How to Switch Electricity Providers in New York: ESCO Rules and Your Rights

To switch electricity providers in New York, compare energy services company (ESCO) offers using the Department of Public Service's Power to Choose tool and ESCO listings, read the contract and the ESCO Consumers Bill of Rights, then enroll and complete third-party verification. Your utility keeps delivering your power and responding to emergencies, and residential customers can rescind an ESCO agreement within three days of receiving it.

Who regulates New York electric choice and where to compare

The New York State Public Service Commission (PSC) and its staff arm, the Department of Public Service (DPS), oversee ESCOs. The DPS's How to Shop for Utility Services page directs shoppers to its Power to Choose website to compare offers. DPS also maintains an official listing of ESCO companies regulated by the NY PSC, which shows each company's service territories. Use these official resources first, rather than relying on marketing materials.

How switching works in New York

DPS defines an ESCO as "an entity eligible to sell electricity and/or natural gas to customers" using the utility's distribution system. It also states: "Your utility will continue to deliver your energy and respond to all emergencies even if you switch to an ESCO" (NY DPS).

Part of your service	Who provides it after you switch
Electricity supply	Your ESCO
Delivery over utility lines	Your utility (unchanged)
Emergencies and outages	Your utility
Oversight	NY Public Service Commission / DPS

You can always go back. DPS says, "You can always switch back to your utility if you are not satisfied with the ESCO you chose," and if you cannot reach your ESCO, you can ask your utility to end the ESCO service (NY DPS).

New York's rules on what ESCOs can sell

New York sets unusually specific limits on ESCO products. Since April 16, 2021, according to DPS (NY DPS):

• Variable rate products must guarantee savings on an annual basis.
• Fixed rate products are limited to a price no greater than the trailing 12-month average utility supply rate.
• Renewable products must meet Clean Energy Standard requirements. These carry no price cap and no savings guarantee.

That last point matters: a renewable plan may cost more than utility supply. If you choose one, do it because you value the renewable content, and compare the price carefully. Our guide to fixed vs variable electricity plans covers the general trade-offs.

Your rights under the ESCO Consumers Bill of Rights

ESCOs must give prospective customers a copy of the ESCO Consumers Bill of Rights (NY DPS). Key rights include (NY DPS Bill of Rights):

• Rescission: you may "rescind an agreement with an ESCO within three days of receiving the agreement, if you are a residential customer."
• Disclosure of the cancellation process and any early termination fees, "which are limited by law."
• Renewal notice from the ESCO "no less than thirty days prior to the contract renewal date."

Early termination fees and cancelling later

"ESCOs can charge an Early Termination Fee (ETF) for canceling a contract before the end of term date," so check your customer disclosure statement (NY DPS). If you want to cancel after the three-day rescission window, DPS advises calling the ESCO right away and getting a cancellation number, and notes that cancellation can take several weeks to take effect.

Third-party verification and the utility letter

If you enroll by phone or in person, you will be asked to complete a Third Party Verification (TPV). DPS warns: do not complete the TPV if you did not intend to switch. Your utility then sends a verification letter, and you should check that the correct ESCO appears on your bill (NY DPS).

Is switching to an ESCO worth it?

New York's product rules are designed to protect residential customers: a variable product must guarantee annual savings, and a fixed product cannot exceed the trailing 12-month average utility supply rate (NY DPS). Even so, a fixed price at or near that average may not beat what the utility charges during the months you are actually on the contract, because utility supply prices move. A 2019 EIA analysis found that, nationally, residential customers had generally paid more per kilowatt-hour through competitive suppliers than through their utilities (EIA), so compare carefully.

Switching changes only the supply portion of your bill; delivery charges stay with your utility. To estimate the dollar impact, compare the ESCO price with your utility's recent supply charge per kWh and multiply the difference by your average monthly usage. If you are considering a renewable product, decide how much extra, if any, you are willing to pay for the renewable content, since those products have no price cap.

What to have ready before you enroll

• A recent utility bill showing your service address, supply charges and usage history.
• Your average monthly kWh and your highest-use month.
• Details of any current ESCO contract, including its end date and early termination fee.
• Notes on the offer: product type, price, term, fees and renewal terms, so you can check the written agreement within the three-day rescission window.

Reading your bill after the switch

Once the switch takes effect, your bill should show your new ESCO as the supplier, with generation or supply charges based on the price in your contract. The delivery section, including your utility's distribution charges, should look the same as before. Compare the supply price per kWh on that first bill with your contract. If it does not match, contact the ESCO first, and keep a record of the call. If the problem is not fixed, you can bring it to the Department of Public Service.

Step-by-step checklist: switching to an ESCO in New York

1. Review your current bill. Note your monthly kWh usage, your utility's supply charge, and whether you already have an ESCO.
2. Check the official ESCO list on the DPS site to see which ESCOs serve your utility territory.
3. Compare offers using the DPS Power to Choose tool linked from the How to Shop page.
4. Classify each offer: variable with guaranteed savings, fixed (capped at the trailing 12-month average utility supply rate), or renewable (no cap or savings guarantee).
5. Read the contract and disclosure statement: price, term, early termination fee and renewal terms.
6. Get the ESCO Consumers Bill of Rights and keep it with your contract.
7. Enroll and complete TPV only if you intend to switch.
8. Use your three-day rescission right if anything in the agreement is not what you were told.
9. Watch for the utility's verification letter and confirm the ESCO name on your next bill.
10. Calendar your renewal date. You should get notice at least 30 days before renewal; compare again then.

Red flags

• Door-to-door marketers who do not identify themselves. DPS says they must identify themselves and their ESCO, must not present as utility representatives, must show ID, and must provide a business card and a copy of the Consumer Bill of Rights. "A customer can request that the ESCO marketer leave the premises at any time" (NY DPS).
• Being asked to complete a TPV call for a switch you did not agree to.
• A fixed-rate offer you cannot compare with the utility's trailing average supply rate.
• A renewable plan sold with promises of savings, when DPS says such products carry no savings guarantee.
• No written disclosure of early termination fees.

Next steps

See what New Yorkers typically pay on our New York electricity rates page and check how other choice states compare in our deregulated electricity states guide. Then plug an ESCO's price into the electric bill calculator to see how it would change your monthly bill.