Con Ed looking to raise gas delivery rates 40%
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Did you know that Con Edison
is on the verge of raising the price
you pay for delivery of gas to heat
your home by 40%?
Don’t be surprised if you
haven’t heard; the proposal hasn’t
gotten much notice. But if you’re
outraged, you’re not alone. AARP
is, too, and we’re letting state utility
regulators and Governor Andrew
Cuomo know.
The 40% increase in the cost
of delivering gas used for heating
is just one part of a proposal that
would pull $1.2 billion more out
of Con Edison customers’ pockets
over the next three years, starting
in January.
The deal, proposed by the company
and the staff of the utility-regulating
state Public Service Commission
(PSC) would also raise the
cost of delivering cooking gas by
25% and electricity by 15%.
AARP is urging the PSC and
Governor Cuomo to reject this
unconscionable proposal, which
would add unreasonably high
costs to the overburdened Consolidated
Edison customers in New
York City who already pay among
the highest energy delivery rates
in the nation.
This hike would especially
BUS INES S , B ROOKLYN S T Y LE
hurt millions of moderate- and
low-income customers who struggle
to pay their utility bills month
in and month out. And Con Ed
doesn’t have a great track record
on that front.
The company’s “escalated complaint
rate” - complaints the utility
can’t resolve with the customer -
was more than double that of any
other major electric and gas utility
company in the state over the last
five years.
There’s nothing in the proposal
requiring Con Edison to bring its
escalated complaint rate down to
the statewide average.
Since 2014, about 300,000 residential
Con Edison customers
on average have been at least 60
days late paying their utility bills.
That’s about 10% of all customers.
Around 30 percent of low-income
customers – an average of 127,263
– had arrears of more than 60 days
from January 1, 2018, to March
2019, owing an average of $790.
Another 23,501 elderly, blind or
disabled customers were behind
on their bills at least 60 days as
of March 6, 2019. That’s too many
New Yorkers who can’t pay their
utility bills.
What’s more, the proposal
would force Con Edison ratepayers
to cover $39 million for subsidizing
electric vehicle charging stations –
a cost private companies should
shoulder.
The proposal ignores the PSC’s
obligation to “ensure that utility
rates are just and reasonable.”
The increases in the proposal
far exceed the inflation rate not
only for the previous three years
but projected inflation for the next
three years.
Projected decreases in the
cost of energy itself may mask
these double-digit delivery rate increases.
So the increases in total
bills – which combine the price of
energy and the cost to deliver it to
consumers’ homes – may seem reasonable.
But when energy prices
increase, delivery rates won’t decrease
- and consumers will feel
the pinch in a big way.
All of this points to the need for
better consumer protection in New
York, which is among the minority
of states lacking an independent
utility consumer advocate.
Besides rejecting this unreasonable
Con Ed rate hike, Governor
Cuomo could give New York
utility consumers such an independent
advocate simply by signing
S4399/A1966, a bill that has
already passed both houses of the
state Legislature.
The playing field needs leveling;
consumers pay over $10
million annually for Con Ed and
other utilities to hire lawyers,
economists and experts to push for
higher rates. Essentially, ratepayers
are paying their utility company
to raise their own rates.
This bill would give consumers
their own advocate to hire expert
witnesses to counter the deep
pockets of other parties – and challenge
unfair rate hikes in court.
The Con Ed proposal does increase
funding for the utility’s
low-income program and includes
an agreement by the company to
refrain from shutting off customers’
power for non-payment during
extreme heat. But it doesn’t do
enough to achieve just and reasonable
utility costs.
If you don’t want a double-digit
hike in your energy delivery rates,
tell the PSC by calling them tollfree
at 1-844-254-6881 or submitting
a comment on line at action.
aarp.org/NYConEdHike. You can
also urge Governor Cuomo to sign
the independent utility consumer
advocate bill by calling him tollfree
at 1-844-586-9562.
Beth Finkel is AARP New
York State Director and lives
in New York City.
TAKE ON EVERYTHING
NEW YORK CITY
HAS TO OFFER TODAY
Learn how at aarp.org/nyc
Today is yours for the taking. And AARP is here in our community,
helping you make the most of it. Whether you’re a family caregiver
looking for some support or have ideas to help improve your
neighborhood, we’re here to connect you to the tools you need.
So go make today and every day the best it can be, New York City.
Schneps Media November 21, 2019 17
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