By Nathan Duke
The utility had proposed a $1.2 billion rate hike last year that would increase bills by as much as 36 percent, making it the largest rate hike in the company's history. But the PSC approved a more modest $425 million hike for the utility last week that would increase bills by 4.7 percent for one year, a spokeswoman for the agency said.Elected officials from Astoria and Long Island City, who had blasted Con Ed's performance during the 10-day borough blackout in July 2006 which caused 174,000 residents to lose power and resulted in the loss of millions of dollars for businesses, called the PSC's decision “irresponsible.””The PSC is now an accomplice to Con Edison in one of the most outrageous fleecings of ratepayers in modern memory,” state Assemblyman Michael Gianaris (D-Astoria) said. “To approve the highest rate increase in history without insisting on any of the dramatic reforms necessary to fix Con Edison's management is the height of irresponsibility.”Gianaris previously called for more state oversight over Con Ed as well as introducing competition for the utility.In a statement, Con Ed said it would review the PSC's decision, but has not yet received it.”Con Edison has done a great deal to keep the power flowing safely and reliably, but we cannot meet expectations for maintaining and improving the system without greater investments,” the statement read.The utility's original rate hike proposal would have increased bills for residents paying $70 per month by an estimated 17 percent, or $12, and force businesses paying $2,200 a month to pay 10.7 percent, or $235, more. Under the rate hike approved by the PSC, utility bills for city customers who use 300 kilowatt-hours of electricity would increase by $4.25.In its decision, the PSC stipulated that Con Ed must meet customer service performance goals, such as minimizing the amount of power outages.”This decision balances the need to ensure safe and adequate service to customers while incenting needed infrastructure investment,” PSC Chairman Garry Brown said.The PSC slapped the utility with an $18 million fine last fall for service interruption, including the 2006 western Queens blackout.But City Councilman Peter Vallone Jr. (D-Astoria) said he believed that a number of incidents, including the blackout, electrified manholes and the steam pipe explosion in Manhattan last summer, proved that the utility did not merit a rate hike.”What would they have to do for the PSC not to grant them a rate increase – kill women and puppies?” he asked. “Wait, they've already done that, too. By failing to do 15 years of oversight, they have failed to protect the public's safety and now they've failed to protect the public's wallet.”The PSC recently released its bi-annual survey of state utility bills, finding that Con Ed customers in the five boroughs and Westchester County pay an estimated 63 percent more for their utility bills than upstate residents who use Central Hudson Gas & Electric.The survey found that Con Ed customers who used 500 kwh of electricity in January paid an average $110.20, while Central Hudson customers using the same amount of electricity paid $67.66. Con Ed customer bills are split up into two charges: one for service and another for delivery.Reach reporter Nathan Duke by e-mail at news@timesledger.com or by phone at 718-229-0300, Ext. 156.
