ConEd Pressured To Fix Huge Bills As New Yorkers Turn Down Heat

NEW YORK CITY — Huge utility bills that gave New York City dwellers severe sticker shock in January must be explained, top state officials warned the utility.

Facing a barrage of criticism from state officials from Gov. Kathy Hochul on down, Con Edison representatives have promised the unexpected sky-high bills likely won't return.

But those reassurances didn't assuage Karen Harper's fears.

Harper, a retired teacher on a fixed income, saw her January bill triple — a surprise that left her in tears. She still worries that an unexpectedly large and unaffordable bill will arrive.

“I’m trying not to use too much heat, but it’s been pretty cold,” she said.

Many Con Edison bills tripled in January — a spike that utility representatives blamed on the rising cost of natural gas, which is beyond their control.

Hochul and many advocates, however, faulted Con Edison for failing to properly warn customers. The governor directed the Public Service Commission to urge utilities to review their billing practices.

"The extreme utility bill increases all of us are seeing are having a serious impact on our household budgets, and in response we are taking action," Hochul said in a statement. "I have directed the Department of Public Service to ensure all the major electric and gas utilities in the state work with customers, and in particular, our most vulnerable residents to protect them from volatile pricing and educate them about resources available to them."

Con Edison's CEO Timothy Cawley wrote PSC regulators that the utility will adjust their billing process. Specifically, he wrote that they'd immediately change the "hedge value" — a forecast of gains or losses in energy supply.

"When temperatures fell and energy use rose, those market supply prices increased significantly and that, coupled with the fixed hedge value for the month, resulted in the significantly higher costs on customer bills," he wrote. "As has also been our process, the full balance of that hedge value is passed back to customers during the next month, in this case, beginning on February 11, 2022."

The hedge adjustment likely will provide relief for Con Edison customers, Cawley wrote.

But Con Edison representatives still might have to answer to Attorney General Letitia James.

James declared herself "troubled" last week in a letter to Con Edison executives.

"Consumers have stated that the sudden change on their bills could not be explained by increased energy use alone," she wrote. "Consumers have also stated that they received no advance warning from Con Edison about the rate increase. Some have also complained that this rate increase is so large that they may have difficulty meeting their monthly expenses."

James demanded Con Edison representatives give the public not only the reason for the sudden rate increase, but also a description of anticipated spikes next year. She also pushed them to commit to provide advance notice about increases 15 percent or more at least one month ahead of time.

"My office is calling on Con Edison to explain the unexpected increases in last month’s bills that affected thousands of New Yorkers," she said in a statment. "We are also demanding that the company communicate rate increases early on so New Yorkers know what to expect when they open their energy bill. Utility companies have a responsibility to make sure consumers’ bills are fair and accurate, and my office is determined to hold them to that standard.”

Harper, for her part, is no longer crying over her huge January bill. She said she's taking action and has been calling her local elected officials to do the same.

How are you adapting to rising utility bills? Email matt.troutman@patch.com and let me know!