- Why is energy choice happening?
- Do I have to choose a supplier right away?
- What is standard offer service, or default service?
- Now that there are new electricity suppliers, will service reliability change?
- Who do you call if the power lines are damaged or the power goes out?
- What happens to municipal electric utilities?
- Can an electricity supplier switch my service without telling you?
- Will I get one or two electric bills?
- Will you save money?
- What happens if your supplier does not provide energy to your local distribution company for delivery to you?
- What is the price to compare?
- What is a shopping credit?
- Why is there no one to choose right now?
- Whom do you call with a billing question?
- What is the consumption tax?
- Who can sell electricity?
Why is energy choice
happening?
Energy choice can offer several
benefits to consumers. It gives you the power to choose the supplier that
provides your energy. You can choose a supplier based on price, terms and
conditions of service, reputation of the supplier, renewable energy or customer
service. Competition among suppliers may help lower prices over time. It should
also encourage suppliers to develop and offer new products and services.
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Do I have to choose a
supplier right away?
No. You can choose a supplier at any time after your utility opens to energy
choice. If you do not choose a supplier right away, your local distribution
company will continue to provide power for you, through what is called standard
offer service or default service.
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What is standard offer
service, or default service?
Standard offer service (default service) is electricity service provided to
customers who do not choose an electricity supplier.
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Now that there are new
electricity suppliers, will service reliability change?
No. Although the Public Service Commissions will no longer regulate the price of
energy, the delivery of energy will still be regulated. This will ensure that
you will receive safe power with the same service reliability you have always
known.
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Who do you call if the
power lines are damaged or the power goes out?
Even if you choose a new electricity supplier, you should still call your
electric company.
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What happens to
municipal electric utilities?
Municipal electric utilities have the choice whether or not to participate in
electric competition.
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Can an electricity
supplier switch my service without telling you?
No. An electricity supplier must have your permission to switch your service. If
it does happen, report it to your local distribution company, and you can return
to your previous provider without any penalty to you.
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Will I get one or two
electric bills?
You may receive one combined bill or two separate bills. A combined bill may
come from your new electricity supplier, or from your electric company. Be sure
to ask a new supplier how they will bill you.
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Will you save money?
There are no guarantees that a customer who switches suppliers will save money.
However, customers can improve their chances of saving money if they become
knowledgeable about their energy usage. When considering competing offers,
customers must understand how they use energy, when they use it, and what they
currently pay for it. That puts them in the best position to shop for the offer
that best satisfies those needs.
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What happens if your
supplier does not provide energy to your local distribution company for delivery
to you?
In the event that the energy service provider that you choose cannot provide the
electricity or gas you require, your energy will be supplied to you by your
local distribution company at regulated rates.
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What is the price to
compare?
The price to compare is the regulated rate or price per energy unit of
electricity supply service (kWh), less any competitive transition charge. The
price to compare is provided to consumers so that they can effectively compare
the local distribution company's regulated rate to offers from competitive
service providers.
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What is a shopping
credit?
A shopping credit is the rate or price per electric unit used for comparing one
energy supplier against another in a retail environment. When reviewing the
shopping credit, verify which components the price includes (i.e., generation,
transmission and ancillary services).
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Why is there no one to
choose right now?
Currently, wholesale prices in the market exceed the price offered by the
existing utilities. Suppliers do not want to enter the market with a price that
does not offer any benefit to the consumer.
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Whom do you call with
a billing question?
The rule of thumb is to call that company who provides the service in question.
For instance, if you are concerned with delivery charges, call your local
distribution company.
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What is the
consumption tax?
Since January 1, 2001, a new line item has been added to energy bills identified
as the state consumption tax. There also may be a local consumption tax listed
depending on where you live. Even though this is a new item on your bill, it is
not an additional tax. This is simply a new method of collecting state and
local taxes on utility service. While the method for calculating utility taxes
has changed, the amount of tax that most consumers pay each month on their
energy bills should remain approximately the same.
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Who can sell
electricity?
All suppliers must be licensed by the State in order to sell energy. As part of
the certification process the provider must submit information to prove it has
the technical and financial capability of providing service to retail consumers
and demonstrate that it has access to reliable supplies of electricity.
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