Public Service Commission Directs $71M Settlement to ESCO Customers

Energy Consumer Protection April 16, 2026 Albany, NY

Money in Your Pockets: Governor Kathy Hochul Announced That the Public Service Commission Directs $71 Million to ESCO Customers

Money in Your Pockets: Governor Kathy Hochul Announced That the Public Service Commission Directs $71 Million to ESCO Customers Nine Affiliated Energy Service Companies (ESCOs) To Collectively Pay $50 Million and Provide Up To $21 Million in Guaranteed Future Savings to Certain Customers ToSettle Dispute Over Alleged Regulatory Violations

Commission Acts To Protect Consumers Against Alleged Overbilling by ESCOs

Traducción al español

Governor Kathy Hochul announced today that **** the New York State Public Service Commission (Commission) adopted the terms and conditions of a settlement agreement with nine energy service companies (ESCOs) affiliated with NRG, a major energy supplier, that requires the companies to collectively pay $50 million in billing adjustments to 278,000 current and former residential and small commercial customers. The settlement also requires the companies to offer a product guaranteed to save those impacted mass market customers 15 percent compared to the utility rate for a one-year term and provide billing adjustments to certain low-income customers.

“Too many New Yorkers are struggling with high utility bills, being squeezed every month just to power their homes,” Governor Hochul said. “The settlement agreement adopted by the PSC today puts money back in the pockets of customers and offers them future savings, putting affordability first for everyday New Yorkers.”

The companies included in the settlement agreement are Gateway Energy Services Corporation, Energy Plus Holdings LLC, Energy Plus Natural Gas, LLC, Direct Energy Services, LLC, Green Mountain Energy Company, Reliant Energy Northeast LLC, Stream Energy New York LLC, XOOM Energy New York LLC, and NRG Business Marketing, LLC.

Combined, these nine companies currently serve more than 120,000 electric customers and more than 40,000 gas customers in New York State. However, more than 278,000 current and former customers will receive billing adjustments and the guaranteed savings product offer. Specifically, the settlement agreement will impact mass market customers served under legacy agreements that predate April 2021, when relevant portions of a 2019 Commission order adopting changes to the retail access energy market, known as the “Reset Order,” took effect.

Public Service Commission Chairman Rory M. Christian said, “Governor Hochul is laser-focused on putting money back in the consumers’ pockets and protecting consumers. The agreement announced today with these energy service companies, or ESCOs, will ensure customers remain protected and promote greater energy affordability. The Public Service Commission remains vigilant in holding all companies in its jurisdiction accountable.”

On September 23, 2025, the Commission ordered the nine affiliated companies to show cause within 30 days why their eligibility to act as ESCOs in New York State should not be revoked or, alternatively, why other consequences as set forth in the Commission's Uniform Business Practices (UBP) should not be imposed. That order described DPS staff allegations that the affiliated companies violated multiple provisions of the UBP; eight of the nine affiliated companies violated the Commission's Reset Order; eight of the nine affiliated companies violated a 2016 Commission order prohibiting service to low-income customers by ESCOs, and Green Mountain Energy Company violated a 2022 Commission order regarding ESCO waivers. The affiliated companies denied most of the allegations outlined in the Commission’s September 23, 2025 order to show cause.

Pursuant to the terms of the settlement agreement, the affiliated companies will provide billing adjustments totaling $50 million to all former and current mass market legacy customers who were allegedly not transitioned to revised contracts after April 2021. The affiliated companies must also offer a guaranteed savings product providing a savings of 15 percent compared to the utility price for a one-year term to all current and former mass market legacy customers (or else drop current mass market legacy customers back to the utility). The product provides savings for impacted customers valued at up to $21 million. Finally, the affiliated companies shall provide more than $900,000 in billing adjustments for certain low-income customers who inadvertently received ESCO service through one or more of the affiliated companies.

The now-approved settlement agreement resolves all alleged violations against the affiliated companies originating from the September 23, 2025 order to show cause.

Today’s decisions may be obtained by going to the Commission Documents section of the Commission’s website at www.dps.ny.gov and entering Case Numbers 25-M-0516, 25-E-0517, 25-G-0518, 25-M-0519, 25-M-0520, 25-M-0521, 25-M-0522, 25-M-0523, or 25-M-0524 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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