EPPA recommends two firms as an alternative to Con Edison.

In a long-awaited announcement concerning energy deregulation, the Electric Power Procurement Alliance (EPPA), an alliance of four professional associations which represents the interests of nearly one-third of the electrical lead of New York City's commercial and residential tenants, has recommended two private energy companies as alternatives to Con Edison.

White Plains, NY-based Con Edison Solutions and California-based New Energy Ventures L.L.C. (NEV) were selected by EPPA among 12 competing private energy companies because, among other benefits, they both offer guaranteed minimum savings, including taxes, on monthly electric bills.

EPPA, comprised of four groups - Associated Builders & Owners of Greater New York (ABe), the Building Owners' and Managers' Association (BOMA), the Owners' Committee on Electric Rates (OCER), and the Rent Stabilization Association (RSA) - was created in September of 1997 to interview prospective private energy service providers and make recommendations to its members.

EPPA has taken an aggressive lead in creating an alliance of both residential and commercial owners of properties, and because of its sheer size, has been able to negotiate the most favorable terms for its constituents.

"Size is the key," said Peter L. DiCapua, president of OCER and spokesperson for EPPA. "The primary thing that has changed with electricity under deregulation is that large buyers can now negotiate supply price. EPPA represents such a large group of electricity users that we immediately got the attention of the majority of private vendors competing for Con Ed's business. After months of interviewing as many as 12 private suppliers, we feel confident we have negotiated the best possible terms with New Energy Ventures-East and Con Edison Solutions."

New Energy Ventures-Fast will offer a diverse menu of guaranteed fixed discounts off the total monthly bill, DiCapua said. Con Edison Solutions will also offer various guaranteed discount options, including savings packages for gas and steam in addition to electric, he added.

The deregulation process in New York City will formally launch on April 1st, when users will have an opportunity to choose an alternative electricity provider or remain with Con Edison. The deadline for submitting choices for a new supplier is April 30th, and new service will become effective June 1st. Per an agreement with the state Public Service Commission (PSC), Con Ed will permit approximately 63,000 customers to opt for alternative electricity vendors in the first phase of deregulation.

In fact, as an incentive to participate in the new supplier program, Con Edison, which has accumulated a pool of $5 million per an agreement with the PSC, will offer between $50 and $75 to residential and small commercial users who agree to choose one of its competitors.

The deregulation program will unroll over a period of four years, so that eventually, all users will be free to buy their electricity from private suppliers.

"What this means for the average New York City apartment dweller," observed Louise Merman, senior vice president of Marketing and Economic Development for the New York Power Authority, "is that he/she will have a choicer of supplier and an opportunity to save on monthly bills. EPPA has helped people who might not otherwise be inclined to choose a deregulated electricity provider."

"After a long, thorough search and review of proposals, we believe we have negotiated the most reasonable plan for our combined membership," said Nicholas LaPorte, executive director of ABe. "The strength of our numbers will only enhance our savings further."

Michael Printz, director of Marketing & Sales for the RSA, added, "Once again, RSA has fulfilled its mission statement by representing the residential real estate industry through our EPPA negotiations, while ensuring that our members receive the greatest benefits and savings possible under the first phase of electric deregulation."

Christopher Brown, chairman of BOMA's Energy Committee, said "BOMA is pleased to be able to simplify the retail access decision-making process for our members if they choose to consider the very complete, very competitive proposals recommended by EPPA."

According to New Energy Ventures-East President Gerald L. Lieherman, "Since last summer, when NEV delivered discounted power to more than two-thirds of the eligible businesses in Rhode Island choosing to leave their utility supplier, we have emphasized our commitment to provide the lowest cost energy available. This alliance of New York City's energy users will now get that low-cost philosophy, plus a package of products and services to help them efficiently manage their energy use."

Founded by Michael Peevey, former president of Southern California Edison, New Energy Ventures is the nation's largest buying group and non-utility electricity supplier. The company has offices in New York, Boston, Philadelphia, Rochester, Los Angeles, Oakland, and Chicago, and it is 50 percent owned by Tuscon Electric Power.

Con Edison Solutions is an unregulated subsidiary of New York City-based Consolidated Edison, Inc, one of the nation's largest investor-owned energy companies, with nearly $7 billion in annual revenues and $14 billion in assets. With offices in Reading, PA, and Houston, TX, Con Edison Solutions delivers energy acquisition, energy management and technology integration services to business, government and residential customers throughout the Northeast.