By Greg Carlson, RAM, CPM, nyarm
President, Federation
of NY Housing Cooperatives
I suggest we take a closer look at the real issue regarding electricity restructuring. Only our electricity supply, which makes up a mere 25% of the total bill, is available for bidding on the open market. What about the transmission and distribution costs which comprise 75% of the bill? This 75% is controlled by Con Edison with the blessing of the Public Service Commission.
I live in and manage a 424-unit complex in Forest Hills, Queens. It is documented that our building burns more fuel during the summer than the winter and we are master-metered. This summer our management office received a bill for the period June 22 to July 24. During this period our air-conditioning was out of service for ten days while we awaited a new, custom made unit. Also, as part of our energy efficient maintenance program we replaced 400 hallway light fixtures with energy efficient ones. Despite all this our bill increased 56%!
We have been tracking our electric bills since 1994. During the summer months our costs average between $1100 and $1200 per day in electricity. Yet during this billing period, when we used less electricity and installed energy efficient fixtures we paid $2000 per day, nearly double the cost for the same period last year. What’s wrong with this picture?
Our bill is divided into three components: kilowatt hours used, demand charge (charge for peak electricity demand), and an adjustment factor (fuel surcharge). Our kilowatt hours and demand charge for June 22 through July 24 were our lowest ever. The fuel surcharge was twice the highest amount we have ever been billed. The surcharge was $3.8844 per gallon even though we buy #6 fuel at less than 90 cents a gallon. What’s wrong with this picture?
When will the media uncover and consumers discover the real reasons behind the increases in our electricity bills? It’s not just market forces. It’s Con Edison wanting to continue its monopoly of the market.