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Energy Broker and Energy Consultant Registration

Energy Broker and Energy Consultant Registration

About the Order

On June 10, 2024, the Secretary of the Public Service Commission issued a notice extending deadlines in Case 23-M-0106.  Energy Brokers and/or Consultants are now required to register with the Department of Public Service by July 31, 2024.

Public Service Law §66-t requires energy brokers and energy consultants to register with the New York State Public Service Commission. The Commission directed implementation of these provisions in Case 23-M-0106.

The new rules establish a registration process for energy brokers and energy consultants that requires an annual registration package consisting of a registration form, a $500 registration fee, and a demonstration of financial accountability. In addition, the new rules require disclosure of compensation by brokers and establish enforcement procedures. 

A broker or consultant would be subject to an enforcement action for a violation of any law, rule, or regulation.

The energy broker and energy consultant registration requires the following steps:

  • File the registration form and required documents electronically, as detailed in the application, into Matter 23-01227.
  • Mail the Letter of Credit and a non-refundable $500 check (made payable to Department of Public Service) to:
    Attn: Finance and Budget Section
    New York State Department of Public Service
    3 Empire State Plaza, 16th Floor
    Albany, NY 12223-1350
    • Ensure that the Department of Public Service has received a letter of credit in the amount of $100,000 for registering Energy Brokers and $50,000 for registering Energy Consultants and that such letter of credit is effective for the duration of the annual registration period.
    • The non-refundable $500 fee should be paid annually.

 

If you have any questions about the registration process or new requirements for Energy Brokers or Energy Consultants, please email [email protected].

How to File your Registration Package

E-File Your Registration

For directions on how to e-file your registration package with the Secretary or Records Access Officer (RAO), visit Filing Documents with the Secretary.

Call or email with your questions about e-filing: 518-474-3204, [email protected].

Email or Mail Your Registration

If you are not a registered E-Filer and want to email or mail your registration package hardcopy please follow these directions: 

  • A filing letter addressed to the Secretary and a redacted copy of the document should be sent to the Secretary.
    • Contacting the Secretary
      Hon. Michelle L. Phillips
      Secretary to the Commission
      New York State Public Service Commission
      Agency Building 3
      Albany, NY 12223-1350
      Phone: 518-474-2500
      Fax: 518-474-9842
      E-mail: [email protected]
  • A filing letter addressed to the RAO which sets forth the basis for the request for confidentiality, and a copy of the confidential document should be sent to the RAO.
    • Contacting the RAO
      Molly Magnis, Records Access Officer
      New York State Department of Public Service
      Agency Building 3
      Albany, NY 12223-1350
      Phone: 518-408-1736
      E-mail: [email protected]
  • Confidential documents should be filed with the RAO, and not sent to DPS staff or the Secretary’s Office.

 

The Letter of Credit and non-refundable $500 fee should be sent separately to: 

Department of Public Service 
Attn: Finance and Budget Section 
New York State Department of Public Service 
3 Empire State Plaza, 16th Floor 
Albany, NY 12223-1350

Letter of Credit Requirements

The registration package must include an irrevocable standby letter of credit issued by a reputable financial institution in the amount of $100,000 for registering Energy Brokers, and $50,000 for registering Energy Consultants, that meet the following conditions:

  1. The New York State Department of Public Service shall be named as beneficiary and the letter of credit applicant shall be clearly named;
  2. Any number of partial drawings shall be permitted from time to time;
  3. The process for making a drawing, including any required forms and communications or delivery instructions shall be stated;
  4. If a drawing is made, payment shall be made to the beneficiary within 5 business days;
  5. Any expiration date shall be specified and options for renewal, including automatic renewal, shall be stated.
  6. The applicant’s filing for bankruptcy, receivership, or any other debt-relief petition shall in no way affect the issuer’s liability to the beneficiary under the letter of credit.
  7. All commissions, fees, and other charges with respect to the letter of credit shall be paid by the applicant;
  8. Except for increases to the amount, the letter of credit shall not be amended, changed, or modified without express written consent of the beneficiary;
  9. The beneficiary shall not be deemed to have waived any rights under the letter of credit unless an authorized representative thereof has signed a dated written waiver.  No such waiver, unless expressly stated therein, shall be effective as to any subsequent transaction, nor to any continuance of a breach; and
  10. If the beneficiary should require a replacement of the letter of credit due to loss or destruction of the original, the issuer will provide one upon request.

Energy Broker and Consultant Definitions

Energy Broker

Energy Broker is defined within the UBP as “A non-utility entity that performs energy management or procurement functions on behalf of customers or ESCOs, and (1) 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, and does not make retail energy sales to customers, or (2) 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, and does not make retail energy sales to customers.”

Energy Consultant

Energy Consultant is defined with in the UBP as "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."

PSL 66-t Technical Conference

DPS staff held a technical conference on August 8, 2023 on the energy broker and energy consultant registration requirements. Watch the technical conference below.

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Video: DPS staff discussed the registration requirements for energy brokers and consultants.

Forms

Energy Brokers and Consultants are required to submit this registration form.

Direct Employees of an Energy Broker or Energy Consultant are not required to submit this form as long as a registered Energy Broker or Energy Consultant is responsible for ensuring compliance.

Instructions on registering and filing are available at https://dps.ny.gov/dmm-help-electronic-filing-registration-instructions.

A template for a letter of credit that meets the requirements set forth by the Commission is also provided below.

Uniform Business Practices Documents