Utility bills are putting the squeeze on New Yorkers’ wallets. We pay more for water, electricity, and other basics than almost anywhere else in the nation.
All told, the average New York household can expect to spend $414 a month on basics like electricity, gas, phone, water, and Internet service. That’s 5% more than their monthly total in 2007 — and 18% more than the national average of $352.
New Yorkers are prisoners of such costs, which continue to rise while income stays flat — and regulators rubber-stamp an endless stream of price hikes sought by utilities claiming the cash is needed for improvements.
“In New York City, the cost of living is increasing exponentially but salaries are not,” said Assemblyman Lou Tobacco (R-Staten Island). “The utilities talk about the need to invest in infrastructure, and well-meaning legislation adds burdens that wind up costing the ratepayer. There comes a point where people just can’t afford it.”
City Councilman James Vacca (D-Bronx), who calls New York City utility prices “a terrible hidden tax,” is particularly perturbed by the city’s water bills.
“When the water meters were installed [two decades ago], we were all told that if you could conserve water you could control your bill,” Vacca said. “[Today] you could die of dehydration and your water bill would go up.”
The city’s Water Board, which sets rates, is currently floating a possible 7% hike starting on July 1 that would bring the average homeowner’s annual bill close to $1,000.
That comes on top of annual increases ranging from 1% to 14.5% every year over the past 16 years.
The price of water has almost doubled over the past decade. In 2002, a homeowner who used an average 80,000 gallons a year paid $497. With the proposed increase, that same homeowner would have to fork over $938.
Con Edison has also won rate increases from state regulators. Compared to just five years ago, the typical customer pays 18% more on every electric bill — an average of $85.55 in 2011, said a Con Ed spokesman. And rates are going up yet again this month, by 2.5%.
Natural-gas prices are one comparative bright spot. Compared to 2007, residents are paying less today to heat their homes with gas — but still 13% more than the national average. National Grid’s 2011 figures show that New Yorkers who heat their homes with gas spent about $1,468 on gas supply and delivery last year, averaging out to $122.35 a month.
Local providers’ standard cable packages cost only a fraction more today than they did in 2007. But according to WhiteFence, a home utilities comparison service, New Yorkers are actually paying less than before on cable and landline phone services.
Consumers here appear to be cutting back on the plans they purchase to whittle down their bills. New Yorkers currently pay a monthly average of $56.30 on cable — 26% less than in 2007, but still 8% higher than the national average. And they’ve chosen to trim their spending on landline phones as well — probably because of the increased use of cellphones. Those monthly bills have dropped about 11% since 2007, standing at $37.02 today, according to WhiteFence data.
Industry analysts expect cable subscription costs to soar in the next decade as content providers demand a bigger cut of each bill.
The cost of broadband Internet service is already on the rise. New Yorkers have greater access to broadband today than they did in 2007 — and are paying almost 40% more for the privilege. The average local Internet bill comes in at $39.70 a month today.
“For so many New York families, the cry we hear is that they need Internet access at home, but that it’s just too expensive,” said City Councilwoman Gale Brewer (D-Manhattan), an Internet-access advocate.
Utility rates in the greater New York area are considerably higher than those in the rest of the country, according to the federal Bureau of Labor Statistics. This winter, area residents paid at least 13% more than the national average for natural gas and 45% more than the average for electricity. New York City water bills are 68% higher than the national average.
Only Washington, DC, residents pay more each month than New Yorkers do for utilities, according to WhiteFence analysts.
With Candice M. Giove