NRG-Affiliated ESCOs Settlement Distribution Information

The New York State Public Service Commission entered into a settlement agreement with nine energy service companies (ESCOs) affiliated with NRG for alleged violations of the state’s Uniform Business Practices and a 2016 Commission order limiting ESCO service to low-income customers. 

The nine companies referenced in the settlement agreement include: 

• Gateway Energy Services Corporation

• Energy Plus Holdings

• Energy Plus Natural Gas

• Direct Energy Services

• Green Mountain Energy Company

• Reliant Energy Northeast

• Stream Energy New York

• XOOM Energy New York

• NRG Business Marketing. 

The settlement requires the nine affiliated companies to collectively pay $50 million in billing adjustments to approximately 278,000 current and former residential and small commercial customers and over $900,000 in bill adjustments for certain low-income customers who were allegedly mistakenly enrolled in ESCO service.

Billing Adjustments

• The billing adjustments for the 278,000 current and former residential and small commercial customers are based on customers’ overall energy usage from April 2021 through the date the settlement agreement was approved (April 16, 2026).
   

• Impacted customers will receive a settlement check; cashing the checks does not commit customers to any service or subscription, nor does it impact customers’ current energy supplier. Checks must be cashed within 60 days.
   

• The checks and the correspondence accompanying the checks may reference any one of the nine ESCOs involved in the settlement agreement, which may or may not be the ESCO from which the customer received energy supply service. 
   

• The billing adjustments and optional guaranteed savings product offer (see below) are only available to New York customers who received a letter in the mail regarding a settlement agreement with the New York State Department of Public Service.

15 Percent Guaranteed Savings Product Offer

• The settlement also requires the companies to offer an optional product guaranteed to save those impacted customers 15 percent compared to the utility rate for a one-year term through one of the nine affiliated ESCOs, Direct Energy.
   

• Cashing the billing adjustment check does not impact customers’ eligibility for the 15 percent guaranteed savings product offer.
   

• The 15 percent guaranteed savings product offer is valid for 30 days from the date on the letters sent to impacted customers. Impacted customers can enroll on this product by entering the unique 10-digit code included in their letter on the Direct Energy website. The 15 percent guaranteed savings offer is only available to customers who received a letter with an offer code and were invited to enroll. Customers who choose to enroll can cancel this service at any time during this one-year term with no cancellation or early termination fee.
   

• The 15 percent guaranteed savings product will not continue or renew beyond the single one-year term. At the end of that term, impacted customers can choose to enroll in another product with Direct Energy or another energy supplier by providing affirmative consent to do so. If impacted customers enrolled in the 15 percent guaranteed savings product take no action, they will be returned to their local utility’s supply service at the end of the one-year term.
   

• If impacted customers who currently receive energy supply from one of the nine affiliated ESCOs do not enroll in the optional 15 percent guaranteed savings product, their energy supply will be switched to their local utility’s default supply service. There will be no interruption to energy service and there is no fee for this switch. The switch can take 1-2 billing cycles to take effect.