Utilities' ad campaigns urge ratepayers to consider alternatives


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Utilities' Ad Campaigns Urge Ratepayers To Consider Alternatives

By CONNOR ENNIS Associated Press Writer October 7, 2002

ALBANY, N.Y. -- Advertising campaigns alerting New Yorkers that they have choices when it comes to purchasing energy are now underway for two big upstate utilities.

The state-ordered advertisements are part of an effort by the state Public Service Commission (PSC) and utilities to let energy consumers know they can purchase power from retail suppliers called energy service companies (ESCOs), a choice that has been available for several years.

"It's consumer education and awareness to let customers know they do have a choice," PSC spokesman David Flanagan said. "It's part of the ongoing transition to a competitive market."

Utility officials said the advertising serves the dual purpose of informing the public about its options of buying energy and reassuring New Yorkers that, if they do switch power suppliers, the level of service will not suffer.

"Customers need to know they can switch suppliers and still remain customers of Niagara Mohawk for energy services," said Niagara Mohawk Power Corp. spokesman Alberto Bianchetti. "You can choose another supplier of the commodity but regardless of who you choose, Niagara Mohawk will still be the delivering company."

Niagara Mohawk started its advertising campaign in early September, Bianchetti said, with ads running in newspapers and on radio and letters being sent to customers. New York State Electric and Gas recently started its campaign, too.

The New York State Electric and Gas ad campaign was specifically ordered by the PSC under a rate case decided by the commission earlier this year, Flanagan said. The Niagara Mohawk campaign was provided for as part of a more general PSC policy adopted years ago to provide for consumer information campaigns by utilities. In both cases, ratepayers of the companies are paying for the campaigns.

The state has been trying to get more power-buying choices for consumers in New York under a "deregulated" energy market setup. The hope is that with power generators engaged in a bona fide competition for customers, electric prices will be driven downward while service standards will remain high.

Consumer advocates, however, say that if New Yorkers do opt to switch to a private supplier, they may not enjoy all of the protections they currently have with their traditional utilities.

That's why the advocates say the Energy Consumer Protection Act, which will soon be sent to Gov. George Pataki by the state Legislature, needs to be signed into law to ensure consumers the same protections they have now.

Among the protections to be guaranteed consumers under the legislation are: budget plans; service connections without deposits or prepayments; the ability to settle billing disputes and complaints through the PSC; capping late fees and the ability to continue receiving services, despite owing money, through deferred payment plans.

"We're not recommending people to switch until this bill goes through," AARP spokesman Bill Ferris said. "We tell people they should be wary until a law like this goes into effect."

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."