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NY PSC Denies Family Energy’s Request For Rehearing On Broker Financial Security Instrument Issues
The New York Public Service Commission (PSC) issued an order denying rehearing of its April 2024 broker regulation order on rehearing and reconsideration, with the PSC again rejecting the use of surety bonds as a means for brokers to show the required financial capability.
In adopting broker registration requirements, the PSC had ordered that brokers shall post a $100,000 irrevocable standby letter of credit for registration ($50,000 for consultants). The PSC declined to allow the use of surety bonds to satisfy the financial accountability requirement of PSL §66-t, with the PSC mandating that applicants provide an irrevocable standby letter of credit.
As previously reported, Family Energy sought rehearing of the April 2024 order on rehearing, alleging that the April 2024 order failed to address arguments that statute requires the PSC to accept surety bonds as a means of demonstrating financial fitness for brokers.
PSL §66-t(3)(a) requires brokers and consultants to demonstrate financial accountability, “as evidenced by a bond or other method of financial accountability.”
Excerpts from the Order:
“Family contends that this [above-cited] language grants the Commission authority to define the other methods of financial accountability but does not allow the Commission to reject the use of a bond. The Commission does not agree with Family’s proffered interpretation.”
“PSL §66-t requires the establishment of a registration process for brokers and consultants and gives the Commission broad authority to refuse to register or revoke registrations. As such, PSL §66-t(3)(a) vests the Commission with authority to determine the proper method of financial accountability for brokers and consultants as a part of its establishment of a registration process.” “The method of financial accountability was not an issue raised in any of the three petitions for rehearing of the June 2023 Order, and thus was not before the Commission in the April 2024 Rehearing Order. The submission of additional comments related to the method of financial accountability after the issuance of the June 2023 Order does not obligate the Commission to address the same issue again when it was not the subject of a petition for rehearing.”
Order Denying Petition for Rehearing (07/23/2024)
23-M-0106
In the Matter of Commission Registration of Energy Brokers and Energy Consultants Pursuant to Public Service Law Section 66-t.
