Understanding ESCOs

What if you could get a deal on the actual energy, and only pay your utility company to deliver it?

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They arrive on one paper, but they are actually two separate bills: One for your actual electricity or gas, and the second for maintaining the infrastructure that delivers it.

What if you got a better price on energy, while your utility company continues to deliver it? That is the idea behind MPower, one of New York State's fastest growing Energy Services Companies (ESCOs).

While large utility companies like Con Edison and O&R do sell energy, they are primarily in the delivery and servicing business, maintaining the wires and pipes, reading our meters, handling service and offering emergency assistance. As an Energy Service Company (ESCO), MPower purchases energy from the same generator plants as the big utilities who deliver it to your home or business.

While shopping around for a cell phone plan or a bank, you get to ask all the questions, getting the best service for the best price. In just the same way, you can choose the energy plan that is right for you.

ESCOs work on the basic model of business competition: the government sets its energy prices at a certain standard and does not allow large utility companies to charge below that price. This is done to allow retail companies to remain competitive, negotiating cheaper energy plans for their customers.

Until the 1970s, all electricity and gas was bought from the big utility companies. Over time, those companies merged or bought each other out. That's when Congress voted to deregulate the energy market, so customers could buy from any approved Energy Service Company, of any size.

When switching to MPower Energy, you are guaranteed uninterrupted service by your current utility company. The Public Service Commission is an independent commission that guarantees all approved ESCOs.

There are also many brokers in the industry who do not actually provide energy. These act as private valets who charge a commission to arrange your supply switch from a company such as ConEd to an ESCO such as MPower Energy. Because they are not approved to supply the energy, brokers cannot guarantee their services.

MPower Energy DBA MPE&G is an independent retail supplier of electricity and natural gas. The company is not affiliated with the utilities, the Maryland Public Service Commission, or any other government agency.