As LI’ers Face Huge Hike to Sky-High Electric Rates, AARP Calls on Senators for Watchdog

Members Deliver 4,000 Postcards to Island’s State Senators Urging Utility Consumer Advocate

MELVILLE, New York – As PSEG pushes the biggest potential residential electric rate hike in the history of the Long Island Power Authority on Long Islanders – and sends consumers a $4.4 million bill for its lobbying costs – AARP members delivered about 4,000 postcards to all nine Island state senators’ district offices today urging their support for an independent utility consumer advocate to represent the interests of residential ratepayers.

The State Assembly is proposing a consumer advocate as part of the state budget. AARP is calling on Senate Majority Leader Dean Skelos – who has opposed the move in the past - and the rest of the Island’s key Senate delegation to support creation of an independent utility consumer advocate in this year’s final state budget.

“We on Long Island already pay some of the highest electric rates in the nation, and we’re here today because PSEG wants to push the biggest rate hike in the history of LIPA on us and is charging us $4.4 million for the privilege,” said AARP Volunteer Nicoletta Oukacine of Huntington, standing outside PSEG’s Melville customer service center with more than a dozen other AARP members. “That’s the bill for PSEG’s lobbying. We say that if we have to pay for their lobbying costs, we should have our own lobbyist in the form of a utility consumer advocate with the independence and power to challenge their proposal.”

Six of Long Island’s nine senators have voiced support for such an advocate, and AARP thanked them and showed with today’s delivery, representing a sample of the largest suburban AARP membership in the nation, that they have the support of thousands of constituents.

Senator Jack Martins has signed on as a co-sponsor of a bill to create the office of utility consumer advocate (S.3356), while Senators Kemp Hannon, Phil Boyle and Michael Venditto voiced their support last week for an independent advocate. Aides said Senators Carl Marcellino and Tom Croci are also supportive.

S.3356 would create the office of utility consumer advocate, run by a director appointed by the governor and confirmed by the Senate for a six-year term and with the power to legally challenge unfair rate hikes. The director could be removed only for cause, ensuring independence.

AARP and the Public Utility Law Project (PULP) recently revealed that Long Island’s residential utility ratepayers – who already pay among the highest electric bills in the nation - are footing PSEG’s $4.4 million bill to push its proposed electric rate hike on them.

PSEG is lobbying LIPA for a nearly 12 percent electric rate hike over three years, starting next year, with mechanisms to allow for additional cost increases. Yet while Long Islanders pay for PSEG’s lobbying costs, they have no meaningful seat of their own at the LIPA table.

AARP says what’s good for the goose should be good for the gander; if a utility company can bill its customers to push rate increases on them, customers should have funding to push back.

In 40 other states, utility consumers do have a meaningful voice. New York is one of just 10 states, and by far the largest, without an independent advocate for its utility consumers.

Consumer advocate offices in other states, with the power to legally challenge unfair rate hikes, save ratepayers far more than they cost. Connecticut’s office reported $243 in rate reductions for every dollar spent in 2012, while California’s reported a 153-1 return on investment.

But if anyone needs a strong voice at the table, it’s New Yorkers.

Long Islanders paid 76% more than the national average for their electricity in December (21.49 cents per kilowatt hour vs. 12.15 cents), the last month for which data is available from the U.S. Energy Information Administration.

A 2014 AARP survey found 72% of Long Island voters 50 and older at least somewhat worried about affording their utility bills (with nearly half “extremely” or “very” worried), 83% reporting a household financial strain from the cost to heat their homes last winter and 76% saying they don’t think their elected officials are doing enough to help when energy costs rise.

Other key members of the Senate Majority have also signed on as co-sponsors of the advocate bill: Senate Aging Committee Chair Sue Serino of Dutchess County, whose constituents face a potential rate hike by Central Hudson Gas & Electric, and Andrew Lanza of Staten Island.

Contacts: Erik Kriss, ekriss@aarp.org, Chaunda Ball, cball@aarp.org

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AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services.  A trusted source for lifestyle tips, news and educational information, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin;  www.aarp.org ; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. AARP Foundation is an affiliated charity of AARP that is working to win back opportunity for struggling Americans 50+ by being a force for change on the most serious issues they face today: housing, hunger, income and isolation. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at  www.aarp.org .

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