RE: Cape Cod Times article “For Compact customers, rate deal has a catch” 3/12/15 context and changing facts
Barnstable, MA – In addition to the information contained in the article please be aware that:
- The electricity market is complex. Trying to simplify it can obscure important facts. The challenge for consumers is understanding risk. The purpose of the Compact’s Basic Service price is to utilize the aggregated buying leverage of many consumers to reduce risk and gain a stable and reliable price and terms for electric supply for everyone.
- Separate from Basic Service, the ConEdison Solutions long-term offer featured in the article is not a new pricing offer; the Compact has made ConEdison Solutions’ long-term pricing option available to consumers interested in an alternative since 2008.
- Because the price can vary each day, consumers need to call when they are interested in locking-in a long-term price. The price and term cited in the news story on 3/12/15 has since changed and is no longer available.
- While the Compact makes ConEdison Solutions’ long-term option available, the Compact does not generally recommend locking in a long-term price because prices fluctuate, and a consumer can lock in a fixed long-term price and soon find they are paying a higher price than what is available for the Compact’s Basic Service (which changes twice each year—generally in January and July).
- The Compact offers a long-term price for a consumer who needs to know what price they will pay per kilowatt hour for a year or more, regardless of savings, or if they want to take more risk.
- Customers who switch to ConEdison’s long-term price cannot go back to the Compact’s Basic Service price until the end of the locked-in long-term service.
- The Compact anticipates that its current Basic Service price will drop significantly in July.
- The electricity market has become more volatile and there is currently a new wave of electricity price offers being made by independent marketers to Cape and Vineyard consumers.
- Consumers need to be careful to fully understand the terms of electricity contracts offered to them, what charges are included, and forward pricing trends in the market. Introductory “fixed” prices are sometimes flipped to variable rates which can change dramatically, sometimes tripling from one month to the next. Independent marketers also usually reserve the right to cancel the contract if it is not profitable to them. Consumers should always ask for written contracts and never provide their electric account number over the telephone.
ABOUT CAPE LIGHT COMPACT
Cape Light Compact is an award-winning energy services organization operated by the 21 towns and two counties on Cape Cod and Martha’s Vineyard. The Compact’s mission is to serve its 200,000 customers through the delivery of proven energy efficiency programs, effective consumer advocacy, competitive electricity supply and green power options. For more information visit www.capelightcompact.org.