Wants Rate Hike & Still No New Natural Gas Customers
By Dan Murphy
Con Edison’s recent proposed increase for utility bills for its Westchester customers has resulted in opposition from elected officials and from residents in the county at recent public hearings. Con Ed’s rate hike plan also comes in the middle of a continued moratorium by the company on any new natural gas line connections in Westchester.
Some are calling Con Ed “Scrooge” and a bully for trying to seek yearly increases ranging from 4 to 9 percent for electricity and natural gas customers in Westchester. A recent public hearing was held by the New York State Public Service Commission at the Will Library in Yonkers, where homeowners, renters and seniors all spoke out against the increase.
“I’m a senior citizen, and I can’t afford to stay in my home and keep the heat on,” said New Rochelle resident Lenore Halperin.
State Senate Majority Leader Andrea Stewart-Cousins also commented at the hearing.
“I am very aware of the high cost of energy that our residents pay,” she said. “Con Ed rates are among the highest in the nation, and our region pays 16 percent above the national average for electricity and substantially more for natural gas. That is why I am opposed to any increase by Con Ed, even an incremental one, which would have a major impact and negative consequences for overburdened Westchester families.
The electric rate increase now before the Public Service Commission calls for a 4.2 percent in year one, an additional 4.7 percent in year two, and a 4 percent increase in year three. The increase for gas customers requested is 7.5 percent in year one, an additional 8.8 percent in year two, and a 7.2 percent in year three.
“These are not incremental rate increases,” said Sen. Stewart-Cousins. “They are major steps that will harm Westchester ratepayers. Ratepayers who paid approximately $300 last month in a combined gas and electric bill would be paying an additional $115 – that’s almost 50 percent over the three-year period, for no increase in energy usage. That is a substantial amount of money, and it is simply unfair to Westchester residents.”
The Public Service Commission must approve the rate increase next month. Con Ed customers already pay among the highest electricity rates in the country, with only Hawaiian Electric Co. charging its customers more per kilowatt hour than Con Ed.
The rate increase comes at the same time that Con Ed has imposed a moratorium on any new natural gas line connections for southern Westchester. That moratorium has been in place since March, and has had a negative effect on new development and construction in parts of the county.
Con Ed says it needs new pipeline construction in order to meet the natural gas needs of more customers. New York State recently passed an ambitious climate change bill that requires a massive reduction in fossil fuel usage by 2050.
New natural gas pipelines are not a part of the future for environmentalists and those supporting an end to the use of fossil fuels and a more immediate change to clean energy sources. A similar natural gas ban was imposed on Long Island and Queens customers and new businesses by the National Grid, the utility company for these areas.
A battle between Gov. Andrew Cuomo and National Grid in which Cuomo threatened to pull the utility company’s contract to provide electricity and natural gas to customers resulted in a victory for Cuomo, as National Grid lifted the ban on new natural gas customers and agreed to pay a $36 million fine.
Cuomo now has publicly warned Con Ed about its ban in Westchester.
“We contract with Con Edison, but if Con Edison is not doing a good job or if we feel they are abusive, then we can get another provider,” he said. “And that is the key here: For many years, the power shifted to the utilities, where they think they can get away with murder. And we have no alternative. There is an alternative: Get another utility… We’ll have a reasonable conversation and we understand the reasonable demands, but don’t bully New Yorkers. We don’t take it well.”
Cuomo spokesman Jordan Levine added: “This administration will not allow a multi-billion-dollar utility to line shareholders’ pockets at the expense of everyday New Yorkers.”
Con Edison has an agreement with Tennessee Gas Pipeline to bring more natural gas to Westchester, but not until 2023. The company continues to maintain its shortage of natural gas supply until then.
“The demand for natural gas in our service area has been experiencing significant growth primarily due to the construction of new buildings, the opening of new businesses, and conversions from oil to cleaner-burning natural gas in existing buildings,” said Con Edison when announcing the moratorium earlier this year.
