State Assemblyman Fred W. Thiele, Jr. today announced that the Assembly Budget Proposal would create the State Office of Utility Consumer Advocate, a measure which he has co-sponsored in the State Assembly. The advocate would provide residential utility customers with an independent voice to represent their interests during state and federal regulatory proceedings.

Thiele stated, “Long Islanders suffer with some of the highest utility rates and lowest customer satisfaction in the nation. Last year, I opposed the so-called ‘LIPA Reform Bill” because it did nothing to reduce utility rates and lacked any meaningful oversight over Long Island’s new electric company, PSEG-LI. This New Jersey company was given ‘carte blanche’ over Long Island’s energy future. The State Public Service Commission only possesses an advisory role over PSEG-LI. In a few short months, we have already seen rates explode from fuel charges and the level of debt increase to its highest level in years. Long Island needs a Utility Consumer Advocate to act as an independent voice. This office would be a check on the unbridled authority of the utility company.”

Thiele added, “The current situation with the transmission line in East Hampton further points to the need for the advocate. PSEG-LI has outraged local residents by constructing a new transmission line through residential neighborhoods, a historic village, and scenic vistas. They have failed to provide the same option to East Hampton to underground the transmission line that was offered to Southampton just a few short years ago. Elected officials have taken up their cause, but there does not exist an office in state government to counter-balance the unfair one-sided monopolistic advantage that a utility has in these matters. This bill would level the playing field.”

Currently more than 40 states and the District of Columbia have an independent state agency that represents the interests of residential utility customers. New York is one of few states, and by far the largest, without such an independent office.

In other states where such an office exists, residential consumers have seen drastic savings in comparison to the actual amount of funding that goes to these offices. California's Division of Ratepayer Advocates lobbied over 200 times on behalf of California consumers and saved them over $4 billion in rates saved and increases avoided; in fact, they estimate that for every $1 spent representing and advocating on behalf of California's public utility customers, the average customer saved $153 per year. The creation of an appointed advocate with the powers allotted in this bill would give New York utility customers a voice at the table and save them a considerable amount of money when it comes to the utilities they use every day.

Thiele urged the State Senate and Governor to support the proposal in the final 2014-15 State Budget.