The questions people ask me: will they save money? Are the savings temporary? What do they do if there's service outages?
Would you be interested in volunteering your time helping us provide neighbors with helpful consumer tips? And, comparisons?
A consumer can choose to buy electricity or natural gas from an ESCO instead of from their local utility (in Westchester, Con Edison or NYSEG). However, the energy itself is still delivered by the local utility. So any savings achieved by switching to an ESCO are limited to the supply (not delivery) portion of the bill. Energy supply comprises about 50% of an electricity bill, and 60% of a gas bill.
The state Public Service Commission (“PSC”) licenses ESCOs in New York and maintains a searchable online database, called “Power to Choose,” of ESCOs that are authorized to do business here. You may also call 1-888-Ask-PSC1 for additional information.
The Power to Choose Web site allows you to see the current rate charged by your utility and by the ESCOs that are authorized to do business where you live. Note, however, that Power to Choose only offers one month of rates, making it difficult to compare prices over the long term. Prices can vary significantly from month to month due to market conditions and weather.
What Are the Pricing Options?
ESCOs offer a number of pricing options including fixed pricing, which can shield you from big price fluctuations; variable pricing, which is tied to the market price for energy and may fluctuate depending on supply and demand; and indexed or capped pricing mechanisms.
In most cases you will receive a single bill covering both your supply and delivery costs.
You will continue to call your local utility, as it will continue to deliver energy to your home even if you switch to an ESCO.
Yes. However, some ESCOs require a one- or two-year contract, and charge a termination fee if you cancel the contract early. Be sure to check for this before you sign a contract with an ESCO.
Yes. There are persistent complaints that some ESCO representatives make false statements, misrepresent themselves as agents of the local utility and engage in misleading marketing practices such as promising savings that don’t materialize.
Many consumers reported being “slammed” by an ESCO, that is, being switched to an ESCO without their authorization. ESCO representatives - - including telemarketers and door-to-door salerpersons - - sometimes claim to be working for the local utility. They offer special deals, and ask to verify the customer’s account number. Armed with the account number, the ESCO then notifies the local utility that the customer has authorized the switch.
Yes. If you switch to an ESCO through Con Edison’s PowerYourWay program, Con Edison delivery charges on electricity are not subject to sales tax, and the sales tax on delivery charges for natural gas will be lowered significantly.
Con Edison customers who switch to an ESCO through the PowerYourWay program may be eligible for a one-time offer called PowerMove. For more information, call 1-877-MOVE-234.
Will I Save Money If I Switch to an ESCO?
Not necessarily. Some consumers complain that they don’t actually save money over the course of a year, while others complain that the savings are minimal. Some ESCO customers wind up paying even more than they did with the local utility. Ultimately, conserving power is the best way to get your bill down.
> My neighbors contacted us in response to a recent mailing from Plymouth Rock Energy, an ESCO and its seems there is a serious fleecing of the public taking place with Electricity and Gas Bills. It is quite likely that people - like us - are paying out thousands of dollars a year for nothing.....
> I compared bills with two neighbors and I am seeing significant differences in price - a variable of as much 3x (9.7c. per kilowatt hour vs. 19.8c) and biils that vary as much $400 vs $200 for the SAME AMOUNT of electricity.
> I have seen NO guidance anywhere in terms of actual pricing and in some case people have been slammed - i.e. pushed into new suppliers other than Con Ed without realizing it and thereby paying more.
> Example: we got a $500 bill for electricity even though we were out for a good part of the month while my neighbor paid $300 for more usage.
> The ESCOs claim they can't guarantee costs because they say energy pricing is variable etc.
> If we ask people to send in one summer bill and one winter bill in the same months we can put this into a spreadsheet and show true lowest cost.
> You can actually post a monthly rate for Kws and BTUs so people will know and switch accordingly.
> We need a few accounting type volunteers to keep track.
> In fact, I can guarantee you that if you put out a press release asking for this data - or held a town hall meeting - there would be an avalanche of concern.
> Once people realize how much they are being fleeced.......and how.......they will be pretty fired up
> PS Con Ed claims they are legally bound to avoid giving guidance so no one knows who to trust.
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