New York Retail Energy Markets
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AGENDA
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Consumer ProtectionBenchmarksValue Added Products and Services
ESCO Certification and Enforcement
Establish minimum financial assurances all ESCOs must postEmpower the Commission to fine and penalize ESCOs for violating the UBP, and suspend or revoke licenses when necessaryStrengthen certification requirements$20,000 lump sum assessment on all ESCOs to pay for compliance and enforcement
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Consumer Protection Ideas
Moratorium on low income enrollmentsLicensing requirements (including licensing fees) for any agent engaging in DTD or in-person solicitation of residential customersIncrease notices when customer’s term expires, or variablepriceincrease above a certain thresholdESCO must publicly disclose highest variable price being charged to customersInexchange no price orproduct regulation
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Currently in NY Regarding the PTC
Currently in NYCon Ed Power - The PTC will vary based upon the customer’s service classification, cycle and NYISO Zone location. Therefore, every single customer has their own unique PTC. Do not have any idea of forward PTC prices.National Grid (NIMO) Power - The PTC will vary based upon the customer’s service classification, cycle and NYISO Zone. Therefore, every single customer has their own unique PTC. PTC is known through current cycle assuming customer reads on expected cycle date
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How Other Markets Formulates the PTC
OHThePTC based primarily on a series of descending clockauctions. The results of these auctions provide general guidanceonwhere the PTC will land for an extended period of time(which help mitigate material cost swings from one cycle to thenext.) In some cases, the PTC is known through 11/2017.PAThePTC based primarily on a series of descending clock auctions.ThePTC is known through November, 2016.MDThePTC based primarily on a series of four descending clockauctions.ThePTC is known through 9/2016.
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MarketBaseBenchmark
Benchmarking should be based on all products available in the marketESCOs must provide to Commission price offerings for most widely available products (e.g. variable, 1 year fixed, 2 year fixed, 3 year fixed etc.)Each month commission publishes average price for each productSimilar to mortgage rate comparisons
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Report Out October 2013
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Utilization of Benchmark
Benchmark should be utilized for:Customer price comparisonsRating ESCOs in the marketEducating customersBenchmark should not be used as a proxy to regulate pricing
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Value AddedProducts and Services
Customers should determine what provides valueThere should be flexibility to introduce new products into the market
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Types of Value Added Products
Fixed rate products for 2 years or moreHome Warranty –HVAC and utility line protectionRenewable EnergySmart ThermostatsFlat BillEnergy EfficiencyDemand Response
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Market Structure to Promote Value Added Services
No pre-determined list of value added productsChangesto current billingprograms to facilitate offering of value added servicesShift focus away from utility price as metric to determine whether customers are receiving “value”Remove subsidies in the utility rate
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