A months-long Senate investigation into the pricing practices and failures of power producers across New York State has concluded. State Senator James Skoufis, the Chairman of the Senate Investigations and Government Operations Committee, has announced the results.
The investigation was launched following a slew of complaints against embattled power giant Central Hudson. Many customers have complained about shady billing practices and poor customer service.
Although the Senate’s investigative report has been completed, a separate investigation into Central Hudson still remains ongoing by the Public Service Commission.
The Senate report recommends four new pieces of legislation should be enacted to protect customers. These bills have already been written and are pending further action by legislators.
A Senate bill is currently in the works to limit the estimated billing practices used by companies such as Central Hudson. It would also force Central Hudson and other utility companies to reimburse their customers, complete with interest at a rate equal to late payment charges, when customers were forced to overpay the incorrect “estimated” bills.
Two additional Senate bills are being worked on to ensure low-income and vulnerable populations, such as those who are elderly, are appropriately enrolled in customer assistance. Another pending bill, the the Build Public Renewables Act would decrease the reliance of fossil fuels while using clean energy production.
Meanwhile, Central Hudson has once again gone on the defense. They launched a television ad telling customers that Central Hudson is not getting rich from their astronomically high bills. They also tell their customers to turn down the heat and reduce their electric usage if they do not want high bills.
“As we’ve known from the beginning, righting the ship on utility pricing isn’t just a matter of New Yorkers needing to tighten their belts and unplug the coffee maker once in a while,” Skoufis. “Our investigation uncovered a number of regulatory gaps that, if properly addressed, would save utility consumers money, heartache, and time. I look forward to working with my colleagues to advance these legislative and regulatory priorities.”
Laurie Wheelock, Executive Director and Counsel of the Public Utility Law Project of New York, explained, “Utility bill surges add stress on the budgets of already struggling New York households. And as we enter another winter with high energy supply bills, we applaud Senator Skoufis and the Senate Investigations Committee for concluding their inquiry into the pricing practices of electric and gas utilities around the state.”
As New Yorkers head into another year of exorbitant energy supply costs, the report recommends that several pieces of legislation should be adopted. The report also lays out numerous recommendations for improving the utility landscape.
First, the Senate investigation recommends strengthening oversight of utility hedging practices. According to the report, state agencies should exercise greater scrutiny over long-term energy supply buying strategies to reduce pricing volatility, mandate parameters, and institute penalties when necessary.
Second, the report suggests that utility companies should standardize customer communications. It recommends that state agencies should standardize requirements for all electric and gas utilities related to the substance, timing, format, mode of delivery, and clear and conspicuous nature of customer communications regarding increased supply costs per a reasonable forecast threshold. It also suggests the State should standardize access to any and all available customer assistance programs, and any other emergent area to which customers should be provided meaningful and ample notice.
Third, the report recommends limitations on retroactive billing. This would mean substantial limitations on utility companies being able to retroactively bill customers in instances where a customer’s account would experience extra charges as a result.
Fourth, the report suggests requirements for heightened notice by energy service companies to customers, state agencies, and municipalities before pulling out of an area.
Fifth, if a utility company such as Central Hudson seeks to utilize a new computer system, the Public Service Commission should have to grant explicit approval, the report states.
Sixth, annual audits of power suppliers should be conducted, the report notes. It also says there should be heightened requirements for existing operational and management audits of utilities.
Seventh, the report recommends greater transparency of energy supply purchases by utility companies such as Central Hudson.
Eighth, there should be prohibitions on service shutoffs when monthly volatility reaches a certain threshold, the report notes.
This investigation was conducted in coordination with the Senate’s Energy Committee. It is the sixth probe completed during Skoufis’ time as chair, following investigations into: pharmacy benefit managers, statewide code enforcement, housing discrimination, public authorities and industrial development agencies, and live event ticketing practices.
