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AOBA Alliance Seeks Ruling That New Broker Regulation Does Not Apply To It
The AOBA Alliance, Inc. petitioned the New York PSC to clarify that the PSC’s new broker/consultant regulations do not apply to the Alliance.
“Based on the full understanding provided herein, the Alliance respectfully requests that the Commission clarify that the recently issued regulations governing energy broker and energy consultant registration do not apply to the Alliance. Specifically, the Alliance respectfully requests that the Commission clarify that the relationship between the Alliance and Alliance participants4 is not sufficient to trigger application of the broker/consultant registration requirements.”
The Alliance had previously sought a finding from the PSC that the Alliance’s activities do not make it a broker or consultant, but in an April 2024 rehearing order, the PSC said that the PSC was unable to render a decision, “absent a full understanding of Alliance’s relationship to its members.”
The Alliance’s most recent motion for clarification seeks to expand upon why the regulations do not apply to the Alliance or its members.
“The Alliance prepared the contract form that would be used exclusively by its members with a single electric supplier in the Washington, D.C. area, (i.e., The District of Columbia, Maryland, Virginia, and Pennsylvania). The AOBA Alliance Board of Directors determines the single electric supplier [currently Constellation NewEnergy], as well as the length of the contract with the supplier.”
“[T]he Alliance contract form initially and exclusively applied to participants who owned or operated buildings in the District of Columbia, Maryland, Virginia and Pennsylvania[.]”
“With the advent of deregulation, Constellation requested permission from the Alliance to use key provisions from the Alliance contract form and in particular customer favorable provisions from the Alliance contract form in jurisdictions outside the Washington metropolitan area.”
“The Alliance receives a small fee from Constellation for the permission granted to use those key contract provisions from that contract form. The use by Constellation (not the Alliance) of those key contract provisions is the only indirect involvement (if that) the Alliance has with the State of New York.”
Unlike in its Mid-Atlantic markets, the Alliance explained that, in New York, the Alliance’s single retail supplier, Constellation NewEnergy, “handles all marketing and sales,” with the Alliance further stating that, “the Alliance’s involvement is strictly limited to allowing the use by Constellation of key contract provisions from the contract form.”
“There is no membership fee to purchase energy supply through the Alliance.”
“The Alliance is compensated by Constellation for the permission granted to Constellation to use key contract provisions from the contract form and there is a statement of that effect in the supply contract. However, there is no additional fee that is added to the participants [sic] cost of supply, the fee is NOT additive.”
“[T]he Alliance neither performs energy management or procurement functions on behalf of customers doing business in New York nor does the Alliance act as a broker in soliciting, negotiating or advising any electric or natural gas contract.”
AOBA Alliance Motion for Clarification (07/29/2024)
23-M-0106
In the Matter of Commission Registration of Energy Brokers and Energy Consultants Pursuant to Public Service Law Section 66-t.
