New NY Bill Will Require All Energy Consultants and Brokers to Register
NY Assembly Bill 3166 was introduced on January 22, 2021 as an amendment to require all energy consultants or brokers operating in the NYISO (New York Independent System Operator) to be registered with the Public Service Commission.
An Energy Broker as Defined by the Bill:
An entity that assumes the contractual and legal responsibility for the sale of electric supply service, transmission or other services to end-use retail customers, but does not take title to any of the electricity sold, or an entity that assumes the contractual and legal obligation to provide for the sale of natural gas supply service, transportation or other services to end-use retail customers, but does not take title to any of the natural gas sold.
An Energy Consultant as Defined by the Bill:
Any person, firm, association or corporation who acts as broker in soliciting, negotiating or advising any electric or natural gas contract, or acts as an agent in accepting any electric or natural gas contract on behalf of an ESCO.
What It Means:
No individual, firm, or corporation will be able to act as a broker or consultant without registering first. Anyone or company in violation of this will be subject to a $5,000 fine per instance. New York is one of the few states that currently does not require brokers or consultants to be registered with the state.
How to Register:
In order to be registered and approved, an energy broker or consultant must demonstrate financial accountability to the degree of $100,000 per broker or $50,000 per energy consultant. This can be demonstrated by either a bond or other financial methods. In addition to the upfront cost, there will be an $500 annual fee paid to the commission. Section 4 of the bill will require all brokers and consultants to disclose the amount of compensation customers are paying.
Since this bill was just introduced, there is no time frame if or when it will be passed. If it does become law, it will be enforced 180 days after signing.