Informa Energy Frequently Asked Questions

FAQ

FREQUENTLY ASKED QUESTIONS

What are ESCOs/energy suppliers?Energy suppliers, or ESCOs, sell electricity or natural gas to retail customers. These suppliers may be small companies or large corporations, but they must be deemed by the PSC to be eligible sellers before they may make sales. As suppliers of electricity and/or natural gas, they may offer different energy service options, and other products and services. With respect to the utility service, the rights and obligations of residential customers are the same whether they take service from an ESCO or from the local utility.

Is my local utility OK with me buying electricity and gas from other energy suppliers?Your local utility’s primary business role is energy delivery, and ESCOs are in the business of energy supply. Of course, even after you choose an energy supply company, your local utility distribution company (LDC) will still be there to read your meter, handle service calls, and provide emergency assistance.

Where can I get more information on a particular energy supplier?The LDC Web site provides a current listing of residential and business suppliers for electricity and natural gas. Contact information for each company includes a link to its Web site, if there is one.

Online sites for the LDC’s in the NY metropolitan area:

Consolidated Edison: www.coned.comNational Grid: www.nationalgrid.comOrange & Rockland: www.oru.comPublic Service Electric & Gas: www.pseg.com

How do I enroll with an ESCO?The ESCO will need your LDC account number and service address to obtain your usage history and, with your agreement, may enroll you as a customer. Once you are enrolled, you will be notified by the ESCO and by your LDC that your future energy supply will be provided by the ESCO and delivered by your LDC. A quote will be provided for natural gas or electric based on your usage history and will show the proposed start date and term of the contract. A credit application is usually needed.

Note: Quotes are good for one day as they are based on the trading on the futures market (New York Mercantile Exchange or NYMEX).

Once I enroll with a new supplier, how soon will my service begin?Your energy supplier will begin providing your electric service on your next meter-reading date, as long as you are enrolled at least 15 days before that date. As a supplier of natural gas, your ESCO will begin your service on the first calendar day of the following month, if you are enrolled by the 15th of the previous month for the NY utilities In the case of PSEG, you will be enrolled for the 1st of the month after the previous 1st of the month.

Is there a fee if I switch to an energy supplier or back to the local utility?There is no fee for switching in NY either from the LDC to an energy supplier, from an energy supplier back to the LDC, or from one energy supplier to another. While some companies offer month-to-month agreements, others may require that customers stay with them for one year or more. You should check the terms and conditions of your agreement with your energy supplier if you decide to switch, in order to determine if ESCO-imposed fees apply. Keep in mind that energy savings should always be calculated over the long term — give it a year or more — to get a realistic picture of savings, based upon seasonality, market conditions, and weather factors.

Keep in mind that energy savings should always be calculated over the long term — give it a year or more — to get a realistic picture of savings, based upon seasonality, market conditions, and weather factors.

Is it true that I will save on sales tax if I switch?Yes. The sales tax on the LDC electricity delivery and natural gas delivery charges will be lowered significantly.

What about pricing?Energy is a commodity that is bought and sold. This means that the price of energy (which includes crude oil, heating oil, natural gas, electricity, and unleaded gas) can fluctuate. As a result, it is difficult to show accurate pricing information here. For up-to-date pricing information, please contact the individual ESCO through its Web site or by telephone.

What about billing?Generally, for all utilities on both natural gas and electric, you will receive two bills; one from the ESCO for the supply and one from the LDC for the delivery. An ESCO may offer more than one billing option.

Will my billing remain on the same schedule as it is now?Yes. You'll receive your bill on the same schedule as you do now.

What about pricing options?For natural gas, you can purchase from an ESCO on a month to month or variable basis or you can lock into a fixed price for a term agreed upon. You can also lock the basis or cost of the interstate transportation. The total price that you will pay includes the commodity price that UGI will lock for you as well as the cost of the delivery charged by the LDC. The delivery rate is the same whether you buy the commodity or supply from an ESCO or whether you buy from everything from the LDC. For electric, you can purchase from an ESCO on a variable basis or you can lock into a fixed rate. You can also purchase with more sophisticated pricing options for very large accounts.

What is Benchmarking?

“Benchmarking” is the term for the annual reporting requirement to an online database benchmarking program of the United States Environmental Protection Agency. The database seeks descriptive information about a building and the total energy (fuel oil/natural gas and electricity) and water use for the building for the previous calendar year, specifically energy usage in both the common areas and tenant areas of properties.

Who must Benchmark per Local Law 84?

The law is currently applicable to any New York City commercial or residential properties 50,000 square feet or larger. It also applies to two or more buildings on the same tax lot or owned as condominiums exceeding 100,000 gross square feet.

Are there any special rules for different types of owners or special situations?Yes. There is an important distinction made between residential and commercial properties. There are also specific reporting rules for the following: (1) multiple building on a tax lot; (2) buildings on multiple tax lots that share systems; (3) new buildings; (4) buildings with a demolition permit; and (5) buildings with a change in ownership.

What are the Reporting Deadlines?

The annual deadline for Local Law 84 submission of information is May 1 of each year.

Are there any fines for late or non-compliance?

Yes. Failure to timely file is classified as a “lesser violation” of the New York City Department of Buildings Construction Codes, and will result in fines of $500 per quarter. Fines must be paid before the system will permit an owner to file a late report. INFORMA can assist in working through this process.