Thursday, July 18, 2019

The Great New York City Blackout of 2019. Was there more to it that didn’t meet the eye?

Con Edison already sticks its cost of doing business to its customers. 
What else have they stuck to you?
This is about bills, and corporate greed, and the July 13th blackout that demonstrated just how dependent New Yorkers are on a company that, like nearly all corporate enterprises these days, puts profits first. And it may be about possible ulterior motives. But let’s start with the bills.

My June bill from New York City’s utility company, Con Edison, charged me $8.94 for the electricity I had used.  

No, that wasn’t the amount of  my monthly bill. That was just for the electricity I actually consumed. The bill itself came to $41.48 because it included charges I would have had to pay even if I hadn’t consumed a single watt of power.

Amont the items Con Edison tacked on to my bill, there was a “merchant function charge.” 

what? 

According to the bill that’s a “Charge associated with procuring electricity, credit and collection related activities and uncollectible accounts.” In other words, unlike your neighborhood cheese merchant, if Con Ed gets stiffed, they simply stick the loss caused by the deadbeat to their other customers.

It's all very weird —
and vaguely crooked

Suppose your next door neighbor stiffs the plumber. Can the plumber demand the unpaid $300 from you?

My bill also included a $12.33 charges for “maintaining the system through which Con Edison delivers electricity to you.” Right, and why shouldn’t the beer company charge me not only for the case of beer, but also for the broken axel it had to repair on the beer truck after hitting that pothole on Main Street, which is part of the system through which they bring me my beer? Not to mention the price of washing the truck.

There was also a “Basic service charge.” That, says the utility, was for “basic system infrastructure and customer-related services, including customer accounting and metering services."

Sure I’ll tell you what you owe me.
But there’s a charge for that.

So they charge me to read the meter so they can tell me how much money they want from me! I’m not sure what a “customer accounting” service is because they also charge me for depositing the check I send them every month.  Specifically, “A billing and payment charge of $1.20 which may be avoided by switching to an energy services company (ESCO), is also included.” 

How nice of them not to charge me for paying bills I’ve incurred with another company!

The list goes on with several other items. Not least infuriating is the charge for taxes that Con Ed gets charged on their gross receipts. So — if you can follow this — if they charge their customers more, they'll also charge us for charging  more, since their gross receipts will increase.

Now I know that similar charges are hidden in everything from the price of my corn flakes to what the doctor charges me for thumping my chest, before he goes off to pay his malpractice insurance. But at least just about every other business in the world has the decency to charge proportionately to what I consume. Keeping beer trucks up to snuff may be included in the cost of my beer, but if I drink less beer, I pay less for maintaining the trucks. If I visit the doctor only once, I pay less of his malpractice insurance. than if I visit him twice Not so with Con Ed.

Guess what, blackout victims:
You're screwed again.

During the blackout, the thousands and thousands of Con Ed customers who sweltered without air conditioning, stumbled around in the dangerous dark, and found the milk in their unrefrigerated refrigerators going bad, consumed less electricity. 

So yes, they’ll be charged for a piffling few less kilowatt hours. But remember, that’s often a very small part of their bills. They’ll still pay Con Ed’s charge for other people being deadbeats in full. As well as the billing and accounting charges. As well as all the other outrageous charges that most companies consider to be the cost of doing business.

The infrastructure charge is particularly galling, since it was the inadequate or badly maintained infrastructure that caused the blackout in the first place. Imagine if I didn’t deliver the case of beer you ordered because my truck broke down, and then billed you the price of a new truck.

Meanwhile, Con Edison is seeking a rate increase that would put an additional $1.6 billion a year into its own coffers. According to AARP, which is attempting to marshal opposition to the increase, “Next year alone, that would mean a 9% increase in the average customer electric delivery bill, and a 15% increase for gas delivery.”

Was the blackout an accident?

All this makes me wonder if that blackout on July 13th was nothing more than a little accidental-on-purpose demonstration of what’s going to happen to you if Con Edison doesn’t get the $1.6 billion it’s demanding.

The AARP recommends that New Yorkers protest Con Ed reaching deeper into your pockets by calling 1-844-354-6881 toll free. That’ll give you an opportunity to leave a message for the Public Service Commission.The AARP proposes you follow this script:
“Hello, my name is [name]. I’m calling to urge you to reject Con Edison electric and gas utility hikes, cases 19-E-0065 and 19-G-0066. Con Edison’s plan would send rates sky high, as well as increase my already excessive customer service charge. Please give ratepayers a break.”

Come to think of it, pick up the phone and do that right now. It’ll only take you a few minutes. It might save you hundreds of dollars over the long run, if the Public Service Commission actually listens. And better you get get a break than those greedy goons at Con Ed, right?

4 comments:

Ranch Chimp said...

Incredible story, but believed ... you're right about the corporate greed. Notice today (If you're as old as me, I'm 63), how every damn thing is nickel and dimed and everyone is squeezed for that extra buck ... I mean, they're worse than the old racketeers and loan sharks back in the day. Great though that you have such a low bill. I was in Walmart one day, had some shampoo, toothpaste, shave stuff, and I hardly ever go there. A floor walker comes to me in line and told me, for my convenience or something, to go to the self check ... I told her, "I came here to shop, not to work" (I could have quicker and easily self checked, but I was trying to make a point) ... a couple people in line laughed ... my convenience or to save them cheap SOBs from hiring employees? I lived in Brooklyn many years back (and up in Buffalo), I can't even recall how the utilities worked there. But I do remember some hot dayz in the city, with the humidity being high, it was downright sweaty and sticky, especially in the old days riding the subways. I was wondering if NYC has some type of limit on charging folks though on electric?, I mean, years back they had shit like "rent control" in NYC. I also remember not even having a window unit AC in NYC, and remember the old steam radiators for heating. From what I heard, I think it was only like part of Manhattan that blacked out? I live in Dallas today, and you know damn well here, that it will be consistently hot june, july and august, part of september too. I paid about $89 electric for june, I keep my apartment at about low 70's day and night, and I have big trees to block sun when it sets in the west and ceiling fans. What kicks me in the ass, is the electric bills in the winter when we get them cold snaps from the artic (very short spans, but costly for my heat, but my heater is older than my central air unit), I had a heat bill over a year ago for $300, I called and asked what's up? Because it's no more than $100 in the hottest months ... you know what these SOBs told me? ... get this ... I have to sign a contract for some kind of moderation, averaging, or whatever. I been using this company for nearly a quarter century, and never had to have my prices locked in by an annual contract that I have to sign yearly ... more scam shit. I'm outta here, thanx for the read, Crank

The New York Crank said...

Sorry to take so long to moderate your post, Ranch Chimp. I was, uh, distracted. In any case, you're right. If they don't catch you coming, they'll catch you going.

My electric bill is relatively low (for the consumption part) because I live in a space that in most parts of the country would be called a walk-in closet, although here in New York it's called a luxury studio apartment. And we have central air conditioning, which means that whether for the hottest or coldest days, all I pay for is a fan that blows air past the chilled, or heated pipes in my HVAC unit. The building pays the big part of the energy bill, which then gets reflected in my monthly maintenance.

Yours crankily,
The New York Crank

Ranch Chimp said...

Thanx for the insight on how they charge you. I have a AC unit on my patio/ yard outside my apartment (you can buy or rent the apartments/ condos I live in, I rent). So I get charged by the utility provider/ company, but I don't have to pay water, it's included in the rent. My place is 2 bedroom, 2 bathroom, probably about 1000' sq ft. I know that studios up in the city are high, I hear these dayz, that rents are really high up there, I would guess Manhattan would be like, sky high rent. My next door neighbour, Bill, moved here from the South Bronx, he's old school like me (58?), but we both remember when NYC had better rent deals.

Buttermilk Sky said...

Even Broadway theaters now add a "restoration charge" to the (often extortionate) price of the ticket. This means you not only pay to rent a seat for three hours, you also pay for the upkeep on the theater, which I assume means electricity, water, cleaning and other expenses which used to be the responsibility of the theater owner. In other words, the normal cost of doing business is passed along to somebody else, probably inspired by Con Ed, which has been doing it for years.