WPCNR THE POWER NEWS. By John F. Bailey January 9, 2017:
According to a representative of Coned Solutions this morning, (contacted by a customer of ConEd Solutions), Constellation New Energy, Inc will renegotiate the Clean Energy rate and basic rates with the City of White Plains in May-June of 2018.
The representative said that Constellation has access to more clean energy producing sources such as wind and solar and nuclear power that may result in lowering the Clean Energy rate currently charged White Plains customers (7.76 cents per kwh), however the rate would be negotiated based on the highest demand rate expected, and other factors.
It is unclear if the same rate will be charged in mid 2018 for all 24 cities, or different rates would be charged to all 24 cities, based on each city usage. The Media Relations Department of Constellation is seeking to clarify this question at WPCNR request.
Sustainable Westchester has been contacted by WPCNR as to whether Sustainable Westchester knew when it selected ConEd Solutions that Consolidated Edison was engaged in preparations to divest the ConEd Solutions subsidiary.
Bob McGee, Director of Media Relations for Consolidated Edision , told WPCNR the selling of ConEd Solutions was “strictly a business alignment strategy,” and had nothing to do with ConEd Solutions capacity to generate clean energy-created electricity. He deferred comment to Constellation New Energy, Inc.
In July of 2016, WPCNR notes based on Con Edison information on electricity used that an all-time annual high was reached in July 2016, the first year of the ConEd Solutions contract with Sustainable Westchester, (which began in June, 2016). Sustainable Westchester is the group that acquired the customers of 24 Westchester cities as a customer base for Sustainable Westchester to supply electricity based on the cities collective conglomerate purchasing power.
WPCNR called the White Plains Mayor’s Office to ask whether, when the new Sustainable Westchester ConEd Solutions (now a subsidiary of Constellation New Energy) green rates and basic rates would be one rate for all cities in the consortium of 24 cities, or whether White Plains would have a specific rate. So for today there has been not answer from the Mayor’s Office. The Mayor’s Office was also asked whether White Plains knew or was told ConEd Solutions would be changing hands or in the process of being divested by Consolidatied Edison.
In a news release of July 27, 2017, when Constellation announced the acqusition, they said that “The terms of the agreement were not released.” And to this date they have not been made public.
On the ConEd Solutions website, Constellation New Energy explains their acquisition this way:
“4. What is the strategic and financial rationale for this acquisition (of ConEd Solutions)?
As of closing, ConEdison Solutions had longstanding customer relationships and a network of channel partners across 13 states plus the District of Columbia. ConEdison Solutions served 559,000 mass market and 2,500 C&I retail electricity and natural gas supply customers, making its retail energy organization a perfect strategic fit for Constellation that creates opportunities to reach more customers and grow the business.
- This acquisition provided Constellation with the unique opportunity to grow the retail business and enhance our strategy of matching power generation with customer load.
- This transaction allowed us to leverage our scale to remain competitive in the current market environment and drive value through opportunistic, targeted growth.
- ConEdison Solutions’ retail business had strong customer relationships, which enhances renewal opportunities.
- The acquisition scaled our business in a competitive environment.
5. What benefits might I see from the new company in the future?
Our customers will benefit from the combined organization’s ability to offer long-term contracts, competitive prices and Constellation’s broad array of energy products and services. Increased scale is expected to bring more innovation and clean energy supply offerings to more customers.
6. Will customers and coordinators of municipal aggregation programs be impacted?
Participants in municipal aggregation programs will continue to be served under the terms of their existing agreements.
11. Will I still be a customer? Will my rates, contract terms, or account information change?
Until the integration is complete in your market, you will remain a customer of ConEdison Solutions. If you have received your invoice from and made payments to ConEdison Solutions in the past, you will continue to do so. If you have been billed by and made payments to your utility that will not change.
No changes are being made to a customer’s contract term, price, or terms and conditions of service as a result of this change.
13. Can I now change my rate or terms or cancel my ConEdison Solutions contract?
No. Current contracts are still legally binding. If you would like to discuss additional options, please contact your existing sales representative or Customer Care.
- Your current contract will not be affected in any way. Your contract terms remain exactly the same. You do not need to take any action.
- All of the same Terms of Service from your original contract with ConEdison Solutions still apply. [Note – You will still be charged an Early Termination Fee, if applicable, for cancelling a fixed rate plan by switching providers before your contract end date.]
- If you are currently on a fixed rate, your rate will continue to be determined by the contract you signed with ConEdison Solutions. This transaction does not cause an increase in your rates.
- Variable rate plan customers will continue to have prices that may fluctuate from month to month.