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The Public Utility Law Project
Electronic Newsletter
October 10, 2008
PSC Typical Electrical Bills Show Trend of Higher Prices and Volatility
The New York PSC publishes a snapshot report of typical electric and gas bills of the major investor owned utilities twice a year, in January and July. A “typical bill” chart dramatically shows the effect of the advent of the NYISO in November 1999. Prices began to spike by the summer of 2000 for the utilities that did not have fixed rate plans, which the PSC staff is still trying to stamp out. National Grid's residential bills, for example, remain relatively stable, but that is due to its long term rate plan that protected small customers. That plan will expire in 2011. National Grid's large customers, on the other hand, are exposed to NYISO prices, to their detriment. As a result of this system, New York's electric rates and bills are increasing faster than the bills of customers in the 35 states that did not attempt to deregulate the generation sector of the electricity industry. States that had not "restructured" when Enron went bankrupt in 2001 pulled back from the brink in time to keep state jurisdiction over the price of electricity generation, instead of ceding it to FERC. FERC, still under sway of the merchant power and energy trading interests, essentially is trying to deregulate wholesale energy under a so-called "market-regulated" regime of dubious legality. Research shows the obvious, that energy cost unpredictability creates serious difficulties for customers trying to manage their household budgets. Social Security checks are not adjusted to accommodate the price spikes fostered by the PSC.
MORE --http://pulpnetwork.blogspot.com/2008/10/psc-typical-electrical-bills-show-trend.html
PSC Policies Foster Increase in Utility Service Terminations as a Collection Tactic
An AP report published Monday, October 6th in the Albany Times Union reveals that gas and electric utility shut-offs "have been running 17 percent higher than last year among customers of New York state's major utilities," causing "more than 230,000 residential customers of New York's 10 major utilities to have their service shut off for nonpayment through August of this year." At that rate, the utilities will interrupt service deliberately to 345,000 customers this year as a bill collection tactic. The AP data is consistent with data PULP has received in the discovery process in the pending National Grid gas case. A follow-on New York Times blog story also indicates that Con Edison terminations of service for nonpayment of bills are on the rise. The thrust of the AP and Times stories is that the rise in terminations is due to higher energy costs and worsening household finances. We think there is more to the story than that. Newsday did a follow-on story to the AP report and looked at the terminations of Long Island Power Authority (“LIPA”) customers for nonpayment of bills. The article reported that disconnections actually dropped in the past year. How is it that the investor-owned utilities regulated by the PSC are increasing terminations for nonpayment when the publicly owned utility has decreased them? We suggest that the difference is attributable to PSC and OTDA policies that undermine the statutory HEFPA and utility assistance safety nets created in 1981.
MORE --http://pulpnetwork.blogspot.com/2008/10/psc-policies-foster-increase-in-utility.html
No Electricity: Middletown Residents in Critical Condition from Lantern Fire
Three people in Middletown, NY were severely burned when their kerosene lantern exploded as they were filling it with Coleman liquid gas Wednesday evening. According to the Middletown Times Herald Record, the family was using a kerosene lantern for light because they couldn’t afford to pay their utility bill. The power had been turned off earlier that day. The family purchased a kerosene lamp for light and heat but mistakenly filled it with a liquid gas intended for outdoor cooking appliances, officials said. This ignited an explosion similar to a bomb. “Hopefully, this is not a precursor to other tragedies that are going to happen because people are not able to afford heat and electricity,” Lt. Paul Rickard said. “When they turn to these alternatives, they don’t understand the risks.” The family, which also didn’t have a telephone in the home, remains hospitalized in critical condition. Because utility customers should have opportunities to avoid termination through repayment plans and other HEFPA protections, and because customers without the means to avoid a valid termination should be able to receive emergency utility assistance to prevent termination of service, PULP believes there should be a thorough, independent investigation of this matter to identify any weaknesses in utility, PSC, or social services practices. Also, in the past decade, low cost telephone Lifeline service to New York State’s low income residents has declined by more than 400,000, and a growing number of New Yorkers lack home phone service needed to reach emergency services.
MORE --http://pulpnetwork.blogspot.com/2008/10/no-electricity-middletown-residents-in.html
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THE PUBLIC UTILITY LAW PROJECT OF NEW YORK, INC., IS A NOT-FOR-PROFIT ORGANIZATION WHICH HAS REPRESENTED THE INTERESTS OF LOW INCOME UTILITY CONSUMERS SINCE 1981, ADVANCING UNIVERSAL SERVICE, AFFORDABILITY, AND CUSTOMER PROTECTION.
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