Relates to energy services company marketing standards

BILL NUMBER:S7811

Title of bill

An act to amend the public service law, in relation to marketing practices of energy services companies

Purpose or general idea of bill

To establish telemarketing standards for energy services companies, establish penalties for violating such standards, and create an ESCO marketing opt-out registry.

Summary of specific provisions

Section one of establishes the legislative intent of this bill.

Section two of the bill:

*Creates definitions for various terms used in the bill.

*Establishes telemarketing practices and requires an energy services company (ESCO) or an ESCO marketing representative to: o remove a customer from an ESCO marketing database upon request; o require a marketing representative to provide their name, the name of the ESCO

on whose behalf they are calling for, and the purpose of the call; *indicate that contracting with an ESCO to supply energy services will not affect a customer's existing relationship with their utility;

*transfer a customer to a representative who speaks the customer's primary language or terminate the call;

*use independent third party verification, as approved by the Public Service Commission, to enroll a customer; and

*prohibit ESCO marketing representatives from asserting that an ESCO is acting on behalf of a utility.

*Requires utilities to establish an ESCO marketing opt-out registry and to notify customers annually about how they can enroll in the registry.

*Authorizes the Public Service Commission to access a civil penalty which would not exceed one thousand dollars per violation against any ESCO that knowingly fails or neglects to comply with the provisions of this section. This section also requires the Public Service Commission to provide notice to an ESCO and the option to request hearing, when the Commission has reason to believe an ESCO has violated a provision of this section.

* Deems that nothing in this act will limit the Public Service Commission or Long Island Power Authority from regulating ESCOs as they deem necessary and appropriate.

Section three of the bill establishes the effective date.

Justification

On October 18, 2012, the Public Service Commission began a proceeding to assess certain aspects of the residential and small nonresidential retail energy or energy service companies markets in New York (Case 12-M-0476). Out of the proceeding, serious concerns about the marketing behavior of energy services companies (ESCOs) have emerged. In the assessment of the Commission's staff, some ESCOs are engaging in marketing behavior that creates and relies on customer confusion. This bill would enact into law telemarketing standards for ESCOs that would protect customers from predatory marketing behavior. By establishing an ESCO marketing opt-out registry, customers would now have the opportunity to opt-out of telemarketing calls in manner similar to how the Do-Not-Call telemarketing registry works. The bill would also empower the Public Service Commission to better protect consumers by enabling them to assess a financial penalty when an ESCO or its marketing representative engages in marketing behavior that preys on consumers.

Prior legislative history

This is a new bill.

Fiscal implications

None

Effective date

This act shall take effect 90 days after enactment into law and immediately upon enactment the Public Service Commission is authorized to establish any regulations needed to implement this act.