NYSEG: Cold Winter Resulted in High Electric Bills

Customers with Day/Night Meter Paid More than Those with Straight Meters

By Holly Crocco

The folks at New York State Electric & Gas aren’t allowed to tell customers they’ll save money if they switch from day/night meters to 24-hour or “straight” meters. But the consensus is that customers with straight meters had lower electric bills this winter.

During the Putnam County Legislature’s March 24 Economic Development Committee meeting, representatives from NYSEG were invited to shed some light on why customers received shockingly high bills this past season.

According to Dylan Miyoshi, municipal and community relations manager for the Brewster division of NYSEG, a colder winter and a dramatic price increase for oil and gas in the marketplace is a large part of what has led to those high energy bills.

“In November we were up actually almost 8 percent warmer than we were compared to the previous year,” he said. “December we went down over 23.4 percent colder. January we were 28.6 percent colder and February we’re about 25 percent colder, which ends up equating to about 15 percent colder this past winter than the winter before.”

He explained that even though a customer may keep their thermostat at 65 degrees, if demand is high because everyone is turning on their heat at the same time, the supply cost peaks.

“To generate that electricity to keep that warmth within your home, it does require a lot more energy,” said Miyoshi.

NYSEG doesn’t generate power, so it purchases power from to deliver to its customers every day. This year there was a 4.5 percent greater demand for oil and gas.

New York State allows NYSEG to go to the marketplace and hedge, or lock in at a price, oil and gas for those who use a straight meter. “So, right now we’re hedging 70 percent (of the market rate) on a regular meter,” explained Miyoshi. “Which helps stabilize the cost for residential straight meters.”

However, “for whatever reason,” about 10 years ago the state said the rate cannot be hedged for customers with day/night meters, so they are subjected to fluctuating marketplace rates.

“So, while a residential straight meter customer might have been paying 10 to 12 cents (per kilowatt-hour) this winter, there’s customers who were paying almost 30 cents at one point in mid-January,” during peak hours, said Miyoshi.

While customers with straight meters may see a lower average rate, those with day/night meters may see rates dip in the overnight hours – during off-peak hours – and may choose to do their laundry or run the dishwasher after 11 p.m. to take advantage of the lower rate at that time.

According to Tom Garrity, regional manager of municipal and community relations for NYSEG, the Brewster division – which includes Westchester, Dutchess and Putnam – has the most day/night meters than any other division of NYSEG. “We have over 20,000 day/night meters in the Brewster division,” he said. “It’s how (houses) were built back in the 1970s, 80s. It’s what people picked.

“The real thing we want people to leave with is that the day/night meters we have no control over,” continued Garrity. “We go out to the market every day. We buy it on the market, and we pass it through. We don’t make a penny on it. It’s strictly a passing cost.”

However, with more people buying electric vehicles and plugging in their cars between the off-peak hours of 11 p.m. to 6 a.m., that could cause the off-peak rate to increase with demand.

“Keep in mind that for nine months of the year, up until it got cold, the day/night rate wasn’t terrible,” said Garrity.

There is no cost for a customer to change from a day/night meter to a straight meter, or vice versa.

Legislator Greg Ellner, R-Carmel, criticized NYSEG for continuing to increase its delivery charges and other associated costs.

“I have a problem with your continued rate increases of your delivery charges,” he told the employees. “When delivery is two-thirds of your cost of electricity, we have a problem.”

Garrity explained that the transition charge, revenue decoupling, supply point capacity charge, and other costs and taxes (which are “explained” on the back of one’s bill) are all linked to usage.

In addition, NYSEG files a rate case with the Public Service Commission every three years for a rate increase. Last time it went up about 8 percent, spread across three years. It will file its next rate case this May.

Legislator Erin Crowley, R-Mahopac, asked NYSEG to show more “forgiveness” for constituents who can’t pay their electric bills.

“We have people that are retired, seniors, veterans, new families – every family is being affected by this,” she said. “I think you guys need to take a look at your involvement when it comes to some sort of forgiveness or understanding and re-evaluate certain measures you take with people who can’t pay their bills.”

Residents who would like to speak to a NYSEG employee about their electricity costs may bring a copy of their bill the customer service center at 35 Milan Road, Brewster, between the hours of 9 a.m. and 3 p.m., Monday through Friday, to speak with a customer service representative.