AARP: Sit Tight On Energy Service

BY JEFF PLATSKY Press & Sun-Bulletin - 10-10-02

Don't switch electric suppliers during the competitive sign-up until appropriate consumer protections are signed into law, representatives of the largest senior lobbying group are telling their members in New York.

The AARP is telling members to sit tight during the three-month enrollment period for alternative electric service that began in New York State Electric & Gas Corp. territory on Oct. 1.

"We're very leery of telling people to switch without protections," said Bill Ferris, state legislative representative for AARP.

AARP is urging the governor to sign the Energy Consumer Protection Act, which would afford customers of independent suppliers the same protections they receive from their utility company. Legislation granting consumers the strict protections was passed unanimously by the Senate and the Assembly, but is being held back from the governor by Senate Majority Leader Joseph Bruno, R-Schenectady, Ferris said.

A representative in Bruno's office said on Wednesday that there is no timetable to send this legislation over to the governor for signing.

The law would require the following of electric service companies:

* Establish budget plans that would even out monthly payments;

* Prohibit deposits or prepayments for service;

* Establish the Public Service Commission as arbiter in consumer complaints;

* Cap late payment fees;

* Establish a payment deferral plan for customers who can't pay bills, and prevent interruption of service.

"I wouldn't recommend anyone switch until they have these consumer protections," said Gerald Norlander of the Albany-based Public Utility Law Project, which represents the interests of low-income ratepayers.

Usher Fogel, counsel to the Small Customer Marketer Coalition, an ad hoc group of companies supplying energy mainly to residential customers, said the group "strongly supports" the bill. The measure would help reassure consumers who may be feeling unsure about switching to a private supplier after many years of getting their energy from a public utility.

"We're developing a new industry where before there was a regulated monopoly," Fogel said. "It's like leaving home or something that you've been used to for a long time."

To assit consumers in determining the best alternative in deregulation, the Public Utility Law Project has developed a comparison of different electric suppliers in the utility's service territory. The comparisons are posted on the organization's Web site.

Norlander noted that two suppliers listed in NYSEG's literature had yet to quote residential prices.

"It's pretty hard to shop when you don't know the terms and conditions," he said.

The Associated Press contributed to this story.