Until the 1990s, New York’s gas and electricity was entirely controlled by local utility providers, who set prices for every business and homeowner. When the state deregulated its energy market in the late 1990s, consumers were finally free to choose their gas and electricity supplier. While some decided to remain with their municipal power company, others switched to a third-party supplier, also known as an Energy Services Company (ESCO) ‒ like Agway Energy Services®.
What Is an ESCO?
An ESCO is any business that sells energy to customers through gas or electricity lines built and maintained by a state utility. Though often mistaken for a power company, they are independent entities that partner with producers and public utilities, but operate separately.
In a deregulated market, producers harvest gas and generate electricity. ESCOs purchase it from them and sell it to consumers, who receive it through the energy grid managed by their local utility. Every ESCO in the State of New York is required to undergo a rigorous application process, to ensure consumers receive fair treatment and quality services according to the strict standards laid down by the New York Department of Energy.
Switching to an ESCO
While no one in New York is required to work with an ESCO, enrolling can offer several benefits. Unlike standard utilities, ESCOs may offer predictability. Their fixed-rate plans may lock in energy prices for a period of 3-12 months, protecting you from rising gas and electricity costs as long as the contract is in effect. More importantly, ESCOs may provide additional savings through a range of value-added services, such as Agway EnergyGuard®.
Switching to an ESCO is simple. Once you complete the enrollment form, the company’s service team contacts your utility and lets them know that they’ll be supplying your gas and electricity from now on. The transition is seamless, so there’s no interruption in service.
ESCOs and utilities work together to power homes and businesses, a fact reflected on your gas and electricity bill. After switching, you will notice supply charges from your ESCO and delivery charges from your utility company.
Protections for ESCO Customers
In order to ensure equitable treatment, all ESCOs operating in New York must comply with the Home Energy Fair Practices Act (HEFPA), which grants their customers the same rights and protections as utility customers. Residential customers are also entitled to a copy of the Consumer Bill of Rights, which ESCOs are required to provide once you join.
When marketing their services, ESCOs are also required to identify themselves and communicate in your native language, to make certain there is no confusion. ESCO customers still have access to the emergency services they had before, so you don’t need to worry about being overlooked during an outage. Your gas and electricity will be restored at the same time as everyone else’s.
Participation is entirely voluntary. If you’re unhappy with your service, you can switch back any time you choose. Simply contact your supplier and ask them to reconnect you with your municipal utility. The transition will be as seamless as it was when you joined.
Join and Save on Energy Related Repairs
Households and small businesses that sign up for Agway Energy Services® not only enjoy reliable gas and electricity supply, but potential long-term savings, thanks to our EnergyGuard repair program, which protects your furnace, air conditioner, and internal wiring from damage caused by wear and tear.
Property insurance doesn’t cover these types of problems, but we do. Restoring your wiring and HVAC system can be expensive, but Agway EnergyGuard® helps organize repairs and mitigate costs. We not only prevent breakdowns from disrupting your monthly budget, we also maintain a network of certified contractors and electricians, so you don’t need to worry about finding qualified help.
When the need for repair occurs, we reach out to our network and send the first available repairman straight to your door. There are no service fees or deductibles either. We pay for the visit and all covered parts. Don’t let a breakdown upset your finances. Sign up and start receiving the benefits of EnergyGuard today!
