May 24, 2007 8:27 am US/Eastern
Lawmakers Slam Proposed Con Ed Rate Hikes
by Tamsen Fadal
QUEENS (CBS) ―
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Con Ed is looking to increase rates by 11.6 percent, though lawmakers say the increases would equate to 36 percent for residential customers. (File photo)
AP
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A Con Ed worker worked to restore power during last summer's blackout In Woodside, Queens. (File photo)
AP
There could be new rate rage for Con Ed customers. The power company is asking for a rate hike, and this isn't sitting well with customers, especially after last summer's blackouts in Westchester and Queens.
People in Astoria will not soon forget the blackout last summer that left thousands of people in the dark and without power for days.
And now it seems Con Edison is proposing that customers pay more money for their electric bills -- something that has many people hot under the collar.
Con Edison is looking for customers to fork over even more money each month according to a hearing held Wednesday in which they are proposing a 17 percent hike.
CBS 2 has learned that some local lawmakers are now saying that the hike would add up to something closer to 36 percent for residents and 32 percent for businesses.
"On your Con Edison portion of your electric bill, people will be paying 36 percent," said New York Assemblyman Michael Gianaris (D-Queens).
Con Ed's May 4 press release said the average hike was 11.6 percent, though it now seems that the amount has nearly tripled.
Con Ed Chief Financial Officer Robert Hoglund, effectively agreed at the hearing that the percentages have risen. "I think we filed those numbers. That is correct."
Gianaris said, "We're talking about hundreds per year for residents and thousands of dollars a year for businesses."
Con Ed's 3.2 million customers in New York City and Westchester will be in for a real shock come bill time if the hike takes place, especially since this request comes on the heels of last summer's blackout in which 174,000 customers lost power for up to nine days.
"It's outrageous," Gianaris said.
According to Con Edison, the increase really breaks down to approximately 17 percent and that the money is needed to cover upgrades to the already existing system.
If the rate hike is approved, it would take effect in April.
You can comment on the Con Ed rate increases for next year by
clicking here. This year's rate increase was approved two years ago.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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