Bloomberg Rails Against Government’s Attempted ‘Power’ Play

Expect Electricity Costs To Spike Over Next 3 Summers

NEW YORK (CBSNewYork) — It’s an electric bill shocker for New York City residents.

In a stunning move, the federal government granted a windfall $1.5 billion increase to the companies that produce electricity, sending bills soaring for the next three summers.

A furious Mayor Michael Bloomberg said Friday the hefty hike is unwarranted and that he is trying to appeal, reports CBS 2’s Marcia Kramer.

It’s no April fool’s joke. The federal government said companies that produce the city’s electricity can zap you, handing you an increase of 10 to 15 percent a year every year for the next three years.

“Are you kidding me? This is ridiculous. I’m paying natural gas, electricity about $100 a month. It’s totally unfair,” East Elmhurst resident Hugh Chrysler said.

“We’re in a recession. Everybody’s looking to make a dollar. Why should we pay more?” added Steve Hafner of Astoria.

“We’re retired. We live on a fixed income. Everything is going up. Our checks are not going up,” said Ann Iavelli of Jackson Heights.

Officials said the average apartment dweller will pay as much as $96 a month this summer. Last July the bill was $87. The average small business could pay as much as $2,946 a month. Last July it was $2,576.

But many small businesses have bills a whole lot bigger than that. The owner of Mike’s Diner in Astoria said his monthly bill right now is $9,000. He’s anticipating a gigantic increase unless it’s stopped.

“It’s gonna go up like $2,000 more a month. I don’t think you can afford to pay that. The economy is struggling. It’s not picking up yet,” Kostas Pavlakos said.

Mayor Bloomberg said the increase is totally unwarranted because the feds based it on the assumption the companies will have to pay high real estate taxes here. In fact, the city gives power companies tens of millions of dollars in annual tax breaks.

“We think it’s a windfall. We don’t think it has any benefit to New Yorkers,” Bloomberg said. “It’s also very hard on people and businesses to pay higher energy costs.”

State Sen. Michael Gianaris, who represents blackout-plagued Astoria, is also demanding the feds rescind the hike.

“This is going to be hands in the pockets or rate payers of New York, going directly into a windfall for the power generators. It’s a scandal,” Gianaris said.

And here’s how you know the feds may have made a big mistake. Even Con Edison, which raised its own rates 4 percent Friday, said the hike is unfair to its customers. It, too, is petitioning the feds to kill it, and so is Sen. Charles Schumer.

Outraged? Please offer your thoughts in the comments section below.

More from Marcia Kramer
  • Herbie Original Situation Raskin

    Why isn’t the name Obama or the word democRAT anywhere in this article?
    Obama is the head of the Fed – is he not?
    The media is just as corrupt as washington itself!!!

  • D

    Appropriate and reasonable charges. Pay up.

  • Rugbyball

    “Mayor Bloomberg said the increase is totally unwarranted because the feds based it on the assumption the companies will have to pay high real estate taxes here. In fact, the city gives power companies tens of millions of dollars in annual tax breaks.”
    Well take those tax breaks back. If you promised, break it. If you have a contract, ignore it let them sue, bury the law suit in courts for years, ya you will lose eventually, maybe unless it goes to a jury trial.
    I’m not for taxing the hell out of companies, but no breaks should be allowed if you are getting other sweet-heart deals.

  • Jim Phillips

    Stay in school ,get a good job,work hard ,save your money or expect handouts…Stop blaming corporations…Thats like blaming Bush for all thats wrong…Drill for domestic oil,use coal and pay your fair share of taxes,or are american and are free to go anywhere in the world you chose..

    • SickofRichPigs

      Sounds like you have taken a few extra volts to the head recently. Yes, this is America, and soon all the fat rich pigs and the Repugnants will be served their justice. Oh, and Bush was an idiot.

      • heehee

        Why r u hating the rich? too lazy and dumb to make yourself useful?

      • NYSmike

        Agree. Bush was an idiot.

  • railien

    The cruel irony is that this ‘joke’ is not an April Fool’s Day prank.

    In this day and age with huge unemployment and people are struggling to pay their mortgage/rent, they’re getting hit with a whopping increase that is going to only benefit corporate shareholder’s pockets.

    There is no regard for ‘the little gut’. Middle class America is rapidly disappearing because of the burdens placed on them. We are returning to a feudal society where only a few have money, and the rest, serfs, are living meager lives just trying to survive.

    I’ve heard prominent rich people say on TV they have no problem with the rich getting poorer at everyone else’s expense.

    The Tea Party is not the answer because of their inability to understand the benefit of public works or why unions exist. It was with the rise of unions and the labor movement, did we as a society realize a middle class. Now with unions being decimated by state government that are incorrectly blaming labor for their economic woes, a further erosion of the middle class is occurring.

    Sorry guys, you can’t live on flipping burgers while Corporate America demands high prices be paid for the goods/services they provide.

    The discussion used to be guns or butter. The answer is becoming obvious, guns and high electric rates.

    • railien


      Little guy

      The rich getting richer while everyone else falls into poverty.

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