Legislation

§ 349-d. Energy services company consumers bill of rights. 1. For the
purpose of this section:

(a) "Energy services" shall mean electricity and/or natural gas;

(b) "Energy services company" or "ESCO" shall mean an entity eligible
to sell energy services to end-use customers using the transmission or
distribution system of a utility;

(c) "Customer" shall mean any person who is sold or offered an energy
services contract by an ESCO (i) for residential utility service, or
(ii) through door-to-door sales; and

(d) "Door-to-door sales" shall mean the sale of energy services in
which the ESCO or the ESCO's representative personally solicits the
sale, and the buyer's agreement or offer to purchase is made at a place
other than the place of business of the seller; provided that such term
shall not include any sale which is conducted and consummated entirely
by mail, telephone or other electronic means, or during a scheduled
appointment at the premises of a buyer of nonresidential utility
service, or through solicitations of commercial accounts at trade or
business shows, conventions or expositions.

2. Any person who sells or offers for sale any energy services to a
customer for or on behalf of an ESCO shall (a) properly identify himself
or herself and the energy services company or companies which he or she
represents; (b) explain that he or she does not represent a distribution
utility; (c) explain the purpose of the solicitation; (d) provide each
prospective customer with a copy of the "ESCO consumers bill of rights"
developed by the public service commission, in consultation with the
Long Island power authority, the state consumer protection board and the
department of law; and (e) provide any written materials, including
contracts and the "ESCO consumers bill of rights", in the same language
utilized to solicit the prospective customer.

3. No person who sells or offers for sale any energy services for, or
on behalf of, an ESCO shall engage in any deceptive acts or practices in
the marketing of energy services.

4. No contract for provision of energy services by an ESCO shall
require any customer prepayment for energy services. However, an ESCO
may offer a customer an option of prepayment. Any contract providing for
prepayment may be cancelled by the customer, without any penalty or
obligation, within ninety calendar days. Any unused portion of the
prepayment shall be returned to the customer by the ESCO within thirty
business days following receipt of notice of cancellation.

5. No contract for provision of energy services by an ESCO shall
require the customer to pay any fee for termination or early
cancellation of a contract in excess of either (a) one hundred dollars
for any contract with a remaining term of less than twelve months; (b)
two hundred dollars for any contract with a remaining term of twelve
months or more; or (c) twice the estimated bill for energy services for
an average month. To charge a fee based on the estimated bill for energy
services for an average month, an ESCO must have provided the customer,
at the time that the contract is offered, with an estimate of the
average monthly bill that customer would be charged for energy services
and the fee that would be charged based on such estimate.

6. No material change shall be made in the terms or duration of any
contract for the provision of energy services by an ESCO without the
express consent of the customer. A change in price or a change to or
from fixed or variable pricing shall be deemed to be material. This
shall not restrict an ESCO from renewing a contract by clearly informing
the customer in writing, not less than thirty days nor more than sixty
days prior to the renewal date, of the renewal terms and of his or her
option not to accept the renewal offer; provided, however, that no fee
pursuant to subdivision five of this section shall be charged to a
customer whose express consent has not been obtained to any change in
material terms and conditions, or who objects to such renewal not later
than three business days after receiving the first billing statement
from the ESCO under the terms of the contract as renewed. The public
service commission and the Long Island power authority may adopt
additional guidelines, practices, rules or regulations governing the
renewal process.

7. In every contract for energy services and in all marketing
materials provided to prospective purchasers of such contracts, all
variable charges shall be clearly and conspicuously identified. In any
notice regarding contract renewability, the provider shall disclose the
following information as it exists at the time of such notice: (i) the
price charged for energy services; (ii) the price it proposes to charge
upon renewal; (iii) the price that is charged by the customer's
distribution utility; and (iv) information notifying the customer how
they may compare past bills with what they would have been charged had
they received energy services from their respective distribution
utility, including, the internet address of any bill calculator offered
by such customer's distribution utility's website.

8. Any contract for energy services which does not comply with the
applicable provisions of this section shall be void and unenforceable as
contrary to public policy. Any waiver by a buyer of energy services of
the provisions of this section shall be deemed void and unenforceable by
the ESCO as contrary to public policy.

* 9. The attorney general, upon his or her own motion or upon referral
from the public service commission, the Long Island power authority or
the department of state, may bring a civil action against any energy
services company that violates any provision of this section and may
recover (a) a civil penalty not to exceed one thousand dollars per
violation; and (b) costs and reasonable attorney's fees. In any such
proceeding the court may direct restitution.

* NB Effective until June 17, 2026

* 9. The first page of each billing statement from an ESCO delivered
to the customer, either by the ESCO directly or by a utility
corporation, by a municipality or by any other method, shall include a
side-by-side comparison showing both the price charged by the ESCO for
commodity and delivery service during the prior billing period, and the
price the customer would have paid had they taken commodity and delivery
service from their local utility corporation or municipality, as
applicable. Such statement shall also include, separately and apart
from the price charged by the ESCO for commodity and delivery service,
an itemized list of prices charged by the ESCO for any energy-related
value-added products provided by the ESCO during the prior billing
period.

* NB Effective June 17, 2026

* 10. In addition to the right of action granted to the attorney
general pursuant to this section, any person who has been injured by
reason of any violation of this section may bring an action in his or
her own name to enjoin such unlawful act or practice, an action to
recover his or her actual damages or five hundred dollars, whichever is
greater, or both such actions. The court may, in its discretion,
increase the award of damages to an amount not to exceed three times the
actual damages up to ten thousand dollars, if the court finds the
defendant willfully or knowingly violated this section. The court may
award reasonable attorney's fees to a prevailing plaintiff.

* NB Effective until June 17, 2026

* 10. Every twelve months, an ESCO shall provide each of its customers
with a statement comparing the price charged by the ESCO for commodity
and delivery services and other energy-related value-added products over
the prior twelve-month period with the price such customer would have
paid had they taken commodity and delivery service from their local
utility corporation or municipality, as applicable, for such period.
Such statement shall convey such information in a manner that
unambiguously conveys whether the customer is saving money or paying a
premium for service from the ESCO over such period.

* NB Effective June 17, 2026

* 11. Nothing in this section shall be deemed to limit any authority
of the public service commission or the Long Island power authority,
which existed before the effective date of this section, to limit,
suspend or revoke the eligibility of an energy services company to sell
or offer for sale any energy services for violation of any provision of
law, rule, regulation or policy enforceable by such commission or
authority.

* NB Effective until June 17, 2026

* 11. The attorney general, upon their own motion or upon referral
from the public service commission, the Long Island power authority or
the department of state, may bring a civil action against any energy
services company that violates any provision of this section and may
recover (a) a civil penalty not to exceed one thousand dollars per
violation; and (b) costs and reasonable attorney's fees. In any such
proceeding the court may direct restitution.

* NB Effective June 17, 2026

* 12. Nothing in this section shall be deemed to limit any authority
of the public service commission or the Long Island power authority,
which existed before the effective date of this section, to adopt
additional guidelines, practices, policies, rules or regulations
relating to the marketing practices of energy services companies to
residential and commercial customers, whether in person (including door
to door), or by mail, telephone or other electronic means, that are not
inconsistent with the provisions of this section.

* NB Effective until June 17, 2026

* 12. In addition to the right of action granted to the attorney
general pursuant to this section, any person who has been injured by
reason of any violation of this section may bring an action in their own
name to enjoin such unlawful act or practice, an action to recover their
actual damages or five hundred dollars, whichever is greater, or both
such actions. The court may, in its discretion, increase the award of
damages to an amount not to exceed three times the actual damages up to
ten thousand dollars, if the court finds the defendant willfully or
knowingly violated this section. The court may award reasonable
attorney's fees to a prevailing plaintiff.

* NB Effective June 17, 2026

* 13. Nothing in this section shall be deemed to limit any authority
of the public service commission or the Long Island power authority,
which existed before the effective date of this section, to limit,
suspend or revoke the eligibility of an energy services company to sell
or offer for sale any energy services for violation of any provision of
law, rule, regulation or policy enforceable by such commission or
authority.

* NB Effective June 17, 2026

* 14. Nothing in this section shall be deemed to limit any authority
of the public service commission or the Long Island power authority,
which existed before the effective date of this section, to adopt
additional guidelines, practices, policies, rules or regulations
relating to the marketing practices of energy services companies to
residential and commercial customers, whether in person (including door
to door), or by mail, telephone or other electronic means, that are not
inconsistent with the provisions of this section.

* NB Effective June 17, 2026