The Heating Horror:
Winter Debuts, Queens Heating Bill Fears Increase

By DENISE DeJESUS

The weather dipped low this weekend and thoughts of skyrocketing heating bills danced in the heads of homeowners around the borough. Some enjoyed the warmth of their fireplaces, others fidgeted with the thermostat looking for a reasonably priced temperature, and everywhere the complaints lingered that it was going to be a long, expensive winter in Queens.

According to the New York State Energy Research and Development Authority, statewide home heating oil prices have risen an average of 22 cents per gallon since September 1999. The Authority told the Tribune that this year’s energy prices have climbed more than 80 percent, meaning the average consumer will pay about $1,650 for oil heat if they paid $900 a year ago.

The Mayor’s Task Force on Home Heating Oil added that last year, "the City paid more than $30 million dollars in excess energy costs. This year, if oil prices remain at their current level, the City can be expected to pay an additional $49 million."

So, will Queens residents end up wearing two pairs of socks, sweatpants, a turtle neck, a sweater and a wool nightcap to bed to save money this winter?

Not if their civic groups, advocacy programs and elected officials can help it.

Most agencies, organizations, elected officials, utilities and consumers are looking to the Public Service Commission (PSC) for a solution, since the Commission helps to control the costs for gas and electric rates.

Heating oil trucks are becoming an increasingly common sight on Queens streets as the demand for energy increases. Tribune Photos By Ira Cohen

Jackson Heights Assemblyman Ivan Lafayette warned, "With winter fast approaching, these high energy prices could disrupt that state’s economy and cause hardships for working families."

Lafayette has supported a number of measures to address energy-related issues including: Competition Plus, which provides a statutory framework for restructuring utilities in New York State; Energy 2000, to redefine the role of the Power Authority in New York for the new ear of post-monopoly competition; and a measure that would make available $350 million a year for ten years through loans and grants for conservation and energy efficiency programs and new energy technologies in the state.

Mayor Rudy Guiliani has created a Task Force on Home Heating Oil in hopes of bringing down this winters home heating expense and avoiding a potential energy crisis.

Guiliani explained, "Ten days after the announcement of the oil reserve release, oil prices continue to hover near ten-year highs, and supplies continue to be at their lowest levels in more than twenty years."

The Task Force will develop methods to assist residents in reducing the cost of heating their homes this winter by assessing testimony from government officials, oil market analysis, distributors, landlords and citizen groups.

Queens Councilman Sheldon Leffler is currently looking for support from the Mayor’s task force to have the state legislature temporarily eliminate their portion of the sales tax on Home Heating Oil and grant the city the approval to eliminate the local portion of the sales tax.

According to Leffler, the mayor has conferred with Council Speaker Peter Vallone about the temporary tax eliminations. In the meantime, Queens Congressman Joseph Crowley is working in Washington to create a northeast home heating oil reserve should the winter moths create shortages.

And in a recent step to reduce consumer bills, Con Edison has reached an agreement with the PSC to extend the Electric Restructuring Agreement — established in 1997, when the nation was not faced with soaring rates and a potential energy crisis.

That extension would include about $1.5 billion of rate benefits to consumers, saving residential customers approximately $50 annually, small commercial customers $100 annually and close to $1000 a year for large commercial customers.

The $170 million in reductions began on October 1 and will be reduced by an additional $209 million on April 1, 2001 — the same date approximately 200 mega watts of additional capacity will become eligible for business incentive rate discounts and $18.5 million in anticipated savings from Con Ed’s proposed merger with North East Utilities.

Home heating oil, natural gas, propane, gasoline and electricity prices have soared since the federal deregulation of the energy market and are projected to increase this winter by at least 20 percent. Under this new regulation, consumers were expected to save money by having the freedom to choose which power generating company will produce their gas. But so far, local elected officials say, these results remain to be seen.

The climbing rates are being attribute to the slow process of getting new power generating companies on the market, creating competition for the lowest price and the limited nationwide supplies.

With everyone ‘plugged-in’, New Yorkers are slowly depleting their electricity supply and causing transmission systems to work overtime creating the need for electricity supplies from outside the city, increasing the rates, or the construction of new New York power plants, said New York Power Authority (NYPA) Spokesperson Michael Saltzman.

"The New York City economy is busting in recent years," said Saltzman. "In almost every home there are personal computers, fax machines, people plug in their cell phones and in the summer air conditioners. All of these use electricity."

Crowley has requested Attorney General Janet Reno open an investigation into alleged price gouging by the oil industry.

Senator Frank Padavan charged in a letter to the Public Service Commission (PSC) that "the PSC has been far too lenient with Con Ed in recent years, allowing the utility to pass along rising costs."

The American Association of Retired People (AARP) and the Public Utility Law Project filed a petition with the PSC requesting an investigation of Con Ed’s summer price hike stating, "We must learn from this price spike and prevent it from happening again with Con Edison and other utilities."

NEED HELP?

New Yorkers seeking more information about home heating oil prices can contact the Department of Consumer Affairs at (212) 487-4444 or access the Department’s website at nyc.gov/consumers. To obtain a copy of DCA’s Home Heating Oil Price Survey, consumers can visit the department’s website or send a self-addressed, stamped envelope to:

Department of Consumer Affairs
Attention: Home Heating oil Price Survey
42 Broadway, 8th Floor
New York, NY 10004

Save Money Here

Con Edison offered the following information for Queens residents looking to beat the heat bills:

• Plug it up. Check for drafts by simply holding up a tissue around your doors or window frames. If it moves, you’ve got a leak. Seal it with caulking or weather stripping.

• Insulate. Insulating your attic, crawl spaces and walls can keep things a lot more comfortable all year round.

• Don’t waste. Computers, VCRs and CD players use energy even if you’re not using them. If they’re in the "on" mode, they’re on and using energy. Shutting them off is energy-smart and dollar-wise.

• Summer Fun-tastic. Once you’ve cooled your home with your air conditioner, turn it off and use fans to keep cool.

• Set your thermostat no higher than 68 degrees. At bedtime or when you leave your home, turn the thermostat down to 60 degrees. Each degree can mean a three percent increase in energy costs.

• Older people with medical problems should talk to their family doctor. For their health, it may be important to keep the thermostat above 68 degrees.

• Install weather stripping on your windows and outside doors. Buy a cover for your air conditioner or cover it with plastic.

• Use natural light to heat your home – it’s free. Open drapes and blinds and let sunlight heat the room.

• Keep the area around your radiator clear. Move drapes or furniture so that heat can flow freely.

• Don’t use portable electric space heaters. Just one can add $60 or more to your electricity bill every month.

• Never use the oven to heat your home. It’s dangerous and can cause fires. It can also produce deadly carbon monoxide gas fumes.

• Replace incandescent light bulbs with compact fluorescent bulbs. You’ll get the same amount of light for about a quarter of the cost.

• Clean your light bulbs. Grime from kitchen vapors, smoking and dust reduces brightness. That means you pay more in order to get the light you need.

• Use a timer on your lights when you’re away from home. A timer uses your lights efficiently, saving you money, and helps with home security.

• Enough is enough. Too much light wastes energy. Make sure your lamps are arranged to light up your life. Turn off a table lamp and see if you can live with the difference.

• Use low-voltage bulbs (such as 25 or 40 watt) for halls and other places where bright light isn’t needed. Save the bright lights for reading and work areas.

• Use the washing machine, dryer or dishwasher only when you have a full load. Keep the lint filters clean in your washer and dryer.

• Use the right water heater for your needs. Check them out. Too big is too expensive.

• Don’t waste water. Turn the water off when you’re shaving, brushing your teeth, or rinsing dishes. Repair leaky faucets.

• No peeking, please. Opening the oven when you’re cooking uses more energy. If your oven has a self-cleaning feature, turn it on immediately after cooking while the oven is still hot.

• Big deal. The refrigerator is always on and is the biggest user of electricity year-round.

• Cold air costs money. Decide what you want before you open the door. Don’t put the fridge in direct sunlight, next to the stove, or near a heating vent.

• Store foods in the refrigerator so air can circulate freely. Stack items tightly in the freezer – if there’s extra space, add bags of ice.

• Keep the condenser coils clean. Make sure the rubber gasket on the door provides a tight seal. Set the temperature to 40 degrees for the fridge, 0 degrees for the freezer.

• Small change. If you are shopping for a new refrigerator, consider a smaller unit.

• When buying, shop smart. Refrigerators with the Energy Star® label are energy-efficient and easy on the environment.