Finally, someone stands up to PSEG and its rate hikes

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In 2014 alone, PSEG, the utility company contracted by the Long Island Power Authority, increased rates seven times.

Enough is enough. Ratepayers are infuriated. Now, as if having some of the highest utility rates in the country weren’t enough, we have learned that PSEG is seeking an increase in its management fee of $25 million.

I began keeping my eye on the situation last year. Now, those elected to serve us are stepping up to the plate. Town of Hempstead Supervisor Kate Murray has begun a fight for the people. On March 18, Murray held a press conference announcing that she had called on Gov. Andrew Cuomo and State Senate Majority Leader Dean Skelos to pass laws requiring PSEG Long Island executives to disclose their salaries and compensation packages.

While PSEG claims that it needs a portion of the increase for new projects, it has kept many of these projects confidential. As Murray pointed out, under the LIPA Reform Act of 2014, executive compensation for top officials does not have to be publicly disclosed, nor does the request for a rate increase.

A refusal to disclose executive salaries, bonuses and benefits is unheard of in private or municipal utilities. In addition, the rate process is unusual and unheard of. The average PSEG electricity bill is now 15 to 20 percent higher than LIPA bills were, with no major improvement in service. So what could ratepayers possibly be paying for?

While oil prices across the country have steadily declined, PSEG bills have increased steadily since last fall. How is that possible? While the fuel charge has dropped slightly in the past two months, the charge increased by over 40 percent from September to January.

PSEG has paraded around claiming that Long Island is receiving a “transparent rate” and that this is the “first time ratepayers have a say.” Really? If this were true, PSEG would fulfill its moral obligation to the people of Long Island and publicly reveal the company’s full 2015 budget, executive bonuses, incentive compensation, retirement information and other data.

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