Albany Times Union

New bill forces utilities to provide funding

Measure would enable those currently priced out of the process to participat­e at companies’ expense

- By Larry Rulison

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

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.

 ?? Times Union archive ?? A new bill in the state Legislatur­e would force utilities to pay for expenses of small groups and nonprofits to fight efforts by utilities to raise rates.
Times Union archive A new bill in the state Legislatur­e would force utilities to pay for expenses of small groups and nonprofits to fight efforts by utilities to raise rates.

Newspapers in English

Newspapers from United States