Farm & Food Processor Retail Access Pilot

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Bringing Competition to New York
~~ Farm & Food Processor Retail Access Pilot ~~

Over the last few years, the New York State Public Service Commission has set the framework for bringing choice to electric customers. New York is entering a new era of competition by transforming the utility industry into an open marketplace that will offer more consumer choices and economic benefits to the State's residents and businesses.

In June 1997, the Commission took another step down the competitive road by approving a retail access pilot program for qualified farmers and food processors. Eligible customers in the service territories of Niagara Mohawk Power Corporation, Central Hudson Gas and Electric Corporation, Rochester Gas and Electric Corporation, and New York State Electric and Gas Corporation are able to shop for electricity and other energy services. Orange & Rockland Utilities, Inc. customers may choose to participate in the PowerPick program currently offered by the Company.

The pilot will provide first-hand retail access experience by allowing eligible customers to purchase energy from suppliers other than the local utility company.

~~ Retail Access Pilot's Goals ~~

The Commission endorsed the retail pilot program because it is a multi-utility program that offers a valuable opportunity to test key systems and procedures needed as competition and consumer choice become a reality for all New Yorkers. The retail access pilot's goals are:

Develop & Test Aggregation & Retail Access Principles -- The pilot will demonstrate how aggregation will work and how retail access principles will apply to transforming New York's electric industry into a broader, fully competitive marketplace.

Support Rural Economic Development -- Agribusiness is New York's number one industry. With reduced electricity costs, farms and food processors will have opportunities to lower production costs and invest the savings in their business.

Improve New York State's Competitiveness -- Competitive electricity rates and increased customer choices provide greater flexibility and opportunities to do business in New York. The retail access pilot introduces competition to a significant portion of New York offering economic incentives to bring new companies to the State.

Provide Choice of Electricity Supplier -- Customers will be able to select an alternate supplier other than the local utility company for electricity and other energy services.

~~ Who Is Eligible? ~~

More than 17,000 farms and 600 food processors will be able to use this pilot to make choices about their electricity and other energy services.

Farms must sell at least $10,000 worth of agricultural products on an annual basis.

Food processors must meet the criteria set in the Standard Industrial Class Code 20 used by the United States Office of Management and Budget.

~~ What Are the Rates? ~~

If a customer chooses to purchase electricity from an alternate supplier, the rates for electricity will be negotiated between the customer and the supplier. The customer will pay the local utility company only for the delivery of the electricity through its transmission and distribution system.

Individual customers may experience varying prices and different services depending on the supplier they choose.

~~ Where is the Pilot Available? ~~

Eligible farms and food processors in Niagara Mohawk, Central Hudson, New York State Electric and Gas, and Rochester Gas and Electric service territories now have the opportunity to receive energy from a marketer.

Potential customers should anticipate being contacted by alternate suppliers (sometimes referred to as marketers or energy service companies -- ESCOs).

Customers may also request information from their local utility or the New York State Public Service Commission.

Need More Information?

~~ Have Any Comments? ~~

If you would like more information about the Farm & Food Processor Retail Access Pilot or would like to share comments with us, please:

Write:	Call our toll-free telephone numbers:
New York State Public Service Commission Jaclyn A. Brilling, Secretary Three Empire State Plaza Albany, New York 12223	Opinion Line: 1-800-335-2120
	Call our toll-free information number for general information about competition in the natural gas and electricity markets: 1-888-ASKPSC1 (1-888-275-7721)
	Call our toll-free Alternative Energy number for specific questions about the Retail Access Pilot: 1-888-NYSPSC8 (1-888-697-7728)