New York Consumer Protection Unit Files Proposal for Online Calculator of ESCO, Utility Costs at NiMo

The Utility Intervention Unit (UIU) of the New York State Department of State's Division of Consumer Protection has formally asked in testimony that the New York PSC direct Niagara Mohawk to launch an online bill comparison tool under which customers may compare historic ESCO and default service costs.

UIU's intent to recommend such a bill comparison tool had been previously reported by Matters.

"To assist consumers in better understanding the prices offered, the UIU recommends that the Company develop and launch an online bill calculator on its website to assist current ESCO customers to determine whether it was beneficial to have switched to an ESCO."

UIU noted the limitation in the current Power to Choose site run by the PSC, under which ESCOs are only obligated to post offers of general applicability that are available as of the first of each month. The Power to Choose site does not cover offers and products available for the remainder of the month.

"Absent an online bill calculator with 'real time' information, a historical price comparison tool is especially important. Without such a tool, it is extremely difficult and time-consuming for retail access consumers to figure out if they should continue with a particular ESCO," UIU said.

UIU noted that Central Hudson and National Fuel Gas Distribution have historical bill comparison tools on their websites that provide current ESCO customers the ability to compare what they paid over a period of 24 months with their ESCO and what they would have paid had they remained with their respective utility. "This is just a first step towards price transparency because these 'calculators' provide only a historical bill comparison for current ESCO customers to compare their ESCO bill to what they would have paid had they remained with full (bundled) utility service. This tool would not provide a current full service customer the opportunity to determine whether it would be beneficial going forward to switch to an ESCO for commodity service," UIU said.

NiMo has estimated that adding an online historical bill pricing tool would cost between $400,000 and $900,000. UIU called the tool "cost effective," citing redacted data showing that certain customers purchasing supply from ESCOs paid more than default service customers.

"Additionally, because use of smart phones is becoming ever more pervasive, it would also be useful for the Company to develop and launch a smart phone bill calculator application," UIU said.

Furthermore, UIU recommended that Niagara Mohawk modify its outreach and education program regarding retail access, especially insofar as it pertains to low-income customers. "We recommend that the Company's Consumer Advocates provide a summary of the PULP IR No. 107 [the ESCO versus full service price comparison] data to each customer so that hey have better quality information to understand the potential bill impacts of taking commodity service from an ESCO. Additionally, Consumer Advocates should enhance their interactions with libraries, local social service agencies, municipalities and community based organizations on this issue," UIU said.