Do you know where your municipal energy comes from?
All electric customers in New York State have the opportunity to choose who provides their energy supply – either it defaults to the utility or you can choose a third-party supplier know as an Energy Services Company (ESCO). ESCOs are competing for your business. As a result, there may be a wide variety of products and price options available to customers shopping for energy supply.
Two things to keep in mind when looking to choose an ESCO are pricing and added value services. Pricing can be at a variable or fixed rate and will depend on the supplier and contract. Added value services can include factors like maintenance services or supply energy from green sources like hydro, solar, or wind.
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So how do you know if you have an ESCO?
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If you choose an ESCO, you may receive two bills: one bill from the ESCO for electricity and/or natural gas supply and other products it sells to you, and one from the utility for transmission and delivery charges. Alternatively, the utility may bill you on behalf of the ESCO and include the ESCO's charges in its bill under "service charges". ESCOs can be from in state or out of state and prices may reflect added value services.
If you have an ESCO, the specific information about your energy supplier will be shown toward the end of your bill.
Below are some examples of different ESCO bills from the Southern Tier area:
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The ESCO is American Power and Gas LLC and their energy supply charge is $0.9734 per kwh. This is a high rate without having an added value service!
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The ESCO is Energy Cooperative of America and their service charge is $0.05146 per kwh. This ESCO has an added value service by offering 100% renewable energy through their ESCO.
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This ESCO is Constellation Energy Services of NY Inc and their service charge is $0.0371909 per kwh.
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We have noticed that some municipalities in the Southern Tier have much higher rates than their neighboring towns and villages, both those with and without added value services!
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If you are interested in switching your energy supplier from your utility to an ESCO, or switching to a different ESCO, there are a few things you should keep in mind before signing the contract:
- Compare prices and services offered. Remember, added value services will affect pricing.
- Review terms of any written agreements that may be required. These terms may cover special fees, deposits, renewals, and switching procedures.
- Check to see if the price offered is their normal rate or an introductory rate. If it is an introductory rate, make sure you know the price change after your introductory period.
- Evaluate billing and payment options.
- Research the company's background. You may want to know how long the company has been in business, the company's location, if it is affiliated with a utility or any other company, and whether your account information will be kept confidential.
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Reach out your Clean Energy Communities Coordinator, Terry Carroll at tc629@cornell.edu or other municipalities in your area to compare rates and added value services!
It is a good idea to check on your rates, shop around, and make sure you are not being overcharged!
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