State AG's Office Has Launched Investigation Into ESCOs

GREENBURGH, N.Y. (CBSNewYork) – Buyer beware to anyone in the market for energy, electricity and natural gas, according to Greenburgh’s town supervisor.

Town Supervisor Paul Feiner said he has gotten complaints about energy service companies, or ESCOs, that compete with Con Edison.

WCBS 880’s Sean Adams reports

Feiner said many of the complaints he’s fielded have come from people who switched power companies but did not cash in on the savings they were promised by ESCOs, Feiner told WCBS 880’s Sean Adams.

“I believe that some people are being swindled and people think they’re getting good rates. They’re not. It’s almost impossible to compare the rates for ESCOs that charge with Con Ed,” Feiner told Adams.

The state Attorney General’s office has launched an investigation into the alleged deceptive practices and the Public Service Commission is holding hearings on ESCOs.

The PCS regulates ESCOs, according to the Attorney General’s office.

The AG’s office has investigated and prosecuted several dishonest ESCOs over the last decade, according to a letter it sent to Feiner.

“Many of the ESCO [customers] are poor people who want to be on ESCOs with lower rates and then after they sign up the rates go up substantially,” Feiner told Adams.

There are 19 ESCOs in Westchester, Feiner said.

Feiner is pushing for reforms to create greater pricing transparency.

Have you switched over to an ESCO? Are you happy with the rates or do you feel like you’ve been swindled? Share your comments below…

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