Roosevelt Island Manhattan Park Residents Object To "Absurdly Expensive Electricity Bill" - Building Management Says Past Bills Were For Cost Of Electricity Delivery Only, Did Not Include Actual Usage, Current Bill Makes Up For The 5 Month Billing Delay

A Roosevelt Island Manhattan Park building complex resident reported recently: 

Manhattan Park tenants; have you received an absurdly expensive electricity bill this month, and have you agreed to pay for it? I'm tired of this sh*t.

I asked Manhattan Park management:

I have heard from several Manhattan Park residents very upset over what they describe as very high electricity bills recently received from Manhattan Park. 

According to these residents, Manhattan Park failed to send electricity bills for several months last year and are now billing for those months. Is that true? 

Some Manhattan Park residents question the accuracy of their electric bills as well. Are there other reasons for the recent high electric bills for Manhattan Park residents that are different from tenants in the rest of NYC? 

Also, residents have asked if the Holiday Lights in the Park area are included in the residents electric bill?

 A Manhattan Park management spokesperson answered:

The situation regarding the electricity billing for residents at Manhattan Park was the result of a delay in receiving invoices from the energy service company (ESCO) that provides electricity supply. The ESCO was recently contracted by ownership to provide less expensive electricity to the residents than would otherwise be charged by Con Edison. Con Edison continues to deliver the electricity to the residents.

The delay in receiving invoices resulted in the residents being undercharged for their electricity usage for the months of July – November 2021 as they were only charged for the cost of delivery and not for the actual supply of electricity. The revised billing reflects charges for actual usage so the residents are only being charged for the electricity that was actually being consumed by the residents in their individual units. To help alleviate any financial burdens or inconveniences for the residents, we negotiated a 10% discount for such electricity charges during those five months. In addition to the discount, we have offered residents payment plans so that these charges can be paid over the course of one year. It should be noted that the electricity billings at Manhattan Park only include actual costs for the supply and delivery of electricity and do not include any markup or profit. The ESCO has resolved their invoicing issues so we do not anticipate any further delays.

Manhattan Park management sent this April 25 letter to residents explaining their electricity bills

Dear Resident:

We are writing to you about your electricity bills at Manhattan Park. As you may be aware, the electricity bills that you receive each month are comprised of two separate charges: (1) the cost for the delivery of electricity; and (2) the cost of the electricity itself, or supply. Con Edison of New York (“Con Ed”) has always supplied and delivered the electricity to the residents of Manhattan Park.

In an effort to seek ways to reduce electricity costs, Management engaged with energy consultant Integrated Energy Partners Inc. to see if there were other energy companies that could supply electricity on a more cost-effective basis than Con Ed. After reviewing supply proposals with the consultant over several months, Management entered into a new agreement in June of 2021 with ENGIE Power & Gas LLC (“ENGIE”), an energy-service company approved by the NYS Public Service Commission, to supply electricity to Manhattan Park. Con Ed, however, remained as the company physically delivering the electricity to the site. Both ENGIE and Con Ed were to provide separate bills to Management for their respective services, ENGIE for electricity supply and Con Ed for electricity delivery. In turn, Quadlogic Controls Corporation (“Quadlogic”), the independent third-party submetering consultant, would utilize these bills to calculate the charges to bill the residents only for their portion of electricity usage.

Unfortunately, due to an administrative error at the start of the ENGIE agreement that was further magnified by the ongoing COVID-19 pandemic, the first five months of ENGIE’s electricity invoices for the supply portion of the charges (covering the period of July-November 2021) were not received by Management. As a result, all electricity bills for the months of July-November only included the delivery charges applicable to electric usage but did not include charges for the actual electricity itself. Notwithstanding the delayed billing, these amounts are due and owing under your lease and will need to be paid by the residents. Your apartment’s outstanding electricity supply charges for the five-month period in question will be shown as a separate line-item in your next billing statement from Quadlogic.

We recognize that this could create a financial burden on residents, so we have formulated a plan to assist. Please note the following:

1. Management was able to negotiate a 10% reduction from ENGIE for the outstanding charges. This discount will in turn be passed onto the tenants in full as part of the retroactive billing. To reiterate, residents will only be charged for the electricity that was supplied and used (but not yet billed for) during this five-month period.
2. Management is willing to offer all residents a payment plan of up to 12 months (depending on the remaining term of your lease) to repay the outstanding amounts. If your household needs additional time to re-pay the outstanding ENGIE supply charges, please contact the management office at (212) 759-8660 at your earliest convenience to discuss the possibility of a longer repayment period tailored to your household’s financial circumstances.

We apologize for this inconvenience and would like to reassure you that we have taken steps to make sure that billing issues like this will not happen again. Please feel free to reach out to the management office if you have any other questions or concerns regarding this matter. 

Sincerely, 

GRC Management LLC 

On behalf of Roosevelt Island Associates 

The Manhattan Park spokesperson adds:

The Holiday Lights in the park area are not included in the residents electric bill.

CBS New York reports on huge increases in Con Ed electricity bills for NYC residents.

Roosevelt Island Manhattan Park Low Income Residents Speak Up For Affordable Housing At Town Hall Meeting - "Who's Going To Help Us, Who's Going To Stand Up For Us" They Ask Local Elected Officials

2-4 River Road is the affordable housing component of the Roosevelt Island Manhattan Park buildings complex with many elderly and low income residents.

During the June 28 Roosevelt Island Town Hall meeting with elected officials (full video of Town Hall here), Manhattan Park 2-4 River Road residents expressed frustration at being ignored by the Manhattan Park building management and local politicians.

After a discussion about Westview building privatization and affordability plan, a 2-4 River Road Manhattan Park resident grabbed the attention of those attending the Town Hall by saying:

 ... we are affordable housing also and they haven't told us if they are going to renew the contract with HUD which will keep us affordable. Also they discriminate against us all the time. They have submetering, they are profiting off the submetering and it seems like no one will help us....

.... Our voices are not being heard, maybe because we are labeled as just low income tenants so they don't care about us. But we're working class people too that also live on Roosevelt Island for decades and it is not fair that we constantly get ignored on Roosevelt Island. We matter too. Our children matter too. Our families matter too.

About the Manhattan Park Management it was said:

 ... They do not recognize us as part of their complex....

... They don't even call us Manhattan Park. They won't let us form a tenants association.

Last week they had a tenants appreciation barbecue and they didn't even invite us. I put up a sign in the Hallway/lobby telling everyone to come and they ripped the signs down and finally decided to invite us to the Tenant Appreciation Barbecue the day before and that's only because I made the tenants of Northtown Phase 2 aware that there was a Tenants Appreciation Day..

Who's going to help us? Who's going to stand up for us?....

Following the Town Hall meeting, Roosevelt Island elected officials offered to provide assistance to the 2-4 River Road Manhattan Park residents.

Last week, I asked 2-4 River Road Tenant Leader Association Board Member Eneaqua Lewis:

Is there any update and did the elected officials get back to you on these issues? Kallos, Serrano, Seawright?

Ms Lewis replied:

The only elected official that contacted me was from Senator Serrano’s office. They have been very helpful. Also democratic leaders from the Four Freedoms Democratic club contacted me, Ben Wetzler and Lauren Trapanotto. Ben is helping me start a complaint against MP management.

MP tried to shut us down because they said they didn’t consider us a “Real TA”. We provided them with paperwork proving we were members of the National Association of HUD Tenants. They then permitted us to have the community room for July 17. MP hasn’t confirmed whether they will show up to answer our questions.

Several tenants on our board have been harassed by MP, including but not limited to having our renewal leases denied or put on hold. At the Town Hall meeting a tenant of MP told me that MP routinely tries to deny giving a lease to anyone who participated in TA’s. As far as I know MP doesn’t have a TA besides 2-4 TA.

According to 76 Assembly District Democratic Party District Leader Ben Wetzler:

This is an extremely frustrating instance of harassment. The management company is clearly in the wrong, and by targeting a new tenants' association they are trying to strip residents of their right to address safety and affordability questions in the future. But the worst part is the tenants at 2 and 4 River Road are having to deal with all the stress of this at home while trying to navigate the bureaucracy without much help. I've been trying to put them in touch with an attorney in case they need to go to court over any of the lease issues and I understand Senator Serrano's office got involved as soon as he heard about what was happening, but there really needs to be a more straightforward way to handle these and a place they can go for support.

In response to my inquiry a Manhattan Park Spokesperson said:

Submetering Update: “As we’ve stated in the past, Manhattan Park purchases electricity from Con Edison at a bulk reduced rate that we pass through to the residents of 2-4 River Road, without any additional charges. Electricity prices are set by the utility provider and rates fluctuate, but the fact is that we are in complete compliance with all Public Service Commission regulations. Furthermore, residents in the affordable units receive a flat monthly utility allowance set annually by HUD based on consumption of the prior year, which often exceeds their energy consumption.”

Tenant Association Concerns: “Manhattan Park management has recognized a tenant association for 2-4 River Road and has provided the opportunity for a public meeting to take place in common space on the property.”

Tenant Appreciation Day: “All Manhattan Park residents, including those at 2-4 River Road, were invited to the Tenant Appreciation Day and in fact many residents from the property in question attended the event. Notices were posted in every building throughout the complex with significant notice.”

Will update when more info available.

Elderly Roosevelt Island Residents Freezing In Their Manhattan Park Apartments Unable To Afford High Electricity Bills, We Need Help Pleads Resident - Building Management Says Con Ed Increased Electricity Rates

Are elderly Roosevelt Island residents freezing in their Manhattan Park 2-4 River Road apartment

because they can't afford the high electricity bills charged by Manhattan Park management?

According to a March 4 Roosevelt Island Daily story:

... "I am a tenant who wishes to remain anonymous. My heating bill has tripled and so has the rest of the building's bills. Apparently management is saying they have to increase our rate. My family members' rent every month is only $139. How am I supposed to pay a $300 electricity bill? Especially when the heaters haven't even been used? It's cold everyday in my home because we don't use the heaters due to the electricity bill being unaffordable. Please help us. The elderly in [deleted] River Rd are so scared on their fixed incomes with rent at $120- $175 and heating bills at $400. Most people don't use the heat. They stop sealing our A.C and won't explain why. So, there's plenty of draft. I write to you at 2am at the age of 72 under 3 blankets and freezing. We need help"....

Click here for full Roosevelt Island Daily story.

2-4 River Road is the affordable housing component of the Manhattan Park buildings complex with many elderly and low income residents.

Winter storm is coming tomorrow.

Snow will begin as early as 10 PM tonight. We are monitoring this storm and will have updates throughout the day, so keep your eyes on this channel as well as @NYCOEM and @NotifyNYC. https://t.co/s8jC1uGcX3

— Bill de Blasio (@NYCMayor) March 6, 2018

The National Weather Service has issued a Winter Storm Warning for #NYC from 3/6, 10:00PM to 3/8, 4:00AM. 6-12" of snow possible. Roads may be dangerous & strong winds may cause power outages. Use caution when walking, biking, or driving. For more info: https://t.co/zpmE9Tb9QW pic.twitter.com/eHdHmSBsoy

— NYPD NEWS (@NYPDnews) March 6, 2018

In response to my inquiry, Roosevelt Island's NYC Council Member Ben Kallos replied:

No one should be freezing in their own apartment in this City. Our Office is working to get in contact with the residents referenced in the story. Once that occurs we will do our best to get them the help they need through the City's resources.

According to a spokesperson for Manhattan Park management:

Management understands how fluctuating heating costs can impact monthly household budgets, especially for those living on a fixed income.

But electricity prices are set by Con Edison, the local utility provider for the property. Unfortunately, Con Edison increased their rates significantly during the last billing cycle due to the extremely cold weather at the beginning of the year, impacting all New Yorkers.

To help keep electric costs down, we purchase electricity from Con Edison at a bulk reduced rate that we pass through to the residents of 2-4 River Road, without any additional charges. Further, residents in the affordable units receive a flat monthly utility allowance set by HUD, which throughout the year often exceeds their energy consumption.

We also offer our residents a level payment plan option, which spreads electricity costs over the full year. But with the coldest months likely behind us we are hopeful that electricity rates will return to a more normal range on the next billing cycle, and remain more constant throughout the year.

Very high electricity charges are a long time issue for many Manhattan Park residents as seen from this 2013 post.

High Monthly Electric Bills Worrying Roosevelt Island Manhattan Park Residents - Building Agent Grenadier Realty Says Cold Weather Only Part Of Explanation For Increased Costs

Understanding Your Con Ed Electricity Bill from NY Times

Have you experienced a large increase in Con Ed electricity bill for your Roosevelt Island apartment recently? Some Manhattan Park residents answer yes. Earlier today, Manhattan Park building management sent the following notice to their residents concerning increases in monthly electricity charges:

Notice to 10, 20, 30, 40 River Road Residents

Re: Electricity Charges

Ladies and Gentlemen:

As you are aware properties serviced by Consolidated Edison, including Manhattan Park, have experienced an unexpected and significant increase in monthly electric charges. However, there may be some misconceptions about the causes of these increases.

Management and ownership are concerned about the impact of these rates on our residents as well as our own electric charges for the Property’s common area. We purchase electricity directly from Con Ed at a bulk rate, which is cheaper than the rate that would be charged to individual residents by Con Ed on a direct meter. The Con Ed billing then is passed on to residents based on submetered individual unit usage. We are prohibited from making a profit on submetering by applicable legal requirements, but we are permitted to charge an administrative/service fee. It is important to point out that our submetering authorization policies and procedures have been approved by the New York State Public Service Commission (the “PSC”).

The Northeast has had an extremely cold winter, exacerbated by what is called a polar vortex. As a result, demand for heating has been very high. The cold weather, however, only tells part of the story of the increased electric bills. Con Ed recently significantly increased their billing by 54%+ in January, purportedly because of its increase in costs of purchasing electricity, that Con Ed passes on to its customers.

These increases are not unique to Manhattan Park, but rather apply broadly to Con Ed customers and would have been even higher if Manhattan Park did not purchase electricity at Con Ed’s bulk rate.

According to a March 7, 2014 article in the Albany Times Union, New York State regulators, including the PSC, have formally requested the Federal Energy Regulatory Commission (“FERC”) to investigate the reasons for these increases. We intend to monitor the FERC complaint closely and will consider involvement to the extent it would be productive. For your information, a copy of this article is enclosed.

Finally, we would like to remind all residents to review the annual Home Energy Fair Practices Act (HEFPA) Notice that was distributed to the Tenants and the HEFPA Submeter Rider attached to all leases, which provide for a billing dispute resolution process that was required by and approved by the PSC, and also calls for a level billing option if requested by a resident or a deferred payment agreement based on a means/needs test on the terms provided therein.

High electric bills are of great concern to our residents, as well as to us. We are taking all necessary steps within our power to support the efforts to reduce electric costs. We will share useful information about these efforts with our residents.

Sincerely,

Grenadier Realty Corp. as agent for

Roosevelt Island Associates

A group of about of about 20 Manhattan Park 2-4 River Road residents recently met with with a representative of NY State Senator Jose Serrano to express their concerns about the recent high electricity bills and fears that they would be evicted from their apartment for not being able to afford the increases. The Serrano representative said that his office would look into the matter.

More on Manhattan Park electricity charges from previous posts and here's September 2013 Manhattan Park submetering filing with the Public Service Commission.

GreenHome NYC Spotlight On Sustainable Roosevelt Island At REI SOHO Store Tonight - Cornell Net Zero Building, Verdant East River Tidal Turbine, Octagon Fuel Cell & NYSERDA Discussed

Image Of Verdant East River Tidal Turbine

Want to learn more about Roosevelt Island clean energy projects?

 Image Of Octagon Building Fuel Cell

Then this program from GreenHome NYC is for you.

According to GreenHome NYC:

August Forum – Spotlight on Roosevelt Island
July 28, 2013

New York is a city made up of islands, so Roosevelt Island, the 2-mile long island in the East River might seem unremarkable, but it features a wealth of unique systems and a rich history that are worth taking a moment to examine! That’s why in August we’ll be doing one of our Spotlight features on it. We’ll hear about the planned Cornell Tech campus which will break ground in 2014 and will be home to NYC’s largest net-zero building, learn about the tidal turbines that are grid-tied to the Island (the first such system in the world!), and hear about some of the sustainable buildings on the Island. It’s going to be a great evening and we hope you’ll join us for it!

Date: August 29, 2013

Time: 6:30pm – 8:00pm

Place: REI Community Room, 303 Lafayette St., New York, NY 10012

Click here to register!

Please plan ahead to arrive promptly. Our spaces are donated to us so we must keep to the schedule we provide.

Our speakers will include:

Ron Smith, President, Verdant Power

Michael Razanousky, Project Manager, NYSERDA

Julie Hiromoto, Associate, Skidmore, Owings, & Merrill

Michelle Lauterwasser, Associate, Becker + Becker

More information on Roosevelt Island green energy projects, including Roosevelt Landings energy savings retrofit of building systems and installation of cogeneration power, at this previous post.

Did you know that:

An #NYC fact to share at #CityLab: Roosevelt Island residents use the most energy per household in the city http://t.co/ik2geUTgGs
— AtlanticLIVE (@Atlantic_LIVE) August 26, 2013

Roosevelt Island Power Outage This Morning For Manhattan Park, Octagonand Portions Of Westview - Con Ed Responding To Outage Reports OEM

Getting reports from residents of a power outage at the north end of Roosevelt Island including the Octagon, Manhattan Park and portions of Westview.

Power outage at Manhattan Park on Roosevelt Island - 5:48am.
— Mark Lyon (@markhlyon) May 24, 2013

NYC Office of Emergency Management (OEM) tweets.

Con Ed responding to an outage on Roosevelt Island (MN).To report a loss of electric service, call 1-800-75-CONED
— NYC OEM - Notify NYC (@NotifyNYC) May 24, 2013

A reader reports:

My husband called Con Ed. Power issue affects 625, Octagon and Manhattan Park. There is a problem with the feeder that provides power to those buildings on the island. According to Con Edison, this issue should be resolved by 11 am.

From another resident:

Note buildings like 40 river are required to have back up lighting in stair wells in case electricity is lost. 40 river does not have such back up lights installed. Stairwells pitch black. They should bring the building up to fire code standards.

UPDATE 9:15 AM:

Con Edison asks Roosevelt Island (MN)customers to reduce the use of electrical appliances and A/C units. To contact Con Ed at 1-800-75-CONED
— NYC OEM - Notify NYC (@NotifyNYC) May 24, 2013

Resident Lynn Strong-Shinozaki reports:

There is some belief that the Blackout is related to the fire on the Koch bridge and/or related to flooding with the power station or both. Students are at ps/is 217 are being given the day off as well as some of the Childschool students are being sent home. We have asked that they consider using sports park as a place for people to go if the do not resolve this quickly. They are in the process of evaluating the 2/4 River Road for the needs of the seniors and disabled. Do we know who might need to be checked in the other buildings? We hope they can set up temp. charging places... the power is also out at the RIOC office.

Robert K adds:

The south tram is also out of service right now; the expected crowds are forming. (Unsure if this is separate from the power outage or in response to con Ed conservation request)

From Nikki Leopold of Island Kids:

TO ACCOMMODATE THOSE WHO ARE AFFECTED BY THE POWER OUTAGE

ISLAND KIDS WILL BE OPEN ALL DAY FOR OPEN PLAY STARTING AT 10:00.

THIS IS FREE OF CHARGE

PLEASE NOTE THAT SPACE IS LIMITED SO PLEASE ONLY COME IF YOU ARE IN A BUILDING WITHOUT POWER

WE WILL HAVE WATER AND SNACKS AVAILABLE

The address is 536 Main Street in the courtyard behind 510 and 540 Main Street under the ramp.

I'm trapped on Roosevelt Island.... F is out and only 1 tram is working! #happyFriday twitter.com/glojo57/status…
— Gloriana Lucido (@glojo57) May 24, 2013

Update 10:10 - According to Roosevelt Island Operating Corp President Charlene Indelicato, four out of five Con Ed feeder cables serving Roosevelt Island are out. Ms Indelicato urges residents to limit non essential electricity uses so that the fifth feeder cable does not go out as well.

Update 11:35 AM - After briefing by OEM, Con Ed and other emergency personnel, Ms Indelicato reports no change in power outage status but urges residents Not To Flush Toilets until power restored. The next update from RIOC will be at 3 pm

UPDATE 12:50 PM - Press Release from Con Ed earlier this morning:

Con Edison is asking customers on Roosevelt Island to conserve electricity due to problems on electrical equipment serving this area.

The company implemented voltage reduction as a precaution to protect equipment and maintain service as company crews work to repair the problem.

Con Edison is asking customers on Roosevelt Island not to use appliances such as washers, dryers, and other energy-intensive equipment and to turn off lights and televisions when not needed until the equipment problems are resolved.

Customers can report outages and check service restoration status at www.coned.com/reportoutage or by calling 1-800-75-CONED (1-800-752-6633). When reporting an outage, customers should have their Con Edison account number available, if possible, and report whether their neighbors also have lost power. Customers who report outages will be called by Con Edison with their estimated restoration times as they become available.

The equipment problems on Roosevelt Island have no effect on the rest of the Con Edison system. Con Edison will provide updates to affected customers both directly and through the media as the situation warrants. The company is in constant communication with the New York City Office of Emergency Management.

Con Ed outage map states that there are 4 Roosevelt Island outages affecting 26 customers with an estimated resumption of service at 5 PM. No idea how they came up with only 26 customers affected when there is no power in the Octagon, Manhattan Park and Westview buildings with more than 2 thousand total apartments.

Roosevelt Island's PS/IS 217 Principal Mandana Beckman reported:

There continues to be no power at school. This morning the students were relocated to Good Shepard Church. We plan to remain there for the day but will walk back to the school for dismissal. We will dismiss students from the school at 2:50pm unless parents decide to pick up their children earlier. All of our staff made it to work and the few students that remain are busy.

Rabbi Zalman Duchman adds:

Chabad Lubavitch of Roosevelt Island is going to host a special Shabbat dinner tonight for all those effected by the blackout.

Contact Rabbi Zalman and Nechama Duchman via email Nechama@RIJewish.org or call 212.652.5660 for info and RSVP

Tonight, 7:30 pm at 425 Main St.

Please visit elderly and homebound neighbors to make sure they are okay.

UPDATE 1:25 - Bright Horizons Pre-School at the Octagon sent out this message to parents:

Dear Families,
While Bright Horizons does have power the building does not. The center is connected to the water supply pumps which are not operational. As the day goes on the supply of water is being reduced to the classrooms. The estimated time for power to be returned to the building is late afternoon / early evening. As per licensing we can not operate the center without running water. We are asking families to pick up no later then 3:00pm. We do apologize for the inconvenience. For the health and safety of the children and faculty we can not remain open without water.

.@conedison: Customer Outreach Vans at 591 Main Street in Plaza at Roosevelt Island. Will assist answering questions & addressing concerns.
— NYC OEM (@nycoem) May 24, 2013

UPDATE 3:10 PM - Receiving reports from Octagon residents that power is back in their building. One resident adds that according to Octagon building management:

We were asked by Con Ed to try to use minimal power as only one "grid" is up at the moment. If it gets overloaded we might loose power again. We will try to minimize usage in other areas of the building.

UPDATE 9:20 PM - Power restored - more info here.

RIRA Rep Seeks Answers To Manhattan Park Electricity Submetering - As A Result, Building Management Invites Rep To End Leasehold, They Don't Want Unhappy Tenants

Understanding Your Con Ed Electricity Bill from NY Times

Roosevelt Island Residents Association (RIRA) Manhattan Park Common Council Member Mark Lyon reports:

Manhattan Park and several other Roosevelt Island housing developments submeter electricity instead of allowing residents to purchase their electrical service directly from Con Edison.  While controversial, the NY Public Service Commission has strongly pushed submetering as an environmentally friendly measure that provides incentives for conservation and which also has the potential to offer electrical service at a lower rate than direct metering.

Unfortunately, efforts at submetering have neglected to consider a number of issues including the loss of incentives for landlords to provide energy efficient structures and appliances and the risk that some landlords may not be well suited to also performing the duties of a utility provider.  Coupled with the regrettable decisions of RIOC and its predecessor organizations in failing to require developers to make use of the existing island steam plant for effective, low-cost district heating, Roosevelt Islanders find themselves, in many cases, paying significant sums for electric heat to keep their apartments at a comfortable temperature during cold weather.

In December, the PSC adopted new rules for submetering. After reviewing these new rules, I thought it prudent, as a member of RIRA, to evaluate the impact of these changes on my electrical service and at similar submetered buildings on the Island. To legally submeter electrical service, individual PSC orders granting such authority to each development are required. As an initial step, I sought out the approved orders for all Roosevelt Island buildings.  I was able to easily locate the orders for The Octagon and Roosevelt Landings, but not for Manhattan Park.  When I submitted a records request, the PSC indicated that no such order could be found.

I reached out to the Manhattan Park management office, but received no response to my request for evidence of their approved submetering order.  As a result, I registered a complaint with the Secretary of the PSC, expressing my concern over the lack of an accessible copy of the order and also pointed out several issues with the way submetering is handled at the complex.  Many of the concerns I outlined have been shared with me by numerous other residents and affect everyone.  Fearing retaliation, however, few are willing to approach the management office with their concerns.

Manhattan Park responded by sending documents they claim indicate their approval to submeter and ignoring the other complaints.  In their response, they note that I am a “market rate tenant” with “market rate electrical consuming devices, the use of which [I] should pay for.” My complaints, however, are not about receiving free electricity. Instead, they are about ensuring management operates in accordance with the rules, laws and protections afforded to utility customers. Manhattan Park then invited me to end my tenancy (even though I have a year remaining in my lease) because they “prefer to have tenants who are not unhappy with their leasehold.”  I visited the management office and requested the attachments (which they intentionally omitted from my copy of the response), but the request was refused; I was instructed to contact the PSC for copies.

Finding this response more than a bit odd, I contacted the PSC to request copies of the attachments and to reiterate my concerns with the handling of submetering at Manhattan Park.  Those attachments have not yet been provided.  Even if the attachments to the letter demonstrated proper authority to provide submetering, there are still concerns to be addressed.  These include:

* Potentially charging more for electrical service than would otherwise be charged if tenants received directly metered service (violating the PSC's "rate cap" applied to most submetered service).

* Requiring a utility deposit before providing service (generally, utility deposits are allowed only in circumstances where a customer has a track record of missing payments).

* Failing to provide utility bills in a clear and understandable form.  Currently, the utility charges are added as a line item on our rent statements, showing a total kWh usage only.  PSC rules require additional information, including present and previous meter readings, on bills.

* Requiring excessive late fees.

* Delivering combined rent and utility bills on or after the due date.

* Failing to provide yearly Home Energy Fair Practices Act notices.

Two of the most critical issues with utility billing at Manhattan Park are the late distribution of bills and the lack of information about the service provided. Without access to the meters, historical readings or to the rates that will be charged, residents have no way to measure their electrical usage and anticipate the charges that might appear on their next bill.  Giving residents precious little time to pay before imposing late charges, while simultaneously providing almost no transparency creates a situation in which tenants can be easily abused.

The Public Service Commission is currently investigating these complaints.  Other complaints regarding overcharging, cross-wiring (where the power that you pay for is used for things outside your apartment like hallway lights or ventilation fans), billing practices (including threats of eviction or excessive late fees) or any other issues can be reported to the PSC online, by phone or by mail.  If others are experiencing issues with their submetered electrical service, I urge them to contact the PSC.

I asked Manhattan Park management if they wish to comment on the matter. They have not replied but will update if they do comment.

Are Electricity Charges At Roosevelt Island's Manhattan Park Correct? Ask Roosevelt Island Google Groups-They Help Residents Organize & Solve Problems

Understanding Your Con Ed Electricity Bill from NY Times

A resident of Roosevelt Island's Manhattan Park (MPR) was unhappy with recent large electricity bills received and asked the Manhattan Park Google Group:

I would like to know if anyone has been experiencing high utility costs for the months of January and February. I had a bill of $324 for January stating I used 1967 kwh, for a 1 bedroom apartment! My bill was $224 in February. Exactly $100 less, and my bill came to me a day late. Maybe because I am currently in a battle with Management regarding this issue?

I have not seen any recent posts, but I can see it's been a problem since 2008. I had drafts coming in around my heating registers that needed to be insulated, and it took Maintenance a month to get around to taking care of it. I was told I was still accountable for the high usage by Management. Even though Maintenance did not show up when they said they were going to, never returned any of my calls, etc. They finally picked up the phone when I was leaving a voice mail for Management stating that Maintenance was avoiding me, and I wasn't going to be paying my utility charges. I have sent an email documenting what has been going on to Management. I also informed Management that they need to educate the leasing agents on the actual cost for the charges, since I was told the average was $90- $110/mo.

I asked to have Management reply to my email in writing so I could discuss this with my attorney, and if I did not receive it by April 1st, I would withhold my payment for the utilities. Of course I have not received a written response. And from what I am finding, Con Ed, 311, the NY State Public Service Commission cannot help me, because I need to have something in writing from Management.

They know how to play this game quite well obviously. And it is a known fact that large property managers that sub-meter utilities within their buildings are constantly getting into trouble for false information provided to tenants, in order for them to have financial gain. I am currently working on filing a complaint with the Attorney General. Does anybody know if we have a representative at Manhattan Park that is on the Common Council RIRA? If Manhattan Park is supposed to be receiving such great rates by buying their utilities in bulk, why are the tenant charges so extreme?

In response to a reader who responded that the increased electricity charges were similar to others at this time last year and just a normal reflections of cold, winter months, the MPR explained:

I have been living in NY for 4 years, this winter was no worse than any other. The temperature only dropped below freezing a few days out of the season. I'm from Cleveland originally, I know what freezing weather is like. Everyone else that I have spoken to that lives in Manhattan thinks this is a completely outrageous charge for
electricity. There is something wrong with my bill, because I was out of town with everything shut off for 9 days and still had a $224 bill. Did you pay $324 for your bill in January? Until I see something in writing, or my actual meter reading I can't accept this is a normal charge. Con Ed even told me this charge was high. Previous tenants that lived in this exact building only paid $60 for their heat when they were living there. We're being ripped off...

A former Manhattan Park resident (FMPR) chimed in:

There's also the issue that your unit is also probably facing manhattan. You don't get sunlight to help heat your unit during the day.

If you notice, your summer bills are much lower than the people that are facing queens, because they get much more sunlight, they have to cool more.

Turn off your heaters when you are not home, that should help a bit.

I had the same exact issue during winter before I moved out. I installed my own temporary meter to compare against what i was being billed and it was right on the money.

The electric usage is high because the building has poor insulation, the heating is electric and you are not getting enough sunlight.

What you can request is to have an independent consultant to install a meter inside your unit and compare to your bill.

MPR replied:

Thank you, I do already turn my heat off all day. And only run it in my BR on low at night. I unplug everything as well. I guess I'll have to get a meter installed.

Followed by FMPR:

That's what I did because I refused to believe the charges.

I did the test myself as well so I could control everything.

The results confirmed my fears that everything was OK. Needless to say I was not happy at all. But the data didn't lie.

After I put all variables in, i figured out the high usage. Insulation and sunlight. This building was made 15-20 years ago for the purpose of renting, the developer most probably took advantage of incentives to build in Roosevelt Island and didn't insulate enough.

To balance that, they installed electric heat, so they didn't have to be responsible for heating. I used to live in manhattan for many years and the heat in those buildings is primarily oil based, which means that builders spend more on insulation so as to reduce heating costs.

Put a meter inside your apartment and verify the readings. I can recommend a company that can do these tests for a fee if you want (not associated with me at all. I work in retail).

Cheers and good luck

A Manhattan Park Roosevelt Island Residents Association (RIRA) representative added:

My husband and I both live in 10 River Road and are current RIRA representatives.

The electricity charges in both our buildings and "Roosevelt Landings" have been brought up at RIRA before, but unfortunately the electric issues are building specific and are generally referred back to the private management companies. Because we don't have an organized tenants' association (management opposes the organization of one), we have no real way to oppose these things together.

I would say that $100 is about the average electric bill for 1brs in Manhattan Park. We live in a north facing 1br unit and pay $35-40 a month - BUT we do not use the heat or ac. In the winter we bundle up and in the summer we run fans in the windows. Your usage will be lower if you only turn your heat on long enough to warm up the bedroom and then turn it off when you go to sleep.

Your first step would be to, as another tenant suggested, get a second opinion on your usage. You may want to ask maintenance to come up and make sure your heating unit is working properly, and if you have a number of old appliances (ie the original fridge, microwave and dishwasher) you may be using more electricity than other tenants - we had our fridge replaced by complaining that the ice maker didn't work.

Feel free to email me if you have any other questions or issues you would like to be raised at RIRA meetings.

MPR closes with:

Thank you all for your feedback. Much appreciated.

This was an excellent example of online Google Groups assisting Roosevelt Island residents to communicate with each other in order to solve, or at least gain additional information, on specific buildings issues or problems. In addition to Manhattan Park Google Groups, similar groups are available for residents of other Roosevelt Island buildings. More information on these groups available at:

• Riverwalk Group
• Rivercross Group
• Westview Group
• Island House Group
• Roosevelt Landings/Eastwood Group and
• Octagon Group
  

Registration is required to join these groups and is only open to residents of the particular building.

Are Roosevelt Island Manhattan Park Residents Being Billed Correctly For Electricity Charges? Fill Out The Survey and Find Out!

Understanding Your Con Ed Electricity Bill from NY Times

The NY Post reports today on Con Ed electricity over charges:

Each New Yorker overpays $114 a year for electricity thanks to state policies that set the highest possible prices for power, according to data released yesterday by a state legislator.

The overcharges add up to $2.2 billion annually, and have cost the state economy "thousands, if not millions of jobs," says the study released by Assemblyman Richard Brodsky (D-Westchester).

Some economists say that paying power-generating companies the highest possible price ensures they'll keep electricity flowing, but Brodsky calls the system "an elegant form of price fixing."...

Eastwood/Roosevelt Landing is not the only Roosevelt Island building concerned with very high electricity bills and residents trying to organize, share information and protest if the electric bills are inflated. Roosevelt Island Residents Association (RIRA) delegate Isabel Perez-Cruz is investigating whether Manhattan Park is overcharging their residents for electriciy and she sends the following message:

Manhattan Park Electricity Request

So, if you live in Manhattan Park and believe you are being overcharged for electriciy usage, please fill out the form and send it to Ms. Perez-Cruz. There is also a Google Group for Manhattan Park residents. If you wish to join, click here and advise which building you live in.

What's the Deal With Manhattan Park and Roosevelt Island Electricity Charges?

You Tube video of School House Rock - Electricity

According to Daily News columnist Bill Hammond:

this year's legislative session has been dubbed the "Seinfeld session" - the session about nothing.

He details many issues the legislature should be addressing right now but are not including:

... finding a way to lower electric bills and keep the lights - and air conditioning - on during heat waves.

Which leads me to this question posed by a Manhattan Park resident:

I had a question regarding electricity on RI. I am a tenant at Manhattan Park and when I first moved in I was told that the island gets its electricity in bulk. I didn't think to ask for more information about that at the time, but now I am curious. I was wondering if you had any information about the way the island gets its electricity.

Readers from this post last September on the Manhattan Park pool provide some information on Manhattan Park electricity charges. For instance:

I do not think Manhattan Park disclosed much when we were looking for a new apartment. So far we've been met with a $400.00 utility bill in February. We leave for work at 7 and are home at 7 and we were not home for 2 weekends out of the month. We tried to contest it but to no avail....

And:

I agree wholeheartedly with the outrageous utility bills at Manhattan Park. Ours was over 300 bucks last month. I'm afraid to see what winter brings in. Not only was this not disclosed when we moved in, the paperwork suggested that because Con Ed charges Manhattan Park a sort of bulk rate, that our utility portion of our rent would be LOWER!

Clearly not the case.

More:

I completely forgot about the sell on the bulk rate! Our utility bill is higher in the winter which was never the case in other apartments. Their excuse for the sudden increase was that the cost went up that month. That didn't settle with me but it was either pay it or end up in court. Manhattan Park is known to be very aggressive with tenants who pay late and/or not the total amount of rent.

A possible explanation:

while electric bills are outrageous at Manhattan Park, it likely has nothing to do with the rate and everything to do with the crap heating/cooling units, especially with regard to heating. Forced air is notoriously inefficient, and the units at Manhattan Park are mindblowingly inefficient.

Aside from Manhattan Park electricity bills, the NY Times reported in March 2008 that:

Residents of New York City will see the biggest one-time rise in their bills for electric service next month, after state regulators approved a $425 million increase in rates for Con Edison on Wednesday.

The typical household in the city will pay about $4.25 more each month for the delivery of power by the company, whose string of recent failures and disasters has drawn heated criticism from customers and elected officials, regulators said.

Answering the reader's question, to my knowledge Roosevelt Island does not receive any electricity on an Island wide basis but each individual building is responsible for itself. When I lived at Manhattan Park I recall being told that the entire complex purchases electricity in bulk from Con Edison at a discount (something like buying wholesale rather than retail) and then passes on the savings to the tenants without charging any mark up for a landlord's profit. Each apartment is individually metered so that, in theory, a tenant pays for the electricity consumed. I don't know if this works in practice though.

I suggest taking a look at your lease agreement. There is probably a provision permitting challenging electricity charges with an energy audit. Talk to some of the other tenants about their electrical bills and perhaps a group of tenants can jointly get an energy audit done.

Here's some information on auditing electricity bills from 2004 Cooperator, a co-op and condo newsletter:

The Utility Bill Audit

Another kind of audit is the utility bill audit. These audits can be done by the actual customer, but isn't as likely to be quite as effective as hiring an auditor who specializes in the utility market.
In this case, the auditors/consultants will request a copy of the customer's electric bill, usually one month. The consultants can then go to Con Ed and get two years worth of information on the customer's energy usage for free, and four more years can be purchased - usually at the expense of the consultant - for $15 per account per year.
With six years worth of bills, the auditor or auditors will look for any mistakes or errors and look for billing reduction opportunities. If opportunities are found, they're implemented, and the auditor will also visit the building to look at the meter and make sure it is on the right rate, and that the meter multiplier that is on the meter matches the meter multiplier on the bill. The auditor sometimes removes unnecessary equipment the customer is paying for, determines how the building is heated or cooled, and works to determine if the building qualifies for a better rate.
A credible utility bill auditor has a good relationship with the utility company, and understands their billing, rates, and other factors that will allow them to find the kind of savings most customers may never be able to identify on their own.

Also, the Cooperator on bulk electricity sales:

"In buildings with individual meters, the building will purchase the energy from the utility in bulk, rather than each individual apartment buying energy. When submetering is installed in a directly metered building, the utility no longer bills each unit. It bills the whole property at the established bulk rate, which can be 18 to 25 percent less than the individual residential rate.

I would think this information applies to a rental building as well. Hope it helps. Also, check out the New York State Energy Research and Development Authority (NYSERDA) for energy cost saving programs and ideas.

If you live in a building with five units or more, NYSERDA’s Multifamily Performance Program connects with building owners, property managers and other housing organizations to improve the energy efficiency of the building to reduce energy costs for tenants and provide a more comfortable living environment. This Program provides a customized approach to energy efficiency using a Multifamily Performance Partner that can guide the building owner through every step of the process.

One final resource that may help is Submeteronline, a web site providing information on electricity cost saving options for residential buildings though it has not been updated since 2005.

I asked representatives of Manhattan Park for comment but they have not replied.

UPDATE - 8/10 - Interesting explanation from NY Times on how to read your electricity bill.