Fairs raise many questions

Ross Weingarten
Poughkeepsie Journal

September 17, 2006

FISHKILL — Many people seeking cheaper energy providers had more questions than answers after speaking with company representatives at local "energy fairs" last week.

About 900 people came to the fairs, held by Central Hudson Gas & Electric Corp. to educate customers on "customer choice," a program to provide homeowners with information on competitive energy suppliers.

Lester Grossman of Fishkill, who attended last week's fair in Fishkill, said the convention was, "interesting, but confusing." A customer of Central Hudson, Grossman was intrigued at the thought of picking his energy supplier but lamented, "No matter which one you pick, it's a crap shoot."

Alternate energy providers, such as MXEnergy and Energetix, set up booths to highlight the differences between their plan and that of Central Hudson. While Central offers only a variable rate, which changes from month to month depending on the market, the two "energy service companies," or ESCOs, that were at the Fishkill fair offer both a variable rate and a fixed annual rate, the latter of which stays constant no matter the circumstances.

As well, both MXEnergy and Energetix discount one cent per every 5 kilowatt-hours of electricity and 1 1/2 cents per every one hundred cubic feet of gas from Central Hudson's price, due to the backout credit the utility will provide if you switch to an alternate provider for your energy needs.

Jack Maeder, the sales representative for Energetix at the Fishkill fair, told customers, "The only way to lose is to do nothing. With the variable plan, you are always going to win. The way to win big or lose big is to go with the fixed."

While some customers attended the energy fairs with the intention to switch energy suppliers, most were just shopping and had no real dissatisfaction with their current provider. However, many of the energy suppliers related that as customers become more educated about their energy options, more will switch to the alternatives. "Eventually, everyone will use an ESCO," Maeder said.

Central Hudson, which also had a booth at the fairs, reported attendance was down from last year. But James Van Tassell, director of the utility's Customer Choice Program, said, "The reaction from customers has been good."

He also said a number of customers had switched their energy supply from Central to an alternative provider at the fair.

Van Tassell said Central Hudson's goal in putting on the events was to educate local residents about the different options for energy supply.

"We're not trying to push anyone away, just inform," he said.

Rose Hamm, a utility consumer program specialist with New York state, said she was there for the same purpose.

"Needs depend on the customer and how much energy they use. Our job is to educate on how to make a choice," she said.

Customers seemed pleased that they were given an opportunity to browse the market for the best possible deal, and seemed interested in switching their energy supplier. Still, many were confused.

Joseph Eppich of Poughkeepsie said the alternate providers sounded "promising," and added, "there is a possibility I may change, but I want to ask Central Hudson why I should stay with them."