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FIXED PRICE OF SUSTAINABLE WESTCHESTER/WESTCHESTER POWER CAN BE CHANGED AGAIN THIS YEAR  BY NEW YORK STATE  IF ELECTRICITY CHARGES AND TRANSMISSION (DELIVERY CHARGES) RISE.

WPCNR THE POWER STORY.  By John F. Bailey. January 3, 2023. UPDATE 1:45 P.M.EST:

A Constellation Customer Care Representative of Constellation Energy clarified that the 0.325 cent rise in Transmission Charge  (SEE PREVIOUS STORY) now applicable and being added to the 100% Renewable and Standard (No additional renewable energy) refers to the Delivery Charge Consolidated Edison charges, not the additional cost of the electricity.

The representative said that fixed rate could be changed again this year.

The representative said  that could happen should New York State Public Policy  be changed to reflect additional  rises in grid electricity costs  for making electricity and deliverying it during the summer,

For example   the representative said raises in the fixed rate to  generate electricity (Supply Cost)  and deliver electricity (Transmission charge), if New York State chooses to do could be raised to  cover the cost of higher rates to generate and deliver electricity.

I asked the Representative why since Constellation is based in the south, why they had to pay New York Rates. She said all Suppliers  of electricity to New York were subject to paying New York rates.

In the years prior to 2023,  Sustainable Westchester/Westchester Power offered fixed green energy and standard electricity at fixed rates.   Customers were saved hundreds of dollars when Con Edison charged more for supply of electricity during the heat waves of the first four summers.

The Sustainable Westchester/Westchester Power offered price stability as opposed to Consolidated Edison costs of the electricity that fluctuated wildly resulting in bills in the $ 400 to $500 range and up.

In negotiating the new contracts for 2023-2024, Escos (Electric Supply Companies) buying off the  NY electric grid market were forced to pay the highest cost electric power (natural gas), by the New York State Independent System Operator to maintain an orderly market.

A private utility that could generate electricity without having to supplement with electricity buys off the NY grid,  to fulfill their consumer demand when demand soared beyond your capacity, you gained a competitive advantage. Your company could continue to offer lower rates until demand soared  and you had to  buy supply  off the grid at the sky high grid rates of natural gas.

This policy, (if I owned an  ESCO), would give me any incentive to convert to sustainable green energy and stop polluting the planet.

The New York Independent Services Operator effectively doubled the cost of  Sustainable Westchester/Westchester Power rates, when Electric Supply companies who met consumer electric demands without going to the grid for electricity  beyond the plant capacity gained a significant advantage over Sustainable by beating the Sustainable Fixed Rate by a substantial margin.

SUSTAINABLE WESTCHESTER FIXED RATES FOR 29  WESTCHESTER CITIES & TOWNS IN ITS WESTCHESTER CONSORTIUM GO UP FROM “FIXED” RATE OF 15.281 PER KWH TO 15.606  FOR 100% RENEWABLE POWER  & STANDARD SUPPLY BEGINNING JAN 1.

WPCNR THE POWER STORY. News & Comment By John F. Bailey. January 3, 2023:

The Westchester Power/Sustainable Westchester customers in 29 Westchester County cities and towns paying fixed rates for 100% renewable energy generated or a fixed rates for standard electricity  learned Tuesday from Constellation Energy that their “fixed’ rate is no longer fixed.

It goes up effective January 1 through November, 2024 when the current Westchester Power/Sustainable Westchester contract with the 29 cities and towns expires with an anticipation of  the new rate that will be negotiated this year. No explanation for the midstream “transmission charge” was given in the letter

Constellation Energy wrote customers in a letter  dated December 28 and mailed first class from Dulles, Virginia that

“As the supplier to the City of White Plains community electricity program, Constellation New Energy, Inc., (“Constellation”) is writing to inform you of an increase to the electric supply price due to a transmission charge being assessed to all electricity suppliers in the state of New York. This price increase is 0.325 cents/kwh and will take effect beginning with your January 2024 utility meter read dates and remain in effect until the end of the current City of White Plains Electric Service Agreement on your November 2024 utility meter dates.”

(Editor’s Full Disclosure: Mr. Bailey is a Westchester Power/Sustainable Westchester customer for its 100% Renewable Clean Power Product, customers with questions are urged to call Constellation Customer Care at 888-437-1722  or [email protected] or 914-242-4725)

Customers received this notice simultaneously virtually when Noam Bramson former Mayor of New Rochelle, now Executive Director of Westchester Power/Sustinable Westchester sent out a news release to media  recommitting Sustainable Westchester commitments to clean energy growth. There was no mention of the reason for today’s “Unfixing” of the Green and standard  Westchester Power electric rates in the Bramson news release.

The raising of the fixed rate raises the question of what kind of fixed rate will Westchester Power/Sustainable Westchester be able to negotiate with electric suppliers  that will be competitive with Con Edison rates and whether the Westchester Power/Sustainable Westchester will be forced to pay the most expensive source of power when buying off the New York power grid,  which currently is natural gas.

This is why the current “fixed” rate that is apparently not really “fixed” shot up from 7-1/2 cents/kwh to 15.2 cents/kwh in 2023. when a contract was finally agreed to in 2023 The New York Independent System  Operator which regulates the electric supply market  explanation for this forcing electrical highest price off the grid fits all suppliers,  was every supplier buying off the power grid has to pay the same price for power off the grid, even though some suppliers may make electricity at their own plants like Con Edison.

Since the fixed rate doubled under the current contract, Westchester Power/Sustainable Westchester customers have been promoted by Con Edison to switch over to Con Ed green supply guaranteed stable for 2 months.These promotions have been coming at about a once-a-month frequency from Con Ed and assorted other indedepent suppliers.

Now the knowledge that you can be switched in the middle of the contract, hurts the appeal of choosing a power source that helps save the planet.

Another issue here is: how serious is New York State, its legislators and the Governor in starting to clean up fossil burning fuel energy plants? When?

Since the approval of Con Ed rates by the Public Service Commission there have been no comments to this reporter’s knowledge criticizing the PSC 7-1 approval of  the new 2023-24-25 electric rates Con Ed began to charge.

It is unclear whether the transmission charge referred to in the letter is related to the new Con Ed approved rates.

It is also unclear whether the Fixed can now change again should grid prices go up.

Leaders of both Sustainable Westchester/Westchester Power and the 29 cities in that consortium need to be informed and should really challenge this violation of the “Fixed Rate” contract to come next November.