Dinowitz Calls on Governor, State Senate to Support Office of Utility Consumer Advocate

Office could save New Yorkers billions in utility costs

  Assemblyman Jeffrey Dinowitz, Chair of the Assembly Consumer Affairs and Protections Committee, has called on New York Governor Andrew Cuomo and the State Senate to support the addition of the State Office of the Utility Consumer Advocate in this year’s state budget. Creation of the office, which would represent utility customers at hearings regarding utility rate hikes, had initially been a Dinowitz sponsored piece of legislation (A.6239) but was added to the budget resolution passed by the Assembly last week.

“I authored this important consumer legislation last year because I saw that everyone had a seat at the table when discussing utility rates except consumers,” Dinowitz said. “I am thrilled that this legislation is part of the assembly budget resolution and hope that the governor and state senate join us in standing up for consumers.”

In the wake of Superstorm Sandy, Hurricane Irene, and Tropical Storm Lee, consumers in New York have been left without a voice and real representation when it comes to utility services.

Currently more than 40 states and the District of Columbia have an independent state agency that represents the interests of residential utility customers. New York is one of few states, and by far the largest, without such an independent office.

The State Office of the Utility Consumer Advocate would serve as an independent advocate and appear on behalf of New York consumers in state and federal regulatory proceedings, as well as judicial review proceedings concerning rates and conditions of public service utilities. Though New York currently has the Public Service Commission (PSC) and the Utility Intervention Unit (UIU), which is a division of the Department of State, the Utility Consumer Advocate would focus solely on consumers and their interests as related to utility services.

In past proceedings before the PSC, utility providers and large commercial and industrial customers have actively and vigorously represented their own interests, yet there is a stark lack of input from parties that represent consumers. The Utility Consumer Advocate would be appointed by the governor, subject to senate confirmation, and would serve a six-year term.  He or she would exercise independent discretion in determining when to initiate and participate in proceedings that affect residential utility consumers and how to advocate for their interests.

In other states where such an office exists, residential consumers have seen drastic savings in comparison to the actual amount of funding that goes to these offices. California’s Division of Ratepayer Advocates lobbied over 200 times on behalf of California consumers and saved them over $4 billion in rates saved and increases avoided. Estimates show that for every $1 spent representing and advocating on behalf of California’s public utility customers, the average customer saved $153 per year.

Creation of the office is widely supported by consumer advocate groups representing various demographics around the state, including AARP, New York Public Interest Research Group (NYPIRG), Public Utility Law Project of New York, Inc., and Consumers Union.