Opposition to Eastwood Submetering Scheme
February 9, 2009
It was standing room only as Eastwood residents packed the Chapel of the Good Shepard Church for an emergency community organizing meeting last Saturday.
Last fall the residents of the Eastwood complex on Roosevelt Island were informed by their management company, Urban American, that management was applying to the New York State Public Service Commission (PSC) for the building to be converted to submetered electricity. Submetering, as opposed to mastermetering, is when tenants are billed individually for their unit’s electrical usage rather than the landlord.
From the get-go, I was skeptical that a 33-year-old building with a baseboard electric heating system, energy-inefficient appliances, faulty thermostats, and a host of other issues, could establish a submetering scheme that wouldn’t result in a de facto massive rent increase that prices families out of their homes. However laudable the environmental goals of submetering, it doesn’t always make sense. In order for submetering to result in cost-savings and energy conservation, tenants need to be able to have the tools to conserve electricity. This is simply not possible in a building like Eastwood.
It was for these reasons that I requested two months of sample billing be sent to residents prior to the start of actual billing. What we have seen since those bills began to arrive last week is alarming. Bills totalling $600, $700, $800, $900, and even $1000 are not uncommon - for all unit sizes.
This morning, the New York Times published an article about this issue and in it Douglas Eisenberg, CEO of Urban American is quoted as saying the following:
“I think that changing one’s habits is a difficult thing to do, and this really takes people being proactive about saving energy[…] A lot of these residents have lived in this building a long time. They haven’t been responsible for their electric bills. Now they are. I think at the end of the day, I feel pretty good that we’re doing the right thing here.”
I am fairly offended by these remarks, as I am sure Eastwood tenants are. If I ran every appliance in my apartment 24-hours a day for a month, I doubt I could match most of the electric bills that Eastwood residents are facing. Electric baseboard heating is simply the most inefficient system you can have in a building like this. And what’s worse is that Douglas Eisenberg knows this. His company has been paying this electric bill since they bought the building, and now they don’t want to do that anymore. Blaming the tenants and accusing them of being wasteful is a low-ball move and it’s not fooling anyone.
I have only seen two bills so far, out of hundreds, where the rent reduction covers what was approved by the PSC, and most tenants are many hundreds of dollars away from that mark. If you are an Eastwood tenant and you have not yet faxed me a copy of your sample bill, please do so. My fax number is 917-432-2983.
One piece of good news to report is that through my negotiations with the NYS Division of Housing and Community Renewal (DHCR), the rent reduction schedule will be improved slightly. DHCR is responsible for setting the amounts for Section 8 tenants based on a strict interpretation of federal HUD regulations. (And the rent reductions for Section 8 tenants were applied to all tenants.) However, the initial calculations by DHCR assumed a lower dollar per kilowatt/hour amount than what tenants are actually going to be charged by Con Edison (14 cents per kwh as opposed to 18 cents per kwh). The new rent reduction rates can be accessed by clicking here, and while they do not solve the problems tenants are facing, I am pleased that DHCR has taken the step to review their calculations in order to ensure that tenants are at least given what they are entitled to under the law.
Despite this small victory, I do not believe that Eastwood is an appropriate candidate for submetering, under any rent reduction scheme. Having now viewed the sample bills, I, along with my colleagues (Congresswoman Carolyn Maloney, Borough President Scott Stringer, State Senator Jose Serrano, and Council Member Jessica Lappin) wrote to the Public Service Commission and petitioned for the Eastwood submetering application to have a re-hearing so that a number of factors that may have been initially overlooked may be examined more closely.
***UPDATE*** The Public Service Commission has granted my request for a stay of submetering and the landlord’s application is now in a re-hearing process. Tenants at Eastwood have until April 1st to submit comments to the PSC on the application itself. Please contact my office for more information at 212-860-4906.
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My community office is here to help you.
315 East 65 Street
New York, NY 10065
Tel 212-860-4906
Fax 917-432-2983
Email KellnerM@assembly.state.ny.us
Dear Assemblyman Kellner,
I wanted to say in my own words to thank you, thank you and thank you for your unlimited suport for the residents of Roosevelt Island.
1) Your tireless efforts regarding the sub-metering in the Eastwood community,
2) Your suport for the Korean New Year’s celebration,
3) and everything else for your unceasing care.
We are very blessed to have you as our assemblyman.
You have my vote forever.
Sonia