New York state Assemblymember Angelo Santabarbara is doubling down on his condemnation of the Public Service Commission’s recent approval of a new rate hike for National Grid customers, calling it unjustified in light of the company’s latest financial reports.
Santabarbara dismisses the argument that rate hikes are needed to fund critical upgrades to National Grid's aging electric and gas infrastructure and support New York's clean energy goals.
"How can they say they need more money when they're making billions with a 'B,' billions of dollars in profit? So you're telling me a company's making billions of dollars in profit, [they] are telling me they are short and that money, I mean, you can't deny the numbers, billions of dollars in profit. They don't need any more money to do anything," said Santabarbara.
The 111th district Democrat pointed out that National Grid’s profits surged last year — with pre-tax earnings jumping 20% to $4.8 billion, and the utility’s core business profits rising 12% to $7 billion. At the same time, Santabarbara says the company maintained a dividend payout ratio of nearly 78%, directing most of its earnings to shareholders, and its CEO, John Pettigrew, received over $7.8 million in total compensation.
Santabarbara’s "Utility Profit Reinvestment & Rate Hike Ban Act" would prevent rate hikes during times the utility enjoys "high profits." The proposal follows Santabarbara’s "Utility Rate Hike Legislative Review Act," which he introduced last week. It would grant authority to state lawmakers to review the Public Service Commission's rate hike approvals.
Santabarbara says when you consider the state's brutally cold winters and blazing hot summers, essential utility services must be kept affordable.
"Utilities are supposed to provide reliable service. They're not supposed to be making this much profit. So this proposal makes sure that every dollar of any rate hike ever approved goes into safety and upgrades into the system, and those rate hikes that they've they are asking for that have been approved over the years. They cannot go to salaries, and they cannot go to profits and they cannot go to dividends, those, those that money has to go back into service and reliability, period," Santabarbara said.
This month, the PSC okayed new rates under which most households will see their utility bill rise about $600 annually. Under the agreement, natural gas and electric bills will go up incrementally over three years.
National Grid spokesperson Patrick Stella responded Tuesday to request for comment by email, saying, in part, "We know that affordability is top-of-mind for our customers, which is why our three-year rate plan includes $290 million for energy affordability programs, as well as investments in reliability and resiliency to better serve New Yorkers, economic growth, and advancement of state energy goals."
