."

 

Energy service companies, or ESCOs, are required to comply with the Commission’s Uniform Business Practices (UBP) to sell natural gas and electric commodity in New York. Failure to comply with the UBP may result in a variety of measures, including the revocation of the energy provider’s eligibility to serve customers in New York State. In its actions, the Commission decided the following:

  • As a result of a failure to comply with State regulations and in violation of the State’s UBP requirements, the Commission revoked the following companies’ ability to do business in New York: Ipsum Solutions, Inc., Liverpool, NY, National Power & Gas, Inc., Brooklyn, NY, Spectrum Gas & Electric, LLC, Miami Beach, FL, and Energy Your Way, LLC, Rolesville, NC. The companies failed to submit documentation required to maintain their eligibility status.

 

  • Econopower, LLC, Huntington, NY, meanwhile, must show within 30 days why its eligibility to act as an ESCO should not be revoked or why other consequences should not be imposed. ESCOs, such as Econopower, must update information submitted in its original application every three years. Despite repeated requests, Econopower failed to submit the required information; the Commission is now considering revoking Econopower’s eligibility.

 

It is important that energy providers follow New York’s rigorous rules and regulations and adhere to best practices in regards to customer service. Failure to do so means that the companies run the risk of forfeiting their rights to do business in New York.

The Department of Public Service’s Consumer Advocate, created in response to Governor Andrew M. Cuomo’s efforts to ensure consumers receive the utmost protection and service from energy service companies and regulated utilities, closely monitors the number and types of complaints received against all utilities and ESCOs operating in New York State. The Consumer Advocate ensures that utilities and ESCOs fulfill their obligations to provide effective customer service in compliance with existing laws, rules, regulations and policies. Since January of 2015, consumers have seen more than $4 million returned to them as a direct result of actions taken by the Consumer Advocate.

The Commission’s decisions may be obtained by going to the Commission Documents section of the Commission’s website at www.dps.ny.gov and entering the following Case Numbers in the input box labeled "Search for Case/Matter Number": 15-G-0735 [Consequences Against Econopower, LLC for Violations of the Uniform Business Practices]; 15-M-0262 [Consequences Against Ipsum Solutions, Inc. for Violations of the Uniform Business Practices]; 15-M-0260 [Consequences against Spectrum Gas & Electric, LLC for Violations of the Uniform Business Practices]; 15-M-0261 [Consequences Against National Power & Gas, Inc. for Violations of the Uniform Business Practices]; and 15-M-0247 [Consequences against Energy Your Way, LLC for Violations of the Uniform Business Practices].

Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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