Energy Service Companies Eye Reforms in NY's Competitive Energy Market
RESA Calls for Registration of Marketing Vendors, Developing Best Practices
HARRISBURG, Pa., Jan. 28, 2013
HARRISBURG, Pa., Jan. 28, 2013 /PRNewswire/ -- The Retail Energy Supply
Association (RESA) is proposing several retail energy market reforms in a
proceeding before the New York Public Service Commission to consider measures
that will enhance the shopping experience for residential and small commercial
consumers of electricity and natural gas.
"RESA fully shares the Commission's concerns with ensuring that retail
marketing activity and practices are conducted in accordance with all
applicable standards and that customers are fully informed of the specific
offers made by each (energy supply company, or) ESCO," RESA said in its filing
with the Commission. "RESA supports efforts to improve the integrity of the
retail energy market and market participants, and consideration of additional
steps that can help consumers to make better informed choices."
RESA offered several specific reforms for the Commission's consideration:
oThe use of a web-based price-comparison calculator can provide useful
information to residential consumers, if it is properly developed and
implemented to distinguish between the various value-added product and
service offerings made by ESCOs, such as fixed-price offerings and "green"
energy, RESA said.
Comparative pricing analyses applied to utility commodity charges are
subject to misinterpretation when applied to fixed-price service in which
the customer is being offered price stability rather than necessarily
Similarly, green energy products are usually more expensive than traditional
"The critical element is to promote full customer understanding of the
available competitive choices presented by ESCOs. Without such knowledge and
understanding the consumer's ability to make an informed choice is
impaired," RESA said.
oMany ESCOs contract with third-party marketing services vendors to solicit
new customers on their behalf. The Commission should consider registration
and bonding requirements for third-party marketing vendors and make them
subject to Uniform Business Practices requirements rather than imposing
prohibitions on specific marketing approaches. "In this manner, the vendor
would have a direct interest in ensuring that the vendor-based marketing
practices are carried out in an acceptable manner," RESA said.
oRESA urged the Commission to develop best practices for door-to-door (DTD)
marketing and standardized vendor monitoring and quality control
procedures that would be implemented by all ESCOs in New York. "These
standards would reflect best practices and help ensure that each ESCO and
DTD vendor has the knowledge and obligation to implement effective quality
control measures," RESA said.
"Retail energy competition is working in New York," observed Christopher
Wentlent, RESA's New York state chair.
"The Commission has made substantial progress over the past 15 years in
empowering consumers to choose from a wide variety of competitive energy
offers and the level of competition for customers both large and small is
robust," Wentlent said. "We are at a critical stage where enhanced market
transparency and consumer comparison tools will further motivate consumer
choice. We believe our recommendations will assist in meeting these
RESA is the nation's leading organization representing competitive retail
suppliers of electricity and natural gas. RESA members active in New York's
competitive retail energy market are a subset of the ESCOs participating in
New York's competitive retail energy market. RESA's 18 members are dedicated
to creating vibrant and sustainable competitive electricity markets that
operate in the best interests of consumers.
RESA represents competitive energy suppliers dedicated to creating and
sustaining vibrantly competitive electricity and natural gas markets for the
benefit of consumers. RESA's members include: Champion Energy Services, LLC;
ConEdison Solutions; Constellation NewEnergy, Inc.; Direct Energy Services,
LLC; GDF SUEZ Energy Resources NA, Inc.; Hess Corporation; Integrys Energy
Services, Inc.; Just Energy; Liberty Power; MC Squared Energy Services, LLC;
Mint Energy, LLC; NextEra Energy Services; Noble Americas Energy Solutions
LLC; NRG, Inc.; PPL EnergyPlus, LLC; Stream Energy; TransCanada Power
Marketing Ltd. and TriEagle Energy, L.P. For more information about RESA
please contact Tracy McCormick, Executive Director, at (717) 566-5405, or
Bryan Lee, 301-717-2988
SOURCE Retail Energy Supply Association
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