Mohawk Valley Electric Costs 21% Above US Avg; AARP Urges Griffo for Consumer Watchdog

Constituents Deliver Hundreds of Postcards to State Senate Energy Chair Urging Independent Consumer Advocate

UTICA, New York – Mohawk Valley residential customers of National Grid pay 21 percent more than the average American for electricity – and they can expect to cover the utility company’s costs to lobby for another rate hike in the next few years. AARP says consumers should have their own voice to fight for fair rates, and today association members delivered hundreds of constituents’ postcards to the Utica district office of State Senator Joe Griffo urging him to use his position as the new State Senate Energy Committee Chair to push for an independent utility consumer advocate as part of this year’s state budget.

“We in upstate New York already pay electric rates that are, in the case of National Grid, more than 20 percent above the national average, and on top of that, New Yorkers pay more than $11 million a year for utility companies’ costs to try to push our rates even higher,” said AARP Volunteer Charlene Lojewski of New Hartford, standing outside the Utica State Office Building with other AARP members. “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 rate hikes.”

The State Assembly is proposing creation of an independent office of utility consumer advocate as part of the state budget. The office would be run by a director appointed by the governor and confirmed by the Senate for a six-year term with the power to legally challenge unfair rate hikes. The director could be removed only for cause, ensuring independence (see A6005, pages 61-63, and A.6000, page 622, for details).

National Grid passed along to its customers $18 million in expenses to lobby for rate hikes and other regulatory changes from 2009 through 2012 before the state Public Service Commission.

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.

National Grid’s residential customers paid 21% more than the national average for their electricity in December (14.71 cents per kilowatt hour vs. 12.15 cents), the last month for which data is available from the U.S. Energy Information Administration.

Utility consumers are worried. A 2014 AARP survey found nearly half of New York voters 50 and older are “extremely” or “very” concerned about being able to afford their utility bills, 74% said the cost of heating their home last winter put a strain on their household finances, 72% said consumers’ interests are not represented in rate hike cases and 70% don’t think their elected officials are doing enough to help when energy costs rise.

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

Follow us on Twitter:   @AARPNY and Facebook: AARP New York

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 .

###