News Summary
New York’s utility companies have observed a remarkable profit increase of 63% over the past decade, totaling $3.17 billion last year. Consumers, however, are facing rising energy costs, with many struggling to pay their bills. Lawmakers are pressing for reforms, including a proposed cap on utility profits. This situation raises concerns about the balance between utility profitability and customer affordability, as discussions about potential regulations continue amidst growing public and legislative pressure.
New York utilities have reported significant profit increases, even as millions of residents struggle to pay their energy bills. An analysis by Renewable Heat Now reveals that five major gas and electric utilities have experienced a staggering 63% increase in profits over the past decade, totaling $3.17 billion in combined profits last year.
Consolidated Edison, which is New York’s largest private utility serving 4.7 million customers, saw its profits rise from $1.13 billion in 2015 to $1.89 billion last year. Central Hudson, which serves over 400,000 customers in the Hudson Valley, reported profits increasing from $45.6 million to $90.5 million last year. Avangrid, which operates NYSEG and RG&E in New York, reported an astonishing 185% increase in profits, totaling over $387 million.
In stark contrast to the flourishing profits of utilities, many customers are grappling with rising energy costs. Some utility bills have reportedly doubled or tripled compared to previous years, with approximately 1.1 million New Yorkers falling behind on their payments by two months or more. This situation has drawn criticism from Gov. Kathy Hochul and other state lawmakers, sparking discussions about potential reforms.
Ongoing Legislative Discussions
In response to the growing concern over utility profits, state Senator James Skoufis has proposed a measure aiming to impose a 4% cap on utility profits. This proposed law is designed to address the discrepancy between rising utility profits and the financial struggles faced by many residents.
Utilities’ Justifications and Costs
Utility companies attribute the surge in residential bills to a variety of factors, including extreme weather events, such as hot summers and cold winters, alongside increased costs related to clean-energy mandates and necessary infrastructure upgrades. In addition, Renewable Heat Now points to potential inefficiencies, citing that utilities may be wasting $200 million annually on repairing leaky gas pipelines. They also advocate for the repeal of the “100-foot rule”, which currently allows utilities to transfer costs to ratepayers for gas service requests.
As discussions about the 100-foot rule continue, tensions are rising among different interest groups. While some utilities support the repeal and are working to decrease their reliance on natural gas through electrification, union leaders warn that such a transition could lead to higher bills for customers. They argue that utility companies must maintain reliable service delivery in adherence to legal requirements.
Governor and Public Service Commission Involvement
Amid these discussions, Governor Hochul has been urged to take action regarding the piece of legislation aimed at revoking the 100-foot rule. Advocates, such as Kim Fraczek from the Sane Energy Project, stress that signing this bill could provide relief for New Yorkers burdened by increasing energy costs.
In other related developments, the New York Public Service Commission staff proposed a revenue increase of $319 million for Consolidated Edison. This figure represents an 80% reduction from the amount that the utility initially requested, reflecting ongoing scrutiny over utility profits and customer expenses.
Conclusion
The juxtaposition of soaring utility profits with the financial distress faced by many New Yorkers has raised serious concerns about the sustainability of current utility practices and state regulations. As various stakeholders push for reform, the situation remains fluid, with potential implications for both the utility companies and their customers in the months to come.
Deeper Dive: News & Info About This Topic
- Poughkeepsie Journal: NYS Private Utilities Profits
- Democrat and Chronicle: Utility Bills Surging in New York
- Bloomberg: NY Proposes Con Edison Return
- New York Times: BlackRock and Minnesota Power
- Syracuse: National Grid Rate Hike Approved
- Wikipedia: Electricity Pricing
- Google Search: Utility profits New York
- Google Scholar: Electricity utilities profits
- Encyclopedia Britannica: Utility
- Google News: New York utility bills
Author: STAFF HERE NEW YORK WRITER
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