Greenburgh Insider: Con Ed rates vs. ESCO rates explained--ESCOs only represent about 1/3rd of a typical bill.

 

Your Con Ed bills have skyrocketed. Sustainable Westchester's ESCO rates are currently less expensive than Con Ed but ESCOs only represent about one third of a typical bill.

Are you upset with your Con Ed bills? If yes, you are not alone. Con Ed rates have skyrocketed and many residents have contacted me and other elected officials to complain.

YOUR CON ED BILL IS GOING UP EVEN IF YOU ARE ENROLLED IN AN ESCO BECAUSE THERE IS NO COMPETITION FOR DELIVERY COSTS.

There are two portions of your monthly bill ---one that you have no control over and one that you do. Two thirds of your Con Ed bill is for delivery charges. Con Ed is a monopoly and you have no option to use another supplier of delivery costs. Everyone (whether they are enrolled in Sustainable Westchester's ESCO or Con Ed) is experiencing larger bills.

ABOUT ONE THIRD OF YOUR CON ED BILL GOES TO PAY FOR SUPPLY PORTION. ESCO'S OFFER COMPETITION BUT IT'S ONLY FOR THE SUPPLY PORTON OF THE BILLS--BY ENROLLING IN AN ESCO THIS PORTION OF YOUR BILL IS CHEAPER THAN CON ED'S AT THE CURRENT TIME.

There is competition for the supply portion of your Con Ed bill. You can enroll in an ESCO. This portion of your bill represents about one third of your total bill. Greenburgh and many other communities in Westchester have entered into an agreement with Sustainable Westchester to provide competition to Con Ed for the supply costs.  Everyone is enrolled in the ESCO unless you have opted out or have joined another ESCO.

The Sustainable Westchester ESCO is a fixed rate. Our contract ends in June and during the life of the contract (which started in January, 2021) rates were fixed at 7.41 cents. They can't go up and can't go down. Those rates are still 7.41 cents for 100% renewable and 6.75 cents for Standard supply. They are good until June 30th after which point we'll have a new contract. If the market stays like this, the new rates at that point will likely go up to some unknown degree. All customers would get a notification letter with the new rates and could opt out (or change supply) then if they choose.  

Currently, the fixed rates for the ESCO is better for consumers than Con Ed rates. But, that was not always the case. Last year there were months when Con Ed rates were lower than the ESCO. I anticipate that in the coming months the Sustainable Westchester rates will be more favorable than Con Ed's.

If you are not in the program now, that means either:

1. You had opted out at some earlier point: after opting out once, we would not include you in subsequent mailings / automatic opt ins. People who opt out can opt back in at any time however.
2. You have been with a private ESCO supplier: Is it possible you are with an ESCO that has a variable rate that has shot up also? Or you were with one and that contract just finished recently?
3. You have a block on your account: Maybe you had an unpleasant experience with and ESCO, called Con Ed and they suggested that  you could do this. With a utility block, you cannot join a private supplier until you call Con Ed to remove the block.
4. You are with the utilities Home Energy Assistance Program: Customers in this program cannot participate in the community energy program

It should be understood that it does take a finite amount of time to enroll (or exit, which you can do at any time) in Westchester Power because it happens on your next meter read date, not instantaneously. If that meter read is very soon - say, in the next couple of days,  chances are you would not be enrolled until the subsequent read date.

If you are interested in opting in to Westchester Power, you can do so easily on the website at https://sustainablewestchester.org/index.php/wp/energy-choices/#energychoices, or call their office at 914-242-4725. 

PAUL FEINER

Greenburgh Town Supervisor