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EVERSOURCE SCREWS MASS CONSUMERS

EVERSOURCE SCREWS MASS CONSUMERS

 

With a little help from its friends, the “regulators” at the Department of Public Utilities

 

December 5, 2017

BY JASON PRAMAS @JASONPRAMAS

 

It is perhaps understandable that one of the most important Massachusetts news stories of the year was buried in the avalanche of reports coming out of Washington last week. But Eversource Energy, a large investor-owned utility serving much of Connecticut, New Hampshire, and Massachusetts, just got a big rate hike approved by the Commonwealth’s Department of Public Utilities Commission. This despite strong opposition from Mass Attorney General Maura Healey—who believes the company should be forced to cut its rates, rather than being allowed to needlessly accumulate more profits on the backs of consumers.

 

According to Commonwealth magazine, “Eversource Energy won approval to hike power rates $36.9 million a year for its 1.4 million electricity customers, a slimmed-down boost from the company that initially requested a $96 million increase.” A situation the company had the temerity to complain about when it has already been making solid profits under the rate system that has been in place since 2005. The new rates—which will slam Western Mass especially hard—are slated to go into effect on Jan 1 and last until 2022.

 

Healey, for her part, said the 10 percent shareholder return the rate increase includes is “one of the highest in the country” for a publicly regulated utility, according to the Boston Herald. And Eversource has some serious rate-related skeletons in its closet, it seems. Even as its rent-seeking drama played out at the DPU, the AG started looking into recent allegations by the Environmental Defense Fund that the Eversource and fellow regional utility Avangrid, Inc. rigged gas pipeline reservations on frigid winter days to artificially drive up electric and gas prices to its customers. Then, according to The Republican, shortly after that charge was leveled several New England residents, represented by Hagens Berman Sobol Shapiro LLP, filed a related class action suit against Eversource and Avangrid for using the pipeline scheme to cause “electricity consumers to incur overcharges of $3.6 billion in a years-long scheme that impacted six states and affected 14.7 million people.”

 

There is much that can be said about how problematic it is to have former energy industry lawyers like DPU Commission Chair Angela M. O’Connor and DPU Commissioner Cecile M. Fraser—both appointed by Gov. Charlie Baker (Fraser only in July with the Eversource rate hike vote looming)—playing the role of corporate foxes guarding the chicken coop of the public trust. It’s also worth mentioning that the third commissioner, Robert Hayden, was a longtime DPU staffer—and ran for the Mass 10th Congressional seat as a conservative Republican in 2010 on a “small government” platform, according to the Barnstable Patriot. So don’t expect much consumer protection to come from his corner either. But even if the three-person DPU Commission was all pro-consumer, we’d still have to deal with the structural crisis of energy conglomerates using their money and political clout to continue to make state government dance to whatever tune they care to play.

 

For example, Eversource and other investor-owned utilities have remained extremely hostile to the new wave of renewable energy options. Especially solar, which they have consistently lobbied heavily and successfully against to prevent it from becoming widespread enough to potentially break their regional monopolies.

 

Reining in such entrenched corporate utilities will take a long, hard fight by a broad coalition of consumers and local governments. But there is one seemingly small change to state law that would go a long way toward winning such a conflict. A group called the Massachusetts Alliance for Municipal Electric Choice (MAMEC), led by Lexington resident Patrick Mehr, got state legislators to file an important “muni choice” bill with significant support from dozens of cities, towns, and major stakeholder organizations around the state no less than eight times in 16 years between 2000 and 2016. If passed, it would have struck language from state law that gives investor-owned utilities like Eversource veto power over the establishment of new municipal electric utilities in the Commonwealth. It was shot down all eight times by the cheap and oft-used device of sending each attempt into “study.” Basically the same thing as killing the bill without as much PR blowback for state pols in the pocket of major corporations.

 

Turns out that 41 cities and towns in Massachusetts already have municipal—that is, publicly owned and managed—utilities. And advocates like MAMEC say they provide generally better service and, more to the point, significantly cheaper rates than energy corporations like Eversource. Sadly, the last new muni utility came online in 1926. It will take passage of a muni choice bill to allow more cities and towns to exercise that option.

 

MAMEC and its allies may have lost many battles against powerful, well-connected foes. But that doesn’t mean the idea of expanding the number of muni utilities is a bad one. Far from it. Because every new muni that comes online is another stake in the heart of the greedy, environmentally destructive, investor-owned utilities that will keep taking Mass consumers for a ride until they are brought to heel. Failing that, consumers can expect to get spanked with regular and ever more painful rate hikes for the foreseeable future.

 

So, I encourage readers to get active in the fight for a more fair, democratic, and environmentally conscious regional energy system. Working to get more public-spirited DPU commissioners seated is certainly a good interim goal. But creating a larger network of publicly owned and managed municipal energy utilities will go further down the road toward extricating us from the structural mess we’re in thanks to the big investor-owned utilities like Eversource. Though even that won’t solve all the myriad problems with our current byzantine system of electricity generation and distribution.

 

Regardless, check out MAMEC at massmunichoice.org. Patrick Mehr told me that the group remains active, and it seems like a good starting place for those of you who don’t want to continue to take rate hikes lying down.

 

Frankly, increased public pressure on Eversource and other investor-owned utilities in our region cannot come soon enough. Turns out the recent rate hikes are only the first part of the DPU order relating to Eversource. The second part is being released on Dec 31, according to a DPU press release, and advocates are warning that even worse rate shenanigans are in the works. So, find a good group working for utility reform and join it, or start your own utility reform group… or continue to be a victim of price gouging by investor-owned utilities. Those are your options. Choose wisely.

 

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.

REAL RIDESHARING

AH-TOP-PIC-200-DPI

 

Evolving the way the world moves … beyond Uber (and Lyft)

July 7, 2017

BY JASON PRAMAS @JASONPRAMAS

The following column was written as commentary for the July 2017 episode of the Beyond Boston monthly video news digest — produced by the Boston Institute for Nonprofit Journalism and several area public access television stations. It’s aimed at suburbanites, but fun for the whole Boston area family.

Over the years, I’ve often written about how to improve public transportation in the Bay State. But this time out, rather than rehash my standing call for the legislature to raise taxes on the rich and corporations to properly fund such a necessary service, I’d like to take a different tack and discuss a topic germane to the future of both transportation in general and public transportation in particular. Specifically, the so-called ridesharing industry pioneered by corporations like Uber and Lyft.

Ridesharing is a transportation system in which riders and drivers interact via software on cell phones, rather than going through human dispatchers. The software allows riders to see which drivers are near them, and to have the closest one assigned to them. It provides price estimates for rides, features seamless automatic payments from rider to driver at the end of each trip — and it incentivizes simple but important things like drivers keeping their vehicles clean.

One would think this ridesharing system would be great for riders and drivers alike, but that’s not the case. The problem with ridesharing … is that it’s not really ridesharing. That is, Uber and Lyft and smaller companies like Fasten completely control their operations from top to bottom. Including the economic structure that determines how much riders will pay in fares — and what cut of those fares go to drivers. This system is non-transparent and largely unregulated.

An actual ridesharing system would be controlled by its riders and drivers. It could, and I would posit should, be publicly managed. In short, rather than allow ridesharing companies to assist in the dismantling of existing public transit systems like the MBTA by gradually privatizing them, those systems — or agencies set up by individual cities — could run municipal ridesharing services at cost.

Fares would be regulated in ways that would ensure riders the best fares — which poor and working class riders would be able to consistently afford. A small percentage of each fare would go to the municipal rideshare service to develop and maintain the necessary software and infrastructure. Then all the extra money that presently flows into the coffers of Uber and Lyft top brass and investors would be paid to drivers in the form of the best possible wages.

Such a service would be an excellent adjunct to public trains and buses, and would make it much easier for everyone to get from point A to point B. Plus it would be far more democratic because it could be organized to ensure that riders and drivers would play a large role in managing the service. It could even be run as a hybrid of a consumer and a worker cooperative. And democratically controlled from top to bottom. Restricting the growth of Uber and Lyft to something like their natural share of the private transportation market by its mere existence.

Going the public route — or at least a similar nonprofit route being experimented with by RideAustin in Austin, TX — would satisfy the needs of the loyal base of Uber and Lyft clients by providing comparable service at a better price point. And it would also satisfy the needs of a whole new layer of riders who will be able to afford access to new municipal ridesharing services on a regular basis — in addition to public buses, trolleys, and trains. All while paying living wages to drivers. Who are, after all, the backbone of the current corporate ridesharing system. But who are also the most exploited by it.

Apparent Horizon is syndicated by the Boston Institute for Nonprofit Journalism. Jason Pramas is BINJ’s network director, and executive editor and associate publisher of DigBoston. Copyright 2017 Jason Pramas. Licensed for use by the Boston Institute for Nonprofit Journalism and media outlets in its network.