Syracuse United Neighbors (SUN) is a neighborhood organization whose members are residents of low income neighborhoods on the south, southwest and near west sides of the city of Syracuse, N.Y. For over 30 years, SUN has fought to improve our neighborhoods and helped residents with issues such as safe and affordable housing, reducing street crime and maintaining quality city services.
National Grid is requesting an increase in the rates they may charge for gas delivery. In the support documents the utility submitted in this case, the company projects an increase of revenue per customer of 27% between what they received in 2007 and what they will receive in 2010. In return, they propose a limited discount of $5/month for low income customers. Even with this discount, the increase customers will see is 22%.
The end result of these increases will be unbearable for the poorest of New Yorkers, as incomes for low income families are only increasing by 1% a year. The result will be an even poorer community, as families juggle heat, housing, food, medicine and health care bills–all of which are increasing rapidly. SUN sees more and more people in our neighborhoods that cannot afford the basic necessities of life–forced to make decisions about cutting back on medicines, not paying their mortgage, eating less or paying their heat bill.
National Grid has a history of abusive relations with customers and should not be rewarded with any increase at all. National Grid, in this filing, announces to the world that it intends to increase the number of field/collection/shutoff visits by 19% in the next two years. It is clear that National Grid is using the threat of shutoffs as a bill collection measure–in direct violation of the spirit of the Home Energy Fair Practices Act (HEFPA) New York utility consumers’ “bill of rights.” Passed in 1981, HEFPA sets the goal for utilities of continual service to customers, working to prevent shut offs.
Instead, National Grid bumps customers off budget plans and its Affordability program for seniors after one missed payment, immediately presenting bills for two to three thousand dollars, the balance of the year’s payments. National Grid uses the drama of threatened and actual shut offs as a means to compel payment. They are no better than the loan shark that busts kneecaps.
National Grid’s local customer service is swamped with calls and heaven forbid the one consumer advocate for the several county area around Syracuse is out sick or at a meeting. The only alternative for customers is to call the utility’s 1-800 number where the negotiation is always the same–pay your bill in full or we will cut you off.
The Public Service Commission is asleep at the switch on these customer abuse issues, but vigilant and proactive when dealing with the financial well-being of the the utilities.
We request the PSC to do the following:
1) Deny the rate increase to National Grid.
2) Require National Grid to offer its upstate NY customers the same sort of low income discount it offers to its customers in metropolitan Boston–an annual discount of 26%. Or perhaps extend the same sort of innovative case management and arrearage forgiveness program (On Track) it continues to run for its former Key Span customers in Brooklyn, parts of Long Island and Massachusetts.
3) Create a financial incentive program for utilities when they reduce the incidences of shut offs to customers, similar to the program that rewards utilities for reducing lost utility service due to mechanical failures. Something like this is required in a state that has seen incomes plummet, prices skyrocket and the Associated Press is reporting that utility shut offs statewide have increased by 17% this year.
