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The New York Public Service Commission issued an order to revoke Energo Power and Gas, LLC’s (formerly known as Marathon Power LLC)

THE DEPARTMENT’S INVESTIGATION AND FINDINGS 

“As set forth in the June 2025 OTSC, Department staff contends that Energo failed to comply with multiple Commission Orders. During the investigation, Department staff identified information that Energo: 

1) violated the CES Order by failing to satisfy its annual obligation to purchase Zero-Emissions Credit (ZEC) and the Renewable Energy Standard (RES) obligation to procure and retire Tier 1 Renewable Energy Credits (REC) or alternatively submit an Alternative Compliance Payment (ACP); 

2) violated UBP Section 2.D.5.b by failing to honor the terms of its sales agreement, which required Energo to purchase a specific percentage of voluntary RECs to satisfy contractual obligations; and 

3) failed to comply with a Commission order to re-rate adversely affected customers impacted by Energo’s (formerly known as Marathon) upward rate adjustment.9

Failure to Comply with the Clean Energy Standard 

“On July 3, 2024, NYSERDA issued an invoice to Energo for $2,540,835.75 due to a shortfall in Energo’s EDP subaccount. Energo failed to submit payment to NYSERDA. Documents obtained by Department staff indicate that on August 8, 2024, August 14, 2024, and again on August 27, 2024, NYSERDA sent email reminders for the overdue payment and received no response from Energo. Energo has not paid the outstanding ACP invoice to satisfy its RES compliance obligation, and therefore Energo has violated the Commission’s CES Order.”10 

“On October 10, 2024, NYSERDA issued an invoice to Energo for its annual ZEC reconciliation for 2023 in the amount of $35,833.68, due on November 9, 2024.11 Energo failed to make payment to NYSERDA by the required deadline. On November 26, 2024, NYSERDA issued a past due notice to Energo to an executive contact for Energo. Energo has not paid NYSERDA for its ZEC obligation, and therefore Energo violated the CES Order.”12

Failure to Honor Terms of Sales Agreements 

“Energo had eligibility to offer customers a renewable electric product. During an annual compliance filing, Staff reviewed Energo’s renewable electric sales agreement.13 In the Customer Disclosure Statement, the Renewable Energy section reads: “50% above RES or up to 100% of the energy sourced under this agreement shall be matched with renewable energy credits that are associated with renewable resources as specified in this Agreement. See section 23 – Renewable Sourced Energy.” In the sales agreement, Energo states, “electricity usage, based on your selection above, is matched by the generation of energy from renewable resources by retiring renewable energy certificate (RECs).”14 

“Energo provided 2023 renewable load data indicating that it was obligated to match a portion of its customers’ load with 50% and 100% renewable electric energy.15 Its total voluntary renewable load obligation after calculating its percentage of load based on contractual obligations was 6,570 MWh. In its response to the 2023 renewable review, Energo indicated its intent to make Voluntary Compliance Payments (VCPs) in lieu of purchasing and retiring RECs.16 Department staff’s investigation discovered that Energo did not retire any RECs in its NYGATS account to match its voluntary renewable load obligation. On October 7, 2024, NYSERDA issued an invoice to Energo for 6,570 VCP’s totaling $209,517.30, which was due on October 22, 2024. Energo did not submit payment to NYSERDA. Energo failed to meet the contractual obligation to its customers by failing to make VCP payments to match its customer’s electric consumption. Therefore, Energo violated the UBP Section 2.D.5.b by failing to “adhere to the policies and procedures described in its Sales Agreement.”17

Failure to Comply with a Prior Commission Directive 

“On March 20, 2020, the Commission issued an Order to Show Cause against Energo (formerly known as Marathon18 Energy Corporation) for an apparent failure to comply with the Commission’s UBP and conditions for continuing eligibility pursuant to a previous Contingency Order.19 The Commission found Energo violated the Contingency Order and the UBP by modifying fixed rate contracts, and on June 12, 2020, issued an Order Imposing Consequences.20”

“In response to the June 2020 Order, Energo filed a petition for Rehearing and Reconsideration of the Order Imposing Consequences on July 10, 2020.21 In an Order issued on November 22, 2022, the Commission set its final deadlines established at the conclusion of the appellate process, re-establishing the obligations set forth in Ordering Clauses 1 and 2 of the June 2020 Order. The Order required Energo to reimburse adversely affected customers by July 17, 2023, and it additionally required Energo to provide proof to the Commission of reimbursement efforts by August 1, 2023.” 

“Ordering Clause 1 of the June 2020 Order explicitly required Energo to “re-rate all customers adversely impacted by Energo’s upward adjustment of the rate for commodity services in those customers’ fixed rate contracts.”22 Ordering Clause 2 of the June 2020 Order requested proof of compliance including supporting calculations.23” 

“Energo has failed to refund all impacted customers. Energo’s reported data does not include any customer-specific metrics, nor does it include any proof that customers received a reimbursement. Department staff has attempted to utilize alternative data sources to track Energo’s alleged efforts, but NYGATS load data appears to show that Energo stopped serving electric customers in May of 2024. Department staff has also obtained utility migration data that shows drops in the number of Energo’s customers, potentially indicating that some customers appeared to have been transferred to other ESCOs at various times during the 2024 calendar year. Energo did not adequately rerate its customers and therefore violated the Commission’s June 2020 Order.”

DISCUSSION AND CONCLUSION 

Every ESCO in New York must comply with the UBP and all applicable Commission orders to maintain eligibility to operate in New York. As set forth above, the Commission holds that Energo has violated the CES by failing to satisfy its annual obligation to purchase ZECs and its RES obligation to purchase and retire Tier 1 RECs or make ACP’s. Energo has failed to pay over $2.5 million to NYSERDA, demonstrating a flagrant disregard for the Commission’s orders and regulatory authority.”” 

“Additionally, the Commission finds that Energo failed to honor the terms of its sales agreements in violation of the UBP Section 2.D.5.b. and failed to comply with a previous Commission order to rerate adversely affected customers. Energo has failed to respond to the Commission’s June OTSC, and has therefore defaulted. The Commission hereby revokes Energo’s eligibility to serve energy customers in New York State.”

As reported previously, the New York Public Service Commission (PSC) on June 23, 2025 issued an Order Instituting Proceeding and to Show Cause against Energo and previously on February 3, 2025 issued a Notice of Apparent Violation (NOAV).

25-M-0244
(Proceeding on Motion of the Commission to Seek Consequences Against Energo Power & Gas LLC for Violations of the Uniform Business Practices and Apparent Failure to Comply with a Commission Order.)