Buffalo, N.Y. (WBEN) - The New York State Public Utility Commission approved NYSEG's and RG&E's rate hike request Thursday. But the commission reduced the rate hike by half.
"The forward-looking plan we have adopted benefits customers and includes provisions that further important State and Commission objectives," said Commission Chair Rory M. Christian. "With today's decision, NYSEG and RG&E are required to pursue important energy-efficiency initiatives among other progressive policies, to advance the goals of New York State's nation-leading climate change targets, while mitigating bill impacts for most low-income customers, as part of New York's energy affordability policy."
The PSC says because of the ongoing investigation into billing and complaint issues at the two utilities, the joint proposal includes negative rate adjustments totaling $18.5 million to be applied for ratepayer benefit and used to lower rates going forward. The PSC adds the increases in rates over the three-year term of the electric and gas rate plans are necessary to meet increased company costs, including increases in the property tax burden, and to support spending for capital improvements and employee additions, which are necessary to improve electric and gas operations and enhance overall electric and gas system integrity, safety and reliability.
The commission adds the companies sought a total of $447 million in the first year while the rates approved Thursday provided $217.3 million in the first year, roughly 50 percent less.
State Senator Rob Ortt's remarks above came prior to Thursday's announcement in a segment to air Sunday on Hardline with Joe Beamer.
Following the PSC's announcement, Ortt issued the following statement: "I commend the Public Service Commission's unanimous decision denying petitions that would increase the renewable energy certificate costs for a number of large scale renewable energy projects by $12 billion, a cost that would have been forced onto ratepayers. Unfortunately, I am disappointed that the Public Service Commission also decided to move forward with a utility rate increase at a time when hard working New Yorkers are struggling. The Senate Republican Conference supports a transition toward a clean energy future but it must be done in a responsible, reliable and safe manner, while maintaining just and reasonable rates through complete transparency and competitive markets. Our conference will continue to advocate for complete cost transparency when it comes to the Climate Leadership and Community Protection Act, as we have done since its passage in 2019."
Prior to the PSC decision, Bill Ferris of AARP NY called the request unacceptable. "If you look at the termination rates, and how many people are behind on their bills in the NYSEG area, 127,000 households are 60 days behind on their bill. There were 41,000 termination notices sent to those households in August, and there's 4167 households were terminated from service in the month of August. So when AARP looks at those numbers, and we see as high as 62% delivery rate increase on electricity in the NYSEG area, we think those are too much because people can't even afford their bills now," explains Ferris.
Following the announcement, AARP New York State Director Beth Finkel issued the following statement in response to Thursday's actions by the State Public Service Commission (PSC):
"State utility regulators took a big step forward but also a big step backward today. PSC Chair Rory Christian along with other commission members showed great leadership today by denying requests for $12 billion in additional money from ratepayers to fund various offshore wind projects. Chairman Christian stood with residential ratepayers – who should not be used as a piggy bank. It is our understanding that Governor Hochul opposed these harmful requests and their potential impact on residential ratepayers. AARP New York supported and agreed with the Governor when she called initial electric and gas rate hikes proposed by New York State Electric & Gas (NYSEG) and Rochester Gas & Electric (RG&E) 'outrageous and unacceptable.' But the PSC today approved these rate hikes, which are little changed from the original proposal's impact on customers' bills. As is typical practice, the utilities came in with a one-year proposal and the rate increase approved today stretches that proposal over approximately two and a half years. The PSC should have rejected one of the largest rate increases in recent memory. At last count, over 127,000 residential NYSEG customers were more than two months behind in their bills, owing nearly $82 million combined, and nearly 77,000 RG&E residential customers were over two months in arrears, owing over $65 million, according to the PSC's own data. Each utility company issued final shutoff notices to over 41,000 residential custom ers.Clearly, too many New Yorkers already can't afford their bills – much less absorb the average $935 increase in the NYSEG service territory and $807 in RG&E during the two-and-a-half-year term of the hike approved today.The PSC's approval of this unprecedented 62% increase in electric delivery rates for NYSEG and double-digit increases for RG&E will only make matters worse for too many already-struggling New Yorkers."
