Gotham Gazette

The Place for New York Policy and politics

Open Government

Open Government

Choosing Your Power


Most New Yorkers know they can choose their own local, long-distance, mobile phone and Internet service provider. After all, everyone has gotten countless telephone calls from salesmen trying to entice us with discounts and freebies to switch to their service. But, few New Yorkers realize that they can also save money by choosing our own energy company. Despite this, we are continually leaving our lights, air conditioning and computers on all day, and jumping at the sight of our Con Edison bills.

Just as you pay bills to Verizon, but can get long-distance from AT&T or Sprint, so Con Edison can still deliver your energy even if you get it from someone else. In the past three years, over 100,000 customers have decided to choose alternate energy suppliers. However, this is only a small portion of Con Edison's three million customers in New York City and Westchester County.

Why haven't more customers chosen their own energy companies? Many of us still do not know what the benefits are. Others may be skeptical of energy companies that they have not heard of. Still others may be reluctant to pay two separate bills depending on their new energy provider's billing system. Others may not be confident in this fairly new program. And many simply do not know about it, because the marketing has not been as aggressive.

Recently, Con Edison launched a new program called "Power Your Way" in order to inform customers of their choices. You should have received a brochure about this program with your recent energy bill. The New York State Department of Public Service also provides detailed information to consumers interested in choosing our own energy services companies (ESCOs). The Public Service Commission encourages the public to participate in the evaluation of this program by offering their views and opinions via their web site or by phone.

The cost of gas and electricity represents more than 50 percent of your utility bill. So, while the delivery of energy stays more or less the same, you might be able to save money by switching to a supplier with pricing or service plans that better meet your needs. For example, energy services companies offer either fixed-rate and variable pricing plans. One company, ECONnergy promises you an annual savings of 10 percent. In addition, some energy companies offer special services to better estimate your gas and electric use.

The Power Your Way program includes over 20 additional energy service companies for homes and almost 30 for businesses, all of which have been approved by the New York State Public Service Commission. When evaluating companies, you should compare the Market Supply Price that they offer for gas and electricity.

Prior to 1996, New York State's regulations did not allow more than one gas supplier in each market. Thus, consumers could not choose among different energy providers. However, in 1996, gas was deregulated, meaning that the government removed the regulations in order to encourage more competition between energy providers. Usually, having more firms in each market decreases the price of the utility because customers will be able to choose the company with the lowest price. Similarly, in 1998, competition was introduced into the electricity market.

In California, deregulation of electricity markets failed miserably and led to soaring power prices. California laws allowed consumers to choose their own and be billed directly by their electricity company. But, it placed a limit on the prices that could be charged. So, when their costs went up, the utility companies nearly went bankrupt. Last month, state utility regulators revoked the right of Californians to choose their own electricity company.

New York State's program differs from California's in that the Public Service Commission has not imposed a price cap. Thus if energy costs rise, your bill will go up too. This should help to safeguard against draining energy companies of cash and credit when gas and electric costs increase.

If you choose a new energy provider, Con Edison will still deliver your energy and provide emergency service. But, Con Edison has sold most of its power plants in order to help encourage competition, so it no longer produces the energy it delivers to your home or business. Depending on the company you choose, your new bill may include charges from Con Edison or you may receive two bills, one for energy supply and one for delivery. In fact, you could end up receiving three separate bills, one for gas, one for electric and one for delivery.

As the autumn weather gets cooler, reminding us to take out our wool sweaters and turn up the heat, New Yorkers may want to take some time out to scrutinize our energy bills. In this tight economy, even a small monthly savings on gas and electric may help cut costs in the long run.

Laura Forlano is a doctoral student studying communication technology policy at Columbia University.

Mayoral Election


New York City's election machinery was surprisingly prepared to accept our votes and our democratic participation during the postponed primary on September 25. The city's 1,300 polling places buzzed with 750,000 of us who went to the polls, surprising the commentators who had speculated that the city was not ready just two weeks after a terrorist attack to think about a local election. We were at least tentatively ready to engage in shaping our city, choosing the City Council members, public advocate, and -- yes -- mayor who will represent us over the next four years as we rebuild our downtown, our economy, and our confidence.

Still, we are a changed city. The slogans of early September - "better schools, safer streets," "real results for real people" - seemed right on point for a local election in prosperous times but have little resonance with an electorate still grappling with an unprecedented loss of life, security, and confidence. The candidates seemed to recognize this; they didn't even try to campaign during the two weeks between the attacks and the re-scheduled primary.

Now, just days before the run-off for the Democratic nomination for mayor and public advocate and only a month before the general election, the electoral process must come back to life. New York City's voters face what is arguably the most important decision they will ever make in selecting the leaders of our city government. It is plain that the stakes for the future of our city could not be higher.

We don't need the petty squabbles that often mark political campaigns, but we must have a real debate among our potential leaders about the New York's future. They must show us their vision. We must test their mettle. The candidates must go back to the campaign trail - walking a tightrope that requires them to acknowledge the nearly unspeakable gravity of what happened on September 11, while somehow articulating and demonstrating why they should lead the city.

Given the formidable, but crucial, task facing Mark Green, Fernando Ferrer, and Michael Bloomberg, it is understandable that many people have turned back to Mayor Rudy Giuliani. We don't really know these men, and Giuliani set a new standard of crisis leadership as he guided the city in the weeks following the September 11 attacks. It is also understandable, if not particularly responsible, that Mayor Giuliani has not just welcomed but has encouraged speculation over whether he can turn all the rules on their head to run again or extend his term.

The mayor's position on this issue is in flux as the candidates and other politicians announce their different positions, so this question could either be resolved or further complicated by the time you read this. But from this vantage point -- days after the primary -- Giuliani's flirtation with staying in office is hardly a step forward in rebuilding the city. The mayoral candidates need the opportunity to demonstrate their vision and agenda to the city's voters. They don't need to be distracted by this maneuvering. And the voters don't need to be distracted by these machinations: Can Giuliani convince the Democratic State Assembly to repeal term limits, and then how does he get on the ballot? Would it be possible for him to win a write-in campaign? Can he run on the Conservative line? How does he go about extending his term? Is that legal? What will he do if only some of the candidates agree to an extension?

There is an awful lot of drama in following this story, but it doesn't help the City choose its next leader. We need, instead, to be looking at the candidates closely, asking hard questions. The task before the candidates during this unusual campaign season will require remarkable political skill as well as vision and plans. This will be a hard but necessary test for the men who would be our next mayor. Our democracy is not so fragile that the process must defer to Giuliani - and it's highly debatable whether that's what the city really wants. What we need now is a vibrant election to choose a mayor, not a potentially bitter fight about keeping the old one.

Susan Reefer is a Republican pollster and media strategist. She is based in New York City.

Damage And Restoration To Electricity, Phones, TV


The September 11 attacks on the World Trade Center caused significant damage to New York City's electric, gas, broadcasting and telecommunication networks in lower Manhattan. The effects rippled throughout the tri-state area. As Senator Clinton told CBS news on September 17, we must make sure that our electricity and communication networks are restored quickly and efficiently. Because each of these networks relies on the smooth functioning of the other, it is important that electric, gas, water, transportation and communications networks are restored in harmony. Below is a brief recap of the damage done to our infrastructures and the efforts that have been taken to restore services in lower Manhattan.

Electricity

Electric, gas and steam service was down in a large part of lower Manhattan due to a combination of equipment problems caused by the attacks and the fire at 7 World Trade Center. The fire and collapse of 7 World Trade Center permanently damaged Con Edison's energy infrastructure because two substations and major electric transmission cables were located in the immediate area. An additional substation near South Street Seaport also lost service. The destruction of these three substations left five electricity networks without power in lower Manhattan. In addition, the gas system in a 30-block area was cut off from the energy infrastructure.

The attacks left 12,000 customers without electric power. Due to interruptions in telephone service caused by the attacks, it was difficult for people to call for emergency services and report electricity outages. As a result, Con Edison added the following additional customer service and emergency lines: 212-243-1900 and 800-75-CONED.

Since the crisis, 1,900 Con Edison crews have worked to inspect and test equipment in order to restore service to lower Manhattan. At first, temporary generators were used to restore electricity to streetlights, residences and businesses in the affected areas. By September 17, power had been restored to more than 5,000 customers in lower Manhattan. Con Edison is urging customers not to use air conditioners and other high-energy devices and to limit their electric usage to only essential needs. This is because the attacks damaged the electric distribution infrastructure. This infrastructure manages the distribution of energy to meet the city's normally high demand. Damaged electric cables and transmission lines have been removed from the network and more than 26 miles of new high-voltage cable has been laid. The company is continuing to work with the government in order to restore full-service to lower Manhattan.

Broadcasting & Telecommunications
Radio and television broadcasting throughout the New York tri-state areas was disrupted as a result of the destruction of the 300-foot broadcasting tower leaving many New Yorkers without access to news and information about the attacks. Time Warner Cable www.aoltimewarner.com was able to keep broadcast stations on the air using fiber-optic links after the destruction of the antenna. I was only able to receive broadcasts from CBS for most of the first day of the crisis. Many stations made arrangements to be rebroadcast on other stations but full-service has still not been restored to broadcast audiences.

The attacks destroyed the Verizon offices at the World Trade Center where 488 people worked, most of whom have been accounted for. This knocked out service to ten wireless cells because calls were connected through the World Trade Center offices. In addition, Verizon's switching center directly across from the World Trade Centers suffered structural and water damage and was isolated from the telecommunication network. This caused a loss of 200,000 phone lines and three million data networks and the displacement of 1,737 workers. In addition, landline and wireless telecommunication networks were overloaded due to the doubling of call volume which is normally 115 million calls per day. Calls to directory assistance were also doubled. As of September 19, 14,000 businesses and 13,000 residences were still without phone service.

Following the attacks, Verizon provided free calls at all of Manhattan's 4,000 pay phones and supplied 5,000 cellular phones to emergency workers. In addition, additional payphone and cell phone facilities were deployed in the disaster area to provide additional service to emergency workers. Hundreds of technicians were deployed to the disaster area in order to restore data and phone service to emergency services, the New York Stock Exchange and the financial district. This allowed the New York Stock Exchange to open successfully on September 17. In addition, phone calls to businesses in the affected areas were rerouted to other offices. Verizon is continuing to work to restore full-service to lower Manhattan.

Laura Forlano is a doctoral student studying communication technology policy at Columbia University.



Print Friendly and PDF

Editor's Choice


Gotham Gazette: New York Voters Approve $4.2 Billion Environmental Bond Act
New York Voters Approve $4.2 Billion Environmental Bond Act
Gotham Gazette: 
New York City Voters Approve Racial Justice Ballot Measures
New York City Voters Approve Racial Justice Ballot Measures
Gotham Gazette: 
Housing Development in New York City Slows to a Crawl as Officials Debate Tax Incentives
Housing Development in New York City Slows to a Crawl as Officials Debate Tax Incentives
Gotham Gazette: 
City Council Examines Low Voter Turnout, Moving Local Elections to Even Years City Council Examines Low Voter Turnout, Moving Local Elections to Even Years