AARP: Governor Pataki Signs Into Law 'Energy Consumer Protection Act of 2002'

12/24/2002

From: Bill Ferris 518-434-4194 Phyllis Cohn 212-407-3729 Both for AARP

ALBANY, N.Y., Dec. 24 -- Governor George Pataki signed the "Energy Consumer Protection Act of 2002" (Chapter 686) into law on Friday, Dec. 20. The bill provides consumer protections and rights to New Yorkers when they switch from their public utility to a private energy company (ESCO) for their electric and/or natural gas supply. This is the first major consumer protection regulation passed since the state's energy deregulation policy came into effect.

"We commend Governor Pataki for signing this important legislation into law and thank the sponsors Senator James Wright (Watertown) and Assemblyman Paul Tonko (Amsterdam) for their leadership for facilitating the unanimous passage of the bill in the legislature this year," said Lois Aronstein, AARP State Director.

Under New York's energy deregulation policy, individuals can choose to buy their power from an ESCO instead of their public utility company. However, when individuals were switching to ESCOs, they were losing many of their consumer protections and rights guaranteed under state law. Currently many public utilities are mounting multi-media campaigns to encourage people to switch to ESCOs.

The Energy Consumer Protection Act, will guarantee New Yorkers with the following consumer protections and rights when contracting with an ESCO for their energy supply: -- Availability of budget plans; -- Generally no deposit or prepayment requirements prior to service connection; -- Billing disputes and complaints would be handled by the New York State Public Service Commission; -- Late fees capped at 1.5 percent; -- Third-party notification prior to termination of service; -- Availability of deferred payment agreements so customers owing money can continue their electric and natural gas service; and -- Special consumer protections for continuing energy service for the elderly, blind or disabled and those experiencing medical emergencies.

"AARP believes that people can now shop for energy from ESCOs based on price, and not trade their consumer protections and rights to get a cheaper rate," said Aronstein.

The legislation was endorsed by the Small Marketer Coalition (an ESCO industry group), Public Utility Law Project, New York Public Interest Research Group, New York StateWide Senior Action Council Inc., as well as national consumer groups including Consumer Federation of America, Consumers Union, Utility Workers Union of America Local 1-2 and the National Consumer Law Center.

AARP has over 2.5 million members in New York State. AARP is a nonprofit, nonpartisan membership organization for people 50 and over. We provide information and resources; advocate on legislative, consumer, and legal issues; assist members to serve their communities; and offer a wide range of unique benefits, special products, and services for our members. These benefits include AARP Webplace at http://www.aarp.org, the AARP lifestyle magazines, the monthly AARP Bulletin, and a Spanish-language newspaper, Segunda Juventud. Active in every state, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP celebrates the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, AARP celebrates the attitude that age is just a number and life is what you make it.