Winter Heating Costs in New York Quickly Outpacing Rest of Nation

New Yorkers Paying Roughly 54% Higher Electric Rates than Nat'l Avg., While Utility Profits in State up $332 Million

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Jan 09, 2015, 09:46 ET

NEW YORK, Jan. 9, 2015 /PRNewswire-USNewswire/ -- New York residents opening their heating bills aren't just imagining higher rates, a new AARP analysis confirms. According to the latest figures from the U.S. Energy Information Administration (EIA), New Yorkers are paying slightly more than last year around this time - what's more troubling, AARP finds, is just how much more compared to the rest of the nation.

Empire State residents' bills are increasing at a rate about 27% faster than the national average, resulting in bills about 54% higher, as of October (the last month for which the EIA is reporting data), according to AARP. New York's average rate rose to 19.42 cents per kilowatt hour, from 18.89 cents last year (roughly 2.8%). But on average, the rest of the nation pays about 12.58 cents per kwh, up less than 2.2% from 12.31 cents in October 2013.

It's good news electric companies in New York, who reported $332 million in higher revenue from residential customers compared to the same time last year, and a $6 million increase during the month of October alone.

AARP warns if the trend continues, New Yorkers could be in for a long winter, not only weather-wise but financially.

"This seemingly comes down to pennies on the dollar, but at the end of the day, those pennies add up quickly to one thing, higher bills, in fact, some of the highest bills in the nation," said Beth Finkel, State Director for AARP in New York State. "For families and older New Yorkers on a budget, staying warm in the winter often requires a financial balancing act."

New York State residents pay some of the highest electric rates in the nation, behind only Alaska, Connecticut and Hawaii.

AARP is urging New York to become the 41^st state to establish an independent utility consumer advocate office with the power to challenge unfair rate hikes in court. The 40 other states with utility consumer advocate offices save their residents billions of dollars a year.

AARP is a nonprofit, nonpartisan organization, with a membership of more than 37 million, that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as healthcare, employment and income security, retirement planning, affordable utilities and protection from financial abuse. We advocate for individuals in the marketplace by selecting products and services of high quality and value to carry the AARP name as well as help our members obtain discounts on a wide range of products, travel, and services. A trusted source for lifestyle tips, news and educational information, AARP produces AARP The Magazine, the world's largest circulation magazine; AARP Bulletin; www.aarp.org; AARP TV & Radio; AARP Books; and AARP en Español, a Spanish-language website addressing the interests and needs of Hispanics. AARP does not endorse candidates for public office or make contributions to political campaigns or candidates. AARP Foundation is an affiliated charity of AARP that is working to win back opportunity for struggling Americans 50+ by being a force for change on the most serious issues they face today: housing, hunger, income and isolation. AARP has staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Learn more at www.aarp.org.

SOURCE AARP New York