Jul 12, 2008 8:51 am US/Eastern
Con Ed Blames Oil Prices For 22 Percent Rate Hike
Utility Says Profits Will Not Increase
NEW YORK (CBS) ―
-
-
Get ready to open your wallets some more, Con Ed customers. Your bill is about to get another hefty hike, but the utility insists this is actually not a rate increase. (File)
CBS
Con Ed says its residential customers will be paying 22 percent more for electricity this year than last year. For business customers it's a 25 percent jump, marking one of the biggest year-to-year jumps on record.
"Two months ago they came before us and they said we need a rate hike that will last one year. Two months later they're now telling us the bills are going to go up another 22 percent," says Assemblyman Michael Gianaris (D-Queens).
So what happened?
Well first the utility got a 5.7 percent rate hike on April 1. Then oil prices jumped to record levels. Con Ed says it tried to buy the cheapest oil for its customers that it can, but they claim soaring international prices have them over the proverbial barrel.
"It's got to stop. These guys have got to start taking the people they serve seriously, treating us with respect, telling us the truth," says Gianaris.
The average residential bill was $86.01 from June to September of last year. This year the tab is $104.97.
And a business paying $2,300 last year is now paying $2,900 for the same period.
"I was paying like $2,400 and now I got a new bill this month for $3,500. I mean, is that ridiculous? How are we supposed to stay in business?" says Astoria business owner John Morana.
New Yorkers aren't too pleased about the boost.
"It's not like I'm living high on the hog. I don't have cable, I don't have a cell phone, I'm living on bare bones and I don't have the money to give them," says Astoria resident Dawn Tuttle.
"If the cost of oil comes down again, are they going to give the money back?" asked Farmingdale resident Bill Wanser.
Con Ed says the only hope it can hold out to customers is if fuel prices drop or that the month of August is cooler than projected. Either of the two things could help lower fuel bills, though at this point, a rain dance might help too.
The utility insists it is not making a profit off the price increase.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Celebrities Separated At Birth?
Click to enlarge
Stumble It!
Reporting
