By Hank Russell
The New York State Senate passed a bill earlier this year that would call on the Public Service Commission (PSC) to consider economic factors before setting utility rates. One local state senator said this bill would help benefit ratepayers. However, the Assembly must approve it before it reaches the governor’s desk.
This piece of legislation, introduced by Leroy Comrie (D-St. Albans), would amend the Public Service Law in which the PSC would have to take into account “evidence” when setting utility rates. This includes the latest unemployment data, median household income and the number of people receiving public assistance in the affected areas.
Other information the PSC must consider include “the average monthly utility bills for each class of customers affected by the proposed increases and the estimated increased utility bills for these customers” and “the latest consumer price index figures indicating the average cost of living and the average cost of fuel and utilities for the nation and, if possible, for the state or service area affected.”
The bill is currently headed to the Assembly for a vote.
The legislation came at a time when the Long Island Power Authority (LIPA) introduced a $7-per-month increase in ratepayers’ utility bills. The utility cited rising costs and increased usage for the rate hikes.
“Big WIN for ratepayers!,” read a post on Steve Rhoads’ (R-Bellmore) Facebook page on Comrie’s bill. “Senator Rhoads continues to be focused on affordability, delivering real results for hardworking Long Islanders struggling with rising costs!”
Rhoads co-sponsored the bill along with Anthony Palumbo (R-New Suffolk).
James Denn, a spokesperson for the Department of Public Service, said the agency cannot comment on pending legislation. However, he did explain how rates are determined.
“In terms of the rate-setting process, in New York, utility rate cases and earnings figures are scrutinized during an 11-month, transparent review process to ensure customers are fully protected,” Denn said in a statement. “DPS staff examine the utilities’ books to identify ways to cut costs. Nothing during the process is taken for granted.”