Residential Utility Customers: Do you have a voice?

By: States: Louisiana | Source: AARP.org

Can anything be done about your high utility bills? AARP says yes.

AARP Louisiana is working with Rep. Erich Ponti, R-Baton Rouge, to examine whether or not residential ratepayers have adequate representation before the Louisiana Public Service Commission (PSC). Louisiana is one of only ten states that does not have a state utility consumer advocate. Rep. Ponti introduced House Resolution 31 which was unanimously passed by the Louisiana House to examine the feasibility for a consumer advocate to work with the PSC.

“With escalating utility bills, it is essential that residential consumers have a strong voice representing them before the PSC. This study committee is a great way to open the discussion on that issue,” Ponti said.

To further educate Louisiana residents on the issue, AARP produced an hour long DVD that presents the pros and the cons of creating a consumer advocate position in Louisiana. The forum, titled “Utility Rate: Do Residential Consumers Have a Voice?” features PSC Chairman Jay Blossman and New Orleans City Councilmember Shelly Midura as well as local and national utility advocates.

AARP State Director Nancy McPherson said AARP conducted this historic forum because high utility bills are tough on poorer citizens, including the elderly on fixed incomes.

“Texas and Florida are Southern states which are also vulnerable to hurricanes. Their citizens have consumer advocates. Louisiana citizens deserve one too,” McPherson said.

Michael B. Twomey, an attorney and expert in utility case law who represents AARP, said Louisiana’s system for considering utility rate should have a constant legal advocate representing residential rate payers.

“Utility rate cases at the PSC are high-stakes trials that first pit the utility against all its customers in determining how large its annual revenues will be,” Twomey said. “The second step then pits the residential, commercial and industrial customers against one another in deciding which class pays what share of the revenues. The PSC commissioners are essentially the judge and jury in the cases. The utilities and industrial customers are always represented by their own highly competent lawyers and experts. Residential customers, too, as a class, deserve professional representation at the PSC. The vast majority of states provide this representation in the form of a Public Advocate or Public Counsel.”

Chairman Blossman and Councilmember Midura and in favor of the study resolution but believe that both the New Orleans City Council, which regulates rates in that area, and the PSC are already working in the best interest of residential rate payers.

“I’m in support of the study, but I think what you will find is that you already have an advocate on the PSC, me,” Chairman Blossman said during the taping of the forum. “I am elected every six years and if the public doesn’t like the job I am doing, then they can vote me out of office.”

The study committee will be comprised of House Commerce Committee members and will convene in the fall of 2008.

To learn more about the issue, request a copy of the DVD by contacting Beth Bryant, AARP Communications Director at 225/376-1145 or by email.