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PULP E-Mail News
The Public Utility Law Project
Electronic Newsletter
March 27, 2009
Noted Economist Amartya Sen Urges Stimulus Focus on Poor; New York State Poverty Rate Hits 14%
During this national economic crisis, responses to stimulate the economy should have a major emphasis on addressing needs of the poor. As recently observed by Nobel Prize winning economist Amartya Sen:
There is a critical need for paying special attention to the underdogs of society in planning a response to the current crisis, and in going beyond measures to produce general economic expansion. Families threatened with unemployment, with lack of medical care, and with social as well as economic deprivation have been hit particularly hard. The limitations of Keynesian economics to address their problems demand much greater recognition.
In its 2009 New York State Poverty Report, the New York State Community Action Association (“NYSCAA”) reports New York has a poverty rate of 14 percent, the 16th highest poverty rate in the nation, exceeding the national poverty rate of 13.3 percent and the rates of all Northeastern and Midwestern states. NYSCAA found that more than 2.6 million New Yorkers are living below the official poverty line, including more than 860,000 children. In addition, the poverty rates in upstate cities have increased and now more than 40 percent of children in Buffalo, Rochester, Syracuse, and Utica are living below the poverty line.
MORE -- http://pulpnetwork.blogspot.com/2009/03/new-york-state-poverty-rate-in-hits-14.html
Under HEFPA, the New York PSC Must Decide Complaints of Submetered Customers
The New York State Public Service Commission (“PSC”) over the years approved a variety of confusing complaint resolution procedures in its submetering orders which waive the general ban on resale of electric service, despite the fact that the Home Energy Fair Practices Act ("HEFPA") requires the PSC to adjudicate complaints of residential utility customers. Longstanding PSC regulations require submetering landlords to provide consumer protections consistent with HEFPA, and statutory and regulatory measures adopted in 2002 recognize that submetering landlords are utilities and that the PSC has no power to waive any HEFPA requirements, including those related to complaint adjudication. Inexplicably, many submetering orders since then continued to contain references to complaint adjudication by entities other than the PSC. Often the complaint procedures and information given by landlords to tenants will mention that HEFPA applies and that the customer can "contact" the PSC. The materials do not, however, clearly advise the customer that they have a right under HEFPA to have their complaint about electric service decided administratively by the PSC. In a March 23rd Memorandum, PULP reviewed the alternative complaint resolution procedures adopted in the past by landlords with PSC approval. We concluded that the PSC is the body required by law to decide residential utility customer disputes, it has no authority to require submetered customers to have their disputes decided by other bodies, and cannot waive any requirements of utilities (submeterers), including the duty of the service provider to have a prompt internal complaint resolution process and to notify the customer of the availability of the PSC complaint handling procedures. Submetered electric customers should not be deterred or misled by misleading or erroneous language in their leases or other materials provided by their landlords into thinking that they must pursue remedies in costly, overly formal, and time consuming proceedings in other forums, such as court or arbitration.
MORE -- http://pulpnetwork.blogspot.com/2009/03/under-hefpa-psc-decides-complaints-of.html
PSC Asked to Reconsider Its Approval of Four Years of Submetering by a Landlord Without an Order Waiving the Prohibition Against Resale of Electricity
PULP previously wrote about a case where a White Plains landlord sold electricity to its tenants for several years without seeking a Public Service Commission (“PSC”) order waiving the general prohibition of residential submetering contained in PSC regulations and Con Edison tariffs. An elderly blind tenant represented by PULP objected to the Landlord's petition seeking retroactive approval. In a February 2009 order, the PSC granted the landlord's request. On March 25th, a motion for rehearing was filed on behalf of the tenant, arguing that the decision to retroactively approve submetering is affected by errors of fact and law, and that new evidence supports revisiting the decision, including evidence that the grievance process approved by the Commission and implemented by the landlord clashes with statutory utility consumer protections. The motion further argues that the Commission, by allowing the landlord to benefit from submetering without permission for 51 months, in violation of longstanding rules and tariffs, will foster disrespect for the Commission and its rules.
MORE -- http://pulpnetwork.blogspot.com/2009/03/psc-asked-to-rehear-decision.html
PULP Launches Lifeline Discount Telephone Service Comparison Chart
A chart which compares the major providers of Lifeline discount telephone service in New York is now available on the PULP Web Page. The chart includes data from Verizon, Frontier/Citizens, Windstream Communications (formerly ALLTEL), Sprint PCS, and TracFone SafeLink. It compares the monthly cost of each provider’s service, how many minutes are included, applicable taxes and surcharges, whether there are activation fees, the cost of additional minutes (overages), whether a new phone must be purchased, and whether a contract is required. The chart also illustrates the eligibility criteria for Lifeline service. The number of Lifeline customers in New York has dropped by 400,000 over the past 10 years, even though the number of eligible customers has increased dramatically. While the figures for 2008 are not yet available, there are only about 300,000 customers currently receiving Lifeline assistance in New York.
MORE -- http://pulpnetwork.blogspot.com/2009/03/pulp-launches-lifeline-discount_27.html
Wellinghoff Designated Chairman of FERC by President Obama
On March 19th, President Obama announced the designation of Jon Wellinghoff to be Chairman of FERC. For a brief period, Wellinghoff was Acting Chairman. President Obama also renominated Commissioner Suedeen Kelly for another five-year term. This brings to an end speculation that the direction of FERC might be significantly changed in the Obama Administration. All of the sitting Commissioners were initially appointed by former President George W. Bush and they are all from Western states that did not “restructure” their utilities to rely on wholesale spot market rates virtually unregulated by FERC, as New York did.
MORE -- http://pulpnetwork.blogspot.com/2009/03/wellinghoff-designated-chairman-of-ferc.html
Digital TV Converter Box Coupon Program Waiting List Cleared
The National Telecommunications and Information Administration (“NTIA”) announced on March 24th that it has begun to accept requests from eligible households whose digital TV converter box coupons expired without being redeemed. NTIA was provided with funds from the American Recovery and Reinvestment Act to clear the waiting list for converter box coupons and began releasing them again. Consumers may apply for coupons, including replacement coupons, in accordance with existing program application rules. The turnaround time to process coupon requests is expected to be a maximum of nine business days. The digital television transition is now slated to occur on June 12th.
MORE -- www.dtv2009.gov
MORE -- http://www.ntia.doc.gov/press/2009/DTV_ReplacementCoupons_090324.html
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