AARP Helps Reduce Utility Rate Increases

In state after state last year, AARP pushed back against proposed utility rate increases and helped consumers save millions of dollars. “Many older consumers are on a fixed income, and we need to ensure that the rates they are charged are fair,” said John Hishta, a senior vice president with AARP.

AARP representatives announced the protections older consumers will receive.

Joseph Stelling

Here are some of the places where AARP made a big difference last year.

• Connecticut AARP convinced regulators to restrict electricity suppliers’ marketing tactics such as “teaser rates.”

• Missouri AARP successfully resisted “formula rates,” which let utilities raise rates without the usual regulatory oversight.

• Arizona and Oklahoma AARP helped persuade regulators in both states to oppose mandatory fees that would be added to consumers’ bills based on their highest usage during the month. AARP opposition also helped cut a proposed utility rate increase in Oklahoma from $92.5 million to $8.8 million.

• Kentucky AARP successfully fought a proposed $11.25-a-month electric rate increase. The utilities got an increase of only $1.50 over two years.

• North Dakota AARP efforts saw a proposed electric rate increase nearly cut in half last year.

• Nevada AARP opposed Nevada Energy’s attempts to raise the fixed monthly fee. The Public Utilities Commission reduced the fee for single-family homes from $12.75 to $12.50.

• New York AARP successfully fought to ensure that the Public Service Commission examined claims of unscrupulous energy-supply marketing practices that tout savings but raise costs.

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