Said this week there is “outrageous surge pricing”
Senator James Skoufis gathered with local residents and the Public Utility Law Project (PULP) at a constituent’s home in New Windsor on Friday to announce the Senate Committee on Investigations & Government Operations, which Skoufis chairs, has opened a formal investigation into the outrageous surge pricing and billing practices of utility companies and power producers. Document and information requests will soon be sent to Central Hudson, Orange & Rockland, ConEd, power suppliers, and state stakeholders, under threat of subpoena.
As energy prices skyrocket for consumers in the Hudson Valley and around the state, many residents already reeling from pandemic-related financial hardship have been shell shocked to see their power and heating bills double or even triple. For Central Hudson customers, recent price hikes are salt in a months-long wound: in August 2021, Central Hudson poorly implemented a new billing system, leading to over-billing, under-billing, or a total lack of bills altogether for thousands of customers. Impacted customers received no warning and no support when attempting to set their records straight, and many saw auto-drafts from their checking accounts in the thousands or tens of thousands of dollars without notice.
As of December, PULP estimated that roughly 12% of all Central Hudson customers were behind on their bills by 60 days or more. With surge pricing and rate hikes taking effect in recent months, the current number of delinquent utility accounts is likely much higher.
“This isn’t a matter of New Yorkers needing to tighten their belts and unplug the coffee maker once in a while,” said Senator Skoufis. “Folks on fixed incomes – seniors, parents, disabled New Yorkers, single-income households – are being robbed blind and it has to stop. $2600 to keep a small home warm? $1400 to power a small 2-bedroom apartment? That’s a disgrace. It’s unsustainable, and we can’t let these utilities run roughshod over our wallets without asking the tough questions.”
“I seriously doubt these companies did all they could to prepare consumers for these price spikes,” added Skoufis. “Can they honestly say they didn’t see this coming? Can they honestly say they did everything in their power to assist and support customers in this time of need? Absolutely not. If there was any foul play here, we owe it to constituents to expose that wrongdoing, hold bad actors accountable, and ensure it never happens again.”
In addition to surge pricing and billing system errors, areas of focus for the Senate’s investigation will include the state’s action – or lack thereof – as utility regulators, and the poor communication between utilities and ratepayers.
