| INFORMATION ON ENERGY COMPETITION |
| Q. What are ESCOs? |
| A. ESCOs, or Energy Service Companies, are approved to operate in New York State and can sell you electricity or natural gas. They vary in size and may be an affiliate of a utility. They must be registered with the New York State Public Service Commission and the utility. |
| Q. What part of my energy service do I shop for? |
| A. You shop for the supply portion of your bill. You can remain with the utility, or buy electricity or natural gas supply from an ESCO. ESCOs can provide you with a variety of pricing options, as well as some other value-added services such as appliance repairs and green power (electricity generated from renewable sources). |
| Q. What is included in the cost of energy service to my home or business? |
| A. The cost of energy includes: |
- Basic Customer Charge -- This charge covers RG&E's fixed costs for things like meter reading, billing equipment, and maintenance. Regardless of how much energy is used during the billing period, this charge remains the same.
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- Delivery Charge -- This charge includes the cost of delivering the energy to you, maintenance of the wires, and pipes, and the costs of ensuring the reliability and safety of the system. Regardless of which supply option you choose, you will continue to pay the delivery rate to RG&E. The delivery rate is 2.3 cents per kWh and will be fixed for all residential customers from January 1, 2007 through December 31, 2007.
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- Supply Charge -- Supply costs are the charges for the electricity and gas purchased on your behalf from the wholesale market.
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- Transition Charge -- The difference between the market price of electricity and the price of RG&E's long-term electricity supply contracts.
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- Other Charges -- Taxes and other miscellaneous charges make up the remainder of your bill.
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| Q. Can I switch back to my utility at any time? |
| A. Yes, but check the terms and conditions of your supply contract, especially to see if any early termination fees apply. Your first switch from a utility to a supplier is free but there may be a fee for multiple switches. |
| Q. What if I did not get an enrollment kit? |
| A. If you did not get a RG&E enrollment kit or it was misplaced, RG&E will send you another at no cost. Contact RG&E's call center at 1-800-743-8926 or get an electronic version of the kit by visiting RG&E's Web site at http://www.rge.com/. |
| Q. Where can I find more information on RG&E's Voice Your Choice Program? |
| A. You can find information on the Voice Your Choice Program at http://www.rge.com/ or at RG&E VYC Program on http://www.powertochooseny.com/. |
| Q. If I choose an ESCO, how will I be billed? |
| A. If you wish to receive one bill, RG&E will bill you for the delivery costs as well as the ESCO's supply costs. Or your can choose to receive one bill from the utility for the delivery portion of your bill and one from the ESCO for the supply portion of your bill. Talk to your supplier about your billing options. |
| HOW TO SHOP FOR ENERGY SUPPLY |
| Q. What questions should I ask when shopping for energy supply? |
| A. When you shop for any product, you should compare pricing and services, including the terms and conditions under which the supplier will provide your electricity and gas, whether there are any incentives or discounts, and if there are any penalties for early contract termination. You can also ask about customer service issues such as call center hours of operation, complaint handling, and how you will be billed. In addition, you may want to consider: |
- Price Stability -- Fixed price options provide protection from price volatility. A fixed price may not guarantee you savings on your energy bill. Think of it as an insurance policy for your energy costs -- you may pay more, or less, for the assurance that your electricity supply costs will be fixed for a specific period, compared to the current market costs of electricity.
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- Price Level -- Some customers are interested in shopping for the lowest price per kWh for electricity. It is important to review the terms and conditions of the offer, and consider tax credits and billing credits that are only available to ESCO customers.
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- Value-Added Services -- Ask ESCOs about different pricing options, including indexed or capped pricing, mechanisms that are not available from RG&E, as well as other service options, including appliance repair and service contracts. If you belong to a specific group or organization, ask about any opportunities for aggregation that may provide you with additional benefits.
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- Green Power -- Both RG&E and ESCOs offer green power, generated from renewable energy sources, including wind, solar, biomass, and hydropower. Ask the utility or ESCOs about fuel mix options that meet your needs.
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| Q. How do I decide which is the best option? |
| A. Beginning on October 1, 2006, you can choose RG&E or an ESCO to provide your electricity supply. If you remain with RG&E for electricity supply, you will choose between RG&E's fixed or variable price option. The choice between a variable and a fixed supply rate is similar to the choice a homeowner makes between a fixed and variable rate mortgage. Remember, you are only comparing the electricity supply rate. Your delivery rate remains the same whether you buy your supply from RG&E or an ESCO. |
| Q. If I choose RG&E's Fixed Price Option, how much will I pay? |
| A. A fixed price is a premium option that is intended to provide customers with price stability. It will not necessarily guarantee you savings on your energy bill. For residential customers, RG&E's fixed price on January 1, 2007 will be 2.3 cents per kilowatt hour (kWh). Multiply the price by the number of kilowatt hours you use per month. A typical residential customer uses 630 kWh. The commodity price does not include applicable state and local taxes or the $20 monthly per customer charge. RG&E has a worksheet on its Web site that may be helpful in calculating pricing. If you choose the RG&E fixed price option, this price will be in effect from January 1, 2007 through December 31, 2007. |
| Q. Is there a cap or a floor on RG&E's variable rate option? |
| A. There is no upper price cap or lower price floor on this option. |
| Q. What factors affect future variable electric supply prices? |
| A. Over half of the state's electricity is generated by burning fossil fuels: oil, coal, and natural gas. When the prices of these generation fuels increase, so do electricity prices. Supply and demand also affect electricity prices. Electricity demand is high in the summer because of increase use of air conditioning and cooling appliances. Increased demand tightens supply and causes electricity prices to rise. Energy conservation is an important component of lowering energy costs. The less electricity you use, the lower your bill. |
| Q. What are the ESCO offers? |
| A. You can contact competitive suppliers to get their customer offers. ESCO phone numbers and Web site addresses are listed on the RG&E enrollment kit or RG&E's Web site at www.rge.com. In addition, the New York State Public Service Commission's (Commission) Power To Choose Guide provides ESCO pricing and service options in an easy-to-use format. Lists of ESCOs and the Power To Choose Guide are available at www.PowerToChooseNY.com. |
| Q. Does the Commission regulate competitive suppliers like they do the utilities? |
| A. The Commission does not set the prices or determine the offers that ESCOs charge. ESCOs doing business in New York State must meet Commission eligibility requirements that are separate from requirements that ESCOs must meet with the utility and the New York Independent System Operator (NYISO). The Commission also monitors customers contacts about ESCOs (see Questions and Concerns section below). |
| WHEN TO CHOOSE |
| Q. Do I have to make a choice by December 29? |
| A. No, but it may be a good idea to compare options available to you. If you do not choose by December 29, 2006, RG&E will place you on its Variable Price Option. The Commission has developed a chart showing Fixed vs. Variable Rates from January 2006 through September 2006 that may be helpful when comparing pricing options. If you are already an ESCO customer, you may continue with the terms you have made with the ESCO. Remember to check the terms of your contract before you choose another ESCO. Contact the ESCO if you are unsure of your status with them. |
| Q. What happens if I change my mind and want to switch options after December 29? |
| A. You always have the option to switch from RG&E as your supplier to another supplier or from another supplier back to RG&E, subject to the terms and conditions of any contract made previously. The choices available to you are determined by whether you choose a fixed or variable option during the Voice Your Choice selection period. If you choose a RG&E fixed price option, you can choose an ESCO Option with Supply Adjustment from an ESCO. If you choose a RG&E variable price option, you can choose an ESCO price option. |
| SAFETY AND RELIABILITY |
| Q. Will I lose power if I switch companies? |
| A. No, there will be no interruption of service if you switch to an ESCO or from one ESCO to another (as long as you comply with the terms of your contract with the ESCO). If there is an outage in your area, the supplier option you pick will have no effect on the restoration or service, since RG&E owns and operates the distribution system that delivers your electricity. |
| Q. Will my utility still deliver the gas or electricity? |
| A. Yes, your utility will still deliver your energy and restore your gas or electricity in the event of an emergency or storm. |
| Q. Who can shut off my power? |
| A. Only a utility can turn off your power. However, if you don't pay your supplier, it can stop buying supply for you. In that case, you would return to the utility as a supply customer at the utility's price. |
| Q. Whom do I call during an emergency? |
| A. You will continue to call your utility in the event of an emergency such as a power outage or gas leak. |
| Q. Will the suppliers have to put new wires and pipes to my house? |
| A. No, the same wires and pipes that already exist on your street and house or apartment continue to be used for the energy supply. No new wires or pipes have to be connected. |
| QUESTIONS OR CONCERNS |
| Q. What if I have a complaint with my supplier? |
| A. The PSC requires all ESCOs (suppliers) to have convenient complaint-handling procedures and clear information on switching. Companies are required to send customers a statement disclosing the company's complaint resolution process. You may call the PSC toll-free at 1-800-342-3377 if you are unable to resolve your complaint. |
| Q. What if I have a complaint with RG&E, my delivery company? |
| A. You should try to resolve the complaint with the utility, but if you cannot resolve your dispute, you should call the PSC complaint line toll-free at 1-800-342-3377. |
| Q. How has RG&E's fixed price compared to its variable rate? |
| A. The Voice Your Choice enrollment kit that you received from RG&E shows how the wholesale price of electricity affects the monthly variable price. From January through September 2006, the typical average monthly residential bill (based on electricity use of 600 kWh per month) under the RG&E Fixed Price Option was $71.70. Under the RG&E Variable Price Option, the typical average monthly bill was $61.79. |
