Shopping For Energy
New Choices Offers Grid Customers 7 Percent Discount To Switch

The Post Standard - Syracuse, New York
July 31, 2006
By Dee Klees

The New Choices program promoted with a postcard in July National Grid bills guarantees customers who sign up will pay 7 percent less for their electric and natural gas supply costs for two months. It has Grid customers asking some questions. So here they are with some answers:

Q) What's the best option for a National Grid customer to get the most out of the New Choices program?

A) That depends on how the alternative suppliers decide to charge over the long term, but there is a guaranteed 7 percent discount for the first two months. That discount applies to the cost of electricity and natural gas, but not to the delivery charge.

Regardless of what the new supplier would charge for the energy supply, Grid customers who try New Choice will pay 7 percent off the National Grid list price for the first two months, said Alberto Bianchetti, speaking for National Grid.

Customers can choose among 12 suppliers for their gas and electricity or they can let National Grid randomly choose their supplier. Of the 12 suppliers listed on the National Grid postcard, there is contact information for 11 of them on the Grid Web site. www.nationalgridus.com/NewChoices .

Q) If I decide to choose my own alternative supplier, how can I find out what they're charging before I choose?

A) It looks like only three of the suppliers list prices on their Web sites, which can be found through the National Grid Web site www.nationalgridus.com/NewChoices. There are phone numbers you can call for more information.

After customers enroll, they should receive a confirmation letter that includes a service agreement and notice of what the price will be, Bianchetti said. If that isn't appealing, they can opt out right then. They also can try the service for two months and then opt to return to National Grid and still get the discount for the months they used the new supplier, Bianchetti said.

"You can opt out at any time without penalty," he said. "There will be no fees, no penalties and no charge to reconnect." The timing of the switch back to National Grid will be based on the customer's meter reading schedule.

Q) Can I specify that I want my energy from renewable wind or hydro generators with this program?

A) No. "We have a separate program for customers interested in renewable energy sources," Bianchetti said. "It's called GreenUp."

There is a Web site called www.powerscorecard.org that compares some of the suppliers by their environmental quality and, to some extent, by price.

Q) How long does this offer last?

A)"There's no deadline. It's open ended," Bianchetti said.

That may leave some room to maximize the deal by waiting, if you expect your gas bill will be substantially higher in December, for instance.

When shopping for plans, read carefully. The service agreement may include specifics on dispute resolution and other contractual information that you should understand before you agree to it.

Some of these suppliers offer customers the option to lock in a rate for 12 or 18 months, but those rates usually are higher than the National Grid rate.

Q) What's National Grid's rate on electricity or natural gas?

A) That's not easy to answer. It depends on what kind of service you've signed up for with National Grid. Here's a Web site that can help, but National Grid's disclaimer on the site says it makes no guarantee of the accuracy of the prices: www.nationalgridus.com/niagaramohawk/hom e/rates/billing.asp. The standard residential rate a week ago was a little more than 7 cents a kilowatt hour for electricity in the Central Region and a bit more than 73 cents a therm for natural gas.

Q) Can I drop out of the New Choices program?

A) Yes. After you receive the sales agreement, you cancel your participation in the program within three days of receiving the sales agreement by contacting National Grid at 1-800-642-4272 or by contacting your supplier directly. You receive the 7 percent discount only for the time you are enrolled with the alternative supplier, so if you drop out immediately, you may receive no discount.

To end participation in New Choices after you are enrolled, call National Grid or contact your supplier directly.

There are no penalties or fees for cancellation.

Q) How many times can I sign up for New Choices?

A) There's only one chance for this discount. You may only sign up for New Choices one time per service—electric and natural gas—for the life of your account.

Q) Is this for all National Grid customers in New York?

A) You can enroll if you are a residential or small business customer and are not already enrolled with another supplier. You must not have enrolled before and must not be a participant in the GreenUp program.

Q) Aren't energy suppliers required to say what price they'll charge before you sign a contract?

A) No. Under regulated energy policies, there was only one supplier in an area and the New York State Public Service Commission set the rates charged by suppliers, but now consumers are expected to shop for their own rates, and suppliers can be tough to pin down on that.

You can contact staff writer Dee Klees at 470-2174 or by e-mail at dklees@syracuse.com.

Maximizing New Choices

Energy supply rates vary. After the two-month introductory discount, prices may be quite different from when you shop for a provider. Savings also depend on individual homes and energy consumption habits. Here are a few certainties:

Timing can help: Weather affects energy consumption in a big way. Colder months will see increased natural gas use for heat and hot water. Electric use will decrease if you're a heavy air conditioner user or increase if you have electric heat. While rates will change, the 7 percent discount is constant. Better to get 7 percent off on gas in a month when you use a lot of gas and 7 percent off on electricity when you use a lot of electricity.

Some now, some later: You can sign up once for electricity and once for gas and they don't have to be at the same time. The discount kicks in at the time of the next meter reading, so time it right. U.S. retail electric demand was greatest from June through August in 2004 and 2005, tapering off through the fall until December, according to the Department of Energy. Residential natural gas use was greatest December through January.

Lockins: Some of the New Choices providers let customers lock in prices for up to a year. Usually those prices start out higher than market rate. The market rate may never rise to meet them or it may soar above it, but at least you'll know you'll be paying for a few months.

Buyer beware: The New Choices plan lets consumers try an energy supplier and opt out without penalty from National Grid if they're unhappy. Here are some thing the Grid advises customers to watch for when they get a sales agreement from the new supplier.
•   Are there penalties for early termination of the agreement?
•  Check what the term of the agreement is, how long it applies.
•  Are there minimum bill amounts?
•  Are the energy prices fixed or will they change?
•  What is included in the price per kilowatt hour? Some may add in appliance maintenance or energy use consulting.

Shopping for New Choices