Riley Discusses NYSEG Bill with Gilbertsville Fire Department
By TERESA WINCHESTER
GILBERTSVILLE
District 19 Congressman Josh Riley (D) met with members of the Gilbertsville Fire Department and Emergency Squad on Saturday, September 20 to discuss reasons for and impacts of rising bills from New York State Electric and Gas. NYSEG is proposing a 23.7 percent rate increase over three years—one of the largest electric utility increases in the country.
The meeting occurred as a result of GFD Treasurer Scot Lueck’s contacting Riley’s office after learning that the congressman was investigating NYSEG’s rate hikes. Those present were Gilbertsville Fire Chief David Robinson and fire department members David Haynes and Lueck. Town of Butternuts Supervisor Bruce Giuda also attended, Gilbertsville being located in the Town of Butternuts.
Riley said at the outset that he was impressed by the GFD’s finances and budget, to which Robinson responded, “We operate on the principle of need versus want.”
Figures provided by Lueck indicated that NYSEG’s electric bill for the fire department this year is projected to be 129 percent more than the average annual cost for the previous seven years.
In reviewing the billing from NYSEG, Lueck also noted discrepancies between what the bill stated as the amount due and what actually needed to be paid. The actual charge was sometimes more and sometimes less than what the bill stated.
“Sometimes it was zero and sometimes it was $800.00,” Lueck said.
The billing was so complex that Lueck gave up on an attempted explanation from NYSEG by phone and eventually met face-to-face with a NYSEG representative at the Oneonta office.
“What she said made sense to her, but it was like she was talking another language to me. We should be able to understand our electric bills,” Lueck said.
The discrepancies between what appears on the bill and what is actually charged to the GFD continue despite Lueck’s efforts for clarification.
“I was told our next bill should be less than $200.00, then the bill came in the mail for over $400.00,” Lueck said.
Although the GFD finances are sound, such increases may have a negative impact on fire departments struggling to make ends meet. The cost of turnout gear (coat and pants) for interior firefighters is $4,000.00. This figure does not include gloves or equipment, such as air tanks.
During the conversation at the firehouse, Riley restated information also found on his website—that NYSEG, earlier this year, sent $450 million to Iberdrola at the same time it was passing rate hikes on to its customers in upstate New York for improvements to the grid.
In April, Riley launched a formal investigation into the billing practices of NYSEG due to widespread complaints from his constituents, who reported that their bills had doubled or even tripled, resulting in financial hardships. Riley then asked residents to share their personal experiences through a public survey. His office reported that more than 2,000 constituents filled out the survey in fewer than 24 hours.
On September 18, the congressman, who has declared himself to be “at war with these guys,” introduced the “Keep the Lights Local Act” (H.R. 5487) which would ban foreign corporations and foreign governments from owning American utility companies. NYSEG’s parent company is Avangrid, a subsidiary of Iberdrola, a Spanish multinational electric utility company based in Bilbao, Spain.
A passage from Riley’s congressional website states, “Today, a significant portion of customers’ utility bills go toward the bottom line of the foreign corporations that own the utility companies. Eliminating foreign ownership will reduce utility bills by removing the subsidy Upstate New Yorkers are forced to pay for foreign corporate profits.”
In September Riley, who is also an attorney, sent a letter to NYSEG President and CEO Patricia Nilsen, demanding detailed billing data, an explanation of recent rate hikes, and asking whether payments from customers are contributing to the corporate profits of Iberdrola. He asked these questions as party to the case regarding the increase that is now before the New York State Public Service Commission.
Riley also asked the PSC to hold hearings in or near Binghamton, Ithaca, Oneonta and Monticello. The PSC agreed to all but Monticello. He also asked that the hearings take place on weeknight evenings to maximize working-class participation. He further urged regulators to compel the participation of Avangrid and Iberdrola. The Oneonta public hearing will take place on Thursday, October 16 at 1 p.m. at Morris Conference Center on the SUNY Oneonta Campus.
Virtual hearings are a possible option. For more information on how to participate in the public hearings or to find their other locations, visit the “NYSEG & RG&E: Virtual Public Statement Hearings on Rate Request And Proposed Customer Service Center Closures” page at https://dps.ny.gov. At the GFD, Riley described the PSC as a “rubber stamp commission,” saying “We’re up against a massive machine.”
Robinson expressed concern for increased bills for the people the fire department serves.
“People will be using firewood and propane, which increases the risk of carbon monoxide poisoning. Deaths will increase,” he said.
In reaction to the meeting with Riley, Robinson stated, “Where he’s headed is very good. If we get NYSEG to back off, it would be good.”
At the meeting, Riley raised the concept of community-owned electric services, such as Otsego Electric Cooperative, which serves parts of Otsego County. He noted that bills from cooperatives are generally 80 percent less than NYSEG’s.
The conversation drifted to other issues, such as corruption within the houses of Congress.
“The system is corrupt. It’s built by the most powerful special interests—corporations, PACs (political action committees), super PACs…NYSEG is making so much money to give to politicians, to send in its lobbyists,” said Riley, adding that he does not take PAC money.
In regard to the tax code, Riley said, “Look who gets all the benefits. Hedge fund managers pay less tax than school bus drivers.”
Riley traced the rampant corruption in government to the highly controversial 2010 U.S. Supreme ruling, Citizens United. The 5-4 decision found that laws restricting the political spending of corporations and unions are inconsistent with the Free Speech Clause of the First Amendment to the U.S. Constitution. According to Riley, this decision “opened the floodgates” to corporate influence in policy decisions.
Riley also said he favors term limits so that elected officials “don’t become beholden to the system.”
He would like to see a limit of two terms for the Senate and six terms for the House. He noted that congressmen who announce their retirement are then “liberated” to vote their conscience rather than the party line.
