At a press conference held at his office today, New York Senator Charles Schumer announced that he'd requested an immediate investigation by the Federal Trade Commission into the skyrocketing gas and electrical bills that have plagued many consumers throughout the winter. "We know the polar vortex brought record cold, and as a result the price of gas obviously went up," Schumer said. "But was the increase in the bills proportionate to the increase in gas prices?"
Within his letter to the FTC, Schumer cites statistics from the U.S. Energy Information Administration which showed wholesale electricity costs more than tripled between January and February of this year. Similarly, since the beginning of 2014, natural gas prices were hiked from $4.23 per thousand cubic foot to reach $6.49, the costliest it's been in six years.
Speaking today, Schumer noted that Con Ed overall costs went up 20-25 percent this winter. The press release also referenced a National Grid customer from Syracuse who in March 2013 was charged $65.02 for electricity. In March of this year, the same customer was charged $106.80, despite having used significantly less electricity than the year before.
"For families and businesses emerging from the long cold winter, these prices are really troubling," Schumer said. "Are we saying that something was wrong? No. Are we saying something could be wrong? Yes. We have to look across the whole supply chain."
If the investigation uncovers wrongdoing, Schumer said that the FTC "can offer rebates; I'm not sure if FERC can do the same, and they can order that corrective action be implemented in the future. FERC obviously smelled something going on."
The investigation will be conducted in conjunction with the state Public Service Commission as well as the Federal Energy Regulatory Commission (FERC). According to the senator's office, these exorbitant bills will persist for at least "several more months."
Schumer also addressed the passing of political mainstay Basil Paterson, who died yesterday at Mount Sinai Hospital at the age of 87. New York's first black Secretary of State, Paterson was also an influential partner to Mayor David Dinkins and a powerful voice for the advancement of New York's black community. "Everyone respected [Paterson]," said Schumer. "A good friend of mine and an advisor, he will be missed from one end of New York to another."
