ROCHESTER, N.Y. — Thousands of New Yorkers are receiving unexpected checks in the mail from energy service companies, and you’re wondering whether the letters and checks are legitimate.
Joe Amico got a letter over the weekend from a company called Direct Energy. The mailing also included a check for $234.91. “I read it over and I kept reading it because it’s so ambiguous. It just appeared like it was some kind of fraud,” Amico says.
Direct Energy is an energy service company, or an ESCO. Customers can choose to buy gas or electric from an ESCO instead of the utility, and the Amico family apparently chose Direct Energy years ago, “we went back a long time on the bills, and it’s always been Direct Energy. My wife and I can’t remember ever signing up for them, but we’ve been here for 51 years, so I don’t know, I have no idea,” Amico says.
Direct Energy is one of nine affiliated companies that state regulators claimed were overcharging some long-time customers. As part of a settlement with the NYS Department of Public Service, those ESCOs agreed to refund nearly 280,000 customers $50 million.
These checks are that money. They are legitimate and fine to cash but there’s a second offer in the letter that you need to consider.
As part of the settlement, the ESCOs are also required to offer impacted customers a 15% savings compared to the utility rate for a one-year term and provide billing adjustments to certain low-income customers.
But keep this in mind: Direct Energy’s rate for electricity right now in the Rochester area is 13 cents per kilowatt hour. RG&E’s rate is 5 cents. The difference will be reconciled in the form of a bill credit for customers who sign up to stay with the ESCO.
“Shady, that’s what it is really and truly,” Amico says. For him, the decision is simple, “I’m switching right back to RG&E,” he tells News10NBC.
Here’s a list of the 9 affiliated ESCOs involved in the settlement:
- 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
- NRG Business Marketing, LLC
In a statement, a spokesperson for Direct Energy tells News10NBC, “As part of an agreement with the New York Public Service Commission (PSC), eligible legacy customers have begun receiving billing adjustments. NRG is committed to a strong customer-focused culture, operational transparency, and regulatory compliance, and has worked closely with PSC staff in recent months to deliver value for New Yorkers. We remain focused on delivering best-in-class service to our customers and powering homes and businesses across the Empire State… the guaranteed savings product has been approved by the PSC as part of the Settlement Agreement reached earlier this year. Customer supply rates will undergo a quarterly true-up and provide savings of at least 15% to the Price to Compare via check or bill credit. This product is only available to customers impacted by the settlement agreement, and not available to the general public.”
In a statement, a spokeswoman for the NYS DPS tells News10NBC, “Customers can and should cash these checks. Pursuant to a settlement agreement approved by the New York State Public Service Commission in April 2026, certain current and former residential and small commercial New York customers of nine affiliated energy service companies (ESCOs) will be receiving checks. This action by the Commission puts real money back in the pockets of New Yorkers, and represents a meaningful win for Governor Hochul’s affordability agenda. Cashing the checks does not commit customers to any service or subscription. 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.”
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