- Why is energy choice
happening?
- Do I have to choose a
supplier right away?
- What is standard offer
service, or default service?
- Now that there are new
electricity suppliers, will service reliability change?
- Who do you call if the power
lines are damaged or the power goes out?
- What happens to municipal
electric utilities?
- Can an electricity
supplier switch my service without telling you?
- Will I get one or two
electric bills?
- Will you save money?
- What happens
if your supplier does not provide energy to your local distribution
company for delivery to you?
- What is the price to
compare?
- What is a shopping
credit?
- Why is there no one to
choose right now?
- Whom do you call with a
billing question?
- What is the consumption
tax?
- Who can sell electricity?
Why is energy choice
happening?
Energy choice can offer several
benefits to consumers. It gives you the power to choose the
supplier that provides your energy. You can choose a supplier based on
price, terms and conditions of service, reputation of the supplier,
renewable energy or customer service. Competition among suppliers may help lower prices
over time. It should also encourage suppliers to develop and offer new
products and services.
(Back to FAQs)
Do I have to choose a
supplier right away?
No. You can choose a supplier at any time
after your utility opens to energy choice. If you do not choose a
supplier right away, your local distribution company will continue to provide power
for you, through what is called standard offer service or default service.
(Back to FAQs) What is standard offer
service, or default service?
Standard offer service (default service) is
electricity service provided to customers who do not choose an electricity
supplier.
(Back to FAQs)
Now that there are new
electricity suppliers, will service reliability change?
No. Although the Public Service Commissions
will no longer regulate the price of energy, the delivery of energy will
still be regulated. This will ensure that you will receive safe power with
the same service reliability you have always known.
(Back to FAQs)
Who do you call if the power
lines are damaged or the power goes out?
Even if you choose a new electricity supplier,
you should still call your electric company.
(Back to FAQs)
What happens to municipal
electric utilities?
Municipal electric utilities have the choice
whether or not to participate in electric competition.
(Back to FAQs)
Can an electricity supplier
switch my service without telling you?
No. An electricity supplier must have your
permission to switch your service. If it does happen, report it to your
local distribution company, and you can return to your previous provider
without any penalty to you.
(Back to FAQs)
Will I get one or two
electric bills?
You may receive one combined bill or two
separate bills. A combined bill may come from your new electricity
supplier, or from your electric company. Be sure to ask a new supplier how
they will bill you.
(Back to FAQs)
Will you save money?
There are no guarantees that a customer who
switches suppliers will save money. However, customers can improve their
chances of saving money if they become knowledgeable about their energy
usage. When considering competing offers, customers must understand how
they use energy, when they use it, and what they currently pay for it.
That puts them in the best position to shop for the offer that best
satisfies those needs.
(Back to FAQs)
What happens
if your supplier does not provide energy to your local distribution
company for delivery to you?
In the event that the energy service
provider that you choose cannot provide the electricity or gas you
require, your energy will be supplied to you by your local distribution
company at regulated rates.
(Back to FAQs)
What is the price to
compare?
The price to compare is the regulated rate or
price per energy unit of electricity supply service (kWh), less any
competitive transition charge. The price to compare is provided to
consumers so that they can effectively compare the local distribution
company's regulated rate to offers from competitive service providers.
(Back to FAQs)
What is a shopping credit?
A shopping credit is the rate or price per
electric unit used for comparing one energy supplier against another in a
retail environment. When reviewing the shopping credit, verify which
components the price includes (i.e., generation, transmission and
ancillary services).
(Back to FAQs)
Why is there no one to
choose right now?
Currently, wholesale prices in the market exceed the price offered by the
existing utilities. Suppliers do not want to enter the market with a
price that does not offer any benefit to the consumer.
(Back to FAQs)
Whom do you call with a
billing question?
The rule of thumb is to call that company who provides the service in
question. For instance, if you are concerned with delivery charges,
call your local distribution company.
(Back to FAQs)
What is the consumption
tax?
Since January 1, 2001, a new line item has been added to energy bills
identified as the state consumption tax. There also may be a local
consumption tax listed depending on where you live. Even though this
is a new item on your bill, it is not an additional tax. This is
simply a new method of collecting state and local taxes on utility
service. While the method for calculating utility taxes has changed,
the amount of tax that most consumers pay each month on their energy bills
should remain approximately the same.
(Back to FAQs)
Who can sell electricity?
All suppliers must be licensed by the State in order to sell energy.
As part of the certification process the provider must submit information
to prove it has the technical and financial capability of providing
service to retail consumers and demonstrate that it has access to reliable
supplies of electricity.
(Back to FAQs)
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