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In an omnibus Order Adopting Terms of Settlement Agreement the New York PSC directs nine (9) NRG Affiliated ESCOs to  provide billing adjustments to all former and current mass market legacy customers who were allegedly not transferred to revised contracts after April 2021.

According to Governor Kathy Hochul’s press release the nine companies affiliated with energy supplier NRG requires the companies to collectively pay $50 million in billing adjustments to 278,000 current and former residential and small commercial customers. The settlement also requires the companies to offer a product guaranteed to save those impacted mass market customers 15 percent compared to the utility rate for a one-year term and provide billing adjustments to certain low-income customers.

The companies are also required to provide up to $21 million in guaranteed future savings to certain customers. They must also provide over $900,000 in billing adjustments for certain low-income customers who inadvertently received ESCO service.

The following NRG companies listed in the settlement include:

• Gateway Energy Services Corporation
• Energy Plus Holdings LLC
• Energy Plus Natural Gas LLC
• Direct Energy Services LLC
• Green Mountain Energy Company
• Reliant Energy Northeast LLC
• Stream Energy New York LLC
• XOOM Energy New York LLC
• NRG Business Marketing LLC

These companies allegedly violated multiple provisions of PSC’s Uniform Business Practices. Most of them were accused of violating a Reset Order, a 2016 order prohibiting service to low-income customers by ESCOs, and Green Mountain was accused of violating an order on ESCO waivers.

From the Order:

“The Settlement Agreement, attached hereto as Appendix 1, fully resolves all claims asserted in the omnibus Order to Show Cause (OTSC) issued by the Commission on September 23, 2025. Specifically, the Settlement Agreement resolves: (1) the Affiliated ESCOs’ alleged failure to comply with the Commission’s Uniform Business Practices (UBP); (2) Direct’s, EPH’s, EPNG’s, Gateway’s, Green Mountain’s, Reliant’s, Stream’s, and XOOM’s (collectively, the NOAV Entities) alleged failure to comply with a December 12, 2019 Commission Order Adopting Changes to the Retail Access Energy Market and Establishing Further Process1 (Reset Order); (3) Green Mountain’s alleged failure to comply with a July 15, 2022 Order Regarding Energy Service Company Waivers2 (Green Gas Transition Order); and (4) the NOAV Entities’ alleged failure to comply with a December 16, 2016 Order Adopting a Prohibition on Service to Low Income Customers by Energy Service Companies3 (Low-Income Order).”

“Pursuant to the terms and conditions of the Settlement Agreement, the Affiliated ESCOs shall: (1) provide billing adjustments (Billing Adjustments) totaling $50 million ($50,000,000) to all former and current residential and small commercial customers who were allegedly not transitioned to contracts compliant with the Reset Order (Legacy Customers); (2) subject to obtaining affirmative customer consent, offer a fixed-price commodity electric and natural gas product approved by Department Staff as reflected and approved in Case 25-M-0519 (the Guaranteed Savings Product), providing a savings of fifteen percent compared to the Local Distribution Utility (LDU) price for a one-year term to all current and former Legacy Customers, or else drop current Legacy Customers back to their respective LDU; and (3) provide more than $900,000 to certain low-income customers who received service from the NOAV Entities and were retained as customers (the Low-Income Customers).”

As background on September 23, 2025, the companies were ordered by the New York PSC to show cause within 30 days why their eligibility to act as ESCOs shouldn’t be revoked or why they should not face consequences. The companies denied all of the allegations.