Governor Kathy Hochul urged Con Edison to review its billing practices and better communicate with New Yorkers after the recent spike in energy costs in New York State left many already struggling New Yorkers by surprise. The call was made through a letter from the Public Services Commission (PSC), and it was also announced that efforts would be increased so that low-income people can benefit from the millions of dollars in available aid.
This winter, the cost of natural gas, which is used to heat homes and generate electricity, rose sharply, resulting in a significant increase, sometimes more than doubling, in the supply component of electricity and/or gas bills. number of customers compared to previous months. These bill increases are being driven by a global increase in natural gas commodity prices due to increased domestic use during colder weather, increased economic activity and increased international demand for natural gas.
Heating utility assistance
At its session on October 7, 2021, the Public Service Commission (PSC) discussed the projected supply price increases and the steps utilities were taking to inform customers. To address the increase in supply prices, Governor Hochul launched a statewide effort to raise awareness of the various state programs available to help struggling New Yorkers pay for heating and utility bills to avoid potential service outages during the upcoming cold weather months.
These programs announced by the governor include:
- More than $373 million in home heating assistance are available through the Home Energy Assistance Program (HEAP) to low- and middle-income New Yorkers who need assistance keeping their homes warm during the winter season. So far, eligible households have received 1.4 million regular HEAP benefits, for a total of $208 million.
- Additional federal funds are available to help low-income households pay back heating arrears. So far, 104,000 Regular Arrearage Supplement benefits have been issued and $166 million in arrears have been paid to qualifying households.
- $90 million in federal funds made available through Emergency HEAP to help low- and middle-income New Yorkers avoid having their home heat shut off or their heating source run out amid rising fuel prices. So far this winter, eligible households have received nearly 20,000 emergency HEAP benefits for a total of $17.8 million.
- An increase in the budget for the Energy Affordability Policy (EAP), statewide by the PSC in 2021 from $237.6 million to $366.7 million and expanded criteria, resulting in approximately 95,000 more low-income clients eligible to receive benefits. Since September 2021, utilities have issued approximately $153 million in bill discounts to qualifying customers.
Governor Kathy Hochul announced Thursday that more than $373 million in home heating assistance will be available to low- and moderate-income New Yorkers who need help keeping their homes warm during the upcoming winter season. Carolina Ardila explains us in this report.
Billing Practice Adjustments
Neither the utility company nor the Public Service Commission controls the price of the supply component of energy bills. However, to better protect consumers from commodity price surges, utilities use a variety of purchasing and hedging methods, including short-term and long-term contracts. While coverage is a strategy shared by all utility companies, each utility applies the value of these coverages differently to customers’ utility bills. In Con Edison’s case, its billing practices for customers were a contributing factor to the significant increase in supply rates and, ultimately, customer bills.
On Friday, the PSC sent a paper a Con Edison requesting a detailed review of the utility’s billing practices, including ensuring that the full covered value the utility earned in January is provided to customers in the next billing cycle, better customer communications and an evaluation of alternatives to your current billing practices with recommendations to DPS staff by February 28, 2022.
Reducing dependency on fossil fuels
As New York moves toward a greener, cleaner economy, Governor Hochul is making investments to diversify fuel sources for electricity, primarily through renewable energy, to decrease the state’s reliance on fossil fuels and stabilize energy costs. Energy. That’s why Governor Hochul announced a jobs and renewable energy agenda in her speech on the State of the State of 2022 and his proposal Executive Budget.
Consumer Education and Awareness
The PSC is committed to making sure customers are aware of programs to receive the assistance and information they need to manage their energy bills effectively. For more information on winterization efforts and these assistance programs, visit www.dps.ny.gov/winter.
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