New bill forces utilities to provide funding
Measure would enable those currently priced out of the process to participate at companies’ expense
A new bill passed by the state Senate would provide funding for individuals and nonprofits to participate in utility rate cases and other decisions before the state Public Service Commission.
And the utilities themselves would have to foot the bill.
Consumer advocacy groups like AARP support the legislation, which has been sent to the Assembly for consideration. The Senate version’s sponsor was Sen. Kevin Parker, a Brooklyn Democrat from Flatbush.
Assemblyman Kevin Cahill, an Ulster County Democrat who lives in Kingston, is sponsoring a similar bill that is expected to go before the Assembly Energy Committee.
A spokesman for the PSC said the agency does not comment on legislation.
The PSC’S regulatory process allows individuals to participate through comments they can send to the PSC or through public hearings that are typically held throughout the state during
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rate hike requests.
Groups and nonprofits as well as businesses are also allowed to apply to the PSC during utility cases to become part of the decision-making process directly with the PSC. Such groups have to apply to become so-called intervenors — groups that intervene on behalf of consumers or others.
But participating as an intervenor can be expensive. Fees for attorneys, expert witnesses and research to support their arguments can be extremely expensive for individuals.
Compared to a utility, which likely has a handful of attorneys and analysts who work on regulatory issues, individuals and nonprofits typically are at a disadvantage financially.
“New Yorkers pay among the highest utility rates in the nation, but they lack full and independent representation when utilities ask regulators for rate increases,” Beth Finkel, AARP’S New York state director said. “Meanwhile, utility companies can simply pass their legal costs on to customers.”
Consumer groups and others can apply for funding to become participants in cases where the PSC is being asked to approve the construction of new power plants and high-voltage electricity transmission lines. Such projects often have fierce community opposition, especially when they are located near residential neighborhoods and schools.
But when it comes to utility rate cases, groups have to foot the bill themselves.
Consumer groups — as well as environmental groups — have become extremely active in recent years in utility rate cases. This has been a result of economic struggles faced by wide sections of the population during the COVID-19 pandemic coupled with the economic volatility and price inflation that followed.
Environmental groups have also started using electric and gas rate cases to seek other changes at utilities related to climate change. For instance, environmental groups forced National Grid to postpone plans for a new natural gas pipeline that would be built under the Hudson River through the utility’s recent rate increase case.
One of the groups that also supports Parker’s bill is Environmental Advocates, although the group’s spokesman notes that not all nonprofit requests for intervenor funding would be approved by the PSC, and even in those instances, it would have to be for a very specific reason.
“We are supporting this bill because it will open the doors to the PSC to let in voices beyond the special interests that can afford to retain staff to participate in the day-to-day process,” Environmental Advocates
spokesman Conor Bambrick said.
National Grid, the region’s largest utility, could not immediately be reached for comment.