Oct 25, 2008 11:53 am US/Eastern

Con Edison Wants Another Rate Hike

Utility: Rising Property Taxes, Costs Of Maintenance And Shrinking Demand Reasons Behind Unpopular Decision

Lawmaker Demands State Public Service Commission Step In

Reporting
Marcia Kramer

NEW YORK (CBS) ― Consolidated Edison wants to hit you again.

After socking city residents with the biggest one-time rate increase ever just six months ago, the utility has quietly asked state regulators for a another hike next year -- anywhere from 5.8 to 7.3 percent.

That's almost double the size of the last one.

Bob Murphy is your average Astoria homeowner -- hard working, active in the neighborhood and trying to make ends meet while raising four sons. But he has a powerful problem. Con Ed wants another rate hike.

"I'm totally outraged," Murphy said. "It's going to have an impact on everything that we do. We're already cutting back on other things, essentials."

Murphy already saw his Con Ed bill soar to over $200 a month after the utility raised rates last April, the highest single rate hike ever. And he's already cutting corners.

"We're going to cut down on electricity, absolutely. I mean I have to say that even now when it's getting a little chilly out I haven't yet put my gas on because I have to just give them an extra blanket," Murphy said.

This time the utility really wants to zap you. It wants an extra $819 million next year. Last April's hike was $425 million.

Con Ed already has the highest residential electricity rates of any utility in the 48 contiguous states with more than 50,000 customers.

* The average price-per-kilowatt hour in Chicago is 12.23 cents.

* In Los Angeles it's 11 cents.

* In Philadelphia it's 14.83 cents.

* In New York City, Con Ed charges 23.70 cents.

Assemblyman Michael Gianaris, D-Queen, regularly battles the utility. He said it is time for the state Public Service Commission, which has to approve the rate hike, to just say no.

"We know Con Edison has no shame," Gianaris said. "We know they don't care about their customers. We've been through this with them for year after year after year. The group that has to step up here is the Public Service Commission."

Con Ed spokesman Movahel Clendin defended the need for a rate hike, saying the utility is facing rising property taxes, higher costs for maintaining its system and will suffer economic loses because demand is going down.

I have mentioned most of the tax advantages and discounts when you sign up to have your gas delivered by an ESCO in NY, but one thing I did forgot to mention is that you may have the option (with some ESCO's) to "Lock in" your rate or price per therm.!! This means instead of signing a month to month variable rate contract, you can sign a one year contract and "Guarantee" the price you will be paying per/therm for your natural gas. It doesn't matter if you are a commercial or residential user, this option should be available to you. I just locked in my rate for a warehouse I rent out for storage. I feel better knowing what my bill will be every month, rather than worry about hurricanes and other things that will affect natural gas pricing adversely.

Hit by Fuel Costs, Con Ed Projects Bigger Rise in Bills

By KEN BELSON

Published: July 12, 2008

Con Edison is expecting to bill its residential customers in New York City and Westchester County 22 percent more for electricity this summer than last because of rising fuel costs, officials at the utility said on Friday.

A customer who uses 350 kilowatt-hours of power per month, a typical amount, would pay about $105, $19 more than a year ago and $8 more than an estimate at the end of May.

Business customers will most likely see their bills rise 25 percent, to an average of $2,893.08 a month.

The expected increase for June through September, detailed in an internal monthly memo and reported in The Daily News on Friday, is nearly twice the 13 percent increase that Con Edison had forecast. With natural gas prices rising and oil near record highs, the utility revised its estimates.

“It’s all due to rising fuel costs,” said Chris Olert, a spokesman for Con Edison. “We make no money on power generation. If we pay X cents per kilowatt-hour, our customers pay X cents per kilowatt-hour as well.”

Con Edison passes along its energy costs dollar-for-dollar to its 3.2 million customers, but makes money on the transmission and delivery of that power. The rates it can charge for transmission are set by state regulators in Albany; there was a 4.9 percent increase in April.

Though Con Edison routinely passes along its fuel costs, some lawmakers said that the utility’s executives should try harder to keep costs down.

“Con Ed is continuing to fleece taxpayers while giving exorbitant pay packages to its executives,” complained Eric N. Gioia, a city councilman who represents Sunnyside and other areas of Queens and is planning to run for public advocate next year. “New Yorkers deserve better.”

“In the past year, when the price of food, milk, rent and transit has gone up, New Yorkers can ill afford yet another price increase for their utility bills,” Mr. Gioia added.

According to a filing to securities regulators made by Con Edison in April, Kevin Burke, the utility’s chief executive, received $5.52 million in compensation last year, nearly $800,000 more than in 2006.

State Assemblyman Michael N. Gianaris, Democrat of Queens, said that when Con Edison gets approval from state regulators to charge more, it should explain to customers that different parts of their bills are rising at different speeds.

The average of the different categories, he said, gives customers the false impression that their bills are not increasing as fast.

I have been asked to supply the contact information of the representative who handled the accounts of the restaurants I had mentioned in an earlier post.

After speaking to my friend and then contacting the ESCO's representative to make sure it was ok and to get his permission.

I will post it for all who may be interested, just know in advance that this is for the Con Edison and KeySpan/National Grid territories in all of New York City, Queens, Brooklyn, Staten Island, parts of Westchester and/or Long Island.

I'm not sure how far upstate New York they cover at this time.

Gas Pricing
Everything will remain the same with the delivery and maintenance services you now receive. Your local utility (ConEd) will still deliver the natural gas and electric through their pipelines and wires. The safety and reliability you rely upon will not change. Your local utility (ConEd) will still handle any and all emergencies such as power outages or gas leaks 24 hours a day, 7 days a week.

 

Face to Face Service – Being local to their customer base ensures a seamless transition while bringing aboard new customers, and servicing their existing portfolio. This is something not offered by National Grid/Con Edison.

 

Winter Cap Protection - This allows their customers to take advantage of their low adjustable rates, with the security of a pricing cap, which will protect you from common winter spikes in gas prices. This is something not offered by National Grid/Con Edison. 

 

One Year Price Locks - This allows their customers to lock in their price for an entire year. This is something not offered by National Grid/Con Edison.

Fax: (631) 595-2080

AmeriStar Energy, LLC

Fax both sides (all pages) of your present (ConEd) electric bill to the following:

Attn: BP

After receipt of your fax and analyzing your statement one of the reps in the office will contact you promptly.