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Joint Utilities Contend Non-Commodity Products Should Not Be Part Of Utility Bills But Instead Should Be Billed Separately By ESCOs
As previously reported, NOCO Electric, LLC and NOCO Natural Gas, LLC (together, NOCO) asked the New York Public Service Commission (PSC) for a declaratory ruling finding that NOCO’s smart monitoring product (the SMT Product) qualifies as an energy-related value-added product or service (ERVAS), which NOCO argues is not subject to the mass market price caps, or in the alternative asks the PSC to grant a limited waiver to NOCO to offer the SMT Product.
The Joint Utilities responded to the NOCO request for declaratory ruling seeking a finding that NOCO’s smart monitoring product (the SMT Product) qualifies as an energy-related value-added product or service (ERVAS) which is not subject to the mass market price caps or alternatively granting NOCO a limited waiver to offer the SMT Product.
The Joint Utilities include Central Hudson Gas & Electric Corporation (“Central Hudson”), Consolidated Edison Company of New York, Inc. (“Con Edison”), National Fuel Gas Distribution Corporation, New York State Electric & Gas Corporation (“NYSEG”), Niagara Mohawk Power Corporation d/b/a National Grid, KeySpan Gas East Corporation d/b/a National Grid, and The Brooklyn Union Gas Company d/b/a National Grid NY (“National Grid”), Orange and Rockland Utilities, Inc. (“O&R”), and Rochester Gas and Electric Corporation (“RG&E”).
“The Joint Utilities recommend that charges for energy service companies’ (“ESCOs”) non-commodity products should not be part of the utility bills but should instead be billed for separately by ESCOs, as allowed under existing Business Service Agreements (“BSAs”) and the Commission’s Uniform Business Practices (“UBPs”). First, utility bills are designed to clearly communicate supply and delivery charges to customers. Introducing non-commodity ESCO charges into the utility bill poses risks to customer transparency, utility operations, and the customer experience. Second, including non-commodity ESCO products on consolidated utility bills does not align with the existing UBPs. It also violates existing BSAs between ESCOs and distribution utilities, including provisions governing the Purchase of Receivables (“POR”). Third, requiring utilities to bill for non-commodity products would require clarification of rules related to partial payments, priority of payments, and termination under the Home Energy Fair Practice Act (“HEFPA”). Such a requirement would also compel utilities to adopt new billing practices, assume additional administrative burdens, manage increased collections risks, and address potential customer confusion regarding their bills.
“The Joint Utilities do not take a position on whether NOCO’s SMT Product qualifies as an energy-related value-added product or service under the Second Reset Order or whether the Commission should grant NOCO a waiver of that order. But, even if the Commission sees merit in the SMT Product, the Joint Utilities respectfully urge the Commission to deny the petition to the extent it proposes to permit NOCO to include charges for this product on consolidated bills issued by utilities.”
“State Register regarding the petition filed with the Public Service Commission (“Commission”) on May 30, 2025, by NOCO Electric, LLC and NOCO Natural Gas, LLC (collectively, “NOCO”). 2 In its petition, NOCO seeks a declaratory judgment that its smart monitoring product (“SMT Product”) qualifies as an energy-related value-added product or service under the Commission’s Order Adopting Changes to the Retail Access Energy Market and Establishing Further Process, issued on December 12, 2019 in Case 15-M-0127 (the “Second Reset Order”) or, in the alternative, for a waiver to the Second Reset Order so that NOCO can sell the SMT Product to mass-market customers. NOCO further proposes to charge for this product by bundling its charges into its rates for electric and gas supply, thereby having customers pay for this non-commodity products through their utility bills. The Joint Utilities recommend that charges for energy service companies’ (“ESCOs”) non-commodity products should not be part of the utility bills but should instead be billed for separately by ESCOs, as allowed under existing Business Service Agreements (“BSAs”) and the Commission’s Uniform Business Practices (“UBPs”).
Joint Utilities – Comments on NOCO Petition (09/26/2025)
NOCO Petition for Declaratory Ruling (05/30/2025)|
15-M-0127
(In the Matter of Eligibility Criteria for Energy Service Companies.)
