What You Should Know Before Choosing An Energy Supplier

More than a million business and residential customers in New York State are now purchasing their electricity and natural gas from an energy service company (ESCO). 

Learning about the competitive energy marketplace, and how to take advantage of it, requires understanding of some basic information.

Your energy bill consists of two parts – supply and delivery. You can purchase your energy supply from either an ESCO or your local electric or gas utility. The delivery portion of your energy service will continue to be provided only by your distribution utility.

There are many ESCOs providing a wide variety of “products” and price options. Some provide long-term fixed prices; others offer variable rates that change with market conditions; others give the option for customers to lock-in a rate during certain peak months of energy use. Some ESCO service is provided at a variable price on a month-to-month basis that can be cancelled at any time. In other cases, ESCOs require customers to enter into a contract for their purchase of electricity and natural gas. In some instances the contract requires the customer to commit to purchasing its energy from the ESCO for a specified period of time. The consumer selects the choice that’s best for them.

ESCOs must take the following steps before offering customers energy including:

• Demonstrate they are a certified business registered with the New York State Department of State;
• Meet the Public Service Commission’s eligibility criteria, including the filing of their standard customer contracts and disclosure statements;
• Establish a complaint handling procedure which is consistent with the New York State Home Energy Fair Practices Act (HEFPA).
• Provide financial information to the local utility company to fulfill required credit-worthiness standards.

Before choosing an ESCO you should:

• Compare prices and services offered.
• Review terms which may cover special fees, deposits, renewals and switching procedures.
• Consider customer service features including complaint handling, hours of operation, and toll-free numbers.
• Research the company's background. You may want to know how long the company has been in business, the company's location or if it is affiliated with a utility or any other company.
• Always review the terms and conditions before committing to an ESCO offer.

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If you decide not to switch to an ESCO, you don't have to do anything. Your utility will continue to provide you electricity. If you agree to buy electricity from an ESCO, your utility will send you a verification letter to confirm that you have chosen an ESCO for your electricity supply. If the ESCO in the letter is not the ESCO you chose, or you did not intend to switch, contact your utility immediately.

Checking Your Bill(s)

To avoid any problems after you switch, carefully read the bill(s) you receive. Whether you get a single bill from your utility or separate bills from the utility and your ESCO, make sure the ESCO you chose is correctly identified on the bill and that the charge for the ESCO's services is correct. If you have any questions about your bill, contact the consumer information numbers listed on the bills.

Quick Facts:

• Your energy service can't be switched without your approval.
• ESCOs cannot physically disconnect your service. You can only be disconnected by the local utility after it follows Public Service Commission rules.
• Local utilities will continue to deliver your electricity, and the PSC will continue to oversee system reliability.
• The Public Service Commission handles complaints against utilities and ESCOs.  

For More Information: 

Your local utility distribution company or ESCO can provide you with information. Consumers may also contact the New York State Public Service Commission for assistance at powertochoose@dps.ny.gov.