Gov. Hochul orders audit into utility profits amid surge in customer bills
Central Hudson, O&R and NYSEG customers have provided copies of their bills, which show increases in their monthly charges by hundreds of dollars since November, with amounts due as high as thousands of dollars.
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Hundreds of outraged energy customers are reaching out to News 12 about sudden spikes in their utility bills that they say have suddenly doubled or even tripled what they normally pay.
Central Hudson, O&R and NYSEG customers have provided copies of their bills, which show increases in their monthly charges by hundreds of dollars since November, with amounts due as high as thousands of dollars.
“I have to work overtime to pay my electric bill,” says Robert Caracelli, from Rock Hill. “I cringe when I open my bill.”
Here’s what News 12 has learned.
“What we are seeing is an increase in usage which has put upward pressure on supply prices,” said Joe Jenkins, a spokesperson for Central Hudson.
Jenkins says part of the increases on Central Hudson invoices are due to customers using more energy during the last few unusually cold winter months this year. News 12 also asked the company spokesperson about their delivery costs after customers questioned why they’re more than the actual energy usage. The company says the Public Service Commission-regulated rate covers expensive state-mandated system upgrades and rising operating expenses.
“Delivery rates are a lot of things,” says Jenkins. “Clean energy initiatives make up to 14% of delivery charges right now. There’s a perception that delivery charges are shipping and handling. That’s an oversimplification of what it really is.”
Other bills News 12 has received from NYSEG customers show a 40-percent increase in supply charges since November.
“Supply charges can change with decrease supply, high demand and geopolitical situations,” says Laurie Wheelock, executive director for the consumer advocacy group Public Utility Law Project (PULP). “This winter has been colder. We’ve had more snow and ice and freezing rain than we did last winter. More people are staying inside. They’re using electric more and so all of it together is resulting in higher bills for people.”
Wheelock and a representative for NYSEG says supply charges are unregulated in New York and set by the New York Independent System Operator (NYISO).
NYISO Vice President of External Affairs and Corporate Communications Kevin Lanahan says, “The NYISO is an independent, 501c3 non-profit organization responsible for maintaining reliability of the grid and overseeing the competitive electric markets in New York. We cannot control the price of electricity or natural gas and any suggestion to the contrary is misleading. We take seriously our role in ensuring that all market participants adhere to strict rules and requirements and participate in the competitive markets with transparency and fairness.”
Lanahan says wintry weather continues to impact much of the nation, resulting in an increased demand from residential and commercial customers using natural gas for space heating. In turn, he says, the price of natural gas has gone up due to the severity of the cold weather as well as national pipeline capacity constraints.
Lawmakers, like Sen. James Skoufis, are attempting to crack down on the surge in energy prices with measures to cap utility profits.
"I'm sick and tired of my constituents getting ripped off by utility companies. It's why I am introducing legislation to cap utility profits at 4% - the industry standard is upwards of 9% - and am continuing to work through billing questions and concerns that ratepayers bring to my office. I'm hell-bent on holding these utility companies accountable to their customers instead of their shareholders,” says Skoufis.
Gov. Kathy Hochul has also ordered audits into utility companies statewide.
“The governor is very concerned about the high cost of utilities statewide and has directed the Department of Public Service to audit utility incentive compensation and review other approaches to assist customers to lower their bills. It is also why we have protections in place for low-income households that should explore whether they are eligible for discounts from their utility,” says deputy communications director Paul DeMichele.
Representatives with PULP say help is also available for moderate-income families. Anyone who believes their bill is inaccurate or would like to find out if they are eligible for discounts can contact the Department of Public Service at 800-342-3377.
Consumers who believe that the utility has been slow in resolving complaints, are encouraged to contact the PSC or file a complaint by visiting https://dps.ny.gov/file-complaint.
