The December 2019 Order, among other things, limited the types of products that energy service companies (ESCOs) can offer to New York mass market customers to those products that: (1) include a guaranteed savings over the utility price, as reconciled on an annual basis; (2) are for a fixed-rate commodity product that is priced at no more than 5% greater than the trailing 12-month average utility supply rate; and, (3) are for a renewably sourced electric commodity product that (a) has a renewable mix that is at least 50% greater than the ESCO’s current Renewable Energy Standard (RES) obligation, and (b) the ESCO complies with the RES locational and delivery requirements when procuring Renewable Energy Credits (RECs) or entering into bilateral contracts for renewable commodity supply. Additionally, the December 2019 Order allowed for an additional product to be offered by Agway Energy Services, LLC (Agway) who provides customers with its EnergyGuard service. The December 2019 Order provided a limited opportunity for other ESCOs to petition the Commission for the opportunity to sell a product/service similar to EnergyGuard.

Mpower requests that the Commission waive portions of the December 2019 Order and permit it to offer home warranty and green gas products to mass market customers in New York. Mpower also requests additional time to comply with the December 2019 Order.

With respect to green gas products, Mpower asserts that such products should be permitted under the December 2019 Order. Alternatively, Mpower requests a waiver from the Commission authorizing Mpower to sell any and all green gas products approved by the Commission in response to petitions filed by any ESCO in these proceedings. More specifically, Mpower describes one type of green gas product already proposed by other ESCOs that would match a percentage of a customer’s natural gas consumption with carbon allowances from the Regional Greenhouse Gas Initiative (RGGI). Mpower proposes to multiply a customer’s natural gas consumption in Million British Thermal Units by 117 to identify the number of pounds of carbon dioxide being produced by that customer. Then, Mpower continues, that number is divided by two to determine the total number of pounds of carbon dioxide needed to offset 50 percent of the customer’s usage. Mpower proposes to aggregate customers and offset each ton of carbon dioxide with RGGI allowances. Mpower proposes to demonstrate its compliance with this voluntary commitment on annual basis by either retiring RGGI allowances or holding them in a designated segregated account used solely for RGGI allowances on green gas products. Mpower also describes a natural gas product that includes the purchase of RECs equivalent to half the energy content of natural gas usage at the home. To offer such a product, Mpower explains, natural gas usage is converted to electricity by an electrification factor equal to 0.293 MWh/dekatherm. Mpower asserts that green gas products allow consumers the ability to offset some of the environmental impacts associated with home energy usage.

Mpower further requests a waiver to offer any and all home warranty products approved by the Commission in the December 2019 Order and/or in response to petitions filed by any ESCO, including Mpower’s home warranty product. It’s home warranty product, Mpower asserts, is substantially similar to the Agway home warranty product approved in the December 2019 Order and likewise should be approved. According to Mpower, its proposed home warranty product provides customers with a warranty covering parts and labor for certain repairs of heating and/or cooling equipment and household wiring in the event of mechanical failure. Mpower states that customers enrolled in its home warranty product would be able to contact Mpower directly by telephone, or online, 24 hours a day, 7 days a week, 365 days a year to report covered problems. Once a problem is reported, Mpower continues, a licensed, bonded, and thoroughly screened service technician in the vicinity of the customer’s residence would then be dispatched to respond to the service request. Mpower further states that its home warranty product covers the cost of parts and labor up to $1000 on an annual basis. Mpower explains that is charges a $150 deductible as a deterrent against unwarranted service calls and to defray the parking costs associated with each service call.

Mpower asserts that its home warranty product provides measurable benefits in relation to its costs in that it provides free-of-charge repair and/or replacement of equipment up to $1000 on an annual basis. Moreover, Mpower states that its home warranty product will be competitively priced at $20-$50 per month. While Mpower asserts that it does not anticipate increases to its existing rates in order to bundle this home warranty product with commodity service, it states that price increases may be necessary to offer such a product. According to Mpower, the proposed home warranty product enhances the value of traditional utility services to customers and offers quantifiable value through peace of mind by covering the cost of most parts and repairs to home energy equipment. Mpower argues that warranty protection is even more essential now in light of the ongoing coronavirus health crisis.

The full text of the petition and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject or modify, in whole or in part, the action proposed and may resolve related matters.

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(15-M-0127SP28)