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PULP E-Mail News
The Public Utility Law Project
Electronic Newsletter
November 24, 2009
Private Utility Assistance Programs for New York's Low Income Customers
In addition to the federally funded Home Energy Assistance Program (“HEAP”) and the state/local funded emergency utility assistance program, funded with public dollars, New York's investor owned utilities have a variety of programs designed to assist low income customers having difficulty in paying their utility bills. These utility sponsored programs, some run with charitable funds and some approved by the New York State Public Service Commission (“PSC”) to use ratepayer funds, do not come close to addressing the affordability issue that has resulted in more than 300,000 New York utility customers per year being shut off as part of bill collection efforts. The utility programs typically are small, and most have restrictive eligibility conditions. Some utility programs involve participation in arrangements designed to increase utility collections from customers, and steer the customer's HEAP benefits to reduce arrears that built up in prior years, sweetened with some "arrears forgiveness" incentives for participants who pay their current bills in full. These "assistance" programs are designed explicitly to cost-effectively glean more revenue from the customer than the company would otherwise receive. A summary of the private utility programs for low income customers, prepared by the PSC, is posted at the PULP website. It contains a brief description of the programs and provides contact information for those seeking more information about applying.
MORE -- http://pulpnetwork.blogspot.com/2009/11/private-utility-assistance-programs-for.html
Will "Smart" Meters Pass The Test of Time?
"Smart" meters are being sold as the best thing since sliced bread, though we remain skeptical. Until recently, PULP assumed the new hi-tech "smart" meters and associated software systems worked, and mainly questioned the wisdom of a policy to destabilize prices and the cost of ubiquitous deployment. But the recent fuss in California has raised a number of doubts about the new computer-based meters. If you think about it, the new "smart" meters that communicate customer usage data to the utility's central computer billing system are analogous to using a computer, a digital clock, and a cellphone or modem outdoors, 24 hours a day, 7 days a week. How often do such computer chips, cellphones, digital clocks, and software fail? It may be that the new meters pass lab bench tests for accuracy, but other variables could cause them to fail, such as power surges, heat, cold, humidity, or the software that connects the transmitted data to individual customer accounts might be faulty. In fact, according to a company that analyzes the average time between breakdowns of computer equipment, there are some indications of a much higher rate of failure for the new "smart" meters now being hyped and rolled out. As pilot "smart" meter projects get underway, it is important for utilities and their regulators to insist upon getting, sharing, and analyzing data about "smart" meter system failures so that research based evidence is obtained on the reliability and life-cycle cost of the "smart" hardware and software products.
MORE -- http://pulpnetwork.blogspot.com/2009/11/will-smart-meters-pass-test-of-time.html
Universal Telephone Service Reform Slowly Begins in New York
In the telephone world, Universal Service means that for every location, telephone service can be had by all at a reasonable rate. In order to accomplish this goal, which dates back to the original Communications Act of 1934, carriers providing service in "high cost areas" (such as rural and remote locations) can receive financial support so that their end user customers pay about what people in urban and suburban areas are charged. In addition, low income customers, regardless of where they are located, can receive assistance to ensure they can afford to pay the "reasonable rates" charged by the phone companies. In New York, local exchange carriers providing service in high cost areas are eligible to receive funds from the Transition Fund. When this fund was created in January 2004, the New York State Public Service Commission ("PSC") announced that when it determines that the Transition Fund only has about 18 months worth of funds remaining, a proceeding would be initiated to determine what, if anything, should replace it. That time is now upon us, so the PSC launched a new proceeding to examine Universal Service, including the future of the Targeted Accessibility Fund ("TAF"), which provides support for, among other things, the Lifeline discount telephone service. Comments were due on November 20th regarding how to ascertain the level of competition in high cost areas as a threshold issue to resolving the future of the Transition Fund. PULP commented that this analysis needs to be broad, but that consideration of TAF issues should not wait until after the future of the Transition Fund is resolved.
MORE -- http://pulpnetwork.blogspot.com/2009/11/universal-telephone-service-reform.html
State High Court Upholds Decision Denying Refunds in Inmate Phone Rate Case
On November 23rd, the New York State Court of Appeals issued its decision in Walton v. New York State Department of Correctional Services, upholding a ruling of the Appellate Division, Third Department which held that the families of inmates in state prisons could not receive refunds for the "commissions" paid to the prisons through high rates they paid for collect calls from inmates. In 1996, the state Department of Correctional Services ("DOCS") created a telephone calling system that allowed inmates to contact family, friends, and legal services providers using coinless pay telephones without operator assistance. MCI was awarded the contract to provide the inmate calling service and in exchange for receiving exclusive access to inmates and their call recipients, MCI agreed to pay DOCS a commission on each call. Â In 2003, the rates were set at a $3.00 per call plus 16 cents per minute, plus the DOCS commissions at 57.5%. Then-Governor Spitzer changed executive policy and required DOCS to discontinue the practice of collecting commissions on inmate calls and the Legislature also acted on April 1, 2008 by making it unlawful for DOCS to accept or receive revenue in excess of its reasonable operating costs for administering an inmate calling system. After the commission system ended in 2008, the families of the inmates sought refunds claiming that the DOCS commissions were unlawful. The Court found that the commissions were expenses incurred by the telephone service provider and not a tax, comparable to other types of operating costs that are encompassed within the tariff filed with the PSC and charged to customers, and not subject to refund.
MORE -- http://pulpnetwork.blogspot.com/2009/11/state-high-court-upholds-decision.html
Prior editions of the PULP E-Mail News are available HERE
For articles about current energy, telecom, and utility issues, visit the PULP Network Blog (www.pulpnetwork.blogspot.com).
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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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