Below is a copy of the front and back of the letter that accompanies the postcard, the postcard itself and the envelope it is mailed in. The reason we are including the envelope is that it can easily be mistaken for junk mail.
When you read the accompanying letter, it references ConEd Solutions. This is not your typical ConEd company. Rather, it is an off-shoot company owned by ConEd to do ESCO projects like this. It says in the dotted square, “If you are happy receiving less expensive* electricity from ConEd Solutions, then you don’t have to do a thing. In fact, you can toss this letter into the recycling bin and start saving.” You may be thinking, “How can this be?” It can be because Mr Feiner and his Town Board took it upon themselves to enroll you into this program whether you wanted it or not – including businesses in the Town! This is not the way to have open and transparent government. Decisions such as these should be discussed and made by everyone. When that happens we will see A Better Greenburgh.
My understanding is that if we see spot power prices in line with the futures strip or higher, we do well to lock in our rate and save a few %. If power prices go lower than the market expects, we are locked into the strip at an above-market price, less a few % points discount that they negotiate with an ESCO.
ReplyDeleteAm I missing something? What are the risks here other than a selloff in power prices? And even that would only be short term, sometimes the futures will be too high, sometimes too low, but if we are always locking in a rate that's about 5% lower we will come out ahead over the long run.