ESCO Scam Perpetuated On Taxpayers Again

 A Message to All From the Council of Greenburgh Civic Associations:

The original intent was to wait a few more days to receive Con Edison bills for the month of December and then issue a 2020 year-end table demonstrating the cost difference to five residents who “opted out” of the ESCO contract for electric supply in which the Greenburgh Town Board enrolled nearly 12,000 resident and small businesses users.

However, in response to a number of calls, the Executive Board of the Council of Greenburgh Civic Associations feels it necessary to reply to some misinformation that the Town released Wednesday (1/13/21) in an email blast regarding the new 18-month ESCO contract.

The Town’s email stated:  “We’re happy to announce that the Town of Greenburgh and our neighboring communities will be renewing our participation in Sustainable Westchester’s Westchester Power (WP) program.”  In fact, more than half of Greenburgh’s “neighboring communities” – Town of Mount Pleasant, Village of Elmsford, Town of Scarsdale, Town of Eastchester, City of Yonkers – have never participated in this Westchester Power program.

While it is true that the Westchester Power program did offer a “clean electricity supply choice since 2016,” Greenburgh residents and small businesses were not part of that choice.  Instead, the Town enrolled Greenburgh residents and small businesses in the “standard option” which means they have been paying for electricity to be supplied mainly by fossil fuels and nuclear.  Thus, no tons of greenhouse gases have been mitigated.

The only thing Greenburgh residents and small businesses who had not “opted out” could rely on was a fixed rate of 7.709 cents per kilowatt hour. And, that fixed rate has been costly to those Greenburgh residents and small businesses. The CGCA urges you to compare that fixed rate price with the kWh costs listed on the attached table for five properties that did “opt out.”

Please focus attention on the column for Property #5. As the table indicates, over the past 22 months this property has paid considerably less each month for electricity than the 7.709 cents per kWh cost charged by the Town’s chosen ESCO.  The most recent cost to Property #5 was 5.5 cents per kWh, mainly for the month of November.  While this mere 2.209 cents saved per kWh may not appear great, please be aware that Property #5 is a “total electric living” household.  The owner is the sole occupant who rarely uses the oven and carefully controls indoor temperatures.  Even so, 1,544 kWh of electricity were used between November 5 and December 9.  That 2.209 cents difference amounted to a savings of over $35 for this time period.  Even greater numbers of kWh will likely be used and more savings may be possible in the colder months ahead.

Can you imagine what the electricity costs are to a “total electric living” four-bedroom townhouse, such as those at Westchester Hills, occupied by four or more family members? Electricity is used to heat or cool the rooms; run an oven for hours to cook meals including roasting that Thanksgiving turkey; heat hot water for multiple residents to take showers, wash dishes, wash clothes; dry laundry; provide lighting; and power refrigerators, TVs, computers and numerous other appliances.

The Town’s choice for the 2-year (2019-2020) ESCO contract has been quite costly for "total electric living" residents and the almost 12,000 other residents and small business electricity users.  Yet, the Town has failed to take any responsibility to inform users of this cost factor over the past two years.  This is especially troubling during this last year when so many residents and small business owners have been negatively impacted financially by the COVID-19 pandemic.

The new 18-month ESCO contract the Town approved becomes effective with January 2021 meter readings and does provide for the “green” sustainable option at a cost of 7.405 cents per kWh which is slightly less expensive that what users have been paying.  We will have to wait to see what the financial impact will be.

The Town’s January 13 email contained other inaccurate and dated information that is not worth addressing at this time. Hopefully, in the months ahead, the Town will do a better job of reading information it receives before posting it on the Town’s website.  And hopefully it will provide accurate and up-to-date information, as it promised, on whether this new green ESCO contract is to your advantage.

Stay safe and well.
Ella Preiser, CGCA Secretary