Albany - Increasing consumer influence over utility rate hike requests is the goal of legislation introduced by Assembly Energy Committee Chair, Kevin Cahill (D-Ulster, Dutchess). The Residential and Small Business Ratepayer Rights Act (A8722-B), which recently cleared the Energy Committee, provides funding for residents and small business owners to bolster their participation and representation in proceedings before the Public Service Commission (PSC).
"When it comes to setting utility rates in New York, the deck is stacked against the average consumer. The proof is in our ever increasing bills," said Assemblymember Cahill. "Every time you turn around, utilities that were just approved for a rate increase, like Central Hudson and Con Edison, are immediately filing for another."
Central Hudson's rates skyrocketed 30% and 19% for electric and gas service respectively between 2006 and 2009. Last year their rates again climbed 8.5% for electricity and 23.5 % for natural gas at a time when they reported a profit of $32.8 million. Con Edison, who made a $1.2 billion profit in 2008, is looking to hike monthly electric bills by another $8 following a rate increase of 6% last year.
Both Con Edison and Central Hudson have settlements pending before the PSC that, if approved, would allow for additional rate hikes over the next three years. NYSEG, RG&E and National Grid also recently filed for rate increases.
Utilities, which are regional monopolies overseen by the PSC. Commission proceedings are typically filled with technical and often confusing jargon, and do not adequately promote easy or meaningful participation by the public. Moreover, meetings usually begin at 10:30 a.m., making it unreasonably difficult for an average citizen or small business owner to attend. In many instances, hearings are attended only by utility representatives and special interest lobbyists who are paid to be there.
"Residential and small business customers deserve a representative at the table," said Assemblymember Cahill. "This bill would provide resources for them to hire experts to participate in commission proceedings to ensure their interests are taken into account."
The legislation requires a utility to provide a pool for funding residential rate payers' participation in proceedings that are tied to a particular filing. Individuals seeking to participate in utility proceedings are referred to as intervenors. Prospective intervenors must demonstrate the potential merits of their case and that participation would cause undue financial hardship in order to receive funding up front from the PSC. Once approved, resources could be used to hire representation and expert witnesses to promote the interests of residential and small business customers.
Assemblymember Cahill's bill encourages enhanced citizen participation in Public Service Commission proceedings. More public involvement would increase transparency and accountability throughout the regulatory process, potentially yielding more responsible and creative solutions to difficult issues. The Assemblymember noted that other states, like California and Michigan, provide access to similar funding pools.
The PSC will be holding public hearings tomorrow, March 11th in Kingston and Poughkeepsie regarding another rate increase request by Central Hudson. The hearing times and locations are listed below.
The Kingston area hearing takes place at 3:30pm in the Common Council chambers at Kingston City Hall, 420 Broadway. For directions to Kingston City Hall, call Assemblymember Cahill's district office at (845) 338-9610 or City Hall at (845) 331-0080. Free parking is available behind the City Hall building.
The Poughkeepsie area hearing takes place at 7:30pm in the Common Council chambers in the Poughkeepsie municipal building at 62 Civic Center Plaza, 3rd floor. For directions to the municipal building, call Assemblymember Cahill's district office or the Poughkeepsie City Hall at (845) 451-4200. Free parking is available in the City Hall parking garage, also at 62 Civic Center Plaza.