2023 New York Laws › PBS - Public Service › Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity › 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