New York Staff Urges Immediate Implementation of Comparison of ESCO Versus Default Service Costs at ConEd

Staff of the New York PSC have recommended that Consolidated Edison be required to implement an online bill calculator comparing ESCO and shadow-billed default service costs

In testimony in ConEd's current electric and natural gas rate cases, Staff noted that the Commission is currently considering the design of such ESCO cost calculators in Case 12-M-0476.

However, Staff recommended that ConEd be required to proceed with implementation, noting that NiMo was required to do so in its recent rate cases.

Pending a generic policy on the ESCO cost comparison tools, Staff provided the following guidance: "the tool should reside on Con Edison’s website in a location that is easily accessible by residential ESCO customers. It should be designed so that after the customer enters his/her account number, a table is produced which compares the customers actual bill with what the customer would have paid [on default service] over specific periods up to months. The tool should be available for both electricity and natural gas ESCO customers."

Staff said that a 12-month comparison period was important because many ESCOs provide a fixed rate or hedged products, "and the value of these products may only be seen over time."

"If a customer purchases a one year fixed price offer, the customer must be able to review that rate’s performance over time to understand whether it meets the customers’ needs. A fixed rate may appear costly during some months, but over 12 months may provide good value to the customer," Staff said.

Cases 13-E-0030 et. al.