Advocates call for investigation into surging Con Ed prices
NEW YORK - Fuel prices are creeping higher because of several factors, including the crisis in Ukraine.
With new sanctions on Moscow, ongoing high fuel demand in Europe, plus a limited global supply, all of it is pushing the price for a barrel of oil toward $100.
According to AAA, a gallon of regular gas now costs an average $3.54 nationwide.
The U.S. Energy Information Administration says the cost of heating oil is now up 47% than a year ago.
It's worth noting that Russia is a major exporter of oil and gas, selling 12% and 17% of the global supply.
Hundreds of thousands of New Yorkers are being hit with surging Con Edison bills and struggling to pay. The hike is leading to renewed calls for an investigation, and a switch to public power.
As CBS2's Christina Fan reports, business owner Rick White is the latest Con Ed customer suffering from sticker shock. His typical $1,000 electric bill for the Bier and Cheese Collective soared to $1700 this month.
While he was able to scrap together the extra cash this time, the future is uncertain.
"There is nothing I can do that would alleviate those charges. I can't cut staff any more than I've cut back. I can't cut back on my expenses," he said.
Across the state, more than 480,000 Con Ed customers are 60 days or more behind on their bills. Collectively, they owe over $1.2 billion.
Con Edison attributes the price hikes to economic conditions, mainly the increased cost of natural gas. But activists say it's the company's own fault for not being better prepared for market fluctuations.
"That's why we have to re-regulate these guys. I wish I had a company where everybody had to buy my product, charge as much as I want to and I have no competition," said Assemblyman Bobby Carroll.
City leaders rallied in Lower Manhattan Wednesday, demanding the utility provide one-time debt relief for all customers. Activists also pushed for the state to shift to renewable energy and develop a municipal grid and public power.
"We should pass the act ASAP to prevent more of these bill jumps in the future," said Public Advocate Jumaane Williams.
Meanwhile, Con Edison says it's assisting customers by offering payment plans.
Low-income homeowners and renters can also apply for the Home Energy Assistance Program.
What customers say they really want is an investigation.
"We need to find out who knew about these increases. When did they find out, exactly what did they find out, and who did they tell about it," White said.
So families won't be surprised by debilitating charges in the future.