What Are You Paying For Electricity? Con Ed vs. ESCO

A letter from the CGCA Executive Board
By Ella Preiser, Communications Director

A Message to All,

The Council of Greenburgh Civic Associations (CGCA) Executive Board continues to have concerns about the fact that the Town Board has not provided the promised “updates” to the almost 12,000 residential and small business users it enrolled in an ESCO for electricity supply starting in January 2019.  The original concept was simple and good – if a large number of users joined together to buy electricity, they could secure a lower price and save money.  Westchester Power negotiated a two-year contract with the ESCO Constellation at a rate of 7.709¢ per kWh.  The price seemed reasonable in January 2019, but that monthly rate has been considerably higher than the variable Con Edison rate over the past 16 billing cycles.  The CGCA is concerned that thousands of Greenburgh users are unaware they are currently enrolled in this ESCO and it is costing them additional money each month.

In response to issues raised by resident Ken Stahn and the CGCA, the Town scheduled another meeting (5/26/20) with Westchester Power regarding this contract. Westchester Power again acknowledged that Con Edison rates have been at historic lows and noted users can “Opt Out” of the ESCO at any time with no penalty.  In an email blast (5/28/20), Supervisor Paul Feiner provided a link to that meeting but he also provided erroneous information regarding the cost and an incorrect phone number to “Opt Out” of the ESCO.  Although he subsequently corrected the information after Mr. Stahn brought the errors to his attention, the archived email on the Town’s website still contains the errors.

Don’t be confused by the Westchester Power claims that those in the ESCO since 2016 continue to have monthly cost savings.  The below table provides the variable Con Edison cost per kWh for the last sixteen billing cycles that users who “Opted Out” have been paying.  As the table illustrates, the cost to the five residential owners (Properties # 1-5) for the latest bill (mainly the month of May 2020) was 4.6 to 4.8¢ per kWh.  That is three cents per kWh (or about 40%) cheaper than the rate the ESCO charges.  Westchester Power claims the average residential customer uses 669 kWh per month.  Based on that figure, the average residential customer in the ESCO paid $21.63 more during the month of May.

ESCO:    669 x 7.709¢ = $51.57 + 2.06 (4% tax) = $53.63
Con Ed:  669 x 4.600¢ = $30.77 + 1.23 (4% tax) = $32.00

If you subtract the monthly billing and processing fee (64 cents), the savings are still huge.

With the summer months now started and the current heat wave under way, many of us will be using air conditioners and consuming huge kWh numbers of electricity.

The Town feels it has no responsibility to keep the almost 12,000 residential and small business electric users it enrolled in this ESCO informed about the additional cost they have been paying in their last sixteen bills.That is why the CGCA is posting this information and urging you to check your monthly Con Edison bill and compare the kWh cost for electricity you are paying.  Please pass this information on to friends and neighbors.

Stay safe, well and informed.