N.Y. Public Service Law § 66-t*2: Registration of energy brokers and energy consultants

* § 66-t. Registration of energy brokers and energy consultants. 1.

Definitions. For the purposes of this section, the following terms shall

have the following meanings unless the context indicates otherwise:

a. "Broker compensation" means any payment made to an energy broker or

energy consultant for the purposes of securing or procuring of energy

for the end-use customer, or advising on the securing or procuring of

energy for the end-use consumer.

b. "Customer disclosure label" means the statement an energy service

company must provide a customer with whom it enters into a sales

agreement pursuant to the rules and regulations of the public service

commission.

c. "Energy broker" means 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.

d. "Energy consultant" means 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.

e. "Energy service company" or "ESCO" means an entity eligible to sell

electricity and/or natural gas to end-use customers using the

transmission or distribution system of a utility corporation.

2. Acting without registering with the commission. a. (i) No person,

firm, association or corporation shall act as an energy broker or energy

consultant without first registering with the commission.

(ii) Any person, firm, association or corporation who or which acts as

an energy broker or energy consultant in violation of this subdivision

shall, in addition to other penalties prescribed by law, be subject to a

penalty not to exceed five thousand dollars for each violation.

b. No person, firm, association or corporation shall identify or hold

himself, herself or itself out to be an energy broker or energy

consultant unless registered with the commission.

c. No person shall accept any commission, service fee, brokerage or

other valuable consideration for selling, soliciting or negotiating an

energy contract in this state if that person is required to be

registered under this section and is not so registered, unless stated

otherwise herein.

3. Energy broker and energy consultant registration. a. An energy

broker or energy consultant shall register with the commission

authorizing such registered energy broker or energy consultant to act as

an energy broker or energy consultant in a manner prescribed by the

commission; provided that such: (i) energy broker demonstrates financial

accountability as evidenced by a bond or other method of financial

accountability in an amount not less than one hundred thousand dollars;

and (ii) energy consultant demonstrates financial accountability as

evidenced by a bond or other method of financial accountability in an

amount not less than fifty thousand dollars.

b. The commission may refuse to register or revoke a registration if,

in the commission's judgment, the energy broker or energy consultant

registering has given cause for the revocation or suspension of

operations.

c. Each registered energy broker or energy consultant shall annually

pay the commission a five hundred dollar registration fee.

d. Each registered energy broker or energy consultant shall notify the

commission upon changing his, her or its legal name.

4. Disclosure of compensation. a. Energy brokers and energy

consultants shall be required to disclose their form and amount of

compensation to customers via a conspicuous statement on any such

contract or agreement between the energy agent, energy consultant,

energy broker or energy intermediary and its customer.

b. If an energy service company collects broker compensation on behalf

of an energy broker or energy consultant, such broker compensation shall

be added as a provision to the customer disclosure label and shall

reflect the amount and method of broker compensation.

5. Rebates prohibited. a. No energy broker, energy consultant or any

other person acting for or on behalf of the energy broker or energy

consultant shall offer or make, directly or indirectly, any rebate of

any portion of the fee, premium or charge made, or pay or give to any

applicant, or to any person, firm, or corporation acting as agent,

representative, attorney, or employee of the energy rate payer or any

interest therein, either directly or indirectly, any commission, any

part of its fees or charges, or any other consideration or valuable

thing, as an inducement for, or as compensation for, any energy supply

or energy-related business, nor shall any applicant, or any person,

firm, or corporation acting as agent, representative, attorney, or

employee of the energy rate payer or of the prospective energy rate

payer or anyone having any interest in the real property knowingly

receive, directly or indirectly, any such rebate or other consideration

or valuable thing. Any person or entity who violates this subdivision

shall be subject to a penalty equal to the greater of: (i) five thousand

dollars; or (ii) up to ten times the amount of any compensation or

rebate received or paid.

b. For the purposes of this section, "an inducement for, or as

compensation for, any energy supply business" shall mean a benefit given

with the intention to compensate or offer compensation, directly or

indirectly, for any past or present placement for a particular piece of

energy supply or energy-related business to any applicant, or person,

firm, or corporation acting as agent, representative, attorney, or

employee of the energy rate payer, lessee, mortgagee or the prospective

energy ratepayer, or any interest therein. Nothing contained in

subdivision one of this section to the contrary shall prohibit any

energy supplier corporation, energy broker, or energy consultant, or any

other person acting for or on behalf of the energy service company,

energy broker or energy consultant from undertaking any usual and

customary marketing activity aimed at acquainting present and

prospective customers with the advantages of using a particular energy

supplier, energy broker, or energy consultant that are not intended for

the purpose of a reward for the future placement of, or the past

placement of, a particular piece of energy supply business.

* NB There are 2 § 66-t's