New York, NY – Less than two weeks after a major blackout roiled midtown Manhattan that knocked 73,000 utility customers out of service, including the New York City Transit subway system, another blackout hit 52,000 customers in southeastern Brooklyn this past weekend. The major blackouts have called into question the ability of Con Edison to effectively ensure that their utility consumers are receiving sufficient quality of service, and have increased the urgency for a successful statewide push from Assemblyman Jeffrey Dinowitz and AARP New York to create an independent Office of the Utility Consumer Advocate (UCA) to speak exclusively on behalf of customers.

Con Edison is also seeking a $695 million rate hike in January 2020 for customers in New York City and Westchester County. The rate hike is estimated to cost residential consumers in New York City an average of $4.45 additional per month (5.8%) for electricity and $17.28 (11%) for gas. The approval process is ongoing, with the Public Service Commission (regulatory entity for utilities in New York State) accepting public comments until September 30.

The legislation to create this office passed both chambers of the legislature by a comfortable margin (125-22 in the Assembly and 48-14 in the State Senate, where it was introduced by State Senator Diane Savino) at the end of session in June, capping a years-long public advocacy campaign led by AARPNY to increase the voice of consumers on issues such as rate hikes and conditions of public service utilities such as Con Edison. More than 40 states currently have a similar office to represent the interests of residential utility customers, and the effort in New York has taken increased urgency following a rise in the intensity of hurricanes and other severe weather events.

If signed, the UCA would be appointed by the governor to a six-year term and confirmed by the State Senate. The UCA would not be considered an at-will employee and thus would be able to act independently on behalf of residential consumers without the concern of removal for such action. Similar offices in other states have resulted in a huge savings for utility consumers. In California, their version of the UCA lobbied over 200 times on behalf of consumers and saved them over $4 billion in rate savings and avoided increases, and saved customers an average of $153 per year for every $1 spent.

Assemblyman Jeffrey Dinowitz (D - Bronx) said: “While the recent spate of massive blackouts throughout New York City is fresh on everyone’s mind, they are in fact nothing new for utility consumers throughout our state. As New York State continues to pursue renewable energy and less dependence on carbon, this will only become more of an issue as monopolistic utility providers are obligated to move away from fossil fuels and towards renewable energy sources. It is imperative that regular, everyday people have a voice in how we get our energy and how much profit is gleaned off our backs.”

AARP New York State Director Beth Finkel said: “New Yorkers pay among the highest utility bills in the nation – with Con Edison and National Grid looking for over $2 billion more during the next three years. AARP strongly urges the Governor to level the playing field for consumers by signing Assemblyman Dinowitz’s legislation.

“It’s galling that utility companies use their customers’ money to hire lawyers and experts who push regulators to increase rates on those same customers – while consumers have virtually no one at the table arguing solely for their interests.

“New Yorkers would undoubtedly save hundreds of millions of dollars a year in energy costs if our state joins the many that already have an independent advocate - including Connecticut, whose Office of Consumer Counsel saved utility consumers $550 million in 2017-18 alone through court actions and other advocacy. As our population ages and more retired and older New Yorkers face ever-rising utility bills on fixed or limited incomes, we ask the Governor to provide consumers a real voice.”

State Senator Diane Savino said: “Over 40 states have an independent advocate to fight for the best interests of residential utility consumers. They've all seen the benefit of this office, while New York continues to lag behind, with our residents suffering because of it. It's time for this bill to be signed into law so that consumers have someone to stand up for them.”