Lawmakers want to create an office to represent rate payers

Gov. Kathy Hochul will soon review a bill that seeks to give the ratepayer more of a voice when it comes to disputes over utility hikes. It would come in the form of an office dedicated to coming to the defense of consumers in those situations.

Hochul has already vetoed the bill once, but she’s considering it again at a time when high utility rates are top of mind for millions of New Yorkers. Those in favor of the concept argue it will give ratepayers an extra line of defense, but those who are against the bill say there are already plenty of avenues for anyone with a problem to pursue.

Those behind the bill, including AARP, have stressed that existing avenues for ratepayers to dispute rate hikes, inconsistencies and other issues are inadequate and slanted in the favor of utility companies, and an independent office is a thelogical fix. AARP New York legislative representative Bill Ferris is putting his support firmly behind an effort to create an independent office with the sole purpose of providing rate payers with independent representation in cases that relate to utility rates.

“This office, the individuals and the staff in this office, their only client would be residential ratepayers so they would enter into these cases at the Public Service Commission with the sole mission of the residential ratepayer,” Ferris said.

Russ Haven, legislative counsel at New York Public Interest Research Group (NYPIRG), explained that big utility companies have resources to plead their case that the average New Yorker looking to dispute their bill simply does not have access to.

“Lawyers, engineers and economists drown out consumer voices in rate making proceedings. The kicker is ratepayers end up paying millions of dollars for their utility lobbying for rate hikes in the form of higher monthly bills,” he said.

The Business Council of New York State has long opposed the bill because they believe its functions are already carried out elsewhere. Currently, the Public Service Commission as well as the Utility Intervention Unit, under the Department of State, are already tasked with providing representation. Hochul vetoed a nearly identical bill in 2021 under the same argument, calling it redundant.

But advocates insist it’s not. They counter that those organizations are tasked with juggling the interests of all sides, including those utility companies.

“When the governor says we have consumer representation in New York, we believe she is wrong, and we believe the process is wrong at the Public Service Commission and this could be her first act to reform the process at the Public Service Commission,” Ferris said.

Spectrum News 1 reached out to the Public Service Commission, which said they do not comment on pending legislation. Likewise, Gov. Hochul’s office does not comment on how she plans to decide on pending bills.